focus focus annual report focus focused prioritizing game changing initiatives capturing growth opportunities realizing efficiency gains leveraging strong business platform driving sustainable profitable growth securing long term success hugo boss love fashion change fashion become leading premium tech driven fashion platform worldwide eur billion group sales eur million free cash flow eur million ebit eur per share dividend proposal key figures comparison watch video new denim line hugo blue group strategy ceo daniel grieder reflects fiscal year strategic partnership david beckham group strategy consumer touchpoints innovative customer loyalty program highlights focus brand heat explore online focus customer loyalty explore online focus sustainability explore online letter shareholders managing board report supervisory board supervisory board share group profile combined non financial statement report economic position outlook report risks opportunities overall statement business performance situation group corporate governance corporate governance statement compensation report legal disclosures consolidated income statement consolidated statement comprehensive income consolidated statement financial position consolidated statement changes equity consolidated statement cash flows notes consolidated financial statements fiscal year additional disclosures combined non financial statement responsibility statement auditor reports general information forward looking statements ten year overview contacts legal notice financial calendar shareholders corporate governance consolidated financial statements combined management report additional information due rounding numbers presented annual report may add precisely totals provided annual report annual report also available online offering many interactive features annualreport hugoboss com digital annual report learn contents corporate governance consolidated financial statements additional information combined management report shareholders annual report chapter shareholders letter shareholders managing board report supervisory board supervisory board share corporate governance consolidated financial statements additional information combined management report shareholders annual report letter shareholders dear shareholders dear readers since beginning claim journey hugo boss achieved significant milestones along strategic priorities investing brands products consumer touchpoints fueled momentum boss hugo achieved trend growth fiscal continued growth trajectory increased group sales new record level eur billion despite challenging market environment sharp industry slowdown backdrop important ever foster customer centricity focus impactful initiatives create unique brand experiences deliver exceptional products deepen customer engagement navigated external headwinds also strengthened brand relevance daniel grieder chief executive officer corporate governance consolidated financial statements additional information combined management report shareholders annual report particular highlight enhancing brand experience addition soccer legend david beckham boss brand key face brand campaigns also multiyear design partnership time various marketing activations including successful boss fashion show milan hugo formula event miami drove excitement globally expanded social media reach throughout year remained steadfast commitment creating exceptional product offerings combined unique customer experiences thanks new loyalty program hugo boss able deepen customer relationships strengthen loyalty also attracting additional fans since launch member base grown remarkable surpassing ten million registered boss hugo customers first time strengthened relevance boss hugo successfully continued growth trajectory besides focusing game changing initiatives took decisive action improve overall cost efficiency particular enhanced digital capabilities capitalized use artificial intelligence driving forces behind vision becoming leading premium tech driven fashion platform worldwide also leveraged robust organizational operational platform continued streamline sourcing activities unlocked productivity gains across key business functions actions enabled notably limit expense growth course year result operating profit ebit reaching eur million successfully met full year targets adjusted july enter final year claim journey commitment driving profitability improvements stronger ever time remain committed leverage strength brands pursue important growth opportunities however macroeconomic volatility remains high continues weigh consumer sentiment remain vigilant closely monitoring market developments backdrop therefore expect group sales range eur billion eur billion ebit anticipated increase level eur million eur million relentless focus maintaining cost discipline driving additional efficiencies committed generating robust bottom line improvements time continue invest key strategic areas position hugo boss long term success ensuring stay ahead ever evolving industry approach prioritize game changing initiatives also reflected motto year annual report focus line principle report provides meaningful insights strategic operational financial progress first time also integrates relevant information environmental social governance esg topics sustainability deeply rooted across organization shaping way operate make decisions corporate governance consolidated financial statements additional information combined management report shareholders annual report fully committed driving robust profitability improvements strong commitment creating long term shareholder value remains equally unwavering would therefore like thank dear shareholders trust continued support look forward continuing journey years ahead hugo boss firmly believe immense potential brands want ensure participate company long term success confident strength business model ability generate strong cash flows also future proposing increased dividend eur per share fiscal year heart everything incredible team worldwide relentless energy fuels successes grateful surrounded talented passionate people doubt together one team continue shape even stronger future hugo boss sincerely daniel grieder chief executive officer corporate governance consolidated financial statements additional information combined management report shareholders annual report yves müller cfo coo daniel grieder ceo oliver timm cso managing board corporate governance consolidated financial statements additional information combined management report shareholders annual report chief executive officer ceo daniel grieder daniel grieder born washington usa studying university applied sciences business administration zurich hwz hochschule für wirtschaft founded max trade service later renamed madison clothing ltd distributed internationally renowned brands switzerland austria eastern europe daniel grieder largely responsible successful establishment tommy hilfiger europe taking position chief executive officer tommy hilfiger europe integration tommy hilfiger brand phillips van heusen pvh corporation daniel grieder became chief executive officer tommy hilfiger global pvh europe since june daniel grieder chief executive officer hugo boss thus member managing board daniel grieder chief executive officer ceo responsible business unit boss menswear business unit boss womenswear business unit hugo business unit footwear accessories bodywear hosiery incl global licenses corporate communications public affairs creative direction global marketing brand communications group strategy corporate development incl global corporate responsibility human resources watch video corporate governance consolidated financial statements additional information combined management report shareholders annual report chief sales officer cso deputy chief executive officer oliver timm oliver timm born mainz germany studying economics gerhard mercator university duisburg began professional career tommy hilfiger held various positions amongst others substantially involved launching american brand european market appointed managing director tommy hilfiger germany following integration tommy hilfiger brand phillips van heusen pvh oliver timm appointed president pvh europe later chief commercial officer pvh europe january oliver timm joined hugo boss managing board taking role chief sales officer cso also appointed deputy chief executive officer alongside existing role oliver timm responsible customer relationship management crm data analytics global commerce metaverse global merchandise management global retail management global retail wholesale global sales development global travel retail chief financial officer cfo chief operating officer coo director labor relations yves müller yves müller born lüneburg germany studied business administration european business school oestrich winkel dijon san diego started professional career auditing tax consulting company arthur andersen hamburg time yves müller qualified tax consultant auditor joined tchibo gmbh appointed chief financial officer december became member hugo boss managing board taking role chief financial officer cfo since june yves müller additionally assumes responsibility chief operating officer coo yves müller responsible business planning analysis construction procurement global logistics global sourcing production group finance tax internal audit investor relations incl information security legal compliance data protection operations excellence projects technical product development corporate governance consolidated financial statements additional information combined management report shareholders annual report dear shareholders dear readers past three years hugo boss achieved substantial progress executing claim strategy driving brand momentum achieving record sales despite softening consumer sentiment weighing industry growth company posted solid sales increase eur billion reflecting ongoing successful execution key brand product sales initiatives time hugo boss placed strong focus safeguarding profitability course year balancing cost efficiency measures strategic investments fiscal year supervisory board continued perform duties utmost care providing comprehensive advice managing board close trustful collaboration monitoring management activities entirely performed duties imposed law company articles association bylaws report supervisory board chairman supervisory board hermann waldemer hermann waldemer born munich graduated business administration university regensburg focus finance tax hermann waldemer worked certified tax advisor auditor auditing industry joining philip morris international held various management positions including president western europe assuming position chief financial officer held departure member board directors fca llc chrysler group hermann waldemer elected supervisory board hugo boss appointed chairman corporate governance consolidated financial statements additional information combined management report shareholders annual report collaboration managing board supervisory board managing board informed regularly comprehensively timely manner written oral form matters relevance hugo boss group companies related strategy planning business performance risk assessment changes risk situation compliance particular regard company claim strategy intense exchange took place managing board supervisory board throughout year additionally chairman audit committee maintained close regular dialog managing board kept promptly informed significant developments decisions reported following supervisory board committee meeting latest members supervisory board sufficient time review managing board reports proposals contribute ideas committees supervisory board meetings approvals issued requesting clarification managing board discussing matter extensively members managing board urgent cases supervisory board passed resolutions means circular resolution procedure early stage supervisory board directly involved decisions fundamental importance company main topics meetings supervisory board fiscal year total five supervisory board meetings held one march july september november december meeting september lasting two days meeting november extraordinary meeting members participated meetings audit committee met four times total members participated meetings working committee met twice members attending meetings committee members participated four meetings personnel committee nomination committee met four times members participating meetings mediation committee meet fiscal year supervisory board audit committee personnel committee held two meetings hybrid format allowing members supervisory board participate either person virtually via videoconference additionally supervisory board meeting november conducted entirely virtually corporate governance consolidated financial statements additional information combined management report shareholders annual report participation meetings supervisory board committees member supervisory board audit committee working committee personnel committee nomination committee hermann waldemer chairman sinan piskin deputy chairman iris epple righi andreas flach katharina herzog daniela liburdi gaetano marzotto luca marzotto tanja silvana nitschke christina rosenberg bernd simbeck robin stalker mediation committee convene past fiscal year meeting supervisory board march focused annual financial statements hugo boss hugo boss group december well audit report prepared auditors meeting annual financial statements consolidated financial statements hugo boss december approved ratified furthermore supervisory board report annual general meeting compensation report fiscal year discussed adopted resolution proposals adopted later annual general meeting hugo boss held virtually may addition daniel grieder reappointed chairman managing board chief executive officer ceo december yves müller reappointed member managing board december service agreements renewed accordingly context oliver timm appointed deputy ceo addition current role chief sales officer cso part meeting supervisory board also approved strategic partnership david beckham future brand ambassador boss topics included discussion resolution target achievement target setting variable compensation members managing board update competency profile supervisory board meeting july supervisory board reviewed company current business performance extension collaboration licensing partner movado amendment contractual framework hugo boss digital campus furthermore supervisory board discussed approved key audit matters audit fiscal year main topics meeting september included company current business performance execution claim strategy implications collection development business operations distribution marketing supervisory board also discussed approved updates compensation system managing board take effect following next annual general meeting may assuming shareholders approve proposal corporate governance consolidated financial statements additional information combined management report shareholders annual report meeting november supervisory board addressed media reports published time carefully examining allegations daniel grieder topic revisited meeting december supervisory board reviewing available information following thorough external legal analysis concluded suspicions expressed press regarding potential violation insider trading regulations unfounded result supervisory board expressed continued confidence daniel grieder chairman managing board ceo furthermore december meeting budget fiscal year discussed passed along detailed review ongoing progress executing company claim strategy addition supervisory board also discussed potential candidates supervisory board positions set newly filled may candidates invited introduce finally findings supervisory board efficiency review collected based questionnaire analyzed well presented external provider discussed detail also declaration compliance german corporate governance code gcgc analyzed resolved current business performance liquidity management risk assessment company regularly discussed detail meetings supervisory board approved necessary meetings supervisory board also involved regular detailed reports contents previous committee meetings addition supervisory board primarily focused topics execution claim strategy improvements driving efficiencies company capital structure compliance issues requirements gcgc work committees fiscal year perform duties supervisory board formed five committees audit committee personnel committee working committee nomination committee legally required mediation committee extent legally permissible far given corresponding authorizations individual committees make decisions instead full supervisory board otherwise prepare decisions topic areas full supervisory board regular intervals respective committee chairs report supervisory board detail work committees total audit committee met four times fiscal year main agenda meetings concerned financial reporting hugo boss group respect annual half yearly quarterly financial statements audit annual consolidated financial statements monitoring risk management internal control system security matters compliance matters risk management audit committee also addressed requirements corporate sustainability reporting directive csrd non financial reporting addition audit committee requested declaration independence external auditor convinced auditor independence besides defining key audit matters annual consolidated financial statements mandating external auditor approved non audit services placed cap fees payable non audit services addition results audit review combined non financial statement discussed corporate governance consolidated financial statements additional information combined management report shareholders annual report personnel committee held four meetings fiscal year focused succession planning filling strategically important management positions compensation system managing board target achievement fiscal year preparing target agreements managing board addition personnel committee discussed reappointment managing board members well corresponding amendments contracts working committee met two times fiscal year dealt company current business performance strategic alignment group addition working committee also discussed lease extensions certain retail stores progress regard digital twin project company sport sponsoring activities well strategic partnership david beckham furthermore approved financing real estate project local financing agreement company subsidiary china nomination committee met four times past fiscal year prepare upcoming election new supervisory board scheduled mediation committee convene fiscal year review corporate governance supervisory board also dealt principles good corporate governance within company december meeting reaffirmed discussions managing board strict adherence principles essential times meeting boards also adopted latest declaration compliance gcgc corporate governance statement including declaration compliance available section corporate governance corporate governance statement group website cgs hugoboss com regard annual efficiency review supervisory board activities recommended gcgc supervisory board decided proceed tried tested methodology audit using comprehensive questionnaire external evaluation completed questionnaires suggestions improvement contained therein analyzed discussed detail supervisory board meeting december overall supervisory board drew favorable conclusion individual training measures conducted members supervisory board fiscal year conflicts interest conflicts interest relating managing board supervisory board members arose fiscal year accordance gcgc would need disclosed immediately supervisory board well annual general meeting corporate governance consolidated financial statements additional information combined management report shareholders annual report audit annual consolidated financial statements deloitte wirtschaftsprüfungsgesellschaft stuttgart duly audited consolidated financial statements hugo boss fiscal year including accounting records prepared managing board basis international financial reporting standards ifrs accordance sec hgb issued unqualified audit opinion also case annual financial statements hugo boss prepared accordance provisions german commercial code hgb well combined management report hugo boss group corresponding audit mandate assigned audit committee supervisory board accordance resolution annual general meeting held may addition agreed auditor chairman audit committee would informed audit without delay possible grounds disqualification factors affecting impartiality could rectified immediately also agreed external auditor obliged report findings events arising performance audit importance duties supervisory board auditor furthermore required inform supervisory board note audit report facts ascertained audit resulting errors declaration submitted managing board supervisory board accordance sec sentence aktg german stock corporation act auditor issue reports fiscal year furthermore supervisory board convinced auditor independence possibility engaging auditors perform non audit services also discussed supervisory board received accounting documents managing board proposal appropriation profit well audit report external auditor annual financial statements proposal appropriation profit consolidated financial statements combined management report hugo boss group also contains combined non financial statement hugo boss group audit report discussed verified advance audit committee followed full supervisory board presence external auditor external auditor reported main findings audit particularly respect key audit matters determined audit committee fiscal year auditor also available answer questions provide additional information significant shortcomings internal control system risk management system whole identified connection similarly circumstances indicating partiality part external auditor finally auditor reported non audit services provided fiscal year review auditor findings approved following final review supervisory board raised objections consequently meeting march supervisory board approved financial statements fiscal year prepared managing board financial statements hugo boss fiscal year therefore ratified accordance sec aktg fiscal year managing board compiled combined non financial statement hugo boss group included combined management report supervisory board commissioned deloitte wirtschaftsprüfungsgesellschaft stuttgart perform audit obtain limited assurance statement supervisory board members promptly received combined non financial corporate governance consolidated financial statements additional information combined management report shareholders annual report statement hugo boss group fiscal year independent auditor limited assurance report statement audit certificate deloitte discussed full supervisory board march deloitte participated discussion presented audit results objections raised based review combined non financial statement hugo boss group result audit obtain limited assurance deloitte wirtschaftsprüfungsgesellschaft stuttgart noted approval compensation report fiscal year jointly prepared managing board supervisory board accordance provisions sec aktg supervisory board approved compensation report meeting march auditor audited compensation report separately part formal audit required law accordance sec aktg thank behalf supervisory board would like thank members managing board employees hugo boss high level personal commitment dedication also want thank employee representatives hugo boss constructive collaboration point time finally would like express gratitude dear shareholders trust company metzingen march supervisory board hermann waldemer chairman supervisory board iris epple righi andreas flach christina rosenberg luca marzotto robin stalker bernd simbeck daniela liburdi katharina herzog tanja silvana nitschke gaetano marzotto corporate governance consolidated financial statements additional information combined management report shareholders annual report supervisory board hermann waldemer chairman sinan piskin deputy chairman corporate governance consolidated financial statements additional information combined management report shareholders annual report supervisory board shareholder representatives employee representatives supervisory board committees hermann waldemer blitzingen switzerland management consultant chairman supervisory board member since iris epple righi munich germany management consultant member since gaetano marzotto milan italy chairman supervisory board gruppo santa margherita fossalta portogruaro italy member since luca marzotto venice italy chief executive officer zignago holding fossalta portogruaro italy member since christina rosenberg munich germany management consultant innotail munich germany member since robin stalker oberreichenbach germany chartered accountant member since sinan piskin metzingen germany administrative employee chairman works council hugo boss metzingen germany deputy chairman supervisory board member since andreas flach weil der stadt germany trade union secretary german metalworkers union metall frankfurt germany member since katharina herzog reutlingen germany senior vice president group finance tax hugo boss metzingen germany member since daniela liburdi sindelfingen germany administrative employee deputy chairwoman works council hugo boss metzingen germany member since tanja silvana nitschke inzigkofen germany coordinator tarifpolitische bildungs offensive metall baden württemberg reutlingen germany member since bernd simbeck metzingen germany administrative employee hugo boss metzingen germany member since previously already working committee hermann waldemer chairman iris epple righi katharina herzog luca marzotto tanja silvana nitschke sinan piskin nomination committee hermann waldemer chairman gaetano marzotto personnel committee hermann waldemer chairman daniela liburdi luca marzotto sinan piskin christina rosenberg bernd simbeck audit committee robin stalker chairman andreas flach gaetano marzotto sinan piskin bernd simbeck hermann waldemer mediation committee accordance sec mitbestimmungsgesetz determination act hermann waldemer chairman daniela liburdi gaetano marzotto sinan piskin corporate governance consolidated financial statements additional information combined management report shareholders annual report share global equity markets another year marked elevated macroeconomic geopolitical uncertainties alongside significant diverging trends across regions sectors large caps outperformed mid small caps equities outpaced european stocks consumer discretionary sector lagged behind broader markets mainly reflects subdued consumer sentiment regions affected operational financial performance many companies backdrop following strong performance hugo boss shares faced setback closing year eur eur share price performance index december burberry group plc capri holdings ltd iii apparel group guess inc levi strauss moncler group pvh corp ralph lauren corp smcp group tapestry inc corp overall marked robust year global equity markets artificial intelligence monetary policies central banks geopolitical developments shaping overall performance msci world gained largely driven equities posting second consecutive year returns exceeding development fueled tech giants benefiting ongoing hype enabling indices significantly outperform rest world first half investors focused macroeconomic developments particularly broad based disinflation inflation moved closer towards target central banks began normalizing policies european central bank ecb cutting rates june first time since followed shortly federal reserve fed however inflation proved persistent expected investors tempered expectations rate cuts particularly despite economic exceptionalism remained largely intact mdax dax mar jun sep dec hugo boss share peer group global equity markets strong gains led stock markets hugo boss shares suffer industry wide slowdown dividend proposal eur per share reflects confidence long term free cash flow generation corporate governance consolidated financial statements additional information combined management report shareholders annual report contrast european economic momentum weakened throughout year limited exposure prevented european equities keeping pace counterparts divergence widened second half investor focus shifted towards geopolitics political turmoil intensified france germany fiscal pressures rising populist parties fractured political landscape following unexpected snap elections attention turned elections outcome supporting assets risk sentiment continued dominate europe particular pro business policies well threat protectionist measures fueled outperformance equities european asian markets chinese economic activity remained subdued throughout reflecting ongoing real estate crisis weak consumer confidence however cohesive policy announcements fueled hopes could bring stimulus needed support chinese economy hugo boss share comparison major indices change year years years years hugo boss share dax mdax msci world textiles apparel luxury goods overall despite high level macroeconomic geopolitical uncertainty proved risk year global equities germany major index dax gained mdax burdened structural disadvantages smaller companies declined light weak global consumer sentiment msci world textiles apparel luxury goods index reflects share price performance key companies apparel luxury goods segment ended year corporate governance consolidated financial statements additional information combined management report shareholders annual report hugo boss share number shares thereof outstanding shares thereof shares share price eur last december high low market capitalization eur million december earnings per share eur price earnings ratio dividend per share eur dividend yield amount distributed eur million payout ratio xetra based net income attributable shareholders based closing price december proposed dividend challenging trading environment consumer discretionary stocks particularly apparel sector also weighed share price development hugo boss following strong performance fueled introduction successful execution claim strategy propelled share five year high mid attention turned mounting concerns normalization sector growth particular weakening consumer sentiment across markets led faster anticipated slowdown premium luxury sector result investor sentiment towards broader sector trading activity turned increasingly bearish throughout year external headwinds intensifying course hugo boss able decouple broader sector slowdown persistently muted consumer confidence inevitably weighed company operational financial performance hugo boss adjusting top bottom line outlook fiscal year mid july downward revision alongside several profit warnings across sector led reset market expectations negatively impacting share price performance response weak consumer sentiment hugo boss accelerated focus enhancing cost efficiency second half year successfully adapting challenging market environment although helped share stabilize second half ultimately able make losses occurred first half year well divergence european equities visible throughout fiscal year peer group mainly consists competitors ended year slightly average hugo boss shares closed eur thus broadly line european premium luxury peers corporate governance consolidated financial statements additional information combined management report shareholders annual report isin wkn ticker symbol hugo boss share isin phff wkn phff ticker symbol boss stock exchanges xetra frankfurt main stuttgart düsseldorf hamburg munich hanover berlin bremen consequently hugo boss share listed german mdax ranked deutsche börse free float adjusted market capitalization ranking end based total number companies dax mdax sdax weighting hugo boss share mdax decreased level end december average around shares traded xetra per day around increase trading volume mainly reflects heightened volatility experienced broader sector including hugo boss shares shareholder structure december share capital pfc zignago holding controlled marzotto family maintained strategic investment hugo boss december total position continued total attributable directly held shares according recent voting right notifications february companies pooled shares shareholder agreement december frasers group plc directly held voting rights according voting rights notification december held instruments hugo boss holds shares purchased part share buyback program corresponds share eur share capital remaining shares held free float legal disclosures annual general meeting hugo boss granted renewed authorization buy back shares proportion outstanding share capital may company make use authorization december legal disclosures frasers group plc free float pfc zignago holding shares corporate governance consolidated financial statements additional information combined management report shareholders annual report fiscal year members managing board supervisory board acquired additional hugo boss shares details transactions conducted managing board supervisory board account reported hugo boss accordance article regulation market abuse regulation available company website financialreleases hugoboss com end fiscal year members managing board supervisory board continued hold around shares issued hugo boss notes consolidated financial statements note company received several voting rights notifications institutional investors fiscal year original wordings notifications published corporate website financialreleases hugoboss com institutional investors free float region december hugo boss regularly conducts analyses shares held free float address institutional investors targeted manner besides regional distribution institutional investors analysis also allows proportion shares held private shareholders determined around latter remained broadly consistent prior year level based share register company estimates total number shareholders remained broadly stable around december around hugo boss maintains close dialog capital market participants continuously monitored large number financial analysts analysts regularly publishing research reports hugo boss analysts december analysts recommended investors buy share hold share sell share coupled average target price eur eur north america great britain ireland germany rest europe rest world corporate governance consolidated financial statements additional information combined management report shareholders annual report dividend per share eur dividend proposal due covid pandemic hugo boss suspended dividend payment fiscal year except legal minimum dividend eur per share despite decline earnings fiscal year managing board supervisory board intend propose annual general meeting may dividend eur per share fiscal year reflecting increase compared prior year level eur decision underscores company robust financial position well management confidence long term growth opportunities continued ability generate significantly positive free cash flow future proposal equivalent payout ratio group net income attributable shareholders fiscal year line company mid term target payout ratio laid claim assuming shareholders approve proposal dividend paid may equaling eur million eur million outlook hugo boss aims inform capital market participants current business development well operational financial performance timely transparent manner part comprehensive communication measures extensive investor relations activities speak institutional investors national international conferences well numerous global roadshow activities addition regularly present hugo boss interested private shareholders dedicated events investor relations website group hugoboss com investors key communication tool providing detailed information including press releases voting rights notifications financial reports financial calendar presentations roadshows conferences work investor relations team awarded several times addition deutscher investor relations preis second rank best investor relations professional mdax best investor relations department mdax also received renowned investors darling award manager magazin berenberg hhl leipzig graduate school management therein hugo boss took first place mdax also across indices honored investors darling emphasizes strong commitment creating comprehensive insightful reporting ensuring consistent trustworthy dialog capital market community addition hugo boss received esg transparency award second consecutive year recognizing transparent comprehensive reporting sustainability matters irawards hugoboss com corporate governance consolidated financial statements additional information combined management report shareholders annual report line company strong commitment sustainability also integrated esg environment social governance considerations investor relations activities growing investor expectations around sustainability evolving regulatory requirements aim ensure transparent reporting sustainable business practices result strong focus esg matters increasingly recognized leading esg ratings rankings reflecting heightened importance sustainability financial community key esg ratings rankings hugo boss included renowned dow jones best class world index formerly dow jones sustainability index world djsi world eighth consecutive time reflecting continuous efforts sustainability commitment transparency addition also achieved inclusion djsi europe fifth time row associated corporate sustainability assessment csa secured strong second place global textiles apparel luxury goods industry excelling areas transparency reporting tax strategy human rights privacy protection labor practices customer relations achieved best class scores time improved iss esg rating positioning among leading companies within industry points corporate sustainability assessment csa hugo boss included dow jones best class world index former dow jones sustainability world index consecutive year taking second place industry hugo boss rewarded cdp overall climate action scoring climate targets scope emissions hugo boss achieved score msci assessment revealing industry average practices regarding product carbon footprint raw material sourcing governance iss esg assessed hugo boss overall esg performance prime therefore exceeding sector specific threshold hugo boss assessed score signifying company exposed low esg risk applies good management practices hugo boss rewarded leading esg score accompanied high transparency disclosure score elaboration corporate governance consolidated financial statements additional information combined management report shareholders annual report chapter combined management report chapters legal disclosures additional disclosures combined non financial statement also part combined management report group profile business activities group structure group strategy group management product development innovation business operations consumer touchpoints combined non financial statement combined non financial statement environment social governance report economic position general economic situation industry development comparison actual forecast business performance earnings development net assets financial position hugo boss outlook report risks opportunities overall statement business performance situation group corporate governance consolidated financial statements additional information combined management report shareholders annual report business activities group structure business activities hugo boss glance full time equivalents fte hugo boss headquartered metzingen germany leading global fashion lifestyle company premium segment offering high quality women men apparel shoes accessories company pursues portfolio strategy hugo boss platform currently consisting two globally renowned brands boss hugo brands clearly distinguished individual characteristics design fit time share equally high standards terms quality innovation sustainability ensuring consumers perfectly dressed every occasion claim strategy closely linked vision leading premium tech driven fashion platform worldwide time aim strongly drive brand relevance market share gains fiscal year hugo boss generated sales eur billion eur billion group strategy sales eur billion employees countries leading global fashion lifestyle company premium positioning portfolio strategy two unique brands boss hugo strong global footprint points sale digital markets corporate governance consolidated financial statements additional information combined management report shareholders annual report portfolio strategy hugo boss boss appeal consumers lead self determined life show clear attitude pursue ambitions determination embodying motto boss lifestyle brand boss offers perfect outfit every occasion office formal events leisure sport context brand operates four distinct brand lines largest boss black focuses modern tailoring smart casualwear men women exclusive boss camel line introduced menswear emphasizes high end tailoring heritage casualwear products mostly covered boss orange boss green focuses athleisurewear designed active lifestyle strengthening casualwear offering boss gradually expanded recent years remains key focus area attract new younger customers time boss committed continuing dominate formalwear driving innovation offering superior price value proposition hugo targets consumers consider way dressing expression individual personality clearly representing motto hugo way brand focuses broad range commercial contemporary products reflecting authentic unconventional style context hugo introduced new hugo blue brand line early puts strong emphasis seizing business opportunities denimwear group strategy product key addition broad product offering within seasonal boss hugo collections inspiring capsule collections collaborations well known brands personalities increase relevance brands aim appeal primarily younger audience millennials boss gen hugo fuel brand heat driving customer engagement pursue two clearly distinguished marketing strategies strong focus social media context put particular emphasis global star studded campaigns well exciting brand events group strategy boost brands product key corporate governance consolidated financial statements additional information combined management report shareholders annual report design development brands collections mainly carried headquarters metzingen germany development centers coldrerio switzerland morrovalle italy responsible specific product groups addition granted licenses development distribution products including fragrances eyewear watches children fashion increase speed market capabilities shorten product development process majority products developed digitally product development innovation fiscal year hugo boss produced total sourcing volume facilities five production sites located europe izmir turkey contributing largest share production global sourcing volume sourced external contract suppliers procured merchandise partner operations mainly located asia europe business operations combined non financial statement workers value chain aim offer customers seamless brand experience across consumer touchpoints spanning brick mortar retail brick mortar wholesale digital channels overall consumers experience purchase boss hugo products brick mortar points sale globally around time customers markets shop products online via hugoboss com markets group strategy drive omnichannel consumer touchpoints boss hugo products distributed across countries countries distribution activities divided three sales regions emea covering europe middle east africa represents far largest region terms group sales share americas asia pacific account sales respectively remaining generated within licensing business earnings development sales earnings development business segments digitalization represents key enabler implementing company vision leading premium tech driven fashion platform worldwide fully aligned strategic claim lead digital continue drive digitalization business activities leverage power artificial intelligence along entire value chain hugo boss digital campus heart digital activities focused expanding digital analytics capabilities strengthening global online activities driving meaningful insights efficiencies along value chain regards latter pushing ahead important digital twin initiative tech driven business operations platform intended increase flexibility transparency supply chain group strategy lead digital organize growth business operations hugo boss committed protecting planet ensuring livable future generations come therefore attribute high importance sustainability essential corporate responsibility business activities sustainability strategy aims make vital contribution planet free waste pollution ensures products produced social environmental responsibility maintaining high quality durability collections ambitious sustainability targets integral business firmly anchored claim strategy put consumers sustainability expectations core activities group strategy sustainable throughout combined non financial statement corporate governance consolidated financial statements additional information combined management report shareholders annual report aim work best talents sector maintain positioning one attractive employers fashion industry human resource management hugo boss dedicated attracting retaining developing top talent time convinced passion dedication employees worldwide play crucial role successful execution claim around strong commitment empowering people teams therefore firmly anchored strategy guided five hugo boss values entrepreneurial spirit personal ownership team mentality simplicity quality youthful spirit combined non financial statement workforce group structure key management functions based headquarters metzingen group managed parent company hugo boss german stock corporation operating dual management control structure consequently managing board responsible managing group successfully executing group strategy activities managing board monitored supervisory board also hand advise managing board addition hugo boss group consists consolidated subsidiaries bearing responsibility respective local business activity includes subsidiaries functioning distribution companies four subsidiaries dedicated production notes consolidated financial statements basis consolidation hugo boss structured region business segments emea americas asia pacific license business hugo boss group structure managing board central departments brand management business units human resources business operations internal audit business planning analysis risk management investor relations construction procurement corporate communications legal compliance design creative management logistics finance tax marketing group strategy omnichannel operating segments emea americas asia pacific licenses hubs individual markets northern europe americas united states canada latin america china central eastern europe western europe southeast asia pacific emerging markets corporate governance consolidated financial statements additional information combined management report shareholders annual report functions established central departments hugo boss cover key parts value chain particularly design creative management product development production sourcing distribution collections respective markets claim strategy designed successfully executed market level order ensure strong customer focus respond dynamically market specific developments individual markets grouped hubs local management reporting directly chief sales officer cso ensure close alignment individual markets central functions well short decision making processes addition certain functions pooled hubs central departments across markets make effective use specialist skills generate cost benefits key locations global market presence midway new york shanghai melbourne izmir porto paris metzingen radom coldrerio morrovalle dubai london americas brick mortar points sale freestanding retail stores brick mortar points sale freestanding retail stores employees employees employees emea europe incl middle east africa asia pacific brick mortar points sale freestanding retail stores headquarters digital campus product development production distribution center regional office corporate governance consolidated financial statements additional information combined management report shareholders annual report group strategy hugo boss see considerable business opportunities today rapidly changing world committed fully exploiting opportunities two unique brands boss hugo offering broad range premium apparel shoes accessories well positioned benefit particular globally growing middle upper class best meet demands consumer groups strive increase relevance boss hugo based appealing brand initiatives products superior price value proposition seamless customer experience across touchpoints context aim fully exploit great potential digitalization strengthen operational efficiency effectiveness consistently focusing driving sustainability claim growth strategy claim growth strategy introduced august aims sustainably increase brand relevance drive superior top line growth thus increase market shares boss hugo central strategy vision leading premium tech driven fashion platform worldwide reflecting commitment digitalization innovation customer centricity putting consumers heart everything aim turn true fans boss hugo fostering loyalty long term claim built five strategic pillars boost brands product key lead digital drive omnichannel organize growth also includes strong commitment sustainability rigorous executional road map firm commitment empowering people teams vision leading premium tech driven fashion platform worldwide driving brand relevance boss hugo top priority superior growth following three years successful execution claim strategy corporate governance consolidated financial statements additional information combined management report shareholders annual report claim strategy following three years successfully executing claim hugo boss achieved significant progress across five strategic priorities particular momentum boss hugo accelerated noticeably translating record sales three consecutive years market share gains globally consequently fiscal year hugo boss generated revenues eur billion time period built robust organizational operational platform laying strong foundation sustainable profitable growth platform enables strengthen operational execution enhance effectiveness realize substantial efficiency gains across business consequently claim successfully paved way towards achieving financial ambition eur billion sales well ebit margin least advance final year claim strategy remain fully committed making progress along five strategic claims leveraging global growth opportunities context continue investing key strategic initiatives strengthen brands elevate customers connections boss hugo time remain focused leveraging strong operational platform driving cost efficiencies rigorously managing operating expenses balanced approach essential drive robust profitability improvements beyond thus ensure long term success hugo boss details targets fiscal year presented outlook section outlook consumer first sustainable throughout rigorous execution empower people teams boost brands product key lead digital drive omnichannel organize growth corporate governance consolidated financial statements additional information combined management report shareholders annual report claim boost brands increase relevance perception brands pursue two brand strategy comprehensively renewed brand images boss hugo part branding refresh bolder younger emotional appearance momentum boss hugo increased noticeably leading strong growth rates recent years building regained brand strength continue deepen connection consumers focus sustained engagement customer loyalty activate engage consumers across touchpoints remain committed investing marketing brand building activities following clear digital first approach marketing strategy centered around degree brand campaigns inspiring collaborations unique brand events exciting storytelling around products key highlights included star studded global campaigns boss hugo well launch multiyear strategic partnership boss global football icon david beckham time boss hugo hosted unique brand events boss taking center stage milan fashion week hugo capturing attention formula collaboration miami since introduction claim investing group sales annually marketing overall numerous marketing initiatives resulted strong global buzz social media beyond including increase ten million followers across platforms recent years also supporting top line development claim product key products heart business activities part claim successfully developed boss hugo true lifestyle brands ensuring customers perfectly dressed every occasion increase relevance brands complement main collections various capsule collections high impact collaborations strategic partnership david beckham times committed maintaining superior price value proposition ensuring premium quality high level innovation sustainability aim strengthen positioning boss hugo premium affordable luxury segments global fashion market product development innovation fully line brands lifestyle images committed leveraging growth potential across wearing occasions exploiting full potential casualwear accounting around group sales remains key focus continue blur lines casualwear formalwear context hugo boss able seamlessly close gap tailoring sportswear recent years time keep strengthening formalwear business accounting around group sales tailoring remains firmly anchored company dna modern interpretation innovative product solutions formalwear continues offer growth potential future product range rounded comprehensive range shoes accessories well products bodywear hosiery also contributing around group sales finally license business completes lifestyle offering products fragrances eyewear watches corporate governance consolidated financial statements additional information combined management report shareholders annual report claim lead digital digitalization important enabler delivering vision leading premium tech driven fashion platform worldwide group strategy therefore includes firm commitment driving digitalization along entire value chain since introduction claim achieved strong progress digitalizing important business processes making use artificial intelligence digital trend detection product creation digital showrooms time taking online business next level particular ongoing digitalization product development high strategic importance context set goal developing products digitally around product development innovation hugo boss digital campus spanning two locations metzingen germany porto portugal heart digital journey working platform significantly expands company digital analytics capabilities aimed taking customer experience new levels systematic use data digital campus puts strong emphasis strengthening global online business particularly regard digital flagship hugoboss com dedicated customer app fostering data collaboration aim establish even closer relationship customers driving valuable insights efficiencies along value chain time linking digital physical retail even seamlessly provide consumers best class omnichannel experience claim drive omnichannel since introduction claim made substantial progress translating regained brand power various customer touchpoints thus providing consumers best class omnichannel experience context fully leveraging high quality channel mix global scale continuing ensure seamless brand experience across touchpoints brick mortar retail contributing group sales channel remains far largest terms revenues laid claim aim improve store productivity least per annum achieved significant progress achieving average increase per year supported ongoing optimization modernization selective expansion global retail footprint key progress global rollout latest boss hugo store concepts well introduction exciting pop stores transforming physical stores true points experience time brick mortar wholesale contributing around group sales since introduction claim noticeably increased visibility market presence brands key european department stores across channel fully leveraging boss hugo brand lines deliver true brand experience addition also strengthening global franchise business particularly emerging markets since introduction claim added around full price franchise stores globally bringing total almost end fiscal corporate governance consolidated financial statements additional information combined management report shareholders annual report digital revenues account group sales optimizing expanding global digital footprint remains key successfully continuing digital growth trajectory time committed continuously improving digital journey drive market shares context key milestone launch hugo boss innovative omnichannel member experience fostering customer engagement digital sphere initially rolled germany france program set expand additional markets coming years consumer touchpoints claim organize growth ensure long term success hugo boss transform entire organization platform speed growth since introduction claim successfully converted operating model platform approach implemented streamlined brand led organizational setup ensuring rigorous strategy execution global level support long term growth drive efficiencies going forward stepped investments supply chain logistics capabilities pushed ahead implementation important digital twin initiative aimed enabling smart decision making tech driven business operations platform key enabler terms meeting consumer demand even effectively future time driving forward nearshoring initiatives better align regional sourcing production activities key sales markets opened additional plant largest factory izmir turkey specifically dedicated production casualwear also expanding one key logistics hubs near headquarters metzingen germany significantly increasing shipping storage capacity strategic initiatives enable react even faster flexibly future meeting consumer demand best possible way product development innovation business operations time set path future growth expanding enhancing headquarters allocated eur million upgrade also includes construction new office building modernization employee restaurant investment also aimed increasing employer attractiveness creating best class workplace experience employees metzingen campus combined non financial statement workforce corporate governance consolidated financial statements additional information combined management report shareholders annual report sustainable throughout sustainability vital part claim cause essential corporate responsibility ongoing business activities line bold commitment support creating planet free waste pollution sustainability strategy focuses five key pillars actively address big industry challenges increasing circularity driving digitization data analytics leveraging nature positive materials fighting microplastics pushing towards zero emissions embracing pillars paving way towards better sustainable future sustainability strategy aim extend longevity life cycles products set ambitious target circular products achieve implemented various measures including expanding products recycling potential combined non financial statement resource use circular economy part group sustainability strategies digitalizing business activities across entire value chain harnessing power data set target develop products digitally aim minimize waste reduce emissions accurately forecasting trends anticipating customer preferences product development innovation recognize company deep connection functioning ecosystems putting strong emphasis sourcing materials reduce environmental footprint support biodiversity preservation goal source natural materials alignment regenerative farming principles closed loop recycling reach target among things collaborating raddis cotton indian cooperative promotes regenerative farming combined non financial statement biodiversity ecosystems planet free waste pollution environmental core social core governance core increase circularity drive digitization data analytics leverage nature positive materials fight microplastics push zero emissions corporate governance consolidated financial statements additional information combined management report shareholders annual report widespread use synthetic fibers one contributor microplastic pollution address issue committed phasing polyester polyamide products exploring leveraging true alternatives synthetic fibers context entered long term strategic partnership swiss innovator heiq jointly develop scale aeoniq cellulose yarn offers similar properties polyester polyamide product development innovation combined non financial statement pollution set ambitious targets reduce carbon footprint contribute climate protection committed achieving net zero emissions part commitment aim reduce emissions along entire value chain base year without relying additional offsetting reach goals among things fostering regenerative farming significantly lower emissions raw material sourcing actively working reduce use airfreight combined non financial statement climate change sustainability strategy five key pillars built strong environmental social governance esg core guiding business activities actively engage numerous initiatives fostering greener planet promoting social governance cohesion addition environmental protection also prioritize socially responsible production processes consequently hugo boss puts strong emphasis ensuring safety well employees workers value chain includes attaching utmost importance compliance international human labor rights time convinced good responsible corporate governance key factor long term business success sustainability strategy including esg core aligns closely results double materiality analysis ensuring topics identified material incorporated strategic priorities also includes setting topic specific goals implementing targeted measures achieve combined non financial statement corporate governance consolidated financial statements additional information combined management report shareholders annual report group management key performance indicators hugo boss aims sustainably increase enterprise value group internal management system intended support managing board management respective business units aligning business activities objective order increase enterprise value group focuses maximizing free cash flow long term consistently generating positive free cash flow group confident safeguarding liquidity hugo boss times time facilitating long term growth business definition free cash flow cash flow operating activities cash flow investing activities free cash flow increasing sales operating profit ebit key improving free cash flow long term addition strict management trade net working capital value oriented capital expenditure approach support development free cash flow hugo boss therefore identified four key performance indicators increasing free cash flow unchanged previous years comprise sales ebit trade net working capital capital expenditure guidance key performance indicators underlying assumptions presented outlook section outlook four key performance indicators sales ebit trade net working capital enterprise value free cash flow capital expenditure sustainable increase enterprise value guiding principle hugo boss sales ebit key performance indicators maximizing free cash flow group planning reporting investment controlling form core elements group management corporate governance consolidated financial statements additional information combined management report shareholders annual report claim strategy focuses driving superior top line growth exploiting full potential brands across consumer touchpoints past three years rigorous execution strategy enabled drive broad based revenue improvements growth across brands channels regions time claim aims ensure sustainable improvements profitability cash flow generation growth initiatives therefore assessed revenue potential also ability contribute operating profit ebit free cash flow group strategy development key performance indicators eur million group sales operating result ebit trade net working capital percentage sales capital expenditure fiscal year hugo boss recorded solid top line improvements benefiting strengthened brand relevance boss hugo recent years slower growth compared previous years mainly reflects persistent macroeconomic geopolitical challenges dampened consumer demand markets led slowdown industry growth company continued pursue growth opportunities response softer consumer sentiment hugo boss accelerated focus enhancing cost efficiency across business areas operations marketing sales administration substantial progress achieved second half year time company continued invest key strategic initiatives boost brand power deepen customers connections boss hugo balanced approach crucial limiting increase operating expenses second half year thus safeguarding profitability details financial development hugo boss fiscal year found chapters earnings development net assets financial position annual report earnings development net assets financial position definition ebit earnings taxes financial result operating profit ebit corporate governance consolidated financial statements additional information combined management report shareholders annual report hugo boss trade net working capital important performance indicator managing efficient deployment capital definition trade net working capital inventories trade receivables trade payables trade net working capital management inventories trade receivables main responsibility subsidiaries respective operating central departments latter also responsible managing trade payables three balance sheet items primarily managed reference days inventories outstanding days sales outstanding days payables outstanding besides specific approval process purchase inventories global retail business aimed constantly optimizing inventory levels process takes account sales quotas expected sales growth anticipated markdown levels senior management hugo boss jointly responsible driving profitable growth result short term incentive program sti managers four management levels managing board linked achievement specific sales ebit targets trade net working capital percentage sales third component sti compensation scheme management two levels managing board also includes long term incentive program lti whose design matches managing board lti includes financial targets non financial esg environmental social governance targets latter related employee satisfaction well company relative performance sustainability consequently lti intended ensure senior management hugo boss pursues sustainable business policy aligned interests company combined non financial statement investment activity primarily focused retail network digitalization business model well expansion global logistic capacities part strategic claim drive omnichannel optimizing modernizing global store network line claim lead digital digital investments pushed along entire value chain digital product creation digital showrooms continuous enhancement online business well digital twin initiative general infrastructure part claim organize growth strategically expanding one key logistic hubs near headquarters metzingen germany planned live specific approval process exists material investment projects apart qualitative analyses respect potential store locations also includes analysis project net present value financial position capital expenditure group strategy hugo boss confident generate strong free cash flow also future supported ongoing rigorous management trade net working capital efficient use capital expenditure majority free cash flow either reinvested company distributed shareholders via regular dividend payments hugo boss pursuing profit based dividend policy aimed allowing shareholders participate appropriately group earnings development part claim company payout ratio defined range net income attributable corporate governance consolidated financial statements additional information combined management report shareholders annual report shareholders line vision leading premium tech driven fashion platform worldwide also considering strategic investments medium term addition event excess liquidity also consider share buybacks viable alternative return cash shareholders analyze balance sheet structure least year determine efficiency ability support future growth simultaneously provide sufficient safety company business performance falls short expectations rating agencies standard poor moody reiterated positive stance towards financial strength hugo boss thus confirming investment grade ratings rates company bbb moody assigns baa rating financial position capital structure financing hugo boss structured region business segments emea americas asia pacific license business within three regions individual markets grouped hubs local management reporting directly chief sales officer cso global license business part chief executive officer ceo resort ensures close alignment markets central functions well efficient decision making processes details financial development business segments fiscal year found chapter earnings development earnings development sales earnings development business segments core elements group internal management system group planning management monitoring activities focus optimizing key performance indicators described core elements internal management system group planning group wide financial reporting investment controlling group planning hugo boss generally refers rolling multiyear period prepared part annual group wide budget process taking account current business situation underlying group strategy based targets set managing board group subsidiaries prepare sales operating profit ebit investment budgets well forecasts trade net working capital respective markets divisions based product development sourcing units derive mid term capacity planning business planning analysis reports chief financial officer chief operating officer cfo coo reviews plans plausibility aggregates form overall group planning latter updated regular basis taking account actual business performance well opportunities risks additionally hugo boss regularly conducts liquidity assessments based expected cash flow development given year aims identify financial risks early stage take appropriate measures concerning financing investment requirements financial position corporate governance consolidated financial statements additional information combined management report shareholders annual report monthly basis managing board management group subsidiaries informed operational business performance standardized enabled reports varying detail supplemented hoc analyses actual data compiled group wide based reporting system compared budget data monthly basis deviations analyzed planned countermeasures discussed developments significant impact group net assets financial position results operations immediately reported managing board addition dashboards offer real time insights key financial operational performance indicators company particularly focused monitoring early indicators suitable obtaining indication future business performance context sales performance retail business wholesale order intake performance replenishment business analyzed regular basis provide even immediate insights dedicated mobile app enables managing board senior management track company top line performance daily basis addition benchmarking relevant competitors performed quarterly intervals continuous monitoring early indicators intended enable identify deviations budget early stage take appropriate countermeasures group investment controlling appraises planned investment projects respect contribution company overall profitability targets ensures projects launched case expected positive contribution group overall profitability ambition addition subsequent analyses conducted regular intervals verify profitability projects already realized appropriate countermeasures taken event negative deviations initial profitability targets light elevated market uncertainty weighing industry development last fiscal year saw particularly close dialog managing board business planning analysis management central divisions subsidiaries corporate planning regularly reviewed updated throughout year particular attention paid various macroeconomic factors implications operational performance backdrop hugo boss adjusted top bottom line outlook fiscal year july time company implemented additional cost measures enhance efficiency effectiveness across business aimed limiting increase operating expenses result company successfully achieved updated targets fiscal year comparison actual forecast business performance comparison actual forecast development key performance indicators results adjusted forecast results group sales eur million increase eur billion eur billion increase eur billion operating result ebit eur million eur million eur million decrease eur million trade net working capital percentage sales improvement level approaching improvement basis points capital expenditure eur million around eur million decrease eur million adjusted july details including initial forecast published march found chapter comparison actual forecast business performance corporate governance consolidated financial statements additional information combined management report shareholders annual report product development innovation hugo boss put strong efforts developing collections products meet highest customer demands terms design quality well innovation sustainability principles firmly embedded strategic claim product key puts consumers products center activities part claim strategy committed optimize price value proposition guarantee highest quality superior degree innovation sustainability features enable brands clearly distinguish competition potential digitalization fully leveraged throughout entire product development process inspiring capsule collections high impact collaborations renowned brands personalities also intended spur relevance boss hugo driving excitement among brands group strategy product key design product development process hugo boss involves transformation creative idea commercial product work carried three development centers metzingen germany coldrerio switzerland morrovalle italy majority collections developed group headquarters metzingen coldrerio site mainly responsible development product categories shirts knitwear shoes accessories well bodywear hosiery morrovalle develop high quality shoes leather accessories product development process line strategic claim lead digital significantly expanded digitalization product development process recent years largely replacing conventional process enables operate flexibly across entire value chain consequently adapt effectively quickly changing consumer trends customer demand time convinced ongoing digitalization product development also contribute positively sustainability ambitions allows predicting trends accurately better anticipating customer preferences reducing need physical samples thus minimizing waste reducing emissions overall set goal developing products digitally fiscal year proportion digitally developed products amounted around around focus innovative materials drive performance sustainability capsule collections collabs drive excitement among boss hugo digital product development high strategic relevance corporate governance consolidated financial statements additional information combined management report shareholders annual report product development process starts creative idea transformed specific designs collections context take account sell rates previous collections feedback wholesale partners customers well driven insights thereby also putting strong emphasis reducing complexity brands collections conventional product development process sees design teams creative ideas tailored pattern design phase followed technical product development turning models prototypes testing suitability industrial production process step followed manufacture sample collections digital product development process hand allows steps realized digitally drafting first sketches selecting materials using styles addition virtual try ons realized avatars strongly focusing performance fit well human realism context evolution immersive simulations innovative software solutions led expansion digital development additional product groups recent years basic core products never stock items designed remain part collections multiple seasons tied seasonal fashion driven trends production completed collections ready sold via physical digital distribution channels context digitally developed styles also high importance example selling collections wholesale partners via digital showrooms offering virtual try ons customers hugoboss com group strategy sustainable throughout key areas product innovation part claim strategy committed unlocking full potential boss hugo perfectly dressing customers every occasion driving casualization along collections optimizing wearing comfort increased use innovative materials particular importance thus key area product innovation boss continue drive innovation particularly within athleisurewear offering part boss green launched selected functional capsule collections example tennis player matteo berrettini runner alica schmidt dedicated boss ski capsule time boss performance product range elevates boss black assortment combining traditional formalwear outfits innovative sportswear elements thereby perfectly matching needs customers ranges super stretchable machine washable styles lightweight wrinkle free water repellent products make travelling even comfortable implemented performance functionalities broader product range growing share around one third revenues generated part boss formalwear assortment top expanded product portfolio introducing new brand line hugo blue early strong focus denimwear hugo blue dedicated leveraging full potential hugo brand jersey knitwear outerwear pieces accessories completing offering group strategy product key fully committed living growing customer expectations terms sustainability end increasingly rely innovative sustainable materials manufacturing techniques developing collections part long term strategic partnership swiss innovator heiq focusing joint development production aeoniq sustainable circular recyclable cellulose yarn aim replacing environmentally harmful polyester polyamide context part change initiative successfully launched first boss sneakers made aeoniq going forward leveraging initiatives set support goal enabling boss hugo apparel products become circular firmly anchored sustainability strategy group strategy sustainable throughout corporate governance consolidated financial statements additional information combined management report shareholders annual report four main collections boss hugo designed offer customers broad range core products well variety seasonal particularly fashion conscious styles besides main collections team well known brands personalities create inspiring capsule collections high impact collaborations want constantly increase relevance boss hugo excite consumers globe boss entered strategic multiyear design collaboration david beckham kicking spring summer collection partnership includes capsule seasonal collections designed curated david beckham embodying formal casual menswear signature styles part premium lifestyle positioning addition boss collaborated strong partners including porsche american football league nfl hugo teamed formula one racing bulls exceptional collaborations like continue play key role attracting new younger consumers fully unlocking potential brands group strategy product key key figures research product development departments hugo boss staffed primarily fashion designers tailors shoe clothing technicians engineers december number employees area totaled research product development expenses eur million expenses remained broadly prior year level eur million personnel expenses accounted vast majority expenses last fiscal year remainder primarily composed department expenses costs mostly recognized expenses time incurred addition production related development expenses included cost conversion inventories development expenses recognized internally generated intangible assets due predominantly short product life cycles eur million sales corporate governance consolidated financial statements additional information combined management report shareholders annual report business operations robust efficient operational platform part claim strategy striving generate broad based growth across brands regions consumer touchpoints robust efficient operational infrastructure thereby forms basis supporting long term growth ambitions time sourcing production high quality products crucial meeting high customer expectations design functionality comfort longevity sustainability addition ensuring quality characteristics constantly striving best class solutions increase resilience efficiency flexibility global sourcing production activities consequently part strategic claim organize growth recent years optimized increased flexibility sourcing production activities create strong platform growth speed market group strategy organize growth fully leveraging robust operational platform built recent years remain key priority hugo boss going forward therefore continue put strong emphasis optimizing end end operations significantly improving effectiveness driving efficiency across supply chain already significant strides made including realizing greater economies scale strategic price negotiations supported increased order volumes time successful optimizing vendor allocation improving freight modes notably hugo boss successfully reduced reliance airfreight historically low levels despite persistent supply chain disruptions highlights commitment balancing cost efficiency operational excellence emphasizing sustainable sourcing practices looking ahead hugo boss committed reducing airfreight dependence ensuring time product availability altogether measures continue strengthen operational capabilities also expected provide tailwind gross margin development coming years earnings development income statement digitalization along value chain key priority enabling respond even faster changing market trends better meet customer demand therefore continued push ahead implementation digital twin serves backbone growth journey fostering smart tech driven value chain part twin program focused enhancing real time data utilization streamlining business operations processes enabling intelligent decision making creating digital copy supply chain leveraging potential aim improve demand supply planning better align various planning activities across entire business turn intended provide accurate procurement products fabrics terms timing quantity along efficient logistics planning smart inventory allocation want strategic focus driving efficiency gains sourcing production digital twin supply chain support growth traceability investments global logistics network ensure long term growth corporate governance consolidated financial statements additional information combined management report shareholders annual report ensure customer demand met even effectively simultaneously benefiting lower cost higher full price sell time increased transparency fosters end end product traceability also fully line sustainability ambitions building success initial pilot projects able roll key traceability features large majority supply chain partners worldwide achievement significantly strengthens transparency across entire supply chain additional progress anticipated sourcing volumes regional split terms value total sourcing production volume produced production facilities reflecting strengthening largest production facility izmir turkey consequently remaining products sourced independent contract suppliers sourced merchandise regional split sourcing production volume hugo boss attaches great importance regionally balanced strategic sourcing mix minimize risks local regional capacity shortfalls far possible merchandise sourced emea representing slight increase compared last year line strategic ambition promoting nearshoring set goal aligning regional sourcing activities even closer sales markets aimed ensuring shorter lead times increasing speed market capabilities context aim keep share sourcing activities emea level around also years come share global sourcing production volume turkey accounts half european sourcing activity also represents far largest sourcing market hugo boss production izmir accounts global sourcing production volume besides turkey portugal bulgaria italy also represent relevant sourcing markets within emea americas emea asia corporate governance consolidated financial statements additional information combined management report shareholders annual report asian share global sourcing production volume decreased fully line medium term ambition around within asia bangladesh vietnam represent largest sourcing markets accounting global sourcing production volume respectively time meaningfully reduced share global sourcing production volume china recent years accounting years ago benefit proximity important market enhance flexibility also committed strengthening sourcing footprint americas latter currently stands ambition increase share towards level around years come context achieved progress onboarding new suppliers mainly located peru production competitive advantage part claim significantly expanded production capacity recent years addition greater independence external factors allows react quickly flexibly changes customer demand fully leverage season replenishment opportunities addition enables gain important expertise development production technologies quality standards five production facilities located izmir turkey metzingen germany radom poland morrovalle italy coldrerio switzerland largest production site izmir extended fourth factory plays key role initially focused manufacturing formalwear izmir site dedicates production volume casualwear covering product categories trousers jackets jersey around today izmir thus accounts around global casualwear sourcing significantly expanded share recent years enables react flexibly changes consumer demand also important segment production site metzingen mainly produces products boss camel including tailored boss made measure suits along prototypes sample styles part conventional product development process business shoes sneakers main focus production radom morrovalle boss made measure shirts produced coldrerio product development innovation corporate governance consolidated financial statements additional information combined management report shareholders annual report network experienced specialist suppliers ensure excellent processing quality high product availability hugo boss works together network experienced specialist suppliers fiscal year sourced finished goods total external tier suppliers operating production facilities addition procured fabrics trimmings external tier suppliers operating production facilities hugo boss fosters long term strategic partnerships suppliers relationships averaging ten years context see strong partner supporting suppliers development professionalization processes workflows alongside economic criteria attach great importance environmental social aspects selection suppliers cooperation based respect human rights compliance applicable working standards occupational health safety hugo boss supplier code conduct forming framework supplier relationships information found chapter combined non financial statement combined non financial statement workers value chain ongoing expansion logistics infrastructure inventory storage centered selected sites primarily operated hugo boss distribution centers hanging goods flat packed goods company global online business located proximity headquarters metzingen form core group wide logistics network latter supplemented selected local regional warehouses including warehouse savannah usa operated third parties example china support future growth already hugo boss began stepping investments logistics network aiming increase unit capacity currently around million around million medium term particular significantly expanding largest central distribution center germany part multiyear project investing eur million strong focus digitalization automatization processes implementation state art robotics solutions scheduled completion expansion aims increasing warehouse shipping storage capacity around allowing drive efficiencies logistics side corporate governance consolidated financial statements additional information combined management report shareholders annual report consumer touchpoints global fashion lifestyle company hugo boss built strong distribution footprint recent years consumer touchpoints around globe moving consumers expect ensure omnipresent physically digitally fully line premium lifestyle positioning hugo boss aims provide superior shopping experience best class omnichannel journey consumers around globe retail business plays key role context offering brand led shopping experience first class customer service enables directly interact customers turn true fans boss hugo since introduction claim hugo boss achieved substantial progress translating brand power boss hugo consumer touchpoints brick mortar retail brick mortar wholesale digital touchpoints channel fulfilling specific customer needs today providing seamless consistent omnichannel experience aim leverage brand power across points sale thus continuously optimize distribution network omnichannel strategy encompasses brick mortar digital business seamless brand experience across consumer touchpoints innovative customer loyalty program hugo boss launched corporate governance consolidated financial statements additional information combined management report shareholders annual report distribution formats hugo boss omnichannel distribution brick mortar retail brick mortar retail business represents far largest channel hugo boss accounting group sales total operating brick mortar points sale variety omnichannel services closely linking brick mortar retail digital business strong focus prime retail destinations operating total freestanding stores globally freestanding full price retail stores allow consumers experience brands products superior shopping environment reflecting essence boss hugo experiential store designs brand led shopping experience strong focus store digitalization want stores place customers surprise connect boss hugo fans around globe addition regularly take exciting locations engaging pop ups hospitality concepts boss house bali allowing physical digital experience boss pop store mykonos addition run self managed factory outlets allowing introduce brands value seeking consumers well self managed shop shops department stores part concession model past years successfully expanded shop shop business strengthen brands presence key retail partners first foremost market exploit full potential brick mortar retail business improving productivity store network particular importance context part claim strategy aim increase store productivity least per year achieved average increase supported particular ongoing optimization selective expansion global retail footprint across key markets additionally continuously enhancing simplifying store shopping journey customers context advancing rollout appealing digital productive store concepts boss hugo aimed enhancing customer digital brick mortar retail brick mortar wholesale shop shops self operated full price shops retail space partners online store hugoboss com digital flagship store separate brand environments boss hugo partnerships online retailers distribution multi brand platforms via concession model factory outlets sale prior season merchandise specialist stores high traffic peripheral zones online distribution via partners online distribution boss hugo partners franchise business full price boss hugo stores operated partners shop shops boss hugo shops operated partners freestanding stores self operated full price stores prime locations multi brand points sale general selling space multi brand stores explore online corporate governance consolidated financial statements additional information combined management report shareholders annual report experience developing stores true points experience overall december majority boss hugo freestanding stores worldwide refreshed equipped latest store concepts including key halo stores düsseldorf london dubai shanghai halo stores great importance provide superior comprehensive brand experience key metropolitan areas inspire engage consumers group strategy drive omnichannel earnings development brick mortar wholesale brick mortar wholesale business accounted group sales thus also representing important distribution channel hugo boss channel mainly addressing consumers prefer discover enjoy variety brands also enables reach customers smaller markets department stores specialist retailers sell boss hugo products either separate shop shops multi brand environment franchise partners operate mono branded freestanding stores independently primarily emerging markets served retail business total wholesale business comprises around brick mortar points sale including around freestanding stores managed franchise partners around brick mortar points sale including around franchise stores sell collections wholesale partners via showrooms globally hugo boss opened new showrooms düsseldorf paris offering wholesale partners premium environment top also leveraging digital showrooms offering seamless expedited sales process simultaneously fostering sustainability efficiency within wholesale part claim supported strong demand key wholesale partners brands significantly increased visibility market presence key european department stores past three years also going forward particular focus important wholesale partners aim fully leverage boss hugo brand lines deliver true brand experience multi brand environment time strengthening global franchise business particularly emerging markets represents another focus area digital digital touchpoints online flagship hugoboss com online concession business well digital wholesale contributed group sales fiscal year achieved strong growth since introduction claim sales generated digital business doubled online flagship hugoboss com plays key role context offering first class digital shopping experience direct access boss hugo customers across markets markets past three years significantly increased traffic website driven successful relaunch hugoboss com expansion digital presence around globe establishing relaunched customer app one connected touchpoint latter includes key features virtual product try ons enabled chatbots also achieved progress enhancing digital experience hugoboss com fully reflecting two brand strategy corporate governance consolidated financial statements additional information combined management report shareholders annual report exploit full potential digital business constantly striving improve online journey customers context aim elevate user experience pushing mobile social commerce context driving traffic conversion hugoboss com remains top priority mainly delivering next level digital experience desirable storytelling localized content personalized customer journey time committed fostering growth digital partners customer loyalty hugo boss aims turn consumers fans putting strong emphasis retaining accompanying valuable customers implemented next level loyalty program hugo boss hyper personalized omnichannel member experience centered around hugoboss com app harnessing latest technologies blockchain web nfts hugo boss aims building brand loyalty set new industry benchmark customer engagement time closely engaging customers program focuses boosting member sales thus driving customer lifetime value hugo boss first launched june followed germany france october aim deepening expanding existing customer relationships also attracting new boss hugo customers continue global rollout coming years important market well china tapped fueled introduction hugo boss strongly increased member base around ten million eight million corporate governance consolidated financial statements additional information combined management report shareholders annual report combined non financial statement hugo boss considers diverse sustainability initiatives crucial corporate responsibility prerequisite inspire customers thus strengthen position leading global premium fashion platform equally committed protecting environment living social societal expectations practicing responsible corporate governance numerous environmental social governance esg activities aim generate added value company employees shareholders customers business partners society thus contributing long term success hugo boss combined non financial statement directive sustainability reporting corporate sustainability reporting directive csrd came force january deadline implementation national law member states set july however december several member states including germany yet completed implementation result regarding fiscal year reporting existing legal framework continues apply listed german companies consequently company subject non financial reporting directive nfrd hugo boss publishes combined non financial statement fiscal year consistent previous years accordance sec german commercial code hgb conjunction sec hgb combined non financial statement hugo boss hugo boss group provides comprehensive information sustainability activities fiscal year comprises material disclosures company related environmental matters employee matters social matters respect human rights anti corruption bribery matters taxonomy combined non financial statement prepared partial application set european sustainability reporting standards esrs framework accordance section hgb originally planned full application esrs realized hugo boss due lack legal implementation content included statement based double materiality assessment dma conducted accordance respective esrs requirements analysis indicated nine ten esrs topics generally considered material hugo boss fiscal year however content included combined non financial statement fully reflect results dma overview esrs disclosure requirements section additional disclosures combined sustainability integral part hugo boss business activities numerous esg activities aim generate added value stakeholders statement includes esg information assessed material according esrs corporate governance consolidated financial statements additional information combined management report shareholders annual report non financial statement provides detailed information presence scope esrs disclosure requirements information disclosed accordance esrs based current interpretation standards additional disclosures combined non financial statement combined non financial statement prepared consolidated basis scope consolidation aligned financial statements therefore consolidated quantitative esg data includes parent company hugo boss subsidiaries control unless otherwise noted disclosures made statement reflect equally perspective hugo boss group notes consolidated financial statements basis consolidation references information outside combined non financial statement except references chapter business activities group structure part combined management report information going beyond mandatory disclosures hgb form part statement accordance applicable legal framework combined non financial statement subject voluntary review limited assurance according isae revised limited assurance report independent auditor regarding combined non financial statement governance hugo boss managed parent company hugo boss german stock corporation dual management control structure consequently managing board responsible managing group successfully executing group strategy activities managing board monitored supervisory board also hand advise managing board information boards composition governance structure found corporate governance section annual report corporate governance corporate governance statement overall responsibility sustainable development hugo boss lies managing board also includes monitoring managing overseeing esg impacts risks opportunities along company value chain strategic responsibility assigned group strategy corporate development division reports directly chief executive officer ceo division also responsible setting esg targets monitoring progress towards managing board supervisory board monitor objectives set regularly informed progress achieved operational responsibility along supply chain well responsibility central risk management internal controls lies business operations group finance tax responsible group wide esg data collection consolidation validation investor relations responsible esg reporting compliance human rights issues addressed compliance human rights department part central legal division four divisions report chief financial officer cfo chief operating officer coo cfo coo also assumes responsibility central sustainability committee consists representatives main business areas involved sustainability topics drives relevant decision making processes sustainability oversees implementation sustainability strategy serves dialog forum current developments best practices committee dealt variety issues including progress sustainability strategy esg reporting regulatory requirements including csrd corporate governance consolidated financial statements additional information combined management report shareholders annual report managing board hugo boss overall responsibility effective risk management system behalf central risk management internal controls department coordinates execution continuous development risk management system monitoring effectiveness risk management system responsibility supervisory board hugo boss task exercised audit committee supervisory board involvement internal audit department part reporting process hugo boss identified risks associated business activities business relationships well products services likely could serious adverse impacts five mandatory aspects set forth sec hgb report risks opportunities corporate governance corporate governance statement business model strategy value chain hugo boss one leading fashion lifestyle companies premium segment global apparel market business model described detail chapter business activities group structure annual report detailed descriptions claim strategy including elements relate impact sustainability matters provided chapter group strategy business activities group structure group strategy combined non financial statement covers operations material stages upstream downstream value chain following overview outlines material features value chain material features value chain upstream operations downstream tier assembly manufacturing final products apparel shoes accessories tier production finishing materials fabrics trimmings tier extraction farming raw materials cotton wool leather synthetic fibers tier processing raw materials yarn equivalent state production production sites turkey germany italy switzerland poland logistics distribution administration product design brand management logistic hubs transportation marketing distribution products via retail touchpoints general administration functions distribution distribution products via wholesale partners use phase products used end consumers end life recycling products reach end life cycle either recycled disposed corporate governance consolidated financial statements additional information combined management report shareholders annual report interests views stakeholders actively engage stakeholders valuing input essential shaping group sustainability strategies fostering open dialog collaboration aim meet expectations address concerns develop mutually beneficial solutions stakeholder engagement supports business objectives also serves opportunity create value hugo boss environment society hugo boss maintains systematic dialog relevant stakeholders including employees shareholders customers business partners society guided stakeholder analysis conducted accordance ses standard employ standardized formats approaches effective communication corporate website annual report social media channels dedicated stakeholder events particular importance stakeholder dialog group headquarters metzingen germany event brought together industry experts academics ngos supply chain partners engage depth discussions sustainability within fashion industry supply chain exploring ways drive meaningful positive change together information stakeholder engagement partnerships found corporate website group hugoboss com double materiality assessment hugo boss conducted comprehensive double materiality assessment dma preparation compliance esrs engaged numerous internal stakeholders identify company material sustainability impacts risks opportunities engagement largely conducted interviews desk research also considered outcomes previous materiality assessments addition incorporated perspectives external stakeholders internal experts part roles regularly engage relevant interest groups parallel also assessed financial risks opportunities sustainability related matters part risk management process ensure proper compliance external esg consultants closely monitored reviewed dma process oversight process assumed cfo coo ensuring close alignment company strategic priorities dma scoring method criteria developed following esrs requirements addressing impact materiality financial materiality approach also satisfies materiality assessment requirements set forth sec hgb impact materiality assessment considered scale scope irremediability likelihood impacts positive negative well actual potential severity took precedence likelihood human rights related impacts part financial materiality assessment assessed financial materiality esg risks opportunities likelihood nature financial impacts part processes hugo boss considered connections impacts dependencies risks opportunities may arise impacts dependencies ensuring close collaboration constant exchange parties involved process identifying material impacts risks opportunities adhered consistent approach across esg topics systematically considering specific activities business relationships geographies factors may increase risk adverse impacts also taking account specific characteristics value chain well key business activities assets sites regions corporate governance consolidated financial statements additional information combined management report shareholders annual report impact materiality inside perspective esg impact assessment led investor relations conducted close collaboration corporate sustainability well risk management internal controls departments started development comprehensive catalog esg impacts leveraging previous materiality analysis based gri standards catalog served foundation mapping existing impacts esrs methodology ensure thorough assessment hugo boss expanded catalog conducting additional desk research drawing frameworks sustainability accounting standards board sasb standards textile apparel industry assessment covered potential actual impacts environment people across value chain operations upstream downstream stages corresponding impact descriptions enriched desk research internal expert insights hugo boss followed systematic approach assess materiality positive negative impacts identified using esrs criteria ensure clarity consistency evaluation process line efrag guidance assessment conducted gross basis thus excluding influence implemented mitigation measures determine materiality impacts identified hugo boss assessed severity likelihood defined uniform thresholds classifying negative impact material fell upper half combined assessment scale classifying positive impact material fell upper quarter validate ensure accuracy completeness impact materiality assessment hugo boss engaged internal experts across important sustainability areas well external esg consultants financial materiality outside perspective esg risk opportunity assessment led central risk management internal controls department close collaboration relevant business areas designated internal risk opportunity experts ensure thorough assessment structured interviews conducted providing critical insights detailed input hugo boss followed systematic approach assess materiality esg risks opportunities identified analyzing accordance relevant esrs criteria ensure clarity consistency evaluation process assessment started establishment clear framework guidelines risk opportunity assessment applying esrs methodology corporate governance consolidated financial statements additional information combined management report shareholders annual report risk management internal controls analyzed gathered data including detailed review critical factors likelihood risks occurring potential consequences business addition assessed financial materiality esg risks opportunities identified qualitative basis likelihood magnitude thresholds used context line methodology applied hugo boss general risk assessment presented risk opportunity report annual report based risks assessed material combined classification likelihood magnitude rated either high critical report risks opportunities risk opportunity management system line efrag guidance also assessment conducted gross basis thus excluding influence implemented mitigation measures part cross functional exchange also examined extent correlations exist identified impacts dependencies risks opportunities may arise impacts dependencies mapping done systematically individual impact level ensure identified esg risk opportunity assigned corresponding impact validate ensure accuracy completeness financial materiality assessment engaged internal experts across important sustainability areas also external esg consultants process ensured procedure identifying evaluating managing esg risks integrated overarching risk management system used evaluate company overall risk profile risk management processes similarly processes identifying evaluating managing esg opportunities closely integrated existing management processes order exploit potential strategically operationally future consequently results esg risk opportunity assessment integrated company existing risk management system streamline risk management process ensuring relevant esg matters systematically analyzed also going forward allowing effective decision making systematically evaluating company overall risk profile dma consolidation validation results assessments consolidated accordingly jointly reviewed investor relations corporate sustainability risk management internal controls shared final validation internal stakeholders involved assessment process well relevant senior management outcome dma summarized detailed matrix heat map results shared discussed approved managing board audit committee supervisory board hugo boss plans revisit update dma annually next revision scheduled mid part committed continuously developing dma approach ensure continue aligning evolving best practices legal requirements corporate governance consolidated financial statements additional information combined management report shareholders annual report overview material esg topics following chart provides overview esg topics considered material according dma overview material esg topics detailed overview esg related impacts risks opportunities identified material dma please refer section material esg related impacts risks opportunities additional disclosures combined non financial statement financial impact hugo boss hugo boss impact people environment impact material double material material financially material climate change energy pollution air pollution water pollution soil pollution living organisms food resources substances concern high concern microplastics water consumption water withdrawals water discharges marine resources biodiversity ecosystems resources inflows including resource use resources outflows waste environment social working conditions workforce equal treatment opportunities workforce work related rights workforce working conditions value chain equal treatment opportunities value chain work related rights value chain affected communities information related impacts consumers end users personal safety consumers end users social inclusion consumers end users governance corporate culture protection whistle blowers animal welfare political engagement lobbying activities management relationships suppliers including payment practices corruption bribery corporate governance consolidated financial statements additional information combined management report shareholders annual report mapping material esrs topics five aspects accordance section hgb subsequent structure combined non financial statement follows thematic organization esrs set consequently environmental matters including information accordance article regulation taxonomy regulation addressed environment section employee matters appear social workforce governance social matters predominately outlined social consumers end users topic human rights discussed across social workforce social workers value chain lastly anti corruption bribery matters even classified material dma covered governance section list summarizing data points derive legislation please refer section additional disclosures combined non financial statement statement also contains limited number additional esg data points materiality thresholds aimed increasing transparency corresponding information also provided section additional disclosures combined non financial statement additional disclosures combined non financial statement environment climate change global textile apparel industry emissions primarily originate cultivation production fibers well energy intensive processes dyeing washing bleaching additional emissions also stem business activities value chain transportation particularly air freight contributes carbon footprint additionally consumer practices like washing drying disposing textiles add environmental impact intensifying global warming hugo boss recognize shared responsibility protect climate prioritizing implementation less impactful processes within operations throughout supply chain transition plan climate change hugo boss committed reducing greenhouse gas emissions aims achieving net zero emissions alignment paris agreement target however methodologies international regulations continue evolve company existing climate transition plan currently review emission reduction targets remain unchanged valid actively working updated comprehensive transition plan incorporates recent advancements better addresses today challenges scheduled publication revised plan provide robust framework future action align best practices moving forward report progress outcomes reinforcing commitment meaningful climate action targets related climate change corporate governance consolidated financial statements additional information combined management report shareholders annual report policies related climate change environmental policy underscores commitment sustainability setting strict standards minimize environmental impact conserve resources reduce water consumption enhance energy efficiency across operations supply chain policy addresses significant environmental impacts reliance non renewable energy high energy consumption energy intensive manufacturing also requiring resource efficiency adoption renewable energy monitoring involves tracking energy use pollution levels compliance iso environmental management system iso energy management system suppliers also encouraged adopt best practices policy applying globally alignment local regulations part environmental policy hugo boss actively collaborates organizations united nations framework convention climate change unfccc zero discharge hazardous chemicals zdhc program logistics guideline forming integral part environmental policy provides strategic framework planning executing global transportation processes emphasizes low emission transport options aims reduce carbon emissions throughout logistics network sites partners along supply chain guideline also promotes optimizing delivery routes consolidating shipments minimize environmental impact reinforcing commitment sustainable logistics accelerate climate protection within supply chain hugo boss supplier code conduct establishes clear standards expectations suppliers across various operational aspects strong emphasis environmental protection code provides comprehensive guidelines ensure suppliers meet stringent environmental requirements including identification monitoring energy sources tracking greenhouse gas emissions suppliers required develop roadmaps reduce energy consumption emissions responsibly managing natural resources addition strict compliance environmental regulations suppliers also encouraged implement measures avoid waste pollution use energy water efficiently adhering principles hugo boss promotes responsible sustainable environmental culture supplier network ensures business practices actively support global environmental protection efforts targets related climate change hugo boss set target cut emissions scope based baseline mid term goal aligns requirements fashion industry charter climate action aims limit global warming maximum governed unfccc moreover dedicated achieving net zero emissions scope full alignment unfccc charter scope emissions refer direct greenhouse gas emissions sources owned controlled company fuel combustion company facilities vehicles scope covers indirect emissions generation purchased energy like electricity heating scope includes indirect emissions across value chain suppliers product use waste disposal part revising transition plan also reviewing mid term emission reduction targets ensure remain aligned evolving standards corporate governance consolidated financial statements additional information combined management report shareholders annual report energy targets play crucial role achieving emission reduction goals decreasing overall energy consumption enhancing efficiency across operations line unfccc target committed switching electricity used renewable sources operations total corresponding mwh consumed electricity renewable mwh hugo boss committed reducing direct indirect energy consumption per square meter compared base year direct indirect energy consumption relation gross size kwh decreased compared focus climate actions hugo boss actions related climate change operations climate impact operations relatively low compared along upstream downstream value chain scope emissions accounting total emissions upstream stages value chain particular involve intensive processes nevertheless reducing energy consumption emissions sites crucial achieving overall targets production site izmir turkey far largest production sites globally certified accordance iso iso since net zero emissions scope reduction scope emissions reduction scope emissions realize potentials drive change optimized means transport transportation routes electricity renewable energy sources use sustainable materials join forces electricity renewable energy sources efficient technologies engage collaborations training modules tools resource efficiency corporate governance consolidated financial statements additional information combined management report shareholders annual report reduce co₂ emissions production sites primarily investing energy efficient technologies modernizing technical facilities production sites hugo boss purchasing electricity exclusively renewable energy sources since also installed led lighting heat pumps one key logistics hubs near headquarters metzingen germany additionally installed temperature control steam traps ensure energy efficient process insulated steam pipelines valve jackets reduce heat loss production site izmir turkey addition enhancing procurement use electricity renewable sources also group wide basis including installation additional photovoltaic system headquarters reduce emissions plan expand photovoltaic system one key distribution centers germany measures included installation hybrid cooling systems compressed air leakage detectors izmir turkey site alongside procurement green electricity locations canada mexico spain poland well retail points sale market supply chain meet overall emission reduction targets actively addressing scope emissions represent approximately hugo boss total emissions approach includes close collaboration suppliers particularly involved energy intensive processes dyeing coating steaming ironing hot water usage aimed supporting decarbonizing operations part regular environmental audits conducted external auditors monitor suppliers energy consumption co₂ emissions ambition resource intensive suppliers fully comply environmental requirements defined hugo boss verified audits aim report progress towards target suppliers classified resource intensive discharge average industrial water per day use coal energy source manufacturing based previous assessments results audits conducted every one three years violations environmental standards identified collaborate respective suppliers develop implement action plans subsequently reviewed follow audits support continuous improvement also provide regular training sessions keep suppliers informed environmental climate protection measures aiming establish standardized energy environmental management systems training includes guidance best practices carbon accounting enhance transparency measurability partners environmental impacts developed climate action training fashion industry voluntary training course created fashion industry charter climate action selected signatories available online therefore publicly available free charge offered multiple languages specifically designed tier tier suppliers equipping garment textile footwear manufacturers essential knowledge climate change industry environmental impact energy efficiency renewable energy practical carbon accounting techniques corporate governance consolidated financial statements additional information combined management report shareholders annual report hugo boss joined cascale collaborative platform aims strengthen industry partnerships enhance supplier engagement improve data management insights build initiative implemented cascale developed higg facility environmental module higg fem worldly platform one widely used sustainability measurement tools apparel footwear industry implementation designed help accurately capture manage scope emissions ensure internal stakeholders well equipped conducted training sessions key teams including brands product divisions sessions focused functionality higg fem utilizing benchmarking opportunities optimized order placements carrying country specific analyses beginning also introduced decarbonization commitment contractual obligation tier suppliers phase coal report mandatory data higg fem transition renewable energy alternatives commitment designed ensure supply chain activities align sustainability goals including transition renewable energy sources hugo boss aims progressively reduce transport related greenhouse gas emissions ghg scope upstream transportation distribution consistently reducing air freight improving transport planning together global logistics partners also exploring alternatives biofuels energy consumption mix total energy consumption related operations amounted mwh mwh reflects slight increase energy consumption compared previous year primarily driven higher production volumes expansion office buildings retail spaces warehouse facilities total corresponding mwh consumed energy renewable mwh signifies mwh total energy consumption derived fossil sources therefore non renewable mwh energy fossil renewable sources mwh fuel consumption crude oil petroleum products fuel consumption natural gas consumption purchased acquired electricity heat steam cooling fossil sources total fossil energy consumption consumption purchased acquired electricity heat steam cooling renewable sources production consumption non fuel renewable energy total energy consumption renewable sources total energy consumption corporate governance consolidated financial statements additional information combined management report shareholders annual report energy intensity measured total energy consumption across production facilities warehouses offices brick mortar retail stores outlets relative group sales amounted mwh per million eur mwh per million eur greenhouse gas emissions global business activities resulted total metric tons tons greenhouse gas ghg emissions across scope calculated accordance greenhouse gas protocol total emissions increased year year indicating emission intensity defined total ghg emissions relative net revenue eur million eur million eur million compared baseline total emissions increased mainly due strong increase production volumes since hugo boss emitted scope emissions reflecting reduction compared reduction compared base year development mainly reflects increased share green electricity implementation energy efficiency projects relative previous well base year scope emissions amounted marking increase previous year increase compared base year increase scope emissions line rise total emissions primarily due significantly higher production volume despite increase production volume successfully reduced ghg emission intensity per piece compared previous year compared base year calculation based emissions scope purchased goods services include emissions production sites hugo boss refined methodology calculating scope emissions enhance accuracy credibility aligning fully methodology outlined ghg protocol determining scope emissions purchased goods services implemented higg materials sustainability index msi facility environmental module fem tools tools regularly maintained cascale ensuring data methodology continues meet high standards credibility ensure comparability prior year well base year figures outlined table also recalculated starting hugo boss expanded reporting include scope categories eight outlined table enhancement aligns ghg protocol science based targets initiative sbti guidelines underscoring commitment comprehensive reporting across relevant scope emission sources accordingly also adjusted baseline emissions reduction target ensure accurate comparison applying scope categories updated methodologies corporate governance consolidated financial statements additional information combined management report shareholders annual report greenhouse gas emissions base year total scope emissions total scope emissions market based scope emissions purchased goods services capital goods fuel energy related activities upstream transportation distribution waste generated operations business travel employee commuting upstream leased assets downstream transportation end life treatment sold products franchises total scope emissions total emissions scope emissions well scope emissions part auditing scope scope emissions include direct emissions owned controlled sources emissions vehicles excluding electric vehicles due corrections improvements data quality prior year figures adjusted retrospectively scope emissions calculated according market based approach using specific supplier emission factors certified green electricity conventional electricity specific country emission factors used location based scope emissions amounted due improvement data quality corresponding corrections year prior year figures adjusted retrospectively calculation emissions scope capital goods based average spend based method according ghg protocol data available time annual financial statements may corrected retrospectively deviations previous year figures possible scope emissions calculated using primary data calculation primary data share based input factor levels excluding emission factor data pollution pollution critical issue apparel textile industry particularly upstream downstream stages value chain raw material extraction pesticides fertilizers contaminate water sources particularly regions less developed agricultural practices soil degradation caused overgrazing poor farming practices excessive chemical use improper disposal textile waste pollutes soil groundwater textile production significantly affects water soil quality due use chemical substances fertilizers cotton farming various processing agents substances predominantly applied wet processes dyeing washing bleaching tanning major contributors water pollution discharge untreated wastewater additionally synthetic textiles release microplastics wear washing polluting rivers oceans harming marine life human health hugo boss recognizes challenges committed minimizing pollution across value chain corporate governance consolidated financial statements additional information combined management report shareholders annual report policies related pollution effectively address pollution prevention control implemented environmental policy chemical management policy environmental policy sets framework reducing environmental pollution overall caring environment information hugo boss environmental policy found climate change section climate change hugo boss dedicated conscious safe use chemicals prioritizing environmental health considerations chemical management policy policy outlines clear guidelines storage use disposal hazardous substances aiming minimize environmental impact actively promote safer alternatives addresses key concerns preventing water pollution reducing air soil contamination adhering internationally recognized standards including zero discharge hazardous chemicals zdhc initiative hugo boss joined initiative provides standardized tools assess enhance suppliers chemical management practices core element initiative zdhc manufacturing restricted substances list mrsl identifies harmful chemical formulations need phased mrsl sets strict limits critical process chemicals supports efforts monitor mitigate water pollution forms integral part hugo boss supplier contracts requiring suppliers including production facilities verify chemical inventories mrsl ensure products free harmful substances established restricted substances list rsl product compliance guideline comprehensive documents define product safety marketability requirements setting clear framework compliance throughout supply chain suppliers required adhere rsl strictly regulates substances products ensure meet highest safety standards aligns recommendations apparel footwear international rsl management afirm group incorporating substance lists thresholds test methods structured approach managing restricted substances hugo boss extends obligations mrsl rsl beyond tier suppliers mandating upstream suppliers also comply standards fostering collective commitment product safety sustainability targets related pollution hugo boss committed ensuring tier direct tier suppliers using wet processes meet zdhc mrsl reporting equivalent standard set interim target strategic tier suppliers using wet processes meet requirements production sites scope met chemical inventory requirements including strategic suppliers wastewater tests production sites scope complied specifications including strategic suppliers corporate governance consolidated financial statements additional information combined management report shareholders annual report enhance water soil quality aim source natural materials used products fabrics linings according regenerative principles closed loop recycling excluding license products natural materials already met criteria goal designed prevent soil water pollution promoting better cultivation practices minimize excessive fertilizer pesticide use aim combat soil degradation improve soil quality protect water ecosystems harmful contamination caused conventional agricultural methods traditional cotton farming additional information target found biodiversity ecosystems section biodiversity ecosystems hugo boss also aims systematically reduce reliance non renewable synthetic fibers actively contribute reduction microplastics context committed eliminating use polyester polyamide products fabrics linings polyester polyamide accounted fabrics linings target underscores commitment reducing environmental pollution safeguarding ecosystems actions related pollution reduce environmental impacts production collaborating closely suppliers businesses global apparel industry including initiatives zdhc adopting zdhc roadmap zero framework enhanced ability monitor improve chemical management across supply chain additionally member afirm group leverage tools maintain high standards chemical compliance product safety every stage production recognizing environmental risks posed chemicals products hugo boss eliminated use harmful per polyfluoroalkyl substances pfas production processes early ban integral part rsl remain committed phasing additional harmful substances materials future ensure products free substances high concern svhc conduct regular monitoring rigorous testing product risk database integrates third party test reports products fabrics trimmings enabling effectively track restricted substances particularly focus identifying managing svhcs proactive approach aims ensure compliance regulatory requirements minimizing risks consumers environment combat microplastic pollution focusing reducing reliance non renewable synthetic fibers minimizing environmental impact therefore fight microplastics key pillar sustainability strategy strategic partnership swiss innovator heiq established important step direction together developed aeoniq cellulose yarn offers similar properties polyester polyamide successfully launched first aeoniq polo shirts boss introduced first sneakers made aeoniq moving forward continue strengthen partnership gradually increasing use aeoniq yarn brands collections resource use circular economy corporate governance consolidated financial statements additional information combined management report shareholders annual report water resources hugo boss committed responsible water management conservation throughout operations supply chain recognize material impacts activities water resources particularly cultivation water intensive raw materials like cotton water use upstream production processes therefore dedicated reducing least minimizing water scarcity risks surrounding communities ecosystems implementing targeted initiatives collaborating closely suppliers strive lower water withdrawal enhance efficiency minimize environmental footprint policies related water resources water management core component environmental policy require suppliers monitor optimize water consumption effective strategies water withdrawals surface groundwater sources must least comply national local requirements suppliers engaged water intensive production processes particularly encouraged continuously optimize water efficiency information environmental policy found climate change section climate change actions related water resources launched partnership cascale worldly detailed climate change section enhance among things tracking water consumption suppliers collaboration expected provide valuable insights water usage across supply chain enabling design effective strategies reducing water consumption going forward first year focus establishing partnership creating strong foundation comprehensive data collection paving way detailed action roadmap optimal resource allocation climate change implementing future measures along supply chain also draw expertise gained multiple water management initiatives implemented sites prior years largest production site turkey example installed groundwater collection systems support green area irrigation sanitary installations additionally introduced water saving aerator fittings multiple locations reducing water consumption incorporating air water flow corporate governance consolidated financial statements additional information combined management report shareholders annual report biodiversity ecosystems natural raw materials depend healthy diverse ecosystems sustained intact thriving biodiversity products predominantly crafted natural materials cotton wool underscores deep reliance preservation biodiversity dependency shared across broader fashion industry significantly impacts ecosystems worldwide unsustainable cultivation practices excessive use fertilizers pesticides cotton farming habitat destruction extensive land use deforestation contribute biodiversity loss additionally extraction raw materials like cotton leather exploitation expansion agricultural land lead habitat loss relying virgin materials general well waste generation manufacturing exacerbate challenges recognizing industry wide impacts hugo boss made biodiversity priority sustainability management striving balance dependency natural resources proactive efforts mitigate adverse impacts ecosystems transition plan biodiversity ecosystems hugo boss actively taking steps address important topic biodiversity ecosystems includes conducting comprehensive resilience analysis business model strategy concerning biodiversity ecosystem related risks first step currently planning conduct biodiversity impact assessment lay groundwork future resilience analysis assessment also inform potential development transition plan ensuring biodiversity considerations systematically integrated strategic framework policies related biodiversity ecosystems environmental policy underscores commitment sustainability conserving natural resources enhancing energy efficiency addressing material risks also seizing opportunities promote renewable energy resource efficiency across operations supply chain policy underscores efforts conserve resources continuously evaluating adopting alternative materials reduce impacts biodiversity ecosystems details policy available climate change section climate change biodiversity strategy paper emphasizes responsibility care enhance ecosystems part broader sustainability commitment framework designed address key dependencies natural resources cotton wool including specific measurable targets reduce negative environmental impact across supply chain approach prioritizes responsible sourcing generally excludes materials exotic leather collaborate closely organizations canopy adopt practices support biodiversity partnerships strengthen commitment better raw material sourcing highlight role caring vulnerable ecosystems strategy addresses physical risks fluctuations raw material availability climate sensitive regions transition risks tied ongoing shift towards regenerative closed loop materials risk assessment process guided leap locate evaluate assess prepare framework taskforce nature related financial disclosure tnfd helps identify biodiversity related dependencies risks across supply chain corporate governance consolidated financial statements additional information combined management report shareholders annual report enhance transparency accountability hugo boss committed ensuring traceability across supply chain source certified suppliers tanneries accredited leather working group lwg adhere canopy standards wood based materials prevent deforestation includes standard man made cellulosic fibers use lyocell modal viscose required certified biodiversity strategy paper also aims sustain biodiversity prioritizing avoidance deforestation resources including cotton wood based packaging emphasizing sustainable land use partnering regenerative farming initiatives actively support ecosystem resilience regenerative farming holistic approach aims restore enhance soil health biodiversity ecosystem resilience promotes practices crop rotation reducing use critical chemicals protecting endangered species support environmentally friendly agricultural systems since currently standardized definition concept hugo boss developed clearly defined standards actions related biodiversity ecosystems hugo boss committed forest conservation responsibly sourcing materials paper packaging fabrics approach reflected commitment protect forests applies wood derived materials used paper packaging fabrics throughout global operations policy developed careful consideration stakeholders interests including environmental organizations suppliers consumers support commitment hugo boss adheres recognized third party standards including forest stewardship council fsc programme endorsement forest certification pefc reinforcing dedication sustainable sourcing targets related biodiversity ecosystems contribute protection biodiversity ecosystems part broader sustainability strategy hugo boss set goal sourcing natural materials used products fabrics linings according regenerative principles closed loop recycling license products excluded goal natural materials already met criteria commitment aimed minimize impact natural resources actively supporting ecological restoration prioritizing regenerative farming aim enhance soil health restore habitats promote biodiversity moving beyond conventional practices monoculture farming excessive pesticide use focus closed loop recycling reduces dependence virgin raw materials decreasing waste protecting ecosystems resource extraction pressures corporate governance consolidated financial statements additional information combined management report shareholders annual report actions related biodiversity ecosystems recognizing importance intact ecosystems biodiversity taking steps identify assess disclose nature related risks opportunities thereby improving decision making accountability context plan publish first taskforce nature related financial disclosures tnfd report drawing experience task force climate related financial disclosures tcfd report publishing annually since integrating biodiversity ecosystem considerations financial strategic planning aim strengthen sustainability commitment prepare tnfd reporting key priority identify implement tool comprehensive biodiversity impact assessment plan extend tool application tier suppliers tier farmers practicing regenerative farming tier initial focus identifying suppliers located near biodiversity hotspots ecologically sensitive areas thorough analysis assess aspects land use changes proximity sensitive ecosystems presence threatened species findings inform development biodiversity strategy transition plan actionable steps timelines foundations established expand assessment include relevant suppliers close collaboration key stakeholders like regenerative farmers local communities implement plan support biodiversity preservation community resilience expanded portfolio approved farms farmer associations laying foundation scaling regenerative farming initiative coming years cornerstone effort partnership raddis cooperative based india promoting regenerative farming empowering farmers directly extended partnership another three years strengthen efforts hugo boss recognize importance fostering direct engagement farmers agricultural associations committed cultivating regenerative raw materials ensure consistency alignment across regenerative sourcing efforts developed internal regenerative agriculture brochure comprehensive guide outlines approach regenerative farming establishes clear criteria across four key areas soil health biodiversity animal welfare social fairness key aspect detailed explanation evaluation process regenerative partners follows five distinct steps scouting nominating interviewing evaluating approving furthermore brochure outlines three performance levels regenerative principles improving soil health conserving biodiversity restoring biodiversity promoting social fairness structured approach ensures targeted support farmers various stages regenerative journey promote biodiversity land also oceans support restoration marine ecosystems hugo boss foundation entered long term partnership coral gardeners established hugo boss foundation dedicated supporting climate environmental protection initiatives around globe coral gardeners non profit organization focuses restoration conservation coral reefs regions french polynesia fiji thailand part partnership hugo boss foundation contribute eur million coral gardeners several years reinforcing commitment protecting planet ecosystems corporate governance consolidated financial statements additional information combined management report shareholders annual report resource use circular economy global fashion company hugo boss recognizes responsibility protect natural resources actively contribute transition toward circular economy consequently identified circularity strategic priority early stage anchored key pillar sustainability strategy group strategy sustainable throughout fashion industry production processes require large quantities virgin raw materials cotton wool well synthetic fibers like polyester necessitate ongoing resource extraction reliance contributes significant environmental challenges including deforestation excessive water use pollution additionally substantial waste generated garment production post consumer stage clothing disposed rather reused resold exacerbates environmental burdens also depletes valuable raw materials packaging particularly single use plastic adds environmental impact contributing resource depletion large volumes non biodegradable waste pollution enters ecosystems threatening wildlife disrupting habitats lack efficient systems reusing recycling packaging materials compounds problem depleting valuable resources contributing pollution information challenges threaten biodiversity ecosystems found biodiversity ecosystems section biodiversity ecosystems policies related resource use circular economy material strategy underscores commitment responsible resource use circular economy principles guideline emphasizes approach increasing use recycled certified materials outlining standards selection usage materials products key elements include classification raw materials overview regenerative farming principles care initiative well details brands circular styles care initiative aims increasingly use better raw materials collections meaning materials either recycled sourced regenerative farming supporting circular design practices certified external standards overview key standards certifications respective materials found material strategy available corporate website regard brands circular styles adhere closely circular fashion circular design criteria offering comprehensive framework circular textile products hugo boss circular products must meet three criteria using renewable recycled raw materials long lasting designed recycling example reducing use material mixes continuously working increasing use recycled post consumer textile waste collections corporate governance consolidated financial statements additional information combined management report shareholders annual report ensure circular products developed produced alignment circularity goals established internal circular product policy policy provides detailed information internal organizational responsibilities circular design criteria list materials used circular styles guidelines design products recyclable targets related resource use circular economy hugo boss aims apparel products circular measured production volume number apparel items increased share thus making progress toward goal also set target used raw material aiming source cotton used fabrics linings sustainably end accordance criteria material strategy materials classified sustainable must either certified external standard organic content standard ocs recycled sourced mass balance systems like cotton made africa cmia cotton particular also considered sustainable sourced verified regenerative farming practices already achieved target reaching share sustainable cotton regenerative farming key lever sourcing sustainable cotton also set goal sourcing natural materials used fabrics linings products according regenerative principles closed loop recycling licensed products excluded target ensure transparency foster collaboration actively engage external stakeholders including textile sustainability experts partners like raddis cooperative based india promoting regenerative farming empowering farmers directly information regenerative farming corresponding target found biodiversity ecosystems section biodiversity ecosystems hugo boss committed reducing packaging continuously improving environmental impact responsible material choices innovative solutions successfully reduced packaging weight per item compared time aim achieve reduction single use plastic packaging per item excluding hangers suit bags also compared levels target encompasses product transport commerce service packaging single use plastic packaging slightly increased actions related resource use circular economy reinforced commitment innovative circular designed products increase awareness particularly among design development teams conducted specialized training courses circular design principles practical application additionally introduced mandatory annual training program align teams sustainability targets material standards fostering unified approach use better materials increase use materials lower environmental impact compared conventional alternatives polyester polyamide strengthened strategic partnership swiss innovator heiq information initiative please refer pollution section pollution corporate governance consolidated financial statements additional information combined management report shareholders annual report part ongoing innovation efforts also collaborated one suppliers develop novapoly trademarked yarn made pre post consumer recycled polyester textile waste reflecting continued effort reduce textile waste revised packaging targets standards committing reducing packaging waste promoting circularity placing particular emphasis minimizing plastic waste part initiative established new targets standards aspects upstream downstream operations including product transport commerce service packaging new target outlined form cornerstone approach less impactful packaging resource inflows hugo boss relies variety resources support operations value chain activities include natural synthetic materials outlined following tables biological materials cotton wool leather constitute significant share input materials carefully selected meet sustainability standards prioritizing certified consciously managed supply chains synthetic materials polyester polyamide also form integral part input materials reduce reliance virgin resources increasingly focusing recycled alternatives fully committed continuously expanding use better recycled materials across brands collections corporate governance consolidated financial statements additional information combined management report shareholders annual report natural synthetic materials used metric tons total share sustainable materials share recycled material metric tons total share sustainable materials share recycled material cotton natural rubber linen hemp total biological materials sheep wool leather silk cashmere mohair total animal derived materials polyester polyamide elastane total fossil based materials viscose lyocell modal total cellulose based materials remaining materials total materials materials classified sustainable hugo boss must either certified external standard organic content standard ocs recycled sourced mass balance systems like cotton made africa cmia specifically cotton also considered sustainable comes verified regenerative farming practices generally classify recycled materials sustainable values presented also contribute share sustainable materials also includes animal derived materials alpaca wool goat hair also includes fossil based materials acrylic polypropylene includes cellulose based materials cupro acetate corporate governance consolidated financial statements additional information combined management report shareholders annual report packaging essential protecting products transport shipping reinforcing brands premium positioning global apparel market product packaging made renewable materials part commitment resource conservation transitioning sustainable raw materials including certified recycled sources paper packaging certified made recycled material reflecting dedication sourcing consciously managed forests reducing use virgin materials also focused increasing circularity packaging packaging materials recyclable demonstrating efforts conserve resources reduce waste packaging materials used recycled content total total share recycled materials total total share recycled materials transport shipping cartons carrier bags product gift boxes total paper packaging polybags garment covers hangers suit bags total plastic packaging hanger hooks total metal packaging natural materials cotton total packaging circular business models primary objective circularity minimize waste critical stages product life cycle achieve goal focus reusing surplus materials production extending product life cycle reuse repair resale initiatives successfully launched eightyards subsidiary dedicated reuse recycling surplus materials concept strategically aligned commitment accelerate resource efficient production processes reduction post production waste officially starting operations early eightyards aims become leading player recycling repurposing surplus materials across various industries including fashion corporate governance consolidated financial statements additional information combined management report shareholders annual report additionally early initiated strategic partnership sellpy european commerce platform specializing fashion collaboration offers customers convenient way extend life pre owned fashion items part service send items including boss hugo brands resale receive credit items sold offer initially available selected european markets highlights commitment circular economy disclosures pursuant article regulation taxonomy regulation european green deal introduced european commission aims achieve net zero greenhouse gas emissions european union key part strategy taxonomy classification system defines environmentally sustainable economic activities purpose guide capital flows toward sustainable investments classifying economic activities based contribution six environmental objectives climate change mitigation climate change adaptation sustainable use protection water marine resources transition circular economy pollution prevention control protection restoration biodiversity ecosystems fiscal year hugo boss conducted thorough analysis concluding like prior year financially material taxonomy aligned sales capex opex reported particular primary economic activities yet covered taxonomy following section contains mandatory reporting related taxonomy reflecting current interpretation available time combined non financial statement prepared reporting environmentally sustainable economic activities taxonomy requires companies report taxonomy aligned environmentally sustainable economic activities accordance criteria involves disclosing shares sales capital expenditure capex operating expenses opex related taxonomy eligible taxonomy aligned economic activities six environmental objectives taxonomy eligible economic activities meet respective activity descriptions outlined taxonomy regardless whether fulfill technical screening criteria economic activities become taxonomy aligned make significant contribution respective environmental objective complying technical screening criteria significant harm dnsh environmental objectives adhere minimum safeguards set taxonomy delegated acts published date connection taxonomy six environmental objectives still cover limited number sectors economic activities primary economic activities companies global apparel market thus also hugo boss delegated acts currently cover limited number potentially relevant economic activities connection objective transition circular economy including sale second hand goods repair refurbishment services activities currently play minor role business model primary economic activities definition taxonomy eligible however activities listed delegated acts revenue generating relevant company basic infrastructure real estate energy generation facilities corporate governance consolidated financial statements additional information combined management report shareholders annual report light broad range potentially eligible economic activities hugo boss applies principle materiality reporting taxonomy consistent approach prior year classify economic activity taxonomy eligible kpi value economic activity level least total sales total capex denominator sales core business hugo boss covered current taxonomy criteria therefore report shares taxonomy eligible taxonomy aligned sales fiscal year previous year irrespective hugo boss striving significantly expand activities circularity going forward firmly anchored clear commitment increase circularity sustainability strategy resource use circular economy capital expenditure capex fiscal year economic activities identified capex amounts exceeding defined materiality threshold except construction new office building headquarters metzingen germany qualifies taxonomy eligible activity construction new buildings hugo boss pursuing platinum certification german sustainable building council dgnb building completion expected dgnb certification reflects high standard sustainability fully cover taxonomy criteria result complete evidence alignment specific criteria unavailable reporting date therefore capex related office building project reported taxonomy aligned fiscal year consequently taxonomy eligible capex relation total capex incurred eur million denominator amounts denominator eur million share taxonomy aligned capex relation denominator however amounts accordance taxonomy regulation capex used determining denominator mainly comprises additions property plant equipment intangible assets depreciation amortization revaluations well right use asset additions long term leases amount denominator reconciled disclosures made combined management report financial position consolidated financial statements note financial position capital expenditure operating expenses opex accordance taxonomy opex used calculate denominator primarily includes direct costs relating research development building renovation short term leasing maintenance repair however majority opex hugo boss sales marketing general administration logistics expenses fall definition fiscal year opex denominator amounts eur million eur million relation company total opex eur million fiscal year reconcilable operating expenses presented consolidated income statement eur million opex denominator deemed immaterial consequently line specifications annex delegated acts article taxonomy hugo boss opted waive determination taxonomy eligible taxonomy aligned opex fiscal year accordingly shares reported earnings development income statement corporate governance consolidated financial statements additional information combined management report shareholders annual report climate risk analysis hugo boss conducted analysis physical climate risks key company locations meeting requirements taxonomy recommendations task force climate related financial disclosures tcfd also encompassing location mentioned investment project system based analysis uses emission reference scenarios established intergovernmental panel climate change ipcc significant short medium term physical climate risks identified respective project ensuring significant harm dnsh environmental objective climate change adaptation result company deems immediate adaptation measures required climate change social minimum safeguards compliance social minimum safeguards comprise oecd guidelines multinational enterprises guiding principles business human rights including ilo core labor standards international bill human rights thoroughly reviewed topic experts hugo boss previous year hugo boss complies standards outlined workers value chain business conduct additional information additional information taxonomy eligible taxonomy aligned proportions sales capex opex please refer section additional disclosures taxonomy additional disclosures combined non financial statement additional disclosures taxonomy social workforce hugo boss convinced passion dedication employees vital long term business success strong commitment empowering people teams therefore firmly anchored claim strategy guided hugo boss values entrepreneurial spirit personal ownership team mentality simplicity quality youthful spirit values serve foundation day day cooperation foster spirit mutual trust thereby promoting creativity well fast rigorous execution aim create environment enables employees develop individual talents thus directly contribute success hugo boss fostering diverse equitable inclusive corporate governance consolidated financial statements additional information combined management report shareholders annual report company culture create environment allows every individual succeed time employee development training central strategy providing workforce tools opportunities need grow efforts aim maintain positioning one attractive employers fashion industry talent nurtured everyone empowered reach full potential hugo boss values global presence across numerous markets production facilities consumer touchpoints hugo boss recognizes people cornerstone success thus dedicated protecting human rights fundamental principles safeguarding human dignity workforce mainly consists white collar employees headquarters global subsidiaries commercial employees within retail store network well blue collar workers production facilities logistics groups specific needs safe inclusive motivating appreciative workplace environment also fosters atmosphere trust belonging across levels business commitment extends beyond workforce entire value chain including workers global supply chain details human rights risks human labor rights approach supply chain outlined workers value chain section workers value chain policies related workforce hugo boss committed respecting human rights promoting fair labor practices fostering productive work environment prioritizes well rights employees across operations including local subsidiaries production logistics facilities retail stores commitments reflected company policies align international labor standards including united nations universal declaration human rights international labour organization ilo industry specific guidelines fair labor association fla trust entrepreneurial spirit personal ownership team mentality simplicity quality youthful spirit corporate governance consolidated financial statements additional information combined management report shareholders annual report human rights statement signed managing board reinforces commitment upholding international standards outlines responsibility address human rights risks emphasizes dedication eliminating forms discrimination review statement annually ensure ongoing relevance effectiveness actuality building human rights policy sets binding standards employees partners ensuring fair treatment decent working conditions compliance national laws working hours freedom association occupational health safety environmental protection policy enforces working hour caps guidelines overtime safeguard employee health well productivity fair pay fundamental ensuring financial security fostering equity employees must earn least statutory minimum wage cases local standards insufficient living wage standard applied policy undergoes regular updates recent revision completed early complementing health safety commitment child labor forced labor policy critical safeguarding workforce policies emphasize protection physical safety personal dignity prohibition child labor across operations partners supplier code conduct scoc based internationally recognized labor social standards applies partners also production sites compliance scoc monitored regular audits supported training critical topics foster mutual understanding across supply chain details policies scoc found workers value chain section workers value chain hugo boss code conduct outlines group wide legal ethical principles employee conduct establishing foundation compliance across range areas including fair competition avoiding conflicts interest proper handling company information data protection ensuring fair working conditions respectful treatment workplace central code maintaining zero tolerance toward corruption tolerate willful misconduct violations code employees receive copy code online access via code along employment contract continuously familiarized regulations code group policies information code conduct found governance section governance hugo boss dedicated creating inclusive supportive fair workplace equal opportunities available employees anti discrimination anti harassment gender equality commitment anti discrimination anti harassment gender equality policy emphasize efforts towards discrimination harassment free working environment hugo boss promotes respect full spectrum diversity including race gender sexual orientation age company strict zero tolerance stance form discrimination harassment upheld strict policies supported management commitment equal treatment employees corporate governance consolidated financial statements additional information combined management report shareholders annual report diversity equity inclusion cornerstone company culture reflecting commitment creating workplace free discrimination rich opportunity underscore importance firmly anchored within global human resources department ensuring alignment company broader goals operations dedicated policy currently developed publication expected emphasizing commitment creating inclusive working environment employees treated equitably empowered thrive additionally hugo boss fair pay commitment stipulates employees compensated fairly equitably accordance local laws international labor standards committed ensuring equal pay work equal value regular reviews ensure pay practices transparent free bias international subsidiaries hugo boss structure management means additional decentralized policies enables adapt particular situation complying national law stated otherwise group wide policies monitored yearly necessary updated human rights officer engagement workforce hugo boss committed fostering company culture employees feel empowered cooperate openly express views contribute company success engage directly workforce various channels ensuring employees opportunity voice concerns share ideas actively participate decision making processes promoting active direct dialog aim enhance employee retention strengthen connection company strategic goals key initiative engaging workforce tracking effectiveness overall approach employee engagement annual great place work survey conducted group wide external service provider survey offers critical insights employees experience hugo boss interactions leaders peers overall engagement group wide participation rate reached overall satisfaction level development mainly reflects challenges posed difficult macroeconomic environment key regions particularly turkey conditions impacted employees financial well overall sentiment throughout looking ahead remain committed sustaining satisfaction level least across group consistent previous years employees hugo boss germany overall satisfaction remained broadly stable employees particularly appreciate benefits perks team spirit collaboration well work life balance flexibility hugo boss offers findings provide valuable insights use inform operational strategic decision making aim improving employee engagement globally hugo boss importantly survey results particularly trust index represent key component long term incentive program lti managing board eligible senior management staff underscoring strategic importance employee engagement corporate governance consolidated financial statements additional information combined management report shareholders annual report besides annual survey hugo boss offers culture ongoing dialog multiple channels aimed strengthening internal dialog among employees well employees senior management regular updates managing board alongside opportunities direct dialog internal events provide platforms employee engagement context introduced hybrid format business managing board provides global workforce relevant business insights quarterly basis also answering questions audience workers representatives integral employee engagement process works councils organized local national levels regular dialog takes place key matters employee well health safety workplace development workforce germany represented works council level group parent company hugo boss accordance german works constitution act betriebsverfassungsgesetz betrvg annual works meeting managing board works council provide employees germany updates company economic performance strategic priorities strengthens transparency connection leadership workforce works council led chairperson regularly engages open dialog managing board central division addressing strategic individual matters employee assigned dedicated manager assist inquiries complaints matters requiring attention furthermore support formation employee organizations safeguarding rights respect right unionization workforce hugo boss maintains regular meetings union representatives directly associations southwest german textile clothing industry strengthen engagement also leverage digital tools enhance communication collaboration global employee app hugo boss global intranet platform one keep employees closely connected engaged platforms provide timely updates hugo boss two brands boss hugo featuring live streams videos relevant industry news grievance mechanisms remediation processes hugo boss established comprehensive system address human rights impacts stemming business activities facilitate reporting overcome barriers access provide three independent whistleblowing channels speak channel external ombudsperson service compliance department reduce barriers reporting channels enable reporting issues confidentially anonymously free charge addition global channels hugo boss implemented additional internal whistleblowing channels local level providing workforce access localized points contact hugo boss aims mitigate negative impacts human rights data protection compliance code conduct among things corporate governance consolidated financial statements additional information combined management report shareholders annual report raising awareness grievance mechanisms ensures employees feel safe report concerns awareness built various aspects company culture mandatory compliance training course permanent employees informed grievance processes internal information campaigns additionally company promotes awareness across local subsidiaries production facilities retail stores comprehensive information intranet posters detailing access various whistleblowing channels employees also raise concerns directly managers reports handled compliance department ensuring issues addressed line company commitment upholding human rights ethical standards hugo boss compliance department reviews effectiveness grievance procedure least year necessary hoc basis based findings action steps initiated ensure continuous improvement grievance mechanisms remediation processes including whistleblowing protection retaliation detailed governance section governance characteristics workforce end fiscal year headcount basis hugo boss employed total employees worldwide includes active employees including white collar workers commercial staff blue collar workers learners including working students apprentices interns temporary staff decrease headcounts compared prior year primarily reflects moderate decrease temporary staff well corporate functions full time equivalent fte basis excluding learners temporary staff corresponds employees december december following metrics represent employee data calculated headcount basis company global positioning also reflected workforce employees based outside germany within germany employees different nations work hugo boss almost nations end employees worked commercial sector employees assigned industrial activities corporate governance consolidated financial statements additional information combined management report shareholders annual report hugo boss employees¹ headcount basis following tables provide characteristics workforce aligned towards esrs requirements employees gender headcount male female diverse reported total employees employees country¹ headcount turkey germany total employees table aligns esrs requirements providing information countries representing least global workforce countries threshold reported emea without germany germany americas asia pacific retail business sales marketing production administration incl logistics commercial administrative employees industrial employees region type functional area corporate governance consolidated financial statements additional information combined management report shareholders annual report employees contract type broken gender headcount permanent temporary total thereof non guaranteed hours female male diverse disclosed employees contract type broken region headcount permanent temporary total thereof non guaranteed hours emea americas asia pacific hugo boss continued focus meeting demand talent hiring new employees worldwide total number employees left hugo boss reporting period amounted employees including inactive employment relationships hugo boss counts employees left company upon official contract termination transitions temporary roles internships student positions permanent roles recorded internal transfers new hires mentioned metrics hugo boss accounts employees excluding learners temporary staff resulting total turnover rate employees thus amounted employee turnover calculated dividing total number employees left company leavers year total number employees year end active inactive employment relationships excluding learners temporary staff methodology shall ensure clear consistent snapshot turnover relative workforce size specific point time level employee related turnover based total headcounts increased slightly year year rate includes voluntarily chose leave company gain deeper insights employee retention separately track employee related turnover retail operations corporate functions rate retail business corporate functions amounted objective remains reduce employee related turnover retail functions corporate functions conduct exit interviews employees decided leave hugo boss better understand reasons departure feedback collected analyzed purpose adjusting practices aim improving employee retention reducing employee related turnover corporate governance consolidated financial statements additional information combined management report shareholders annual report targets actions related workforce following section hugo boss outlines targets actions related workforce addressing topics identified material double materiality assessment includes information working conditions well equal treatment opportunities working conditions hugo boss recognize ensuring optimal working conditions vital fostering employee well productivity overall job satisfaction across regions also industry employees may face longer working hours heightened pressure especially peak seasons challenge ability maintain healthy work life balance continually working enhance conditions particular improving work life balance managing working time ensuring right freedom association hugo boss actively implementing flexible working models clear policies define reasonable boundaries around working hours promoting healthier work environments additionally committed enhancing social dialog framework ensuring employees voices heard rights fair representation upheld strengthening aspects aim create even inclusive supportive workplace employees empowered participate decision making processes affecting roles working conditions working time work life balance fast paced fashion industry managing working time essential ensuring fair working conditions preventing overwork effective regulation working hours protects employees right rest promotes overall well actions convinced balanced personal professional life fosters productive motivated workforce support offer employees wide range options strengthen work life balance variety flexible working models individual part time arrangements trust based working hours remote work designed help employees manage private life commitments alongside professional responsibilities employees already benefit flexible working hours example employees production facility izmir turkey also able reduce accrued overtime hours take advantage part time arrangements hybrid working model threedom work applies administrative staff germany provides three days attendance headquarters metzingen whereas employees free choose work location two days similar models place group companies administrative staff worldwide benefit mobile working options enhancing flexibility numerous initiatives headquarters support agile cross functional work environment utilizing modern office concepts digital tools additionally flexible models job sharing leadership corporate governance consolidated financial statements additional information combined management report shareholders annual report contribute dynamic efficient yet flexible work culture top hugo boss introduced time flexible sabbatical model employees germany enabling time education social engagement travel enhancing dynamic adaptable work culture also committed strengthening family friendliness part germany wide cooperation success factor family offering broad variety family friendly options includes access day care around toddlers metzingen site well holiday care programs canada employees access employee assistance program eap independent advice childcare family care addition employees option spending part gross personal income external care support services flexible spending accounts fsas adequate wages hugo boss firmly believe fair pay fundamental ensuring financial security fostering equity driving motivation productivity committed providing transparent performance based compensation part fair working conditions end hugo boss continually strives enhance fairness competitiveness compensation structure ensuring employees worldwide rewarded least line local minimum wage standards targets committed maintaining competitive compensation practices globally fiscal year employees earned least line adequate wage benchmark set forth esrs reaffirming commitment fair adequate compensation actions employees entitled fair compensation aligned market standards positions worldwide thus evaluated via standardized criteria based regular assessment jobs germany well international key positions majority employees remunerated based job specific salary bands addition minimum local wage requirements salary bands based external salary benchmarks covering several sectors recent years hugo boss conducted thorough evaluation nearly positions worldwide establish unified compensation system based group wide grading system thus improving transparency latter built around job specific qualifications responsibilities aimed ensuring compensation structure remains fair competitive free discrimination hugo boss reviews pay practices regularly maintain competitiveness corporate governance consolidated financial statements additional information combined management report shareholders annual report compensation system includes fixed variable salary components bonuses collective bargaining scale non cash compensation benefits aligns industry collective bargaining agreements incorporating national regional benchmarks hugo boss germany works agreements govern compensation components employee profit sharing bonus non tariff employees receive monthly salary instalment short term incentive sti linked annual company targets compensation scheme managing board senior management also includes long term incentive lti program additionally part restricted stock units rsu plan eligible senior management granted options purchase shares hugo boss aligning interests long term success company hugo boss supports employees company pension specific conditions varying country germany example employees eligible uniform pension plan additionally retirement programs place partial retirement allowing employees maintain access benefits like company fitness studio company restaurant group headquarters provide employees additional benefit hugo boss offers employee share investment program ship enabling employees across countries countries acquire hugo boss shares regular intervals favorable conditions thereby directly participating company success significantly expanded program eligibility criteria increasing number globally eligible employees around following expansion ship continues enjoy strong participation overall participation rate rate hugo boss germany freedom association collective bargaining freedom association right collective bargaining essential ensuring employees voice concerns collaborate maintain fair working conditions rights empower employees advocate better wages safer environments overall improved well targets hugo boss firmly committed respecting upholding employees rights unionize participate collective bargaining human rights commitment policy underline commitment towards open constructive dialog employees representatives objective ensure rights consistently respected across operations compliance national laws prevent violations germany employees covered collective bargaining agreements represented workers representatives corporate governance consolidated financial statements additional information combined management report shareholders annual report actions hugo boss actively engages workforce variety channels including labor unions works councils employee committees across global operations fostering open dialog promoting labor rights germany home second largest workforce social dialog facilitated close collaboration elected works council hugo boss represents employee interests managing board ensuring fair constructive negotiations topics vital workforce result collaboration implemented variety works agreements offering broad ranging benefits employees cover health protection flexible working arrangements childcare support family assistance programs anniversary bonuses among things turkey largest workforce elected employee representation aims ensure workers raise concerns participate discussions working conditions markets like mexico china specialized worker manager committees focus health safety workplace conditions ensuring employees voices heard local level france social economic committee comité social économique cse holds regular meetings local management representing different employee categories equal treatment opportunities commitment fostering equal opportunities deeply rooted promoting workplace thriving diversity equity inclusion principles alongside focus gender equality anti discrimination efforts continuous training development form foundation supportive empowering work environment believe inclusive culture every individual feels valued respected empowered contribute vital company long term success promoting fairness trust collaboration strive ensure environment employees excel hugo boss committed tackling gender pay disparities ensuring promotions compensation decisions merit based eliminating barriers career advancement based gender actively working closing gender pay gap increasing transparency career development compensation frameworks fostering equitable workplace everyone equal opportunities succeed time committed maintaining zero tolerance policy workplace harassment violence particularly arising discriminatory behavior safeguard inclusive culture implemented policies protect employees unethical conduct promoting safe respectful work environment empower employees excel free fear discrimination mistreatment also place strong emphasis continuous development employees variety training development programs hugo boss ensures employees regardless background role opportunity enhance skills grow within company contribute collective success corporate governance consolidated financial statements additional information combined management report shareholders annual report diversity equity inclusion hugo boss central journey reshaping fashion nationalities represented workforce embrace power diverse cultural backgrounds generational collaboration global company understand fashion influence society committed fostering inclusive equitable world diverse perspectives drive creativity innovation targets hugo boss committed promoting gender equality across organizational levels year end women represented workforce continuing form majority across management levels positions held women thus broadly stable compared prior year employees top management second management levels hugo boss set ambitious targets aiming least women first management level managing board least second management level december women accounted top management positions second management positions december respectively targets undergo comprehensive review reaffirming commitment driving gender equality strengthening representation women leadership hugo boss hugo boss proud diverse balanced workforce spanning multiple generations fiscal year employees accounted aged made employees totaled balanced age distribution reflects dynamic blend emerging talent experienced professionals drives hugo boss forward thereof first management level thereof second management level thereof first management level thereof second management level men women corporate governance consolidated financial statements additional information combined management report shareholders annual report employees age group headcount share headcount share headcount share years years years total hugo boss measures equity annual employee survey set target achieving agreement rate equity index index reflects employees perceptions fair treatment via several survey statements including people treated fairly regardless race age gender sexual orientation employees viewed hugo boss equitable workplace respectively inclusion measured via survey question around goal agreement employees agreed feel included within company actions hugo boss defined comprehensive ambition focused five key pillars people company consumers business partners community advance within organization embedding company culture mix match initiative bundles numerous internal external measures aimed raising awareness educating promoting culture inclusion diversity task force dtf composed employees diverse backgrounds supports execution initiatives dedicated working streams focused topics like gender equality lgbtqia representation employees also form self organized groups including wonder women crew crew offering safe spaces sharing experiences fostering mutual support offer employees regular training courses including programs teach overcoming bias supports business success launched training courses adopted top approach initially targeting managing board senior management middle management subsequently extended broader workforce individual team training sessions conducted also integrated unconscious bias training course leadership development programs gender equality remains priority ongoing initiatives enhance female representation leadership roles diversity hiring council plays central role reviewing recruitment process top management positions ensuring gender balanced candidate shortlists promote gender diverse leadership launched boss program aimed developing high potential female leaders hugo boss active support involvement managers corporate governance consolidated financial statements additional information combined management report shareholders annual report adhering united nations women empowerment principles aim promote equal opportunities representation treatment genders workplace also support partnership global lgbtiq equality pgle coalition organizations committed leveraging individual collective advocacy accelerate lgbtiq equality inclusion globally furthermore support klischeefrei initiative encourages young people make career choices free gender stereotypes introducing method set metzingen daycare center goal ensure gender equality fully integrated company culture balanced gender representation leadership positions across functions gender equality equal pay work equal value hugo boss recognize importance fostering balanced diverse workforce committed promoting gender equality achieving balanced leadership hugo boss fosters work environment free discrimination harassment promoting gender equality fundamental right employees regardless gender entitled equal rights opportunities access resources actions creating workplace environment promotes gender equality prevents discrimination begins raising awareness hugo boss implemented training programs educate employees issues bias discrimination gender equality company signed women empowerment principles provide guidance promoting gender equality business employees entitled fair compensation line market conditions also benefit various additional support including health insurance maternity parental leave financial support external training commitment equal pay demonstrated ongoing analyses gender specific compensation differences among employees comparable positions based standardized grading system includes comparing average annual compensation women men full time basis within individual grades without adjusting biographical factors continuously expanding analyses better understand drivers pay disparities work towards minimizing information compensation system found adequate wages section time hugo boss actively empowering women especially entering workforce example parental leave initiatives like open doors women program turkey providing mentorship career development opportunities support networks breaking barriers providing tools success hugo boss committed fostering gender equality across areas corporate governance consolidated financial statements additional information combined management report shareholders annual report measures violence harassment workplace hugo boss dedicated fostering working environment employees valued individuality free express without fear discrimination violence harassment hugo boss requires employees treat respect dignity irrespective age gender race sexual orientation disability nationality faith political opinion personal traits commitment reinforced regular training clear expectation employees contribute positive inclusive workplace culture commitment creating respectful safe workplace supported respective policies zero tolerance approach towards harassment violence targets hugo boss committed maintaining workplace free violence harassment alignment statutory internal company requirements human rights labor standards part anti harassment commitment policy strictly prohibit forms harassment violence aiming ensure standards consistently upheld across operations reporting period total incidents discrimination including harassment reported incidents one incident reported complaints filed national contact points ncps oecd multinational enterprises available confidential internal channels complaints fiscal year prior year hugo boss aware human rights incidents severe human rights violations within workforce including cases child labor forced labor human trafficking non respect guiding principles oecd guidelines consequently material fines penalties compensation payments related human rights issues recorded reaffirming commitment ethical standards employee rights actions hugo boss actively promotes culture respect individuality prevent discrimination violence harassment implemented regular compliance training includes dedicated anti discrimination learning module reinforces commitment anti discrimination educates employees recognizing preventing addressing violence harassment workplace training course reviewed annually updated needed reflect changes business specific requirements training skills development employees expertise commitment vital achieving strategic financial goals global business environment becomes increasingly complex competitive demand skilled employees continues rise strengthen position global competition talent prioritize individual development opportunities enhance employer attractiveness employee retention corporate governance consolidated financial statements additional information combined management report shareholders annual report actions hugo boss strongly committed fostering robust leadership culture providing comprehensive development opportunities employees commitment aligns strategic objective empowering people teams part claim strategy aimed driving individual organizational success offer wide range individual training development opportunities structured development programs employee development program edp professionals managers designed promote employees based competencies expand knowledge strengthen skills also regard leadership career addition role specific training also provide social skills development goal fostering performance driven inclusive collaborative company culture platforms hugo boss university hugo boss elibrary employees access broad selection face face live online learning courses focus professional social management skills also offer tiny training thursday one hour training format focused relevant topics since global learning week initiative fosters knowledge sharing collaboration diverse online training sessions led internal experts across globe production logistics sites face face training courses workplace briefings form integral part induction process industrial staff development offerings hugo boss include strong focus leadership mentality convinced significant positive impact company performance employee engagement regular workshops aim firmly anchor mindset within organization fostering common understanding leadership hugo boss leadership approach encourages leaders act enablers providing employees framework work personal growth key programs leadership development program ldp high potential program hiposs experienced leaders collection elc tailored develop leadership potential skills different career stages leaders also expected build strong connections individuals teams fostering team spirit ensuring equal opportunities hugo boss also supports students apprentices partnering universities vocational training institutions globally collaboration enables offer work study programs students pursuing various degrees apprenticeships industrial technical commercial fields addressing growing shortage skilled professionals internal mobility key factor talent retention hugo boss internal career platform global jobs employee recommendation program hugo boss spotted provide employees transparency growth opportunities across departments divisions time annual performance development dialog pdd provides structured feedback individual development planning using online tool data collected employee performance potential evaluation development planning ensuring objectivity transparency process helps employees realize potential promoting long term retention tool also supports mid year reviews collection structured feedback managers peers corporate governance consolidated financial statements additional information combined management report shareholders annual report workers value chain hugo boss recognizes impact operations workers lives conditions along global value chain particularly global south vulnerabilities pronounced challenges exist across upstream downstream parts value chain especially material within supply chain labor intensive processes prevalent workers may face challenges job insecurity low wages long working hours limited social protections women disproportionately affected barriers freedom association collective bargaining restrict workers ability negotiate fair wages improve conditions especially regions weak legal protections health safety risks pervasive across value chain pesticide exposure cotton farming hazardous chemicals dyeing processes across broader textile industry child labor forced labor impacts remain critical issues particularly raw material production manufacturing addressing challenges requires collective action hugo boss collaborates closely direct suppliers fostering long term relationships constantly improve labor practices also engaging stakeholders ngos trade unions industry initiatives drive systemic improvements care fair safe equitable working conditions fiscal year hugo boss primarily reporting targets metrics tier suppliers including production facilities plans expand reporting across tier tier coming years data collection reporting capabilities developed alignment esrs requirements overview outlining main features value chain please refer section combined non financial statement combined non financial statement business model strategy value chain policies related workers value chain respect human rights core priority hugo boss embedded company culture committed preventing violations within operations across supply chain publicly available human rights policy sets clear standards upholding human rights promoting fair treatment ensuring safe decent working conditions policy binding hugo boss employees business partners expected actively implement particular policy emphasizes specific safeguards vulnerable groups including children young workers women migrant workers indigenous people groups facing heightened risks global textile industry hugo boss committed safeguarding workers rights including fair working hours right unionize healthy working environments equal opportunities zero tolerance approach discrimination harassment well fair compensation central encourage suppliers adopt living wage strategies ensure fair treatment levels hugo boss monitors compliance policy due diligence process explained section due diligence sustainable supply chain management policy undergoes regular updates recent revision completed early corporate governance consolidated financial statements additional information combined management report shareholders annual report hugo boss human rights statement signed managing board reinforcing company long standing commitment respecting international standards statement outlines responsibility care human rights within operations supply chain highlighting awareness potential risks defining human rights responsibilities statement reviewed annually recent update available several languages supplier code conduct scoc sets minimum standards partners networks requiring contractual commitment condition collaboration therefore compliance scoc mandatory suppliers partners unless equivalent standards shall ensure business practices meet expectations particularly regions national legislation enforcement may lacking code mandates standards working hours rest periods cap working hours national laws absent promote healthy work life balance prohibits child forced labor prescribes decent working conditions shall ensure fair wages scoc also supports right freedom association collective bargaining requires partners foster continuous improvement across areas human rights labor standards environmental protection code also states zero tolerance policy towards corruption unethical behavior available multiple languages simplified one page version languages displayed partners production facilities providing direct access complaint mechanisms via code compliance scoc monitored annual self assessments regular social audits supported training esg topics scoc reviewed annually input stakeholders ngos latest update made human rights policy scoc based internationally recognized standards including universal declaration human rights udhr international labour organization ilo core conventions oecd guidelines multinational enterprises hugo boss dedicated child labor forced labor policy underscoring zero tolerance stance towards child labor young labor forced labor human trafficking across global value chain aligned international standards including ilo core conventions policy shall ensure ethical labor practices mandates strict prohibitions child labor forced labor human trafficking forms well exploitation vulnerable groups also sets clear guidelines regarding employment young workers safeguard rights policy requires preventive measures age verification hiring regular audits targeted training employees partners cases violations immediate action taken address issue support affected individuals confidential reporting channels reinforcing compliance policy reviewed updated regularly latest revision finalized early corporate governance consolidated financial statements additional information combined management report shareholders annual report anti discrimination anti harassment gender equality commitment anti discrimination anti harassment gender equality policy reinforce dedication fostering inclusive respectful ethical work environment strong emphasis human rights aligning international standards including ilo conventions policy extends beyond organization include workers value chain guided obligations set forth scoc commitment particularly relevant addressing challenges faced vulnerable groups including women disproportionately affected discrimination harassment unequal pay company human rights officer monitors human rights risks reports least twice per year managing board audit committee supervisory board identified risks due diligence process mitigate prevent human rights officer responsible overseeing implementation monitoring annual updating policies ensure continued alignment evolving international standards company values engaging workers value chain hugo boss committed improving working conditions across supply chain actively engaging key stakeholders including partners trade unions civil society organizations workers stakeholder engagement commitment endorsed managing board shall ensure ongoing collaboration gather diverse perspectives critical issues collaboratively develop effective sustainable solutions key effort biennial stakeholder dialog sustainability headquarters metzingen germany dialog also focused human rights related topics offering valuable insights strengthen policies processes foster collaboration regular supplier days offer platform open dialog sharing best practices working together drive innovation ethical standards across supply chain ensure compliance scoc gather direct worker input supplier employees interviewed risk based social audits workers provided contact details speak channel report retaliation misconduct also raise concerns fair labor association fla example conducted structured worker survey facility bangladesh assess working conditions next three years aim increase engagement efforts measuring effectiveness within broader process also recognize importance collective bargaining right freedom association workers shall ability negotiate working conditions wages corporate governance consolidated financial statements additional information combined management report shareholders annual report beyond direct engagement hugo boss participates multi stakeholder initiatives promote fair labor conditions member fair labor association fla support initiatives aimed protecting employee rights strengthening fair labor standards enhancing wages across supply chain fla also audits selected suppliers results published website hugo boss also signatory international accord health safety garment textile industry international accord legally binding agreement companies trade unions building legacy bangladesh accord member since hugo boss also member pakistan accord extending commitment additional sourcing country since also member partnership sustainable textiles textilbündnis joint stakeholder initiative led german federal ministry economic cooperation development partnership works improve labor conditions supply chain hugo boss actively participating working groups living wages complaint mechanisms gender equality grievance mechanisms remediation processes hugo boss tolerate violations defined social standards workers value chain entitled use independent grievance channels including speak channel dedicated external ombudsperson promote awareness channels scoc onepager displayed suppliers production facilities distributing communication cards details speak channel social audits beyond internal mechanisms actively monitor external incident reports textile partnership identify potential risks supply chain incidents reported within supplier facilities engage management ensure corrective actions taken potential violation identified assess whether adjustments risk management necessary case doubt may lead event related risk analysis complainants also free assert rights state authorities details grievance mechanisms remediation processes found governance section governance targets related workers value chain hugo boss dedicated ensuring compliance standards outlined supplier code conduct scoc across supply chain identify potential risks violations adherence standards regularly assessed audits self assessments external social compliance certificates hugo boss aims source goods tier suppliers including production achieving two highest social compliance performance levels good satisfactory compliance verified audits self assessments external social compliance certificates goods sourced tier suppliers achieved two performance levels time goods sourced tier suppliers including production achieving highest social compliance performance level good figure amounted calculating metrics consider performance levels tier suppliers determined follow evaluations conducted fiscal years corporate governance consolidated financial statements additional information combined management report shareholders annual report progress achieved along indicators reflects continuous focus improving human rights standards supply chain targeted implementation corrective actions suppliers demonstrates commitment increasing transparency accountability addressing human rights topics result social compliance performance level tier suppliers¹ good satisfactory improvements needed risky insufficient table refers social compliance performance level production sites active tier suppliers including production sites verified audits self assessments external social compliance certificates good supplier establishes necessary activities safe fair working conditions management takes social responsibility well satisfactory supplier recognizes need activities safe fair working conditions establishes processes activities implemented improvements needed supplier aware need safe working conditions consistent implementation relevant activities daily practice workers lacking risky supplier aware social compliance requirements however management feel implementation important allows abuses occur insufficient management aware topic social compliance unwilling address deal recognizable weaknesses management immediate threat employees results based social compliance assessments conducted across tier suppliers total tier suppliers including production due diligence process outlined forms foundation achieving targets actions related workers value chain due diligence sustainable supply chain management hugo boss ensuring compliance human rights labor environmental standards across supply chain core commitment address challenges implemented comprehensive due diligence process part risk management framework aligning oecd due diligence framework guiding principles business human rights corporate governance consolidated financial statements additional information combined management report shareholders annual report human rights due diligence process risk based process informed german supply chain act lieferkettensorgfaltspflichtengesetz lksg aims identify prevent mitigate account potential human rights risks violations process routed risk management system undertakes continuous risk analysis proactively address risks minimize negative impacts necessary implement remedial actions uphold human rights ethical standards throughout supply chain due diligence process begins thorough selection potential suppliers accepted supplier portfolio potential partner must complete standardized evaluation process involves agreeing general purchasing production conditions well contractual commitments scoc restricted substances list rsl manufacturing rsl mrsl zero discharge hazardous chemicals zdhc initiative also includes completing questionnaires topics customs supplier governance additionally suppliers required complete standardized self assessment focusing human rights compliance submit valid certifications must also successfully pass online esg training course covering topics social responsibility environmental standards new supplier relationships countries hugo boss yet operated internal decision making committee evaluates political social environmental risks associated country partnership initiated pollution management systems core hugo boss due diligence framework scoc establishes minimum standards partners networks requiring contractual commitment prerequisite collaboration ensure standards upheld continually assess suppliers social compliance sustainable supply chain ssc program program operationalizes due diligence process systematically monitoring supplier adherence scoc principles suppliers ssc program classified based criteria industry type geographical location categorization enables targeted management sustainability risks addressing process location specific challenges ssc program comprises three core modules collectively address key aspects sustainability management tier direct tier suppliers social compliance management module focuses ensuring respect human rights fair labor practices environmental management module prioritizes efforts combat climate change conserve water soil prevent air pollution governance module equips suppliers tools enable greater responsibility sustainability operations along supply chains alignment scoc integrating environmental risk assessment remediation grievance mechanism communication risk management monitoring policies management systems human rights due diligence process corporate governance consolidated financial statements additional information combined management report shareholders annual report social criteria ssc program provides comprehensive framework assessing human rights labor practices throughout supply chain social compliance management module accredited fla since social compliance management module figures total number tier suppliers total verified tier suppliers fiscal year social audit self assessment certificate external standard program decision making oversight processes shall ensure effective risk monitoring relevant departments including operational teams well key central departments corporate sustainability risk management compliance collaborate defined responsibilities human rights officer oversees overall due diligence process part management systems hugo boss also committed increasing supply chain transparency part digital twin initiative working toward full upstream traceability boss hugo products successful pilot phase began rolling traceability tool continue onboard additional suppliers enabling collect additional valuable data product provenance composition business critical information future risk assessment hugo boss conducts regular human rights risk analysis evaluate actual potential impact business activities individuals analysis distinguishes supplier risks country risks industry risks regarding workers supply chain assess human rights risks two key instruments human rights self assessments identify potential risks site social audits uncover actual risks dual approach shall ensure comprehensive oversight enabling targeted risk management throughout supply chain identify potential risks suppliers tier tier complete annual human rights self assessments evaluating compliance environmental social requirements outlined scoc conducted web based platform system automatically calculates risk level upon completion generates corrective action plans caps suppliers required take corrective action provide additional evidence hugo boss improve risk rating process frequently supported hugo boss ensure effective remediation based results self assessments social audits may also conducted initiating business relationship corporate governance consolidated financial statements additional information combined management report shareholders annual report uncover actual risks identify violations hugo boss conducts site social audits using risk based planning audits focus high risk suppliers identified either self assessment results previous audits revealed weaknesses violations requiring follow conducted using systematic auditor guidance aligning ilo conventions guiding principles legal requirements german supply chain act lksg audit generates detailed report informing suppliers specific issues caps training programs approach shall enable suppliers achieve compliance continuously improve performance also accept external social compliance certificates standards including smeta amfori bsci slcp fla fairwear fiscal year total audits conducted unannounced audits accounting total audits hugo boss aim steadily increase number unannounced audits reflecting commitment identifying areas improvement addressing potential non compliances within supply chain identified violations within supply chain detailed violations supplier code conduct¹ number risky insufficient total risky insufficient total social compliance management compensation benefits freedom association collective bargaining treatment workers working hours total prior year violations identified ares child labor workers discrimination forced labor health safety supplier control risk management suppliers human rights related risks operations provided corrective action plans caps collectively developed agreed upon monitored risk based audit cycle ensure compliance suppliers required implement caps within defined time frame adequate improvements achieved several reviews hugo boss may ultimately end partnership last resort responsible exit process involves gradually phasing order volumes rather abruptly terminating relationship ensuring suppliers sufficient time secure new customers maintain stability including reliable pay workers audits tier suppliers resulted total caps implementation set verified follow audits corporate governance consolidated financial statements additional information combined management report shareholders annual report monitoring follow monitoring follows risk based approach involving collaboration suppliers operational departments sustainable supply chain department audits scheduled suppliers risky insufficient results prior audits verify successful implementation corrective actions additionally fla independently monitors due diligence efforts conducting annual audits selected production sites caps arising audits implemented suppliers tracked diligently reported fla ensure accountability transparency process also mirrored audits conducted accord focus occupational health safety ohs pakistan bangladesh aims ensure consistent oversight improvement critical areas communication addition information provided combined non financial statement hugo boss makes due diligence policies procedures activities results available group website well relevant ratings rankings including global annual corporate sustainability assessment csa case third party complaints via fla information publicly accessible website biennial stakeholder dialog also share information policies strategies efforts different stakeholder groups actively seeking feedback actions training capacity building hugo boss provides esg related training suppliers supplier code conduct scoc offers access third party learning platform various training modules covering topics working hours fair labor practices esg laws regulations conducted esg onboarding training new suppliers selected existing partners additionally work closely key partners enhance quality efficiency supply chain parameters including offering programs improve digital skills among workforces hugo boss also contributes worker training membership international accord implements ohs training part corrective action plans bangladesh pakistan employees hugo boss whose roles involve social compliance procurement receive regular training scoc social compliance management module shall ensure equipped support suppliers implementing caps support vulnerable groups high risk countries hugo boss implements projects support vulnerable groups supply chain since partnered phulki ngo bangladesh run women café initiative offers training gender equality grievance mechanisms ohs providing platform voice concerns give feedback ongoing improvements also supported gender data initiative india collaborating two suppliers train representatives relevance advantages collecting gender disaggregated data promote enhance gender equality within operations additionally hugo boss actively contributes gender equality strategy circle within german textile partnership advancing rights female workers corporate governance consolidated financial statements additional information combined management report shareholders annual report fair compensation living wages fair compensation fundamental human right core principle scoc serving critical factor fostering maintaining long term partnerships suppliers collaboration fla part initiative initiated german textile partnership actively advocate political economic conditions promote higher wage levels global supply chain developed strategy aimed ensuring wages paid suppliers adequately cover workers basic needs including food water housing education healthcare transportation clothing household members additionally workers enough disposable income save unexpected events achieve hugo boss continuously works suppliers improve compensation practices bring wages closer living wage standard also launched living wage pilot program supplier bangladesh addressing wages benefits empowerment social dialog purchasing practices initial wage analysis confirmed payments exceeding statutory minimum wage based insights gained developed roadmap suppliers extended pilot final impact measurement conducted project completion notably past fiscal year increased wage reference value collaboration supplier bangladesh responsible purchasing practices responsible purchasing practices vital promoting fair working conditions wages across supply chain hugo boss developed responsible purchasing guidelines set communicated internally guidelines emphasize trust based equitable partnerships long term collaborations responsible exit strategies efficient production planning open dialog suppliers order management payments ensure alignment guidelines internally employees trained principles going forward strengthen efforts providing tailored training awareness initiatives employees sourcing operations departments ensure alignment principles also actively participating learning implementation community lic responsible purchasing practices multi stakeholder initiative provides platform companies ngos stakeholders share insights best practices improving purchasing behavior mitigating risks supply chains finally safeguard financial health suppliers offer supplier financing program enabling faster access receivables ensuring solvency challenging periods program strengthens supplier resilience also supports ability meet obligations workers paying wages time investing compliance measures corporate governance consolidated financial statements additional information combined management report shareholders annual report consumers end users today digital landscape safeguarding consumer privacy ensuring ethical use data fundamental sustaining trust building long term relationships aim data protection guarantee individual right self determination terms information hugo boss placing strong emphasis digitalizing business model importance data protection continues grow leveraging customer data particularly online business customer loyalty program essential future success hugo boss breach data protection laws data privacy violations poses risk data subjects affected also representing considerable compliance financial reputational risks hugo boss policies related consumers end users hugo boss committed protecting personal data compliance general data protection regulation gdpr applicable legal standards company privacy policies inform consumers end users collection processing personal data online store hugoboss com customer loyalty program mobile applications group website includes data contact details purchase history browsing behavior used process orders enhance customer service support marketing communications policies also outline use cookies tracking technologies enhance user experience analyze website activities given consumers end users provide respective consent data processing safeguard personal data unauthorized access loss alteration hugo boss fosters implementation technical organizational measures customers informed rights gdpr including rights access rectification erasure restriction processing data portability right object procedures handling data breaches complaints clearly defined data protection officer acting primary point contact privacy policies reflect latest legal organizational standards regularly reviewed ensure compliance recent update completed data protection policy binding across group entities provides framework ensure secure lawful processing personal data addressing identified risks clear guidance adheres key principles transparency purpose limitation data minimization accuracy confidentiality establishing strict guidelines line gdpr german federal data protection act bdsg policy applies personal data processed across group including employees customers suppliers partners ensuring secure compliant data processing across value chain anonymized data excluded policy places strong emphasis protecting data subjects rights timely manner including access rectification erasure restriction processing data portability right object corporate governance consolidated financial statements additional information combined management report shareholders annual report data breach complaint policy provides structured framework managing personal data breaches compliance gdpr legal requirements policy outlines processes detect report respond data breaches promptly minimizing potential harm affected individuals entities complaints handled clearly defined procedures reinforcing trust accountability privacy policies data protection policy data breach complaint policy accessible online store group website respectively data protection officer reporting directly cfo coo responsible monitoring compliance policies serving primary contact data protection matters engaging consumers end users hugo boss addresses data protection risks structured risk assessments transparent communication threshold analyses conducted instance customer data processing determine potential risk level high risk identified detailed data protection impact assessment dpia carried document streamline process hugo boss implemented dedicated tool tracks risk assessments related measures prioritizing structured risk management aim promote trust maintain good corporate governance adhering regulatory requirements particular attention given high risk processes customer loyalty program hugo boss involves particularly sensitive data prior introduction new processes comprehensive risk assessment completed necessary technical organizational measures implemented supported interdisciplinary team includes specialists data protection department process shall ensure full compliance data protection regulations hugo boss relies internal analyses indirect insights align data protection practices customer expectations effectiveness measures evaluated combination structured monitoring processes incident analyses handling data breach complaints drive continuous improvement identified incidents thoroughly analyzed corrective actions implemented prevent recurrence actions overseen data protection officer structured monitoring processes event incident hugo boss ensures timely complaint resolution conducts detailed incident analysis mitigate risks grievance mechanisms remediation processes consumers end users report data breaches suspected incidents multiple secure channels including contacting data protection officer directly submitting concerns via email contacting external ombudsperson option anonymous reporting mechanisms accessible via dedicated data privacy section online store well via speak channel group website complaints processed compliance department evaluates incidents determine risk rights individuals material negative impact identified remedial action taken thoroughly documented communicated within specified time frame corporate governance consolidated financial statements additional information combined management report shareholders annual report effectiveness channels assessed monitoring complaints handled resolved case tracked analyzed reviewed evaluate resolution identify areas improvement hugo boss aims build stakeholder trust grievance mechanisms transparent communication across platforms addition policies place protect individuals retaliation raising concerns reinforcing confidence system details grievance mechanisms remediation processes found governance section governance targets related consumers end users hugo boss aims rule contraventions applicable data protection laws far possible fiscal year prior year company aware data protection violations established authorities courts toward end german competent supervisory authority initiated investigation following customer complaint alleging receipt marketing content without sufficient legal basis investigation expected conclude actions related consumers end users hugo boss uses information security analysis system collect analyze relevant data real time approach shall enable company anticipate potential incidents data breaches cyberattacks thereby enhancing information security across company hugo boss established specific criteria establishing maintaining continuously improving information security management system line iso iec certification latter confirms hugo boss implemented robust measures safeguard confidentiality integrity availability information assets including sensitive customer employee data additionally security operation center soc ensures permanent monitoring respective systems aimed guarantee continuous system security hugo boss advanced software systems monitoring international data protection cybersecurity regulations aimed minimize risk non compliance building efforts company conducted comprehensive review applicable data protection laws across jurisdictions tailored risk assessment matrix aligning company specific business structures country shall support focused effective approach managing regulatory risks internal processes systems handling personal data continuously monitored refined ensure compliance legal data protection guidelines ongoing improvements aim prevent data misuse theft also implemented contingency plans enable prompt implementation technical organizational countermeasures event legal violations corporate governance consolidated financial statements additional information combined management report shareholders annual report employees educated data protection means general role specific training complemented regular documentation digital confidentiality obligations employees handling personal data data subjects required complete comprehensive learning program data protection program designed enhance awareness handling personal data compliance gdpr must completed every two years governance managing board supervisory board convinced good corporate governance key factor long term business success good corporate governance therefore integral part hugo boss guiding principle encompassing areas company managing board supervisory board committed ensuring company continuation going concern well sustainable value creation responsible transparent long term corporate governance time hugo boss aims live strengthen trust placed company employees shareholders business partners public following information provided oriented towards esrs information corporate governance also found chapter corporate governance corporate governance statement annual report corporate governance corporate governance statement business conduct hugo boss well defined corporate culture cornerstone responsible business conduct embedding clear values expectations operations foster compliance promote ethical behavior create collaborative work environment supported comprehensive policies targeted training proactive approach aims ensure alignment laws ethical standards minimizing workplace conflicts effective whistleblowing mechanisms strengthen governance framework providing secure channel employees stakeholders report concerns mechanisms aim enable early identification resolution potential misconduct supporting transparency protecting stakeholder trust reinforcing adherence laws ethical norms commitment responsible practices also encompasses animal welfare use small proportion animal derived materials leather wool collections dedicated maintaining transparency implementing robust control mechanisms uphold high welfare standards throughout supply chain additionally prioritize prevention detection corruption bribery embedding stringent policies monitoring systems ensure integrity business dealings regular training programs employees reinforce zero tolerance approach unethical practices corporate governance consolidated financial statements additional information combined management report shareholders annual report corporate culture hugo boss value based corporate culture company culture foundation fostering employee engagement driving innovation achieving sustainable business success shapes collaboration employees business partners shareholders public stakeholders fostering clarity trust ethical behavior strong company culture benefits employees communities enhancing company reputation long term success embedded execution claim strategy company culture built around five core values entrepreneurial spirit personal ownership team mentality simplicity quality youthful spirit trust serves foundation day day work overarching values fostering collaborative empowering environment values guide employee actions interactions drive cooperation align individual growth organizational goals living values central hugo boss identity permeates aspects operations workforce ensure principles consistently upheld hugo boss implemented targeted engagement initiatives mandatory learning module retaken every months educates employees ethical conduct reinforces core values workshops town hall meetings provide platforms embed principles everyday actions decisions fostering shared understanding across organization leadership plays pivotal role fostering company culture leaders hugo boss act role models empowering teams embodying values leadership mindset framework built four pillars orientate challenge harbor connect ensures leadership behavior aligns principles leadership development program ldp strengthens connection inspiring teams excel reinforcing cultural foundation evaluate company culture annual employee survey assess whether core values actively lived identify key drivers company work ethic insights help refine initiatives ensuring culture remains central element employee engagement organizational success results shared managing board senior management wider organization discussed within teams ensure alignment incorporate feedback strategic planning embed values daily operations importantly survey results particularly trust index represent key component long term incentive program lti managing board eligible senior management staff underscoring strategic importance employee engagement workforce corporate governance consolidated financial statements additional information combined management report shareholders annual report code conduct hugo boss summarized group wide principles conduct code conduct detailed group policies thus creating basis ensuring legality employee activities code conduct foundation compliance efforts embodying core values behaviors defining company provides clear guidance employees interact one another external stakeholders including customers suppliers business partners code establishes binding framework professional conduct covering wide range topics topics covered hugo boss code conduct key tenet code respect internationally recognized human rights commitment ensuring decent working conditions includes prioritizing physical safety personal dignity hugo boss maintains zero tolerance approach willful misconduct deliberate violations code reinforce principles employees receive copy code online access via code along employment contract available languages code publicly accessible corporate website recent revision incorporated statement company values aligning cultural priorities oversight compliance code responsibility managing board workforce addition guiding internal operations hugo boss extends ethical environmental labor standards throughout value chain suppliers required adhere hugo boss supplier code conduct scoc commit provisions monitor compliance variety means including site audits support suppliers training relevant topics workers value chain data protection antitrust law anti corruption avoidance conflicts interest decent safe fair working conditions occupational health safety environmental biodiversity protection animal welfare topics covered hugo boss code conduct corporate governance consolidated financial statements additional information combined management report shareholders annual report whistleblowing policy channels raise concerns hugo boss whistleblowing policy underscores commitment transparency integrity accountability establishing structured process reporting investigating addressing legal violations unethical behavior breaches code conduct includes topics human rights violations corruption bribery fraud theft policy outlines grievance mechanisms steps taken suspected violation reported intended guarantee highest level confidentiality protection whistleblowers affected individuals employees involved investigation potential misconduct policy applies hugo boss employees extends protection external stakeholders business partners workers value chain customers measures aim mitigate risks related unethical behavior legal non compliance potential reputational harm hugo boss offers employees well external stakeholders independent internal external whistleblowing channels confidentially necessary anonymously report potential misconduct legal violations include speak channel external ombudsperson central compliance department launched hugo boss speak channel replaced previous online portal accessible globally languages via toll free hotline detailed information whistleblowing channels also available corporate website ensuring accessibility stakeholders employees additional reporting options include supervisors compliance officers subsidiary group level information reporting mechanisms featured company intranet corporate website foster strong culture compliance hugo boss implemented group wide online compliance training course accessible employees mandatory specific target groups conducted least every months training covers key topics including company values code conduct anti corruption anti money laundering data protection information security antitrust conflict interests animal welfare whistleblowing backdrop increasing regulatory requirements program last updated expanded rolled employees responsible managing cases receive specialized training internal investigation workshops provided compliance department supply chain ensure grievance awareness supplier code conduct scoc contractual prerequisite business hugo boss tier suppliers receive mandatory social compliance training emphasizes grievance mechanisms required share scoc information workforce third parties shall ensure workers supply chain aware rights encouraged report violations related human rights labor standards environmental laws workers value chain corporate governance consolidated financial statements additional information combined management report shareholders annual report several supply chain related complaints submitted via whistleblowing channels resolution status outlined supply chain complaint cases country sector risk resolution status india working conditions progress india working conditions progress pakistan working conditions progress turkey working conditions unlawful dismissal progress bangladesh working conditions closed india discrimination harassment closed taiwan migrant worker closed thailand working conditions closed turkey working conditions closed turkey working conditions closed turkey working conditions freedom association closed compliance department maintains comprehensive documentation investigations evaluates effectiveness whistleblowing channels annually needed whistleblowing policy reviewed annually recent update feedback internal external stakeholders incorporated ensure policy remains effective aligned purpose compliance officer regularly briefs managing board significant compliance cases animal welfare hugo boss committed maintaining high standards animal welfare species protection throughout operations hugo boss animal welfare policy last updated aligns internationally recognized standards convention international trade endangered species wild fauna flora cites world organization animal health woah guidelines developed collaboration animal welfare organization four paws policy incorporates general animal welfare aims based five domains model defines minimum requirements measures addressing physical mental well animals involved supply chain hugo boss firmly opposes animal testing products including licensed goods like cosmetics extending commitment new product material development animal welfare policy applies group companies deviations allowed cases country specific regulations conflict policy provided essential content purpose upheld non compliance may result labor law consequences responsibility policy resides managing board compliance department ensures implementation adherence corporate governance consolidated financial statements additional information combined management report shareholders annual report targets related animal welfare hugo boss implemented specific standards targets sourcing animal derived materials reflecting commitment sustainability animal welfare leather sourced exclusively product food industry including materials sheep goats cows buffalo exotic leathers farmed fur banned since also refrain using angora wool policy emphasizes species appropriate husbandry gentle shearing methods avoidance harmful practices live lamb cutting hugo boss committed sourcing mulesing free wool reaching goal aligns overarching target sourcing natural raw materials regenerative recycled sources regenerative farming principles inherently prohibit mulesing include animal welfare aspects grass feeding minimizing animal transport mohair hugo boss exclusively uses materials certified responsible mohair standard rms brands summer collections use certified cashmere products containing cashmere already products generally make small portion collections met standard hugo boss also uses produced without live plucking forced feeding ensuring certified downpass recycled reduce reliance animal derived materials hugo boss actively develops integrates vegan alternatives provided enhance environmental balance without compromising quality functionality additional information please refer biodiversity ecosystems resource use circular economy sections biodiversity ecosystems resource use circular economy suppliers integral upholding animal welfare standards suppliers animal derived raw materials well tier suppliers using animal products must comply local animal welfare regulations minimum requirement hugo boss demands proof compliance conducts verification potential risks identified prevention detection corruption bribery ethically correct lawful conduct includes prevention corruption anti competitive behavior hugo boss expects employees act lawfully day day business operations hugo boss corporate compliance key responsibility managing board includes measures ensure adherence legal official regulations well internal guidelines codes include anti corruption anti bribery anti competitive antitrust regulations policies related prevention detection corruption bribery employees required comply group wide code conduct supplementary specific compliance rules anti corruption policy regulating acceptance granting gifts invitations fiscal year efforts focused enhancing anti corruption policy streamlining approval processes addressing additional risk areas establishing clear procedures handling suspicious cases rollout revised policy planned beginning fiscal year publicly accessible code conduct internal policies regularly reviewed content updated particularly response changes legal requirements workforce corporate governance consolidated financial statements additional information combined management report shareholders annual report central compliance department reports chief compliance officer reports directly cfo coo compliance department primarily responsible supporting monitoring effective compliance management together local compliance contacts group companies department ensures implementation continuous development respective policies part compliance program audit committee supervisory board regularly informed activities compliance department targets related prevention detection corruption bribery compliance management hugo boss aims ensure group wide legally compliant behavior aim prevent legal violations corruption bribery antitrust violations may result reputational financial risk may also lead personal consequences criminal labor law hugo boss concluded legal case denmark agreeing pay fine related antitrust violation initially identified apart violations related corruption bribery antitrust law identified authorities courts fiscal year violations actions related prevention detection corruption bribery compliance management system enhanced using risk based approach focus updating policies advancing whistleblowing system case management refining compliance risk assessment areas anti corruption antitrust hugo boss implemented mandatory group wide compliance online training course employees requiring regular completion details provided section whistleblowing employees compliance critical roles receive additional training online person sessions tailored relevant topics antitrust law group companies subject detailed audits applicable ensuring adherence internal policies regulatory requirements significant infringements reported managing board supervisory board ensure immediate attention appropriate action complement measures hugo boss also provides various whistleblowing channels employees suppliers trading partners confidentially anonymously report potential misconduct criminal offenses detailed dedicated section reported cases thoroughly investigated strict measures place protect whistleblowers retaliation system underscores company commitment fostering transparent accountable corporate culture corporate governance consolidated financial statements additional information combined management report shareholders annual report general economic situation industry development general economic situation fiscal year global economy faced numerous challenges uncertainties persistently high interest rates subdued global trade weak investment flows weighed economic activity geopolitical tensions including conflicts ukraine middle east along outcomes key elections exacerbated uncertainty factors collectively dampened consumer confidence contributed heightened financial market volatility positive note tight monetary policies pursued federal reserve fed european central bank ecb succeeded lowering inflation manageable levels however inflationary pressures varied significantly across regions sectors countries still grappling elevated price levels despite headwinds global economy showed resilience latest forecast published january international monetary fund imf estimates global economic growth thus broadly line prior year level growth global economy estimates imf without japan eurozone united kingdom united states latin america asia china japan world output marked high macroeconomic geopolitical uncertainty weak consumer sentiment impacts global apparel industry muted industry growth particularly visible europe china corporate governance consolidated financial statements additional information combined management report shareholders annual report according imf estimates economic growth eurozone showed modest recovery rising france maintained steady growth european economies saw limited improvements germany lagged behind continued contraction driven persistent weaknesses manufacturing sector subdued overall demand although ecb restrictive monetary policies helped ease inflationary pressures elevated levels uncertainty structural challenges persisted economic growth united kingdom improved level driven declining inflation gradual recovery consumer spending economy remained robust achieving growth broadly line prior year level underpinned solid consumer demand strong labor market measured approach fed compared outperformed major economies concerns lingered potential policy shifts post election country underlying economic momentum remained key driver global growth latin america growth remained stable region demonstrated resilience despite global uncertainties supported gradual improvements policy frameworks moderate uplift consumer demand china faced notable economic headwinds growth slowing cyclical challenges including ongoing property market crisis particularly weak consumer confidence weighed heavily economy offsetting gains stronger net exports broader asia region excluding japan experienced growth reflecting deceleration major economies like india southeast asia amid slowing industrial activity japan economic growth contracted primarily reflecting temporary supply disruptions weaker export demand industry development global apparel industry fiscal year shaped persistent macroeconomic geopolitical uncertainties including high inflation tight monetary policies weak consumer sentiment additionally ongoing shifts global trade supply chain disruptions added volatility industry performance first half year market environment remained subdued across regions cautious optimism improvement however regional developments deteriorated latter half year according joint study business fashion mckinsey company published november growth global apparel industry excluding luxury segment expected range reflecting overall challenging market environment corporate governance consolidated financial statements additional information combined management report shareholders annual report europe apparel industry excluding luxury segment experienced muted consumer demand throughout resulting revenue growth slowing range inflationary pressures eased slightly ongoing economic uncertainty geopolitical concerns kept personal saving rates high weighing retail spending important market hand industry excluding luxury segment returned growth revenues expanding industry sales benefited modest rebound consumer demand early signs stabilization broader economic environment toward end year supported outcome presidential election china contrast faced pronounced economic headwinds throughout year cyclical challenges including weak consumer sentiment limited impact government stimulus measures resulted projected industry growth excluding luxury segment industry growth china thus remained modest compared historical levels reflecting persistent challenges well increased savings rates market chinese luxury market particular experienced significant setbacks revenues potentially contracting much times year corporate governance consolidated financial statements additional information combined management report shareholders annual report comparison actual forecast business performance since introduction fiscal year hugo boss achieved substantial progress executing claim strategy reflected significant achievements across five strategic priorities stepping investments brands products consumer touchpoints momentum boss hugo accelerated noticeably driving record sales three consecutive years market share gains time part claim built robust organizational operational platform laying foundation sustainable profitable growth platform enables enhance operational execution improve effectiveness realize efficiency gains across business consequently claim successfully paved way towards achieving financial ambition eur billion sales ebit margin least time global market environment deteriorated substantially fiscal year weakening consumer sentiment across markets leading slowdown industry growth overall muted consumer confidence inevitably impacted company performance resulting moderate revenue increase compared prior years hugo boss continued benefit improved brand relevance boss hugo consequently group sales grew eur billion eur billion currency adjusted group currency throughout year capitalized important growth opportunities elevating brand relevance enhancing product offerings deepening customer engagement highlights included launch successful degree brand campaigns start partnership david beckham exciting brand events like boss spring summer fashion show milan time pushed ahead strengthening brands lifestyle images besides fully leveraging boss brand lines across touchpoints expanded denimwear offering introduction hugo blue addition elevated omnichannel activities improve customer experience including opening new boss halo stores düsseldorf shanghai time successfully launched new membership program hugo boss thus strengthening customer loyalty deepening connections brands products group strategy consumer touchpoints fiscal year marked challenging industry backdrop successful execution claim strategy supports business performance updated sales earnings targets full year achieved corporate governance consolidated financial statements additional information combined management report shareholders annual report response softer consumer sentiment course accelerated focus enhancing cost efficiency included driving efficiency gains across global sourcing activities optimizing freight modes positive impact gross margin development fiscal year second half year implemented additional measures enhance efficiency effectiveness capitalizing robust organizational platform besides putting strong emphasis driving marketing effectiveness particularly targeted productivity gains within global sales administration functions included optimizing retail cost structure prioritizing spend strategically relevant areas backdrop efficiency measures able limit increase operating expenses second half year thus supporting profitability result ebit amounted eur million fiscal year translating ebit margin eur million consequently hugo boss achieved full year sales earnings targets adjusted july backdrop challenging market environment earnings development comparison actual forecast business performance results initial forecast adjusted forecast results group sales eur million increase increase eur billion eur billion increase eur billion sales segments emea eur million increase low mid single digit percentage range increase low single digit percentage range increase eur million americas eur million increase mid high single digit percentage range increase mid high single digit percentage range increase eur million asia pacific eur million increase high single digit low double digit percentage range moderate decrease decrease eur million operating result ebit eur million eur million eur million eur million eur million decrease eur million group net income eur million increase develop within minus plus decrease eur million trade net working capital tnwc percentage sales improvement level approaching improvement level approaching improvement basis points capital expenditure eur million eur million eur million around eur million decrease eur million forecast group sales ebit adjusted july forecast sales segment net income capital expenditure adjusted publication first half year results august group sales fiscal year increased currency adjusted reported basis amounting eur million eur million revenues thus line recent guidance range projected sales grow growth supported sales improvements across brands boss hugo well regions distribution channels earnings development sales performance corporate governance consolidated financial statements additional information combined management report shareholders annual report supported solid top line performance increase gross margin decline operating profit ebit caused higher operating expenses compared prior year ultimately limited totaling eur million fiscal year eur million consequently ebit line recent guidance eur million eur million result ebit margin amounted basis points prior year level accordingly group net income decreased eur million fiscal year eur million earnings development income statement trade net working capital tnwc percentage sales improved thus exceeding recent guidance approaching development reflects improvement inventory sales ratio lower trade receivables well higher trade payables net assets capital expenditure decreased eur million slightly recent guidance range around eur million eur million development mainly reflects progress driving capex efficiency prioritizing strategically relevant investments financial position capital expenditure fiscal year free cash flow amounted eur million significantly exceeding prior year level eur million thus underlining highly cash generating business model strong increase mainly driven improvements trade net working capital financial position statement cash flows free cash flow corporate governance consolidated financial statements additional information combined management report shareholders annual report earnings development fiscal year hugo boss recorded solid top line improvements benefiting strengthened brand relevance boss hugo recent years slower growth compared previous years mainly reflects persistent macroeconomic geopolitical challenges dampened consumer demand markets led slowdown industry growth company continued pursue growth opportunities response softer consumer sentiment hugo boss accelerated focus enhancing cost efficiency across business areas operations marketing sales administration substantial progress achieved second half year time company continued invest key strategic initiatives boost brand power deepen customers connections boss hugo balanced approach crucial limiting increase operating expenses second half year thus supporting profitability acquisitions divestments material impact group financial performance reporting period sales performance hugo boss recorded solid top line improvements fiscal year amid challenging macroeconomic geopolitical backdrop overall currency adjusted group sales came prior year level amounting eur million eur million marking another year record sales hugo boss group currency revenues also expanded currencies broadly neutral impact growth supported sales improvements across brands boss hugo well regions distribution channels sales brand sales brand eur million sales sales change currency adjusted change boss menswear boss womenswear hugo total hugo boss posts solid top line growth despite challenging market environment strong focus driving efficiency limits increase operating expenses development operating result ebit supported cost discipline corporate governance consolidated financial statements additional information combined management report shareholders annual report brands continued drive important brand product initiatives part claim strategy latest boss hugo collections well received consumers wholesale partners alike consequently currency adjusted revenues boss menswear boss womenswear came prior year level performance supported star studded degree brand campaigns launch long term partnership david beckham boss spring summer fashion show milan hugo currency adjusted sales expanded momentum fueled successful launch new denim focused brand line hugo blue well compelling capsule collections hugo racing bulls group strategy sales region sales region eur million sales sales change currency adjusted change emea americas asia pacific licenses total geographical perspective growth varied across regions emea currency adjusted revenues increased supported solid sales improvements germany double digit growth emerging markets americas revenues currency adjusted markets contributing growth including high single digit uptick important market sales asia pacific hand remained prior year level hugo boss posted high single digit growth southeast asia pacific sales china remained prior year level reflecting overall muted local consumer demand earnings development sales earnings development business segments sales distribution channel sales distribution channel eur million sales sales change currency adjusted change brick mortar retail brick mortar wholesale digital licenses total corporate governance consolidated financial statements additional information combined management report shareholders annual report channel perspective growth driven brick mortar wholesale group digital business currency adjusted revenues brick mortar retail including freestanding stores shop shops outlets remained par prior year level channel increase sales per transaction largely offset decline store traffic reflecting muted consumer sentiment across key markets first foremost china currency adjusted sales brick mortar wholesale expanded reflecting robust demand boss hugo among wholesale partners enabled brands improve visibility penetration key department stores also successfully expanded global franchise business across select markets time also group digital business successfully continued growth trajectory currency adjusted sales reflecting improvements hugoboss com well increase digital sales generated partners overall total digital sales thus expanded group sales fiscal sales license business increased currency adjusted supported particularly strong improvements eyewear business consumer touchpoints network retail stores number freestanding retail stores openings takeovers dec closings dec fiscal year number freestanding retail stores slightly increased reflecting selective expansion global retail footprint key markets including china consumer touchpoints total boss stores newly opened across three regions including halo stores düsseldorf shanghai time also added eight hugo stores network including three stores warsaw part franchise takeover hand stores across emea asia pacific closed besides stores expiring leases also includes twelve stores russia whose operations already suspended since march sold wholesale partner july corporate governance consolidated financial statements additional information combined management report shareholders annual report number retail points sales emea americas asia pacific total number retail points sale thereof freestanding retail stores number retail points sale thereof freestanding retail stores including shop shops outlets total number retail points sale increased december besides slight increase freestanding retail stores development primarily reflects expansion shop shop business strengthen brands presence key retail partners first foremost americas total selling space retail business increased amounting around year end december around time brick mortar sales productivity decreased level around eur per mainly reflecting lower traffic brick mortar retail around eur per total selling space december square meter brick mortar sales productivity eur per square meter corporate governance consolidated financial statements additional information combined management report shareholders annual report income statement income statement eur million jan dec jan dec change sales cost sales gross profit sales operating expenses sales thereof selling marketing expenses thereof administration expenses operating result ebit sales financial result earnings taxes income taxes net income attributable equity holders parent company non controlling interests earnings per share eur income tax rate basic diluted earnings per share fiscal year hugo boss recorded solid improvement gross margin basis points level efficiency gains sourcing well successful reduction airfreight share compensated overall rise global freight costs provided substantial tailwinds gross margin development gains compensated adverse channel regional mix effects unfavorable currency effects well overall promotional environment business operations corporate governance consolidated financial statements additional information combined management report shareholders annual report development gross profit gross margin following rigorous implementation several cost measures aimed supporting profitability hugo boss efficiently mitigated growth operating expenses course year overall translated operating expenses increasing fiscal year increase second half year substantially lower compared first half overall development mainly reflects higher selling marketing expenses administration expenses remained broadly stable year year percentage sales operating expenses increased basis points level notes consolidated financial statements notes development operating expenses gross profit eur million gross margin operating expenses eur million operating expenses sales corporate governance consolidated financial statements additional information combined management report shareholders annual report selling marketing expenses increased compared prior year growing basis points level part selling expenses group brick mortar retail business expanded eur million thus representing group sales eur million increase driven inflation expansion related costs alongside higher non cash impairment charges time higher fulfilment expenses also contributed overall increase selling marketing expenses eur million eur million marketing investments hand decreased level eur million eur million primarily reflects company increased focus driving marketing efficiency prioritizing brand initiatives highest return consequently marketing investments added group sales thus line company target range laid claim notes consolidated financial statements note group strategy boost brands administration expenses remained broadly stable overall cost inflation largely offset disciplined overhead cost management particular hugo boss implemented several initiatives enhance organizational productivity fiscal year including eliminating non essential spending prioritizing key strategic initiatives consequently eur million general administration expenses increased slightly compared prior year eur million research development expenses incurring collection development broadly line levels amounting eur million eur million overall percentage sales administration expenses decreased basis points level notes consolidated financial statements note product development innovation supported company enhanced focus cost efficiency particularly second half year decrease operating profit ebit limited ebit amounting eur million eur million accordingly group ebit margin decreased basis points level sales increase improvements gross margin offset increase operating expenses currency effects slightly negative impact ebit fiscal year development ebit ebit margin ebit eur million ebit margin corporate governance consolidated financial statements additional information combined management report shareholders annual report depreciation amortization came prior year level amounting eur million eur million increase mainly attributable non cash impairment charges totaling eur million write ups eur million reflecting impairments fixed store assets right use assets driven challenging brick mortar retail environment fiscal year notes consolidated financial statements note eur million net financial expenses financial result fiscal year prior year eur million company recorded higher interest expense lease accounting ifrs reflecting overall high interest rate levels group tax rate slightly prior year thus gradually normalizing level accordingly group net income fiscal year amounted eur million prior year level eur million part net income attributable shareholders also decreased eur million eur million resulting earnings per share eur eur currency effects slightly negative impact group net income fiscal year notes consolidated financial statements note sales earnings development business segments development segment sales segment profit eur million emea americas segment sales asia pacific licenses emea americas segment profit asia pacific licenses corporate governance consolidated financial statements additional information combined management report shareholders annual report emea sales emea region europe middle east africa currency adjusted fiscal year channel perspective performance driven increase brick mortar wholesale group digital business compensated slight decline brick mortar retail reflecting lower store traffic sales development emea eur million sales sales change currency adjusted change brick mortar retail brick mortar wholesale digital total performance emea varied across markets germany posted solid revenue improvements sales france remained prior year level reflecting overall subdued consumer sentiment hand momentum emerging markets including eastern europe middle east remained strong throughout reflected double digit improvements compared prior year eur million segment earnings emea came prior year level eur million ebit margin amounted level sales gross margin improvements offset higher operating expenses latter mainly reflects higher fulfilment expenses well increase brick mortar retail expenses notes consolidated financial statements note americas americas hugo boss recorded currency adjusted revenue growth channel perspective growth broad based reflected revenue improvements brick mortar retail brick mortar wholesale digital business double digit increase brick mortar wholesale emphasizes improved visibility boss hugo key department stores particularly important market sales development americas eur million sales sales change currency adjusted change brick mortar retail brick mortar wholesale digital total corporate governance consolidated financial statements additional information combined management report shareholders annual report key markets contributed growth fiscal year united states biggest single market hugo boss sales increased high single digit percentage rate driven revenue improvements across consumer touchpoints performance reflects brands successful lifestyle positioning kept fueling momentum throughout sales canada also year year hugo boss continued record particularly strong momentum latin america reflected double digit growth segment earnings americas eur million fiscal year eur million corresponding ebit margin improvements sales offset decline gross margin well higher operating expenses including step brick mortar retail expenses notes consolidated financial statements note asia pacific currency adjusted revenues asia pacific region remained prior year recorded robust growth brick mortar wholesale development offset declines brick mortar retail group digital business reflecting muted local demand china sales development asia pacific eur million sales sales change currency adjusted change brick mortar retail brick mortar wholesale digital total sales performance asia pacific varied significantly across markets china sales remained prior year level weak consumer demand weighed strongly domestic retail consumption southeast asia pacific hand posted high single digit sales improvements fiscal supported strong double digit growth japan segment earnings asia pacific region amounted eur million prior year level eur million translating ebit margin development mainly reflects softer sales performance well increase operating expenses including higher brick mortar retail expenses notes consolidated financial statements note licenses sales license business increased currency adjusted supported particularly strong improvements eyewear business additionally lifestyle categories equestrian cycling spurred momentum earnings development sales distribution channel consequently license segment earnings increased eur million eur million notes consolidated financial statements note corporate governance consolidated financial statements additional information combined management report shareholders annual report five year overview business segments development segment sales eur million emea americas asia pacific licenses development segment profit eur million emea americas asia pacific licenses corporate governance consolidated financial statements additional information combined management report shareholders annual report net assets total assets increased eur million end fiscal year december eur million development mainly reflects higher property plant equipment intangible assets right use assets well increase cash cash equivalents statement financial position december share current assets decreased december december largely reflecting reduction trade net working capital accordingly share non current assets increased end fiscal year december equity ratio amounted thus line prior year level december consolidated financial statements consolidated statement financial position property plant equipment intangible assets right use assets assets liabilities liabilities held sale provisions deferred taxes financial liabilities trade payables lease liabilities shareholders equity equity liabilities inventories trade receivables assets cash cash equivalents assets held sale eur million increase totals assets reflects investments retail logistics trade net working capital percentage sales improves equity ratio remains stable level corporate governance consolidated financial statements additional information combined management report shareholders annual report trade net working capital december eur million change currency adjusted change inventories trade receivables trade payables trade net working capital trade net working capital tnwc decreased currency adjusted basis part inventories remained broadly prior year level however percentage group sales inventories amounted basis points compared prior year level development reflects company measures optimize inventory levels throughout year time trade receivables decreased currency adjusted primarily reflecting efficient receivables management hand trade payables came prior year level mainly driven higher sourcing volumes year end well increased utilization company supplier financing program accordingly moving average tnwc percentage sales based last four quarters improved level december notes consolidated financial statements notes property plant equipment intangible assets right use assets increased compared prior year level totaling eur million year end december eur million development primarily reflects strategic investments company global retail logistics networks along lease extensions key retail locations cash cash equivalents amounted eur million end fiscal year reflecting strong increase free cash flow december eur million notes consolidated financial statements notes financial position statement cash flows free cash flow total current non current lease liabilities primarily related rental retail store locations well logistics administration properties increased eur million reporting date december eur million increase mainly driven new retail logistics leases well retail lease extensions current non current financial liabilities decreased eur million december eur million mainly reflecting lower utilization company credit lines driven strong cash flow generation provisions deferred tax liabilities decreased eur million december eur million mainly reflecting lower personnel provisions notes consolidated financial statements notes financial position capital structure financing hugo boss completed sale process russian subsidiary course assets liabilities held sale fully derecognized amounting eur million december december eur million eur million respectively notes consolidated financial statements accounting policies corporate governance consolidated financial statements additional information combined management report shareholders annual report financial position principles goals financial management group wide financial management controlled centrally group treasury department goals pursued include securing financial stability flexibility ensuring liquidity times management financial risks company wide financial management comprises group financing cash liquidity management management market price risks management counterparty risks treasury principles applied group wide govern matters relevant treasury approval banking relationships handling financing agreements liquidity asset management well management currency interest rate risks within group financing factors market capacity cost financing covenants terms maturity considered selecting financial instruments external loans group financing taken centrally primarily group reporting currency euro within framework inhouse bank concept cover financing needs group companies funds made available form intercompany loans respective local currency allows company increase economies scale minimize cost capital occasionally credit lines also agreed upon local banks order account legal tax framework conditions group financial liabilities generally unsecured may subject customary market obligations reviewed quarterly basis important source liquidity hugo boss cash inflow operating activities group treasury department optimizes centralizes payment flows cash liquidity management generally group companies transfer excess liquidity inhouse bank part cash pooling procedure excess liquidity individual group companies used cover financial needs others intercompany financing offsetting system reduces external financial requirement thus optimizes overall interest expenses management market price risks intended limit impact interest rate currency fluctuations group financial result use hedging instruments foreign exchange forwards swaps plain vanilla options interest rate swaps intended secure hugo boss unfavorable interest rate currency developments report risks opportunities currency risks esg linked syndicated loan provides high level financial flexibility significantly positive free cash flow generation capex efficiency gains achieved prioritizing strategic investments corporate governance consolidated financial statements additional information combined management report shareholders annual report counterparty risk banks mainly results investment liquid funds part cash liquidity management use derivative financial instruments part interest rate currency risk management regard trading transactions hugo boss aims broadest possible diversification volumes ensures financial instruments executed counterparties good credit ratings capital structure financing hugo boss holds strong investment grade ratings leading agencies standard poor moody underscoring robust financial position long term growth potential rates company bbb moody assigns baa rating reaffirmed revised outlook negative march citing macroeconomic volatility short term supply chain challenges increased capital expenditure levels agency acknowledged hugo boss performance remains strong relative peers ratings first assigned place hugo boss among highest rated companies global premium apparel industry reflecting company strong brand perception sound financial health financing flexibility cornerstone hugo boss financing structure eur million esg linked revolving syndicated loan offering strong financial flexibility support successful execution company strategic initiatives facility concluded available general corporate purposes guarantees initially carried three year term one year extension options successfully exercised term extended additionally loan includes option increase credit volume eur million enhancing company financial agility syndicated loan contains standard covenant requiring maintenance financial leverage defined ratio net financial liabilities including lease liabilities accordance ifrs ebitda december financial leverage totaled thus prior year level december well maximum permissible level syndicated loan based variable interest rates applicable credit margins depending external credit rating fulfillment predefined esg criteria end fiscal year utilization totaled eur million used bank guarantees december utilization eur million eur million used general corporate purposes eur million bank guarantees meet ongoing strong demand supplier financing program hugo boss established comprehensive solution comprising single bank program bank independent platform combined credit limit programs amounts eur million eur million utilized end december eur million corporate governance consolidated financial statements additional information combined management report shareholders annual report hugo boss successfully issued schuldschein loan eur million comprising four tranches three five year maturities offered fixed variable interest rates proceeds allocated general corporate purposes primarily supporting investments aligned group strategy including ongoing expansion global logistics network addition hugo boss secured real estate financing amount eur million expansion headquarters metzingen germany financing comprises two separate amortizing loans fixed interest rates amount eur million eur million maturity period ten years end fiscal year full financing amount eur million remained outstanding financial position capital expenditure secure liquidity hugo boss possesses committed uncommitted bilateral credit lines totaling eur million december eur million eur million utilized end fiscal year december eur million addition hugo boss disposal cash cash equivalents amount eur million year end december eur million notes consolidated financial statements note financial position statement cash flows free cash flow overall group liabilities totaled eur million end fiscal year december eur million representing unchanged share total assets december share amount eur million attributable current non current lease liabilities december eur million primarily relating rental retail store locations well logistics administration properties current non current financial liabilities totaled eur million end fiscal year december eur million net assets notes consolidated financial statements notes statement cash flows free cash flow statement cash flows eur million cash flow operating activities cash flow investing activities cash flow financing activities change cash cash equivalents cash cash equivalents beginning period cash cash equivalents end period statement cash flows presented currency adjusted basis values cannot derived statement financial position free cash flow amounted eur million fiscal year significantly exceeding prior year level eur million thus underlining highly cash generative business model development mainly driven strong improvements trade net working capital free cash flow calculated sum cash flow operating activities excluding lease expenses ifrs cash flow investing activities net assets corporate governance consolidated financial statements additional information combined management report shareholders annual report change cash cash equivalents eur million cash flow operating activities doubled compared prior year level amounting level eur million eur million largely reflecting improvements trade net working capital achieved cash flow investing activities remained prior year amounting eur million eur million development reflects decrease capital expenditure fiscal year backdrop progress made driving capex efficiency prioritizing strategically relevant investments financial position capital expenditure eur million cash flow financing activities significantly increased year year eur million prior year hugo boss recorded higher cash inflow connection issue company first schuldschein loan financial position capital structure financing net financial position net financial position measured total financial lease liabilities less cash cash equivalents excluding impact ifrs net financial position hugo boss end fiscal year improved minus eur million december minus eur million including impact ifrs corresponds total minus eur million december minus eur million financial position capital structure financing notes consolidated financial statements note cash flow operating activities cash cash equivalents dec cash flow investing activities cash flow financing activities exchange rate related changes cash cash equivalents dec free cash flow corporate governance consolidated financial statements additional information combined management report shareholders annual report capital expenditure fiscal year hugo boss invested eur million property plant equipment intangible assets representing decrease compared prior year eur million development mainly reflects successes driving capex efficiency prioritizing strategically relevant investments context continued invest key initiatives projects including global distribution network digitalization business model expansion logistics capacities headquarters capital expenditure hugo boss committed providing superior shopping experience best class omnichannel journey consumers around globe retail business plays key role context consequently putting strong emphasis ongoing optimization modernization global store network innovative store concepts intended make significant contribution upgrading points sale enhancing customer engagement end majority freestanding boss hugo stores already comprehensively refreshed equipped latest store concepts reflecting strategic emphasis prime retail destinations capital expenditure retail network amounted eur million fiscal year thus modestly prior year level eur million part investments continuous optimization modernization existing locations totaled eur million eur million spent eur million selective opening new retail points sale eur million including new boss stores düsseldorf shanghai consumer touchpoints region functional area emea americas asia pacific corporate units retail business administration incl buildings capital expenditure corporate governance consolidated financial statements additional information combined management report shareholders annual report capital expenditure administration amounted eur million past fiscal year eur million includes investments eur million global infrastructure eur million emphasizing strategic claim lead digital investments mainly supported digitalization business model including key initiatives digital campus company wide rollout next generation erp system part multiyear project time eur million allocated capital expenditure buildings eur million mainly includes ongoing investments expansion distribution center flat packed goods located proximity company headquarters expansion group campus metzingen germany well opening latest showroom düsseldorf germany finally capital expenditure production distribution research development amounted eur million thus prior year level eur million group strategy lead digital organize growth business operations accumulated depreciation amortization property plant equipment intangible assets including capitalized cost totaled eur million fiscal year eur million existing obligations investment projects amounted eur million december december eur million mainly relating ongoing expansion group headquarters metzingen germany notes consolidated financial statements note corporate governance consolidated financial statements additional information combined management report shareholders annual report hugo boss hugo boss parent company hugo boss group annual financial statements prepared accordance provisions hgb handelsgesetzbuch german commercial code addition operating business results hugo boss predominately driven management central functions material item context allocation costs services rendered group companies earnings development income statement hugo boss eur million sales sales change sales cost sales gross profit distribution expenses general administrative expenses operating income operating expenses operating result net interest income expenses income profit loss transfer agreements taxes income taxes net income transfer revenue reserves accumulated income previous year unappropriated income hugo boss parent company hugo boss group operational performance driven service agreements subsidiaries annual financial statements prepared accordance hgb provisions corporate governance consolidated financial statements additional information combined management report shareholders annual report sales hugo boss primarily comprise brick mortar retail brick mortar wholesale digital revenues generated germany austria well intercompany sales international subsidiaries sales region eur million sales sales change emea americas asia pacific total fiscal year revenues hugo boss remained broadly prior year level emea hugo boss recorded top line improvements including solid growth germany largely compensated decline revenue subsidiaries americas asia pacific due adjusted intercompany pricing reflecting current external market factors sales brand eur million sales sales change boss hugo services total revenues boss remained prior year hugo posted robust sales growth supported launch new denim brand line hugo blue time sales services also remained slightly levels reflecting lower intercompany charges passed subsidiaries particular related service gross margin hugo boss well prior year level mainly reflecting benefits increased sourcing efficiencies distribution expenses largely attributable inflation expansion related cost increases brick mortar retail general administration expenses year year mainly reflecting disciplined overhead cost management particular hugo boss implemented several initiatives enhance organizational efficiency fiscal year including eliminating non essential spending prioritizing key strategic initiatives decrease operating income primarily due profit realized previous year merging hugo boss trade mark management gmbh hugo boss operating expenses came prior year level lower currency effects also contributing development income profit loss transfer agreements eur million attributable hugo boss internationale beteiligungs gmbh eur million corporate governance consolidated financial statements additional information combined management report shareholders annual report net assets financial position property plant equipment intangible assets hugo boss increased year year totaling eur million december eur million development mainly reflects investments ongoing expansion headquarters metzingen germany company distribution center flat packed goods filderstadt germany completion scheduled respectively trade net working capital eur million change inventories trade receivables trade payables trade net working capital increase inventories mainly reflects higher goods transit end fiscal year hugo boss main supplier group global distribution companies trade receivables hugo boss remained well prior year level mainly attributable efficient receivables management time company recorded increase trade payables driven higher sourcing volumes year end also reflected increased utilization company supplier financing program consequently trade net working capital tnwc hugo boss ended fiscal year well prior year level eur million receivables affiliated companies end fiscal year prior year level december eur million liabilities affiliated companies slightly decreased eur million mainly due repayments loans hugo boss international december eur million provisions also decreased amounting eur million end year december eur million eur million liabilities credit institutions prior year level december eur million mainly reflecting company real estate financing amount eur million secured expansion headquarters metzingen december cash cash equivalents defined total cash hand bank balances amounted eur million december eur million increase mainly reflecting higher cash flow operating activities latter particularly benefited improvements trade net working capital corporate governance consolidated financial statements additional information combined management report shareholders annual report outlook risks opportunities due close relationships group companies relevance group expectations hugo boss largely reflected group outlook context net income hugo boss represents company key performance indicator expected record robust improvements fiscal year specific particularities regarding hugo boss addition business performance hugo boss large degree also subject risks opportunities faced group consequently statements within group report risks opportunities also apply hugo boss outlook report risks opportunities corporate governance consolidated financial statements additional information combined management report shareholders annual report outlook subsequent events end fiscal year preparation report march material macroeconomic sociopolitical industry related company specific changes management expects significant impact group earnings net assets financial position outlook following report presents view management hugo boss respect company expected business performance fiscal year also describes expected development significant macroeconomic industry specific conditions outlook reflects management current knowledge time report prepared however actual developments may differ significantly either positively negatively risks opportunities materialize described risks opportunities section annual report statutory publication requirements hugo boss assume obligation update statements contained report report risks opportunities macroeconomic industry specific developments major influence development company operational financial development statements made section regarding company expected business performance therefore based certain assumptions regards developments global economy apparel industry course year group closely monitor development external conditions respond possible changes quickly comprehensively possible outlook global economy global growth expected remain subdued global economy continues face several challenges particular economic policy uncertainties intensified driven expectations policy shifts newly elected governments ongoing political instability certain regions persistent geopolitical tensions time global headline inflation anticipated decline moderately advanced economies projected return target inflation levels quickly emerging markets developing economies consequently according international monetary fund imf global growth projected thus slightly prior year level compared historical average global growth likely remain significantly lower macroeconomic uncertainty weigh industry growth fiscal year group sales range eur billion eur billion ebit increase level eur million eur million corporate governance consolidated financial statements additional information combined management report shareholders annual report regional economic growth expectations vary significantly according imf eurozone growth expected improve modestly given ongoing geopolitical tensions persistent weakness manufacturing economy projected grow supported robust demand improving financial conditions less restrictive monetary policies hand cyclical challenges china anticipated continue impacting domestic consumption growth forecast slow risks uncertainties associated assumptions remain fundamentally high geopolitical tensions including conflicts regions middle east eastern europe could disrupt trade routes commodity supplies also addition policy generated disruptions ongoing disinflation process could complicate transition easing monetary policy increasing fiscal financial vulnerabilities finally trade policy uncertainty exacerbated potentially new tariffs protectionist measures could distort global trade flows hinder investment reduce market efficiency industry outlook global apparel industry anticipated face challenging fiscal year shaped ongoing macroeconomic geopolitical uncertainties turn might continue weighing global consumer sentiment according joint study business fashion consulting firm mckinsey company published november revenue growth global apparel industry excluding luxury segment projected remain modest marking slight improvement compared prior year europe industry growth excluding luxury segment forecast range economic uncertainty geopolitical concerns persist declining inflation increased tourism expected slightly lift retail spending consumption set benefit expected federal reserve rate cuts alongside robust job data strong stock market property sector factors anticipated sustain ongoing recovery industry growth excluding luxury segment expected expand contrast china continues face cyclical economic slowdown particular consumer confidence expected remain subdued hovering slightly record lows leading elevated household savings rates although government measures aimed stimulating economy uncertain whether sufficiently boost consumer sentiment consequently industry growth excluding luxury segment expected decelerate slightly range remaining well historical averages industry players increasingly pivot focus asian markets corporate governance consolidated financial statements additional information combined management report shareholders annual report outlook hugo boss following three years successfully executing claim hugo boss achieved notable progress across strategic priorities resulting record sales eur billion fiscal year time last years built robust organizational operational platform aimed allow hugo boss generate sustainable profitable growth enhancing execution focusing effectiveness efficiency consequently claim paved way towards achieving financial ambition eur billion sales well ebit margin least future group strategy also final year claim remain fully committed making strategic progress particular determined continue exploiting global growth opportunities keep investing key brand product omnichannel initiatives drive brand relevance deepen customers connections boss hugo time remain focused leveraging strong operational platform driving additional cost efficiencies rigorously managing operating expenses balanced approach essential driving robust profitability improvements beyond ensuring long term success hugo boss outlook fiscal year results outlook group sales increase eur million eur billion eur billion sales region emea increase eur million remain around prior year level americas increase eur million increase low mid single digit percentage range asia pacific decrease eur million moderate decrease operating result ebit decrease eur million increase level eur million eur million group net income decrease eur million increase line ebit trade net working capital percentage sales improvement bps remain level capital expenditure decrease eur million eur million eur million expect macroeconomic geopolitical volatility remain high continue weighing consumer sentiment backdrop hugo boss expects group sales reporting currency range eur billion eur billion eur million sales emea region forecast remain around prior year level sales americas projected increase low single digit percentage range asia pacific hugo boss anticipates sales moderately decrease reflecting ongoing uncertainties regarding consumer sentiment chinese market corporate governance consolidated financial statements additional information combined management report shareholders annual report hugo boss anticipates robust profitability improvements fiscal year operating profit ebit expected increase level eur million eur million eur million consequently company anticipates ebit margin improve supported ongoing focus driving additional sourcing efficiencies maintaining disciplined cost management group net income expected develop broadly line ebit thus also expected increase around eur million trade net working capital tnwc percentage sales expected remain level continued optimizations inventory management anticipated support development capital expenditure forecast range eur million eur million eur million reflecting company increased emphasis driving capex efficiency investment activity remains focused modernizing global store network advancing digitalization enhancing logistics capacity previous year majority investments allocated corporate units emea segment despite decline earnings fiscal year managing board supervisory board intend propose annual general meeting may dividend eur per share fiscal year reflecting increase compared prior year level eur decision underscores company robust financial position well management confidence long term growth opportunities continued ability generate significantly positive free cash flow future proposal equivalent payout ratio group net income attributable shareholders fiscal year line company mid term target payout ratio laid claim assuming shareholders approve proposal dividend paid may equaling eur million eur million corporate governance consolidated financial statements additional information combined management report shareholders annual report report risks opportunities success hugo boss based systematic exploitation opportunities part group strategy risks opportunities policy hugo boss aimed achieving group strategic financial objectives addition pursuing target securing group continuation going concern therefore primarily aimed successfully executing claim strategy sustainably increasing enterprise value reporting risks opportunities combined management report refers one year period risk opportunity management principles company risk opportunity management system comprises measures systematic transparent approach towards risks opportunities aims identify risks early possible evaluating adequately limiting avoiding suitable measures well monitoring documenting context risks defined potential future developments events may lead negative deviations planned operating result ebit time early identification consistent exploitation business opportunities particular importance part successful execution group strategy essential ensuring company long term success hugo boss opportunities defined potential positive deviations planned ebit appropriate measures initiated needed exploit opportunities always considered conjunction associated risks pursued outweigh associated risks risks considered manageable limited impact risk opportunity management system managing board hugo boss overall responsibility effective risk opportunity management system behalf central risk management internal controls department coordinates execution continuous development risk opportunity management system context responsible centrally managed risk opportunity management process close contact respective central departments group companies relevant risk owners risk experts responsible identifying evaluating risks adequately dealing identified risks transparent handling risks opportunities part risk management system going concern risks group identified exploiting business opportunities important element sustainable increase enterprise value corporate governance consolidated financial statements additional information combined management report shareholders annual report implementing effective risk mitigation measures supervisory board hugo boss responsible monitoring effectiveness risk opportunity management system responsibility exercised audit committee support internal audit department context risk opportunity management hugo boss subject regular internal auditing part audit consolidated financial statements external group auditor assesses adequacy measures early identification risks could impact company ability continue going concern group wide standards systematic handling risks opportunities form basis efficient risk opportunity management system set managing board documented risk opportunities principles applicable throughout group available employees company wide intranet employees hugo boss obliged aware risks posed behavior especially regarding risks may threaten going concern group use modern risk opportunity management software allows recording evaluating identified risks opportunities well related measures uniform way throughout group part audit consolidated financial statements external group auditor assesses effectiveness selected internal controls including controls risk opportunity management system hugo boss designed accordance international standard iso main features risk opportunity management system risk opportunity management process hugo boss consists four steps identification evaluation handling ongoing monitoring reporting ensure risks opportunities identified earliest possible stage group continuously monitors macroeconomic geopolitical environment competitive landscape premium luxury goods industry internal processes risk management internal controls supports internal risk owners regular identification efficient categorization risks opportunities using risk catalog well risk opportunity principles available intranet throughout group risk opportunity management process identification evaluation handling monitoring reporting risk owner risk expert managing board supervisory board risk management internal controls corporate governance consolidated financial statements additional information combined management report shareholders annual report risk owners delegate regular evaluation identified risks opportunities defined risk experts give assessment thorough evaluation risk experts supported risk management internal controls also includes regular training least per year risk opportunities management principles topic specific focus areas individual risks opportunities evaluated assessing likelihood occurrence systematically analyzing potential impact planned operating result ebit tax risks interest rate risks however evaluated based potential impact cash flow outlook measurement criteria business risks opportunities extent financial impact planned ebit likelihood occurrence within year low remote moderate unlikely essential possible high probable high certain individual risks opportunities evaluated basis two dimensions likelihood occurrence potential financial impact intended create transparency regarding company current risk opportunity situation provide support prioritizing risks opportunities classification done means summing individual risks opportunities weighted average likelihood likelihood well weighted averages impact scenarios individual risks opportunities potential financial impact net risks opportunities defined remaining risk opportunity potential accounting impact corresponding mitigation measures whereas gross risks opportunities represent initial unmitigated impact risks opportunities treated accordance company risk opportunity management principles preparing implementing appropriate risk mitigation measures responsibility respective risk owner general risks handled four different ways risk avoidance risk reduction risk transfer third parties risk acceptance one component risk management thus transfer risk insurance companies intended offset financial impact insurable risks far possible costs respective measures relation effectiveness also taken consideration deciding implement respective risk management strategy close cooperation risk owners risk management internal controls monitors progress effectiveness planned already implemented measures current status identified risks opportunities assessed twice year however depending extent risks opportunities may assessed higher frequency month part risk monitoring insights latest trends documented risk evaluation well risk handling revised necessary continuous monitoring early warning indicators intended allow possible deviations budget identified early stage reporting chains adoption appropriate countermeasures defined advance aim ensure timely response event risk occurring group management corporate governance consolidated financial statements additional information combined management report shareholders annual report part regular risk opportunities reporting risk owners report risks opportunities identified risk management internal controls including respective likelihood occurrence potential financial impact well risk mitigation measures risk management internal controls aggregates information reported regularly presents consolidated report managing board audit committee substantial individual risks opportunities given particular emphasis critical urgent issues arise regular reporting process supplemented hoc report assessment risk opportunity situation managing board individual risks aggregated using two methods obtain accurate possible overview total risk position hugo boss one hand expected loss values assessed risks added together hand probability distributions identified risks aggregated form single probability distribution possible total loss means monte carlo simulation thus determining maximum annual loss values simulation encompasses risks categories thus also including non financial risks result simulation fiscal year shows prior year group aggregated risk position exceed company risk capacity threshold likelihood least implemented risk management system forms basis assessment risk opportunity situation managing board reviews system regular basis risks opportunities potential financial impact classified least essential discussed evaluated managing board regular intervals assessment individual risks opportunities fiscal year changed mainly due development external conditions well impact countermeasures overall risk situation hugo boss changed significantly compared prior year particular managing board identify individual aggregate risks could jeopardize continuation company going concern time report prepared illustration risks risks identified risk management process least essential potential impact hugo boss detailed descending order potential financial impact contrast risks assessed low moderate impact explained detail includes risks related brand corporate image changes interest rates competition counterparties facilities financing liquidity investments legal occupational health safety product piracy vision direction general possible latent risks risks currently assessed immaterial may greater adverse effect group future development anticipated regardless measures implemented manage identified risks business activity always exposed residual risks cannot entirely avoided even risk opportunity management system one implemented hugo boss corporate governance consolidated financial statements additional information combined management report shareholders annual report risk overview categories potential financial impact planned ebit likelihood within one year trend politics society high unlikely sales distribution high unlikely suppliers sourcing high unlikely taxes high possible global economy high unlikely governance compliance high unlikely high unlikely collection high remote logistics high remote currencies essential probable quality essential unlikely personnel essential unlikely environment health essential remote compared prior year change equals deviation tax risks assessed based potential financial impact cash flow political social risks hugo boss exposed political social risks due global business activities political regulatory changes geopolitical tensions military conflicts government transitions terrorism negatively impact consumer sentiment however light global distribution footprint presence approximately markets company benefits natural hedge challenges individual regions global political social uncertainties expected remain elevated geopolitical tensions including ukraine middle east potential escalation trade conflicts policy shifts new governments ongoing threat terrorism pose significant risks global apparel industry thus also group business development example geopolitical tensions may disrupt key trade routes causing higher transportation costs supply delays due longer lead times additionally escalation expansion ongoing military conflicts could trigger global economic downturn weakening consumer sentiment adversely affecting sales earnings performance hugo boss due increasing relevance hugo boss classifies risks political social changes emerging risk risks pose strategic challenges impact demographic shifts consumer behavior global business activities supply chain structures highlighting close connection social industry sourcing risks given broad spectrum risks future developments characterized high level uncertainty might lead unknown potentially significant effects long term evaluating managing risks risk owners risk experts hugo boss work interdisciplinary teams ongoing analysis monitoring current political social developments impact group business activity risk management internal controls coordinating supporting process corporate governance consolidated financial statements additional information combined management report shareholders annual report sales distribution risks sales distribution risks exist connection group retail activities particular regard inventory management well duration storage consequently recoverability merchandise wholesale business sales distribution risks mainly relate possible dependence individual wholesale partners well bad debt losses aim company centrally organized inventory management ensure forward looking optimal allocation group wide inventories time maintaining flexibility order able respond demand fluctuations short notice material downturns demand misjudgments sell rates negative impact inventory turnover hugo boss therefore strives continuously improve inventory management granting additional discounts potential countermeasure excess inventory inevitably negative impact gross margin ultimately group profitability therefore constantly monitored central business planning analysis department centrally managed pricing policy differentiated retail formats collections tailored formats aimed achieving constant improvement efficiency retail inventory risks may result increased storage periods related potential reduction marketability inventories line principle net realizable value impairments inventories recognized accordingly reviewed monthly basis based seasonal approach reporting date managing board considers recognized allowances sufficient notes consolidated financial statements note wholesale business hugo boss pays close attention ensuring balanced customer structure avoid potential overdependence individual customers business planning analysis constantly monitors key metrics order intake sales delivery quotas providing regular reports managing board enables prompt action mitigate potential risks group management hugo boss exposed risk bad debt losses due potential insolvency wholesale partners cumulative losses economic slowdowns specific markets mitigate group wide receivables management applies uniform receivables management policies including credit rating checks customer credit limits receivables aging monitoring strict handling doubtful accounts cases deliveries made upon prepayment business relationships high risk customers discontinued internal audit department regularly reviews compliance respective group guidelines reporting date significant concentration default risks individual customers notes consolidated financial statements note corporate governance consolidated financial statements additional information combined management report shareholders annual report risks associated suppliers sourcing risks associated suppliers sourcing relate potential dependencies individual suppliers production sites rising product costs possible divergence production sales hugo boss attaches great importance careful selection suppliers long term strategic partnerships however risk production may temporarily interrupted one suppliers due supplier related regional events trade conflicts restrictions introduced governments excessive dependence individual suppliers production sites could lead disruptions group supply chain thus operational shortcomings hugo boss therefore pursues regionally balanced strategic sourcing mix order minimize risks local regional capacity shortfalls far possible context production sourcing process coordinated centrally business operations supplier relationships regularly monitored evaluated identify risks timely manner initiate appropriate measures safeguard product availability fiscal year largest external supplier accounted total sourcing volume largest single external production site accounted within framework nearshoring hugo boss pursuing strategic ambition relocating parts sourcing volume closer towards largest sales markets emea americas thus strengthening respective share global sourcing mix company merchandise sourced emea representing slight increase compared last year notably production izmir turkey accounts global sourcing production volume shift brings hugo boss closer important sales markets enabling faster replenishment also enhances company resilience reducing reliance external factors business operations view earthquake risks possible risks due political uncertainties hugo boss implemented comprehensive measures largest production site izmir limit impact potential production downtime product availability consequently also group revenues majority production volume contingency plans place transfer production external suppliers financial risk earthquakes partially covered insurance policies rising wages sourcing countries higher prices raw materials like cotton wool leather may lead higher production costs thus negatively impact gross margin ultimately weighing group profitability hugo boss counters risks margin based collection planning measures improve efficiency production sourcing processes continuous optimization use materials regular reviews pricing policy risk new increased tariffs particularly china european economies may impact cost sourcing materials manufacturing tariffs could lead higher duties potential supply chain disruptions reduced margins increase product prices due higher tariffs could also dampen consumer demand especially price sensitive markets mitigate risks hugo boss closely monitors global trade developments adjusts strategies needed minimize potential impacts operations part broader risk mitigation efforts hugo boss also significantly reduced reliance sourcing production china recent years helping limit potential exposure tariffs china business operations corporate governance consolidated financial statements additional information combined management report shareholders annual report forecasting sales volumes planning production capacities allocation raw materials finished goods part sourcing process involves scheduling risks deviations appropriate allocation lead scheduling resulting elevated inventory levels hand may also lead scheduling risk missed sales opportunities reduce scheduling risks hugo boss working constantly improving forecasting quality involves increasing transparency along value chain well growing flexibility merchandise management across distribution channels markets context hugo boss pushed ahead implementation digital twin initiative smart tech driven business operations platform aimed strongly enhancing real time data utilization creating digital copy company supply chain using artificial intelligence hugo boss aims improve demand supply planning better align various planning activities turn intended provide accurate procurement products fabrics terms timing quantity business operations tax risks globally operating company hugo boss subject variety tax laws regulations changes area could lead higher tax expenses tax payments also impact recognized current deferred tax assets liabilities tax related issues regularly analyzed evaluated group tax department supported external experts lawyers tax advisors tax audit risks exist assessment periods still open sufficient provisions recognized known tax risks amount based various assumptions example interpretation respective legal requirements latest court rulings opinion authorities used basis measuring loss amount likelihood occurrence group tax department regularly assesses likelihood future recoverability deferred tax assets recognized unused tax losses assessment takes account various factors future taxable results planning periods past results measures already implemented increase profitability hugo boss applies forecast period four years purpose actual figures may differ estimates regard taxes risks may occur primarily modifications tax legislation various countries due varying assessment existing topics tax authorities tax field audits also risks transfer pricing relation company business model notes consolidated financial statements note corporate governance consolidated financial statements additional information combined management report shareholders annual report global economic risks hugo boss exposed global economic risks impact demand premium luxury goods consequently economic downturns whether global regional may weigh company top bottom line performance additionally regional economic challenges ripple effects across markets influencing business performance global growth expected remain subdued global economy continues face several challenges particular economic policy uncertainties intensified driven expectations policy shifts newly elected governments ongoing political instability certain regions persistent geopolitical tensions details global economic outlook fiscal year including key risks uncertainties provided outlook chapter outlook mitigate economic volatility identify risks early stage respond quickly possible group actively monitors macroeconomic environment global industry trends internal early indicators analyzed regularly allow forecast potential impact macroeconomic risks actions address downturns demand include adjusting production sourcing activity strictly managing trade net working capital optimizing global distribution network tightening cost controls implementing price adjustments group management governance compliance risks hugo boss employees required comply code conduct applicable throughout group compliance rules applicable specific areas group companies subject regular risk analyses detailed audits applicable adherence compliance rules monitored central compliance department breaches reported accordingly managing board supervisory board corporate governance corporate governance statement combined non financial statement workforce breaches data protection laws represent substantial compliance risk group counters risk using system complying data protection laws via appropriate technical organizational measures employees educated data protection matters activity related training courses obligation adhere code conduct separate duty confidentiality internal processes systems processing personal data assessed ongoing basis continuously improved ensure compliance legal data protection requirements consumers end users corporate governance consolidated financial statements additional information combined management report shareholders annual report risks smooth business operations efficient processes strongly dependent powerful secure infrastructure uniformly implemented throughout group serious failures group system may result significant business interruptions addition cyberattacks lead major long lasting system interruptions loss confidential data ensuing loss reputation liability claims long lasting system interruption might significant impact business operations example processing goods key warehouses order reduce risks central department conducts regular maintenance security checks implemented multilevel security antivirus concepts assigned job related access rights addition access control systems daily data backups group wide erp system uninterrupted power supply well regular online training sessions staff aim increase security within group internal audit regularly monitors security reliability systems well effectiveness implemented control mechanisms hugo boss anticipates global cyberattacks continue increasing long term driven mounting geopolitical tensions advancements artificial intelligence reliance technology deepens potential financial impact cyberattacks likely grow posing unknown potentially severe risks consequently hugo boss classifies cyber threats emerging risk strengthen resilience company remains committed continuously enhancing information security program context hugo boss implemented dedicated security information event management system designed provide comprehensive overview group security landscape collection risks changing fashion lifestyle trends cause collection risks challenges primarily occurring identifying incorporating trends quickly commercially successful collections mitigate risks hugo boss comprehensively analyses relevant target groups markets uses digital tools identify trends evaluates sell rates previous collections beyond direct customer interaction brick mortar retail digital business feedback wholesale partners well insights gathered via customer loyalty program hugo boss relevant social media platforms enable early detection shifts buying behavior future collections due lifestyle approach boss hugo offer highly diversified product ranges thus covering wearing occasions reducing risk individual collections product development innovation consumer touchpoints corporate governance consolidated financial statements additional information combined management report shareholders annual report logistics risks hugo boss exposed logistics risks relate potential interruptions transport goods example due possible shortage sea airfreight insufficient warehouse capacity directly involves risks global increase freight costs well significantly delayed product availability hugo boss reduced reliance airfreight highlighting commitment balancing cost efficiency operational excellence time emphasizing sustainable sourcing practices looking ahead hugo boss committed continuing reducing airfreight dependence ensuring time product availability amid ongoing geopolitical tensions global transport logistics capacity remained pressure throughout driving global sea freight rates prolonging shipping routes particularly asia europe situation red sea gradually stabilized freight costs remained elevated impacting input costs looking ahead potential escalation middle east conflict could disrupt key shipping routes straining global logistics capacity driving transportation costs hugo boss continue closely monitor developments implement appropriate measures necessary significant impact product availability currently anticipated supply chain risks potential lost sales opportunities general cannot ruled business operations addition temporary downtime loss warehouse locations conveyor systems may lead missed sales opportunities ensuring sufficient warehouse capacity seamless delivery goods forms essential aspect part company growth ambitions storage inventories centered selected sites directly operated hugo boss group central distribution centers hanging goods flat packed goods company online business located proximity headquarters metzingen germany form core group wide logistics network overall capacity bottlenecks caused strong top line growth represent noticeable risk may lead delayed delivery goods interruptions product availability point sale aim constantly improving efficiency flexibility logistics setup minimizing associated risks far possible hugo boss gradually optimized global logistics platform recent years context strategic expansion one key logistic hubs initiated already multiyear project aims significantly increase shipping well storage capacity also focusing digitalization automation key processes addition compliance comprehensive fire protection safety measures continuously monitored warehouse locations hugo boss also taken insurance cover direct financial risk loss goods equipment stored warehouses business operations corporate governance consolidated financial statements additional information combined management report shareholders annual report currency risks due global nature business activities group internal financing activities hugo boss exposed currency risks may impact profitability net income equity currency risks managed centrally group treasury department corporate guidelines form basis management currency risks implying strategic selection scope hedging time intended ensure strict functional separation trading settlement control financial market transactions primary objective mitigate currency exposure natural hedges used minimize complexity exposure scope hedging measures associated costs way foreign currency exposures business operations across group offset far possible foreign exchange forwards swaps well plain vanilla options used hedge remaining exposure notes consolidated financial statements note group operating business currency risks primarily arise due products sourced sold different currencies transaction risk particular hugo boss hedge transaction risk connection global sourcing activities mainly denominated dollars corresponding exposure largely offset means natural hedge via revenues generated market currency risks financial result mainly occur financial receivables liabilities loans finance group companies transaction risk reporting date main financing loans hedged via foreign exchange forwards swaps addition currency risks exist connection translation financial statements group companies outside eurozone group currency euro translation risk risk continuously monitored hedged impact group statement financial position income statement non cash nature notes consolidated financial statements consolidation principles future cash flows company production activities turkey nominated turkish lira may hedged using forward transactions corresponding future cash flows thus designated effective hedging relationship recognized balance sheet hedge accounting december hedging transactions future cash flows place accordance requirements ifrs hugo boss determined impact transaction risk group net income equity based balance sheet currency exposure december exposures include cash receivables liabilities well intercompany loans deposits held currencies functional currency respective group company hugo boss applies value risk method quantify manage currency risk context assumed total financial currency exposure hedging ratio reporting date representative entire reporting period due method limitations actual impact group net income may deviate values determined using value risk method corporate governance consolidated financial statements additional information combined management report shareholders annual report aggregated across currencies considered diversified portfolio risk group net income hedging amounted minus eur million end fiscal year plus eur million hedging costs returns concluding forward exchange transactions included risk value reduced compared previous year due overall anticipated higher hedge ratios largest foreign currency exposure results balance sheet exposure towards dollar swiss franc japanese yen mexican peso quality risks sourcing materials manufacturing products hugo boss places highest emphasis quality uphold standards company consistently utilizes premium materials innovative production techniques comprehensive quality controls stages production incorporation customer feedback intended contribute continuous improvement production process mitigate inherent risks addition company production sites well partners regularly monitored ensure strict compliance central quality guidelines incoming goods inspections well intensive quality tests group headquarters metzingen germany designed ensure high quality standards hugo boss generally hugo boss also incorporates risk criteria product development aiming constantly reduce return rates thus minimizing impact sales development product development innovation business operations personnel risks successful execution group strategy financial operational performance hugo boss largely dependent expertise commitment performance global workforce fair value based corporate culture serves crucial foundation fostering employee engagement long term success personnel risks mainly relate recruitment bottlenecks shortages specialists excessive employee turnover hugo boss counters risks value based corporate culture forward looking personnel planning comprehensive development training measures continuous development performance based compensation system well flexible working models better combine work private life measure employee satisfaction regular basis hugo boss conducts annual employee survey cooperation great place work context overall satisfaction amounted decline compared prior year mainly reflects challenges posed difficult macroeconomic environment key regions turkey weighed employees financial well overall sentiment hugo boss overall satisfaction remained broadly stable looking ahead remain committed sustaining satisfaction level least across group consistent previous years combined non financial statement workforce corporate governance consolidated financial statements additional information combined management report shareholders annual report environmental health risks global value chain hugo boss subject environmental health risks pandemics environmental natural disasters impact climate change loss biodiversity building experience gained covid pandemic hugo boss drawn appropriate pandemic emergency plans time hugo boss conducts regular climate risk analyses identify potential business impacts enable timely countermeasures central emergency management system ensures prompt effective responses kinds emergencies including extreme weather events natural disasters system integrates cross functional expertise facilitates efficient coordination clear decision making processes combined non financial statement climate change illustration opportunities hugo boss sees strong growth opportunities across entire business model remains fully committed leveraging across brands channels regions hugo boss identified several key opportunities arising corporate environment group strategy operational execution opportunities identified risk opportunity management process least essential potential impact hugo boss detailed descending order potential financial impact contrast opportunities low moderate potential financial impact discussed detail opportunity overview categories potential financial impact planned ebit likelihood within one year trend suppliers sourcing high possible global economy currencies high unlikely sales distribution essential possible brand heat product offering essential unlikely personnel essential unlikely compared prior year change equals deviation opportunities related suppliers sourcing part global sourcing production activities hugo boss fosters robust efficient operational infrastructure supporting long term growth ambitions constantly put strong efforts increasing resilience efficiency flexibility global sourcing production activities particular hugo boss puts strong focus maintaining resilient supplier network fostering strong supplier relationships collaboration time company places strong emphasis realizing greater economies scale strategic price negotiations supported increased order volumes time company could benefit short term decrease prices raw materials cotton wool leather actively drive greater economies scale company aims streamline raw material sourcing across fabrics trimmings balancing focus diversification ensure cost efficiency supply stability regards latter hugo boss implementing digital twin smart tech driven business operations platform digital twin expected strongly enhance real time corporate governance consolidated financial statements additional information combined management report shareholders annual report data utilization going forward improving demand logistics planning inventory allocation transparency within supply chain greater expected successes areas may direct positive impact sales earnings performance hugo boss business operations global economic currency opportunities hugo boss benefits positive macroeconomic developments potential impact consumer sentiment buying behavior example faster expected normalization global inflation interest rates stronger expected rebound global trade investment flows might lead stronger economic growth overall thus noticeable uplift global consumer sentiment turn could fundamentally positive impact global demand premium apparel accessories addition evolving social trends support upper premium apparel market could support top line performance full price sell hugo boss regardless development broader consumer sentiment time regulatory legal changes also present opportunities example consistent prosecution punishment infringements trademark rights positively impact sales performance removal tariffs may improve profitability top favorable exchange rate developments positive impact earnings development group treasury department continuously monitors market environment identifies relevant opportunities within framework financial management principles financial position opportunities related sales distribution global fashion lifestyle company hugo boss built strong distribution footprint recent years physically digitally building strong brand power aim advance omnichannel activities coming years ensuring seamless brand experience across consumer touchpoints end continue optimize modernize existing store network global rollout latest store concepts boss hugo already full swing expected support future productivity improvements brick mortar retail time also striving build regained strength brick mortar wholesale leverage lifestyle images boss hugo already successfully increased visibility market presence since introduction claim addition strengthen global franchise business adding several full price franchise stores particular emphasis emerging markets regards digital business focus driving traffic conversion particularly within digital flagship hugoboss com time fostering growth digital partners consistent exploitation opportunities may direct positive impact business performance hugo boss corporate governance consolidated financial statements additional information combined management report shareholders annual report hugo boss aims turn consumers fans thus putting strong emphasis retaining accompanying valuable customers context implemented loyalty program hugo boss aimed driving brand loyalty coming years closely engaging customers program offers important opportunities boosting member sales driving customer lifetime value already fueled introduction hugo boss successfully increased member base around ten million eight million deepen expand existing customer relationships also attract new boss hugo customers roll program coming years effectively leveraging opportunities directly enhance hugo boss business performance consumer touchpoints opportunities related brand heat product offering also fiscal year execution strategic priorities remain key context continue build brand power boss hugo focus engaging customers particular continue put strong emphasis high profile brand campaigns fuel brand relevance win new customers top exceptional events high impact collaborations one david beckham intended increase brand relevance significant increase brand relevance positive impact consumer demand thus drive sales well full price sell consequently resulting higher expected revenue earnings development group strategy boost brands time keep investing product assortment enhance price value proposition aiming gain market shares coming years top hugo boss continue strongly leverage potential digitalizing product development also years come example comes powered trend detection virtual try ons avatars context also aim improve efficiency drive greater economies scale reducing complexity across product offerings enable maintain premium quality well high level innovation sustainability also growing units per style lowering product costs hugo boss also incorporates risk criteria product development direct positive impact business performance improvement product quality example positive impact return rate thus sales development also committed continue exploiting full potential product range leveraging wearing occasions particular company aims capitalize product groups denim shoes accessories bodywear fully leveraging lifestyle approach enable reinforce leading position upper premium apparel market group strategy product key corporate governance consolidated financial statements additional information combined management report shareholders annual report personnel opportunities hugo boss convinced passion dedication employees vital long term business success human resources management focuses attracting retaining developing best talent fashion industry putting strong emphasis enhancing attractiveness employer competitive compensation additional benefits well attractive workspace intended strengthen position international competition enabling company efficiently fill vacant positions qualified people increase motivation commitment loyalty among employees time supporting employees individual development may additional positive impact company financial performance international company diversity equity inclusion fundamental part corporate culture convinced heterogeneous inclusive teams achieve better creative solutions complex issues thus make positive contribution successful execution group strategy consequently hugo boss implemented numerous initiatives ensure discrimination free working environment equal opportunities inclusive work culture employees convinced intensifying activities important area positively contributes employee satisfaction also considered relevant factor potential applicants combined non financial statement workforce key aspects internal control risk management system information provided section extraneous management report therefore part external audit internal control system ics risk management system rms internal control system ics risk management system rms hugo boss designed accordance principles guidelines measures defined managing board aiming execute strategic operational decisions managing board organizational perspective includes management risks opportunities regard achievement business objectives correctness reliability internal external accounting compliance legal provisions regulations relevant hugo boss also includes sustainability aspects continuously developed accordance regulatory requirements ics rms based globally recognized coso framework committee sponsoring organizations treadway commission continuously adapted specific requirements hugo boss hugo boss comprehensive integrated ics rms methodology ric methodology standardized procedure according necessary controls defined documented according uniform specifications regularly reviewed adequacy effectiveness information rms found risk opportunity management system section report risks opportunities report risks opportunities risk opportunity management system corporate governance consolidated financial statements additional information combined management report shareholders annual report three lines model hugo boss implemented three lines model clearly define allocate responsibilities effectively defend risks first line defense operating units assume responsibility defining implementing appropriate measures effective controls mitigate risks respective areas responsibility accordance group wide standards second line defense consists specialized governance functions particular central risk management internal controls compliance human rights departments responsible definition methodology internal control framework well management control process providing objective monitoring advice independently operating units managing board audit committee supervisory board hugo boss informed regularly hoc basis potential material control weaknesses adequacy effectiveness controls place company risk situation audit committee supervisory board hugo boss responsible monitoring ics rms including adequacy effectiveness part monitoring function third line defense internal audit reviews compliance legal framework internal group guidelines group ics rms particular design compliance effectiveness controls defined part ics rms necessary appropriate measures initiated cooperation risk management internal controls relevant specialist department order eliminate identified weaknesses part defined process internal audit regularly reports results work managing board audit committee hugo boss part audit consolidated financial statements external group auditor assesses adequacy measures implemented company early identification risks could jeopardize continued existence also report audit committee material weaknesses identified ics rms part audit financial statements company continuously monitors processes systems ics rms order eliminate identified weaknesses ensure continuous improvement processes systems supervisory board managing board first line second line third line risk owner business units subsidiaries risk management internal controls compliance internal audit risk ownership risk control risk assurance external group auditor corporate governance consolidated financial statements additional information combined management report shareholders annual report reporting date indications material respects ics rms inadequate ineffective whole notwithstanding inherent limitations effectiveness ics rms even system assessed appropriate effective guarantee risks actually arise identified advance breaches processes ruled conceivable circumstances compliance management system cms ics rms hugo boss also include risks controls cms derived close cooperation risk management internal controls compliance human rights cms integral part ics rms based elements idw standard covers relevant risk areas anti corruption antitrust law data protection money laundering prevention sanction prevention safeguarding human rights based comprehensive set internal guidelines hugo boss code conduct defines fundamental principles standards behavior must observed employees business units dealings external stakeholders addition comprehensive internal compliance regulations including corresponding controls oblige employees ensure cms executed contain topic specific application provisions compliance processes tools well additional guidelines information individual risk areas compliance risk management compliance reviews components cms aimed identifying compliance risks early stage thus enabling appropriate effective measures avoid minimize risks results cms incorporated company wide rms compliance department uses various measures ensure cms corresponding processes executed adhered continuously developed throughout group taking account findings compliance risk management compliance controls audits cms continuously adapted company specific risks local legal requirements particular managing board supervisory board regularly informed key compliance issues report accounting related internal control system risk management system pursuant sec hgb system internal control risk management hugo boss applied group financial reporting process financial statements closing process aims accurately reflect business transactions accounting records intended ensure reliability financial reporting accounting related activities comply laws guidelines assets liabilities recorded accurately consolidated financial statements regard recognition disclosure valuation enable reliable statement made group net assets financial position results operations well adherence legal regulations company internal guidelines use efficient systems clear definition responsibilities suitable training development employees group finance tax business planning analysis departments form basis proper consistent efficient financial reporting process corporate governance consolidated financial statements additional information combined management report shareholders annual report using efficient systems controls across business units require reliable information available provided time reporting systems hugo boss therefore great importance multiyear project launched upgrade group current sap based erp system sap hana also intended ensure even higher level control quality future aim group wide sap security policy prevent unauthorized access data ensure integrity availability authenticity data relevance financial reporting times also contains requirements controls designed ensure properly functioning central finance department system enabled controls workflow based processes impose dual control principle suitable separation functions internal approval procedures supplement security accounting related processes includes invoice verification approval sourcing processes sap authorization management carried central department clear definition responsibilities part standardized reporting group companies prepare ifrs financial statements monthly basis together key performance indicators explanations submit group finance tax division latter also responsible specifying monitoring compliance reporting obligations deadlines automated standardized reporting formats place vast majority reporting topics group finance tax responsible maintenance master data chart accounts applicable throughout group well continuous review reporting formats respect compliance latest applicable international financial reporting requirements preparing consolidated financial statements department also aims show business transactions group uniform manner group finance tax also responsible developing uniform guidelines instructions accounting tax related processes keeping date mainly encompasses preparation revision bad debt allowance policy investment guideline ifrs accounting manual binding intercompany reconciliation requirements group companies legally independent entities apart managing directors responsible business operations respective market finance managers responsible topics relevance company financial reporting tax situation also responsible continuous monitoring important key performance indicators well monthly reporting financial kpis central finance departments preparation multiyear budget respective market capacity technical supervisor finance managers chief financial officer cfo chief operating officer coo hugo boss authorized issue directives thus responsible group wide financial management financial reporting processes quarterly basis finance managers managing directors group companies confirm compliance writing defined principles execution management controls regard accounting process reports also submitted regarding appropriateness controls ensuring data integrity data protection event fraud serious infringements internal control system corporate governance consolidated financial statements additional information combined management report shareholders annual report material accounting valuation topics impact new changed ifrs standards interpretations discussed group auditors regular meetings held least quarterly basis internal audit department part system internal control oversight function reviews compliance effectiveness defined controls regard accounting process annual audit plan coordinated managing board audit committee supervisory board key audit matters defined additional hoc audits also performed time audit reports submitted directly cfo coo request full managing board internal audit department also reports regularly audit committee supervisory board training development employees training sessions organized regular intervals employees involved accounting process updates accounting related topics also communicated across group via accounting newsletter finance managers also meet regular intervals managers central group finance tax business planning analysis departments global finance summit regular training courses held finance employees entire group auspices digital finance forum current developments international financial reporting topics relevant preparing annual financial statements corporate governance consolidated financial statements additional information combined management report shareholders annual report overall statement business performance situation group since introduction fiscal year hugo boss achieved substantial progress executing claim strategy reflected significant achievements across five strategic priorities stepping investments brands products consumer touchpoints momentum boss hugo accelerated noticeably driving record sales three consecutive years market share gains time part claim built robust organizational operational platform laying foundation sustainable profitable growth platform enables enhance operational execution improve effectiveness realize efficiency gains across business consequently claim successfully paved way towards achieving financial ambition eur billion sales ebit margin least group strategy time global market environment deteriorated substantially fiscal year weakening consumer sentiment across markets leading slowdown industry growth overall muted consumer confidence inevitably impacted company performance resulting moderate revenue increase compared prior years hugo boss continued benefit improved brand relevance boss hugo consequently group sales grew eur million eur million currency adjusted group currency growth supported revenues increases across brands well regions distribution channels throughout year capitalized important growth opportunities elevating brand relevance enhancing product offerings deepening customer engagement highlights included launch successful degree brand campaigns start partnership david beckham exciting brand events like boss fashion show milan time pushed ahead strengthening brands lifestyle images besides fully leveraging boss brand lines across touchpoints expanded denimwear offering introduction hugo blue addition elevated omnichannel activities improve customer experience including opening new boss halo stores düsseldorf shanghai time successfully launched new membership program hugo boss thus strengthening customer loyalty deepening connections brands products comparison actual forecast business performance consumer touchpoints response softer consumer sentiment course accelerated focus enhancing cost efficiency included driving efficiency gains across global sourcing activities optimizing freight modes positive impact gross margin development fiscal year second half year implemented additional measures enhance efficiency effectiveness capitalizing robust organizational platform besides putting strong emphasis driving marketing effectiveness corporate governance consolidated financial statements additional information combined management report shareholders annual report particularly targeted productivity gains within global sales administration functions backdrop efficiency measures able limit increase operating expenses second half year thus supporting profitability result decline operating profit ebit ultimately limited amounting eur million translating ebit margin eur million consequently hugo boss achieved full year sales earnings targets adjusted july backdrop challenging market environment business operations earnings development also final year claim remain fully committed making strategic progress driving robust profitability improvements particular determined continue exploiting global growth opportunities keep investing key brand product omnichannel initiatives drive brand relevance deepen customers connections boss hugo taking account ongoing macroeconomic geopolitical uncertainties anticipated continue weighing consumer sentiment hugo boss expects group sales reporting currency range eur billion eur billion time remain focused leveraging strong operational platform driving additional cost efficiencies rigorously managing operating expenses therefore anticipate ebit fiscal year increase level eur million eur million consequently company anticipates ebit margin improve supported ongoing focus driving additional sourcing efficiencies maintaining disciplined cost management initiatives coupled strategic investments essential driving robust profitability improvements beyond ensuring long term success hugo boss outlook hugo boss remains confident long term growth opportunities continued ability generate significantly positive free cash flow future consequently despite decline earnings fiscal year managing board supervisory board intend propose annual general meeting may dividend eur per share fiscal year reflecting increase compared prior year level eur view healthy balance sheet structure strong free cash flow generation group remains exceedingly solid economic situation time preparing report outlook metzingen march hugo boss managing board daniel grieder yves müller oliver timm corporate governance consolidated financial statements additional information combined management report shareholders annual report chapter corporate governance corporate governance corporate governance statement compensation report legal disclosures corporate governance consolidated financial statements additional information combined management report shareholders annual report managing board supervisory board convinced good corporate governance key factor long term business success good corporate governance therefore integral part hugo boss guiding principle encompassing areas company managing board supervisory board committed ensuring company continuation going concern well sustainable value creation responsible transparent long term corporate governance time hugo boss aims live strengthen trust placed company employees shareholders business partners public fiscal year managing board supervisory board dealt detail compliance requirements german corporate governance code gcgc result issued declaration compliance dated december included end chapter like previous declarations compliance published corporate website apart exceptions mentioned therein hugo boss complies recommendations gcgc amended april published bundesanzeiger german federal gazette june corporate governance statement pursuant sec sec hgb handelsgesetzbuch german commercial code contains among things declaration compliance disclosures corporate governance practices description working methods managing board supervisory board also available cgs hugoboss com corporate governance practices international company hugo boss aware corporate responsibility vis vis employees society environment context responsible corporate action important prerequisite ensuring competitiveness long term business success consequently hugo boss places highest demands innovation quality products also takes environmental social factors account activities along value chain sustainability integral part business activities company sustainability strategy focuses five strong pillars aimed actively driving corporate governance corporate governance statement good corporate governance key factor long term business success close continuous dialog managing board supervisory board managing board supervisory board issue declaration compliance corporate governance consolidated financial statements additional information combined management report shareholders annual report change within fashion industry supporting creation planet free waste pollution strategy built strong environmental social governance esg core times hugo boss committed complying applicable regulatory frameworks adhering internal guidelines fullest extent possible group strategy sustainable throughout combined non financial statement corporate compliance hugo boss operates large number countries therefore different legal frameworks hugo boss corporate compliance key responsibility managing board comprising measures ensure adherence statutory legal requirements internal corporate policies codices includes among things data protection antitrust anti corruption regulations well provisions capital market law hugo boss expects employees act legally impeccable manner times day day work compliance human rights officer reports general counsel role chief compliance officer supports managing board monitoring effective compliance management together compliance officers group companies compliance human rights officer ensures compliance program implemented continuously developed throughout group audit committee regularly informed activities compliance department hugo boss summarized group wide principles conduct code conduct detailed group policies thus creating basis ensuring legality employee activities focus regulations governing conduct compliance competition antitrust law avoidance conflicts interest appropriate handling company information data protection fair working conditions respectful treatment well anti corruption employees continuously familiarized regulations code conduct group policies addition face face training sessions hugo boss also offers learning program completed regularly employees computer access hugo boss tolerate form deliberate misconduct persistent violations code conduct group policies employees obtain support advice matters concerning legal conduct supervisors compliance department supplementary reporting channel hugo boss also established group wide ombudsperson system employees suppliers trading partners contact external ombudsperson confidence event indications fraud infringements antitrust law breaches compliance guidelines desired also done anonymously ombudsperson contact details available employees via company intranet also found corporate website applies hugo boss speak channel also offers opportunity report misconduct criminal offenses confidentially anonymously hugo boss also published important information protection whistleblowers handling reports whistleblower policy corporate website intranet combined non financial statement governance corporate governance consolidated financial statements additional information combined management report shareholders annual report capital market communication hugo boss reports regularly comprehensively without delay business development operational financial performance well material changes within group investor relations activities include regular dialog institutional investors financial analysts private shareholders part annual quarterly financial results releases audio videoconference calls held financial analysts institutional investors elaborate operational financial performance group strategy relevant strategic developments also discussed detail capital markets day regular basis addition dedicated events hugo boss presents private investors annual general meeting offers opportunity obtain comprehensive information company performance key information financial releases press releases voting rights notifications financial reports financial calendar presentations roadshows conferences published corporate website group hugoboss com cooperation composition activities managing board supervisory board management structure hugo boss derived requirements german corporate law german stock corporation hugo boss dual management control structure managing board responsible group strategy group management supervisory board advises managing board monitors management activities managing board supervisory board cooperate closely benefit group common objective sustainably increase enterprise value hugo boss managing board regularly informs supervisory board timely manner detail issues relevance group concerning strategy planning business development risk position changes risk situation compliance deviations targets budgets explained supervisory board committees detail strategic direction development group also aligned discussed supervisory board making decisions performing duties hugo boss members managing board supervisory board permitted pursue personal interests grant persons unjustified advantages conflicts interest members managing board supervisory board reported fiscal year mandates held managing board supervisory board members statutory supervisory boards comparable domestic foreign oversight committees business enterprises listed notes consolidated financial statements notes consolidated financial statements additional disclosures members supervisory board managing board managing board managing board hugo boss consists chairman managing board members managing board equal rights respective areas responsibility end fiscal year managing board comprised three members corporate governance consolidated financial statements additional information combined management report shareholders annual report hugo boss group managed managing board parent company hugo boss group management functions bundled managing board core duties include developing successfully executing group strategy corporate finance risk management including implementation monitoring risk management internal control system decisions collections product sourcing management global distribution network addition managing board responsible preparing annual consolidated interim financial statements representing company media capital market bylaws managing board govern internal organization managing board particular allocation duties among members well procedure adopting resolutions bylaws also define disclosure reporting duties well matters requiring approval supervisory board bylaws managing board available corporate website group hugoboss com supervisory board pays attention diversity composition managing board diversity concept managing board diversity among managing board members serves ensure company long term success supervisory board takes account several aspects composition managing board including members managing board long standing management experience members managing board international background individuals possess experience gained outside germany due current past activities hold non german citizenship many different educational professional backgrounds possible represented managing board addition legally required qualifications managing board members knowledge branding supply chain matters distribution ensure long term succession planning managing board good balance ages among members supervisory board pursuing target least one woman managing board december latest members managing board may rule older years age appointed decisions specific composition managing board made supervisory board interest company consider circumstances individual case except target proportion women managing board aforementioned composition targets achieved throughout reporting period corporate governance consolidated financial statements additional information combined management report shareholders annual report supervisory board strives ensure appropriate representation women managing board however making personnel decisions supervisory board pays particular attention maintaining business continuity continuing successful cooperation within existing managing board time supervisory board consider justified intervene composition existing managing board solely achieve target pursuant sec aktg aktiengesetz german stock corporation act supervisory board set target least one woman managing board company later december gcgc stipulates managing board shall pay attention diversity filling senior management positions company shall particular strive appropriate consideration women managing board hugo boss committed objective already paid attention diversity workforce past continue future pursuant sec aktg managing board set target achieving proportion women least first management level least second management level managing board reference period december december proportion women first management level managing board second management level managing board december respectively targets undergo comprehensive review hugo boss strives ensure genders adequately represented within workforce however positions filled solely based qualifications applicants even might lead proportion women lower target combined non financial statement workforce jointly managing board supervisory board responsible long term succession planning managing board context supervisory board considers target proportion women managing board criteria set diversity concept managing board well requirements german stock corporation act aktiengesetz gcgc respecting specific qualification requirements aforementioned criteria personnel committee draws ideal profile based compiles shortlist available candidates interviews conducted candidates recommendation submitted supervisory board approval developing requirement profiles selecting candidates supervisory board supported necessary external consultants supervisory board hugo boss attaches great importance competencies independence supervisory board members well diversity composition supervisory board members supervisory board hugo boss necessary knowledge skills professional experience duly perform duties accordance recommendation sec gcgc supervisory board adopted supervisory board competency profile set specific targets composition accordingly supervisory board include least two members international background fiscal year supervisory board three members nationals countries germany addition several supervisory board members german nationality international professional experience furthermore none members may potential conflicts interest conflicts interest members corporate governance consolidated financial statements additional information combined management report shareholders annual report supervisory board reported fiscal year none current members supervisory board previously held managing board position within company also advisory service agreements place members supervisory board company reporting year addition member supervisory board older years time election however supervisory board set standard limit length membership supervisory board hugo boss opinion predefined length membership appropriate company also benefits expertise long standing supervisory board members supervisory board also defined specific target regarding number independent members supervisory board within meaning gcgc accordingly twelve members supervisory board total least nine members shall independent addition six employee representatives four shareholder representatives iris epple righi christina rosenberg robin stalker hermann waldemer regarded independent within meaning recommendation sec gcgc supervisory board also adopted following additional composition targets aid diversity supervisory board achieved diversity competency concept supervisory board supervisory board least two members international background persons possess experience gained outside germany due current past activities hold non german citizenship supervisory board least one member expertise area accounting least one member expertise area auditing supervisory board least one member holding expertise branding supply chain national international distribution matters supervisory board least two members currently formerly managers another company supervisory board least four members possessing extensive knowledge expertise company shall include expertise regarding sustainability matters relevant company aside employee representatives supervisory board least three members independent composition targets either reached exceeded throughout reporting period implementation status diversity competency concept disclosed corporate governance consolidated financial statements additional information combined management report shareholders annual report implementation status diversity competency concept supervisory board member inter nationality expertise accounting expertise auditing expertise branding supply chain distribution current former manager another company expertise company expertise regarding sustainability matters relevant company indepen dence current members supervisory board hermann waldemer chairman sinan piskin deputy chairman iris epple righi andreas flach katharina herzog daniela liburdi gaetano marzotto luca marzotto tanja silvana nitschke christina rosenberg bernd simbeck robin stalker criterion met based self assessment supervisory board means least good knowledge based existing qualifications knowledge experience acquired course work member supervisory board supervisory board currently comprises five women gender quota pursuant sec aktg met separately three female representatives employee side two female representatives shareholder side supervisory board regularly reviews efficiency activities fiscal year previous years assessment members supervisory board obtained means comprehensive questionnaire external evaluation completed questionnaires suggestions improvement contained therein analyzed discussed detail supervisory board meeting december supervisory board drew overall favorable conclusion supervisory board adopted bylaws among things govern duties responsibilities well procedures convening preparing chairing meetings passing resolutions bylaws supervisory board available corporate website group hugoboss com supervisory board formed five committees behalf representing supervisory board whole fulfilling duties assigned extent permitted law articles incorporation bylaws audit committee personnel committee working committee bylaws provide equal representation shareholder representatives employee representatives corporate governance consolidated financial statements additional information combined management report shareholders annual report audit committee audit committee equal representation shareholders employees consists six members elected members supervisory board accordance gcgc chairman committee shall independent audit committee responsible monitoring financial non financial reporting process effectiveness systems internal control risk management internal auditing well audit annual financial statements particular following duties perform preliminary audit annual financial statements consolidated financial statements combined management report including combined non financial statement hugo boss group profit appropriation proposal discuss audit report external auditor prepare supervisory board decision approval annual financial statements consolidated financial statements examine quarterly half year financial reporting discuss quarterly half year results managing board prepare supervisory board proposal annual general meeting appointment auditor particular review auditor independence additional services provided auditor following consultation managing board engage external auditor sign corresponding fee agreement audit annual financial statements consolidated financial statements basis resolution passed annual general meeting including determination key audit matters auditor reporting duties towards supervisory board verify compliance legal requirements internal company guidelines supervisory board assured robin stalker chairman audit committee independent pursuant german stock corporation act supervisory board must least one member expertise accounting least one additional member expertise auditing financial statements according gcgc expertise accounting consists specialist knowledge experience application accounting principles internal control risk management systems expertise auditing consists specialist knowledge experience auditing financial statements accounting auditing also include sustainability reporting audit assurance persons hermann waldemer robin stalker supervisory board audit committee two members expertise area accounting auditing financial statements thus complying requirements german stock corporation act pursuant gcgc chairman audit committee shall expert least one two areas also independent chairman audit committee robin stalker fulfills requirements course professional career hermann waldemer gained extensive knowledge application accounting principles internal control risk management systems well field auditing financial statements work certified tax consultant certified public accountant serving several years chief financial officer publicly listed international company deepened broadened experience hugo boss served chairman audit committee appointed chairman supervisory board actively applies expertise benefit supervisory board audit committee hugo boss corporate governance consolidated financial statements additional information combined management report shareholders annual report robin stalker started professional career chartered accountant major auditing firm serving years chief financial officer publicly listed international company thus comprehensive knowledge expertise auditing financial statements well application accounting principles internal control risk management systems including sustainability reporting activities chief financial officer publicly listed international company also include intensive engagement non financial aspects reporting thereon robin stalker closely follows monitors current developments sustainability reporting participates regularly stakeholder dialogs actively applies expertise benefit supervisory board audit committee hugo boss december audit committee comprises following members robin stalker chairman andreas flach gaetano marzotto sinan piskin bernd simbeck hermann waldemer personnel committee personnel committee equal representation shareholders employees consists chairman supervisory board five members elected supervisory board among members decides matters relating service agreements managing board members contractual matters including relating former managing board members surviving dependents prepares decisions supervisory board appointment necessary dismissal members managing board together full supervisory board managing board ensures long term succession planning decisions concerning compensation managing board members including former managing board members surviving dependents well regular deliberation review compensation system responsibility full supervisory board however personnel committee submits proposals preparation decisions matters addition personnel committee makes decisions accordance sec aktg contracts supervisory board members sec aktg loans supervisory board members well matters requiring supervisory board consent connection senior management including granting loans senior management within meaning sec aktg extent permitted law represents company transactions managing board members including former managing board members surviving dependents december personnel committee comprises following members hermann waldemer chairman daniela liburdi luca marzotto sinan piskin christina rosenberg bernd simbeck corporate governance consolidated financial statements additional information combined management report shareholders annual report working committee working committee equal representation shareholders employees consists chairman supervisory board five members elected members supervisory board assisting advising chairman supervisory board accordance statutory provisions working committee works closely managing board prepare meetings supervisory board particular working committee performs monitoring duties meetings supervisory board prejudice monitoring duties individual members supervisory board working committee makes decisions transactions requiring consent cases supervisory board delegated powers accordingly extent permitted law working committee authorized make decisions urgent matters instead full supervisory board cases working committee shall inform supervisory board immediately writing detail verbally next supervisory board meeting decision reasons necessity committee resolution december working committee comprises following members hermann waldemer chairman iris epple righi katharina herzog luca marzotto tanja silvana nitschke sinan piskin nomination committee nomination committee consists two members elected shareholder representatives supervisory board thus composed exclusively shareholder representatives accordance recommendation sec gcgc task identify suitable candidates election shareholder representatives supervisory board propose supervisory board election proposals annual general meeting december nomination committee comprises following members hermann waldemer chairman gaetano marzotto mediation committee mediation committee consists chairman supervisory board deputy one member elected employee shareholder representatives supervisory board majority votes cast sole purpose perform duties referred sec sec sentence mitbestg mitbestimmungsgesetz german determination act accordingly mediation committee makes proposals appointment members managing board previous proposal received legally required majority december mediation committee comprises following members hermann waldemer chairman daniela liburdi gaetano marzotto sinan piskin corporate governance consolidated financial statements additional information combined management report shareholders annual report risk management risk controlling hugo boss considers responsible systematic transparent handling risks essential component good corporate governance risk management system anchored value based group management designed enable company exploit business opportunities time identifying assessing risks early possible manage risk positions taking appropriate measures ensuring appropriate effective risk management risk controlling particular importance systems continuously enhanced adapted changing conditions inherently however cannot provide full protection losses business transactions fraudulent acts report risks opportunities financial reporting audit financial statements financial reports hugo boss prepared accordance international financial reporting standards ifrs endorsed european union audit committee established supervisory board regularly monitors financial reporting process audit financial statements since fiscal year audit performed deloitte gmbh wirtschaftsprüfungsgesellschaft stuttgart marco koch signed auditors report together thomas reitmayr agreed auditor respect reporting year chairman audit committee shall informed without delay audit possible grounds disqualification partiality could immediately rectified also agreed external auditor obliged report findings events arising performance audit importance duties supervisory board addition external auditor obliged inform supervisory board state audit report findings made audit inconsistent declaration compliance made managing board supervisory board pursuant sec aktg moreover supervisory board requested declaration independence external auditor duly convinced auditor independence declaration also included mandates perform non auditing services compensation managing board supervisory board hugo boss considers transparent comprehensible reporting compensation managing board supervisory board important element good corporate governance compensation report pursuant sec aktg outlines explains compensation current former members managing board supervisory board hugo boss fiscal year main features compensation systems managing board supervisory board applicable fiscal year also outlined compensation report corporate governance consolidated financial statements additional information combined management report shareholders annual report declaration compliance december managing board supervisory board hugo boss issued following declaration prescribed sec aktg declaration compliance declaration managing board supervisory board hugo boss pursuant section aktg german stock corporation act hugo boss metzingen securities phff international securities phff managing board supervisory board hugo boss herewith declare pursuant section para sentence aktg german stock corporation act since compliance declaration december recommendations government commission german corporate governance code version april published federal gazette june gcgc complied except deviating recommendation sentence gcgc employment contracts members managing board part provide possibility withhold reclaim variable compensation justified cases following contract update effect april employment contracts members managing board provide possibility withhold reclaim variable compensation required sentence dckg recommendation dckg therefore complied point metzingen december corporate governance consolidated financial statements additional information combined management report shareholders annual report compensation report hugo boss considers transparent comprehensible reporting compensation managing board supervisory board important element good corporate governance following compensation report pursuant sec aktg aktiengesetz german stock corporation act outlines explains compensation current former members managing board supervisory board hugo boss fiscal year order facilitate context disclosures main features compensation systems managing board supervisory board applicable fiscal year also outlined addition detailed description compensation systems managing board supervisory board found compensation hugoboss com review compensation fiscal year resolution approval compensation report fiscal year report compensation awarded due present former members managing board supervisory board hugo boss fiscal year prepared accordance sec aktg compensation system members managing board approved large majority annual general meeting approval rate compensation report received lower approval rate annual general meeting may accordance sec aktg supervisory board managing board primarily attribute outcome possible concerns regarding ceo investment opportunity explicitly part compensation system explained detail chapter time supervisory board views voting results opportunity thoroughly review refine specific aspects managing board compensation system aim enhance transparency take even greater account shareholder interests incorporate feedback gathered capital market participants part company annual corporate governance roadshow case current structure remain place basic features thus continue competitive performance oriented proposed adjustments presented detail submitted approval upcoming annual general meeting may part regular voting cycle presentation description compensation managing board supervisory board compensation system geared towards long term success hugo boss report complies requirements sec aktg based german corporate governance code corporate governance consolidated financial statements additional information combined management report shareholders annual report application compensation system managing board fiscal year current compensation system managing board main features presented later report approved annual general meeting may majority capital represented applies new appointments agreement extensions addition individual compensation granted members managing board within meaning sec aktg fiscal year agreed previous fiscal years compensation system applicable time compensation also presented explained relevant personnel committee regularly reviews appropriateness customarily nature compensation managing board members necessary proposes adjustments supervisory board order ensure compensation members managing board customary market competitive within applicable framework suitability reviewed march september context compensation members managing board compared companies dax mdax well relevant competitors taking account size criteria revenues employees market capitalization horizontal comparison review led conclusion compensation members hugo boss managing board considered line market practices addition appropriateness managing board compensation within group reviewed annually based development managing board compensation compared development senior management compensation defined first management level managing board development compensation employees whole defined average compensation group full time employees vertical comparison fiscal year personnel changes managing board hugo boss ensure continuity managing board ahead time march supervisory board renewed existing employment agreements daniel grieder chief executive officer ceo yves müller chief financial officer cfo chief operations officer coo consequently daniel grieder appointed chairman managing board ceo hugo boss december supervisory board also renewed yves müller cfo coo contract december context oliver timm chief sales officer cso whose contract runs december named deputy ceo alongside current role accordance applicable compensation system supervisory board set specific target compensation member managing board part renewal existing employment agreements target compensation set members managing board adjusted fiscal year adjustments planned fiscal year apart possible adjustments context individual agreement extensions company claim strategy aimed driving notable top bottom line improvements since introduction august driven three years successful execution hugo boss significantly accelerated growth context design compensation system aimed providing important incentives ongoing successful execution group strategy consequently compensation managing board closely linked group strategy hugo boss performance related compensation components sti lti among things based development financial performance criteria sales operating profit ebit return capital employed roce inclusion two non financial performance criteria also emphasizes company responsibility environmental social governance esg topics well objective sustainable long term successful business performance corporate governance consolidated financial statements additional information combined management report shareholders annual report fiscal year financial performance hugo boss negatively affected overall deterioration global market environment particularly impacted ebit development falling short initial expectations result case short term incentive sti overall target achievement amounted final target achievement long term incentive lti tranche issued fiscal year amounts target value payment fiscal year past fiscal year supervisory board make use options provided compensation system accordance legal provisions temporarily deviate compensation system make adjustments target achievement certain circumstances compensation report prepared jointly managing board supervisory board audited external auditor part formal audit required law pursuant sec aktg corresponding report audit compensation report attached compensation report report independent auditor audit compensation report accordance section aktg application compensation system supervisory board fiscal year compensation system supervisory board adopted annual general meeting may confirmed unchanged annual general meeting may majority compensation system applied fiscal year full set art company articles association fiscal year personnel changes supervisory board hugo boss compensation members managing board fiscal year overview structure compensation system managing board compensation system complies requirements german stock corporation act particular requirements act implementing shareholder rights directive srd based recommendations gcgc amended december furthermore complies recommendations stipulated updated gcgc amended april compensation system managing board important element group orientation intended significantly contribute driving operational performance successful execution group strategy thus long term success hugo boss intended support successful sustainable business activities compensation members managing board therefore linked short long term development company means compensation members managing board made non performance related performance related components target total compensation managing board consists fixed compensation fringe benefits pension commitments target amount short term incentive sti target amount long term incentive lti thus mainly comprises corporate governance consolidated financial statements additional information combined management report shareholders annual report performance related compensation elements aim strengthen performance aspect compensation system proportion target amount lti total term four years total target compensation exceeds sti ratio around intended ensure compensation structure whole geared toward sustainable successful long term business development malus clawback regulations provided variable compensation components total annual compensation members managing board also limited maximum compensation addition share ownership guidelines sog form another essential element compensation system compensation system also regulates compensation related legal matters agreement terms commitments upon termination managing board activities following table shows basic components compensation system managing board structure components specific application fiscal year explained detail overview compensation system fixed compensation base salary annual fixed compensation paid monthly salary fringe benefits benefits kind include use company car insurance allowances lesser extent equipment benefits required performance managing board duties contributions pension commitments contribution plan payment reinsurance policy contribution fixed base salary fixed age limit years performance related variable compensation short term variable compensation sti plan type target bonus system plan term year performance targets ebit target achievement sales target achievement trade net working capital percentage sales target achievement payout cash end fiscal year cap individual target amount long term variable compensation lti plan type performance share plan plan term years performance targets relative total shareholder return rtsr target achievement return capital employed roce target achievement employee satisfaction target achievement performance field sustainability target achievement payout cash end four year plan term cap individual target amount special compensation sign allowance possibility special compensation discretion supervisory board event extraordinary performance granting special compensation elements temporary basis payments new members managing board example compensate loss variable compensation former employers taking additional responsibility interim basis malus clawback withholding reclaiming part variable compensation sti lti event compliance violations incorrect consolidated financial statements share ownership guidelines sog annual gross base salary chairman managing board ceo annual gross base salary ordinary members managing board maximum compensation eur chairman managing board ceo eur ordinary members managing board corporate governance consolidated financial statements additional information combined management report shareholders annual report relative proportion individual compensation components relation total target compensation assuming target achievement two variable compensation components detailed follows compensation structure managing board chairman managing board ceo ordinary members managing board base salary fringe benefits contribution pension commitments short term variable compensation sti long term variable compensation lti non performance related fixed compensation components fixed compensation components consist fixed basic compensation fringe benefits contributions retirement benefits fixed basic compensation paid monthly salary takes account role assigned member managing board associated duties responsibilities member following renewal existing employment agreements managing board members annual basic compensation adjusted accordingly current annual basic compensation thus amounts eur thousand daniel grieder march eur thousand eur thousand yves müller march eur thousand eur thousand oliver timm december eur thousand addition basic compensation members managing board also receive fringe benefits lesser extent tax individually accordance applicable tax regulations extent non cash benefit arises private use fringe benefits primarily include private use company car contributions health nursing care insurance conclusion contributions accident insurance deductible accordance sec sentence aktg minor clothing allowance representative purposes reimbursement reasonable tax consultancy costs well lesser extent equipment benefits required performance duties corporate governance consolidated financial statements additional information combined management report shareholders annual report managing board addition new members managing board reasonable costs accommodation metzingen germany home return flights relocation costs event moving metzingen surrounding area reimbursed pension commitments members managing board defined contribution pension commitments hugo boss pays annual pension contribution individual basic compensation employer pensions liability insurance policy members managing board amount retirement benefit regard corresponds amount accumulated means individual employer pension liability insurance results total annual pension contributions plus annual interest rate depending respective insurance tariff entitlement retirement benefits arises reaching fixed age event managing board member becomes permanently unable work due illness accident reaching age limit leaves company event death member managing board spouse registered partner german civil partnership act orphans entitled survivor pension member managing board leaves company retirement entitlement pension benefits retained pensionable service period three years member managing board leaves company reaching fixed retirement age entitlement amount corresponds benefits non contributory reinsurance policy time departure ongoing pension payments adjusted annually least supervisory board received guidance independent compensation expert designing contribution based pension scheme current members managing board addition hugo boss offers members managing board option acquiring additional pension benefits deferred compensation agreements supplementary pension plan take form retirement benefits alternatively form occupational incapacity benefits surviving dependents benefits form lump sum death grant pension benefits take form monthly payments surviving dependents benefits also granted form lump sum capital payment contributions deferred compensation agreements included statement non performance related compensation awarded due respective fiscal year provisions plan assets recognized amount pension commitments eur thousand daniel grieder chairman managing board since june yves müller member managing board since december oliver timm member managing board since january total service cost ifrs pension provision ifrs corporate governance consolidated financial statements additional information combined management report shareholders annual report performance related variable compensation components compensation system managing board comprises two performance related components short term variable compensation sti long term variable compensation lti linked performance company aimed providing incentives successful execution group strategy well value creating development long term success hugo boss performance criteria key indicators used fiscal year performance assessment context variable compensation consistent group strategy derived strategic targets well operational performance indicators hugo boss addition correspond applicable compensation system short term incentive sti general functioning sti short term variable compensation component term one year amount sti based development financial performance criteria accordance group management system supervisory board defined following three financial performance criteria target components sales sales proceeds recognized consolidated financial statements using exchange rates underlying budget ebit group net income interest taxes trade net working capital tnwc total raw finished goods well trade receivables less trade payables percentage sales group management ebit contributes weighting overall target achievement sti sales tnwc contribute overall target achievement sti payout calculated basis individual target amount member managing board defined respective service agreement overall target achievement follows sti target bonus system individual target amount eur payout cash cap target amount target achievement weighting target ebit sales tnwc corporate governance consolidated financial statements additional information combined management report shareholders annual report maximum payout sti capped total target amount guaranteed minimum target achievement consequently payout may also completely omitted sti payable within week supervisory board approving consolidated financial statements respective fiscal year contribution long term success group sti intended ensure successful execution company operational targets achievement material importance long term success hugo boss light group strategy aims driving sustainable top bottom line growth sales ebit key target figures sti time tnwc important indicator managing efficient use capital therefore taken third financial performance criterion sti financial performance criteria beginning fiscal year supervisory board decides target minimum target maximum target three financial performance criteria sales ebit tnwc target respective financial performance criterion derived budget plan approved supervisory board target fully met target achievement minimum target reached target achievement target value minimum target target achievement target value greater equal maximum target target achievement case increase target value lead increase target achievement target achievement specified targets interpolated linear basis fiscal year supervisory board set following target achievement corridors beginning fiscal year regard respective financial targets sti target achievement corridors fiscal year event target achievement sti total amount eur thousand would paid managing board members daniel grieder eur thousand yves müller eur thousand oliver timm eur thousand sales eur million ebit eur million tnwc percentage sales corporate governance consolidated financial statements additional information combined management report shareholders annual report regard financial performance criteria relevant fiscal year supervisory board determined following target achievement based performance corridors defined beginning fiscal year target achievement sti eur million target component target weighting target value based target achievement performance corridor min max actual value target achievement sales ebit trade net working capital percentage sales total use exchange rates underlying budget fiscal year final target achievement thus amounts target achievement sti individual payout amounts sti allocated compensation awarded due fiscal year therefore follows payout sti target amount eur thousand total target achievement payout amount eur thousand members managing board december daniel grieder chairman managing board since june yves müller member managing board since december oliver timm member managing board since january total payout reduced eur thousand pursuant agreement daniel grieder supervisory board partially waive sti fiscal year outlook sti fiscal year sti fiscal year three financial performance criteria described together respective weighting remain unchanged specific targets three performance criteria disclosed described compensation report fiscal year corporate governance consolidated financial statements additional information combined management report shareholders annual report long term incentive lti general functioning lti long term variable compensation component designed form performance share plan takes account financial targets relevant group strategy non financial esg environment social governance targets consequently lti intended ensure members managing board hugo boss pursue sustainable business practices aligned interests company accordingly supervisory board determined following four performance criteria additively linked target figures lti relative total shareholder return rtsr hugo boss share return capital employed roce employee satisfaction company performance field sustainability targets rtsr roce performance criteria account one third lti targets employee satisfaction sustainability account one sixth lti granted annual tranches tranche three year performance period corresponds group medium term planning horizon followed additional qualifying period one year performance share price continues taken account results total term four years performance periods qualifiying period lti tranches lti provides members managing board receive defined number initial grant virtual shares tranches beginning plan start activity initial grant determined size target amount lti budget defined respective service agreement divided price hugo boss share last three months prior date granting initial grant end performance period final number virtual shares final grant performance periods qualifying periods lti tranche payout lti tranche payout lti tranche payout lti tranche payout lti tranche payout corporate governance consolidated financial statements additional information combined management report shareholders annual report calculated based achievement certain targets final payout entitlement calculated multiplying final grant company share price last three months qualifying period paid cash actual payout lti therefore calculated follows lti target achievement system target achievement individual lti target components limited maximum resulting lti payout capped total individual target amount contribution long term development group long term goal hugo boss sustainably increase enterprise value regard share price performance hugo boss particular importance rtsr therefore takes account relative shareholder return hugo boss compared relevant competitive environment intended provide incentive outperform competitors long term roce another financial performance criterion also sets incentives increasing profitability hugo boss ensuring efficient use capital inclusion two non financial performance criteria lti emphasizes social environmental responsibility goal sustainable business activities result managing board compensation closely aligned interests shareholders stakeholders individual lti budget lti issued fiscal year following table shows grants lti issued fiscal year includes target amount number provisionally granted virtual shares payout cap fair value grant date accordance ifrs share based payment plan term years performance period qualifying period individual target amount eur lti budget share price months initial grant payout amount eur cap individual target amount share price months final grant target achievement weighting target rtsr roce sustainability employee satisfaction corporate governance consolidated financial statements additional information combined management report shareholders annual report allocation lti target amount lti budget eur thousand average share price hugo boss eur provisionally granted number virtual shares initial grant payout cap target amount eur thousand fair value grant date eur thousand members managing board december daniel grieder chairman managing board since june yves müller member managing board since december oliver timm member managing board since january calculation based option price model financial non financial performance criteria lti issued fiscal year targets thresholds set lti four performance criteria apply throughout entire performance period tranche target achievement corridors lti tranche employee satisfaction rtsr sustainability roce corporate governance consolidated financial statements additional information combined management report shareholders annual report rtsr benchmark sustainable increase enterprise value measures share price performance notionally reinvested dividends hugo boss compared selected group relevant competitors premium segment global apparel industry performance period composition peer group shown following table relative total shareholder return rtsr peer group burberry group plc levi strauss smcp group capri holdings ltd moncler group tapestry inc iii apparel group pvh corp corp guess inc ralph lauren corp supervisory board convinced comparison relevant competitors premium segment global apparel industry best reflects strategic positioning two brands boss hugo determine target achievement level rtsr tsr share price performance notionally reinvested dividends hugo boss peer companies determined year performance period tsr values individual companies ranked size assigned percentile ranks average value percentile ranks hugo boss three years performance period determines target achievement percentile median achieved hugo boss exactly middle ranking peer companies target achievement corresponds tsr hugo boss percentile higher hugo boss among best companies target achievement higher percentile ranks lead increase target achievement percentile achieved target achievement corresponds tsr hugo boss percentile hugo boss among bottom companies target achievement target achievement specified targets interpolated linear basis roce represents return capital employed determined dividing ebit average capital invested degree employee satisfaction measured employee trust index part employee survey conducted annually great place work sustainability performance determined company relative performance annual dow jones best class index formerly dow jones sustainability index djsi corporate sustainability assessment csa sustainability performance listed companies assessed independent index provider global target achievement performance criteria roce employee satisfaction sustainability performance measured fiscal year three year performance period respective target value set start tranche determined using performance corridors corporate governance consolidated financial statements additional information combined management report shareholders annual report supervisory board sets target minimum target maximum target roce employee satisfaction sustainability case target fully met target achievement achievement minimum target corresponds target achievement target value minimum target target achievement target value greater equal maximum target target achievement increase target value lead increase target achievement target achievement specified targets interpolated linear basis annual target achievement levels performance criteria lti issued fiscal year target achievement lti performance criteria determined annual basis fiscal year supervisory board determined following target achievement lti target achievement lti preliminary basis target component target weighting target value based target achievement performance corridor min max actual value target achievement rtsr roce employee satisfaction sustainability performance total fiscal year target achievement level preliminary basis lti payout lti issued fiscal year following table provides overview overall target achievement lti awarded fiscal year payout fiscal year final target achievement lti target component target weighting target value based target achievement performance corridor min max actual value actual value actual value actual value average final target achievement rtsr roce employee satisfaction sustainability performance total previous compensation system applicable including april rtsr based comparison msci world textiles apparel luxury goods performance index corporate governance consolidated financial statements additional information combined management report shareholders annual report final target achievement level lti individual payout amounts resulting lti payout fiscal year follows payout lti target amount lti budget eur thousand average share price hugo boss eur provisionally granted number virtual shares initial grant final target achievement finally granted number virtual shares final grant average share price hugo boss eur payout amount eur thousand members managing board december daniel grieder chairman managing board since june yves müller member managing board since december oliver timm member managing board since january former members managing board ingo wilts member managing board august february total payout lti capped total individual target amount separation agreement dated may former member managing board heiko schäfer entitled payments pro rata earned tranches lti lti lti totaling eur thousand became due september total number virtual shares outstanding end fiscal year following overview outlines total number virtual shares initial grant held current members managing board end fiscal year total number virtual shares initial grant end fiscal year units lti lti lti lti balance end fiscal year daniel grieder chairman managing board since june yves müller member managing board since december oliver timm member managing board since january total outlook financial non financial performance criteria lti four target components also apply lti issued fiscal year corporate governance consolidated financial statements additional information combined management report shareholders annual report special compensation sign bonuses compensation system provide possibility special compensation extraordinary performance may granted discretion supervisory board however certain circumstances may necessary grant additional special compensation elements temporary basis involve one payments new members managing board example compensate loss variable compensation former employers order attract managing board member hugo boss sign addition supervisory board able compensate member managing board event take additional responsibility interim basis temporary increased duties bonus special compensation limited amount falls maximum compensation defined section iii accordance sec sentence aktg fiscal year supervisory board make use option grant additional special compensation managing board members malus clawback regulations current compensation system service agreements members hugo boss managing board shall contain malus clawback regulations enable supervisory board certain conditions reduce variable compensation components yet paid malus reclaim variable compensation components already paid clawback supervisory board therefore able reasonable discretion withhold reclaim part variable compensation member managing board breach material obligation exercise due diligence within meaning sec aktg material obligation service agreement essential rules conduct principles laid company code conduct compliance malus compliance clawback supervisory board also entitled claim back variable compensation already paid becomes apparent payment audited approved consolidated financial statements calculation amount payment based incorrect therefore corrected accordance relevant accounting rules performance clawback fiscal year supervisory board make use option reduce reclaim variable compensation components via malus clawback time supervisory board daniel grieder ceo mutually agreed reduction eur thousand sti payout daniel grieder fiscal year adjustment made compensate external consulting costs incurred company connection investigation media allegations following comprehensive review allegations determined unfounded share ownership guidelines share ownership guidelines sog essential part compensation system managing board order align interests managing board shareholders sog intended oblige members managing board buy hold shares hugo boss size share ownership obligation sog target measured based individual gross basic fixed compensation member managing board chairman managing board must invest two times ordinary members managing board must invest one time annual gross fixed basic compensation maintain shares entire duration managing board activities corporate governance consolidated financial statements additional information combined management report shareholders annual report required number shares must held within five years built linear basis reviewed annually group general counsel end year annual minimum holding may exceeded time rules time limits market abuse regulation must observed buying selling shares according compensation system number shares held determined based average closing price hugo boss shares deutsche börse xetra trading month prior appointment respective member managing board prior respective last adjustment fixed basic compensation managing board member members managing board entitled contribute existing pre held shares following table shows shares held active members managing board december shares directly held members managing board contributed existing pre held shares acquired prior managing board activity shares acquired managing board activity number shares december xetra closing price december total value shares december eur thousand daniel grieder chairman managing board since june yves müller member managing board since december oliver timm member managing board since january total sog apply three managing board members december daniel grieder oliver timm yves müller already exceeded requirements sog terms review due fiscal year terms total period five years maximum compensation maximum limits compensation limitation variable compensation maximum compensation compensation component cap short term variable compensation target amount long term variable compensation target amount maximum compensation chairman managing board eur ordinary managing board member eur compensation members managing board limited two respects firstly performance related components subject maximum limits amount target amount sti lti limits complied cases respect performance related compensation awarded due fiscal year shown following table corporate governance consolidated financial statements additional information combined management report shareholders annual report compliance maximum compensation performance related compensation managing board awarded due fiscal year daniel grieder chairman managing board since june yves müller member managing board since december oliver timm member managing board since january eur thousand target compen sation max payout target compen sation max payout target compen sation max payout short term variable compensation sti long term variable compensation lti total heiko schäfer member managing board march may ingo wilts member managing board august february eur thousand target compen sation max payout target compen sation max payout short term variable compensation sti long term variable compensation lti total separation agreement dated may former member managing board heiko schäfer entitled payment pro rata earned tranches lti lti lti totaling eur thousand became due september secondly accordance sec sentence aktg supervisory board determined maximum compensation limits total amount actually payable compensation awarded particular fiscal year consisting basic compensation fringe benefits expenses pension commitment special compensation short term variable long term variable compensation maximum compensation valid fiscal year eur thousand chairman managing board eur thousand ordinary members managing board part contract renewals ensured maximum compensation generally maintained even case highest possible target achievement variable compensation components however exceedances occur individual cases strict adherence maximum compensation ensured corresponding reductions made compliance maximum compensation performance related compensation managing board awarded due fiscal year lti installment initiated fiscal year concluded fiscal year allowing final assessment compliance maximum compensation set fiscal year shown following table maximum compensation eur thousand chairman managing board eur thousand ordinary members managing board exceeded member managing board corporate governance consolidated financial statements additional information combined management report shareholders annual report daniel grieder chairman managing board since june yves müller member managing board since december oliver timm member managing board since january eur thousand target compen sation max payout target compen sation max payout target compen sation max payout fixed compensation basic compensation fringe benefits pension allowance total short term variable compensation sti long term variable compensation lti total pension service costs special compensation total compensation related legal matters regulations termination managing board activity event premature termination service agreement absence due cause terminating service agreement company respective member managing board entitled severance payment always limited amount total compensation including fringe benefits period months compensated remaining term agreement severance payment cap purposes total compensation calculated basis total compensation received last full fiscal year appropriate basis predicted total compensation current fiscal year event termination managing board agreement payment outstanding variable compensation components made accordance originally agreed targets comparison parameters according due dates holding periods specified agreement service agreements provide severance payment event premature termination service agreement due cause respective member managing board responsible event regular termination service agreements include severance payment scheme service agreements provide extraordinary right termination event change control acquisition voting rights hugo boss also applies new appointments extension agreements compensation agreements corporate governance consolidated financial statements additional information combined management report shareholders annual report post contractual non compete clause post contractual non compete clause agreed members managing board period twelve months termination service agreement members managing board entitled directly indirectly work form invest company area premium luxury fashion accessories post contractual non compete clause applies countries hugo boss affiliated companies hugo boss within meaning sec seq aktg operating time termination service agreement hugo boss obliged pay member managing board monthly amount one twenty fourth annual target compensation basic compensation well sti lti respective target achievement duration post contractual non compete clause severance payments credited payment post contractual non compete clause individualized disclosure compensation managing board compensation awarded due current members managing board fiscal year pursuant sec aktg following table shows non performance related performance related compensation components awarded due current members managing board active december past fiscal year including respective relative share accordance sec aktg include basic compensation paid fiscal year fringe benefits accrued fiscal year pension allowance paid fiscal year sti awarded fiscal year payout fiscal year lti awarded fiscal year payout fiscal year special compensation compensation awarded due daniel grieder chairman managing board since june yves müller member managing board since december oliver timm member managing board since january eur thou sand eur thou sand eur thou sand eur thou sand eur thou sand eur thou sand fixed compensation basic compensation fringe benefits pension allowance total short term incentive sti sti long term incentive lti lti total special compensation total compensation corporate governance consolidated financial statements additional information combined management report shareholders annual report compensation awarded due former members managing board fiscal year following table shows non performance related performance related compensation components awarded due former members managing board terminated activities within last ten fiscal years including respective relative share accordance sec aktg compensation awarded due heiko schäfer member managing board march may ingo wilts member managing board august february eur thousand eur thousand eur thousand eur thousand fixed compensation basic compensation fringe benefits pension allowance total short term incentive sti sti long term incentive lti lti total pension payments deferred compensation payments total compensation mark langer chairman managing board may july member managing board january may eur thousand eur thousand fixed compensation basic compensation fringe benefits pension allowance total short term incentive sti sti long term incentive lti lti total pension payments deferred compensation payments total compensation separation agreement dated may former member managing board heiko schäfer entitled payment pro rata earned tranches lti lti lti totaling eur thousand became due september separation agreement dated april former chairman managing board mark langer entitled payment pro rata earned tranches lti lti totaling eur thousand became due march corporate governance consolidated financial statements additional information combined management report shareholders annual report fiscal years non performance related performance related compensation components awarded due former members part managing board past ten fiscal years target compensation actual compensation current members managing board fiscal year following table shows respective target compensation members managing board active december fiscal year includes target compensation agreed fiscal year event target achievement supplemented details minimum maximum compensation achievable individual basis addition allocation fiscal year stated actual compensation according gcgc actual compensation comprises fixed compensation paid fiscal year fringe benefits accrued fiscal year pension allowance due fiscal year payout due march sti payout due march lti ongoing pension commitments also include service costs incurred fiscal year accordance ifrs target compensation actual compensation according gcgc fiscal year daniel grieder chairman managing board since june yves müller member managing board since december eur thousand target compen sation minimum compen sation maximum compen sation allo cation target compen sation minimum compen sation maximum compen sation allo cation fixed compensation basic compensation fringe benefits pension allowance total short term incentive sti long term incentive lti lti total pension service costs special compensation total compensation corporate governance consolidated financial statements additional information combined management report shareholders annual report oliver timm member managing board since january eur thousand target compen sation minimum compen sation maximum compen sation allo cation fixed compensation basic compensation fringe benefits pension allowance total short term incentive sti long term incentive lti lti total pension service costs special compensation total compensation compensation members supervisory board fiscal year principles compensation system supervisory board compensation members supervisory board determined annual general meeting governed art articles association hugo boss provides abstract specific framework compensation members supervisory board ensures compensation members supervisory board always complies compensation system adopted annual general meeting may confirmed unchanged annual general meeting may compensation members supervisory board comprises fixed components compensation consists two components fixed compensation depending position respective supervisory board member additional compensation respective committee activities compensation regulation thus also takes account requirements gcgc structure application compensation system supervisory board fiscal year ordinary member supervisory board receives fixed annual compensation eur thousand base amount chairman receives times eur thousand deputy chairman receives times eur thousand base amount corporate governance consolidated financial statements additional information combined management report shareholders annual report addition members working committee audit committee personnel committee paid additional eur thousand chairman committees receive additional eur thousand members nomination committee receive additional eur thousand compensation paid chairman members mediation committee additional compensation paid three highest remunerated positions committees regulation leads setting individual maximum compensation member supervisory board accordance positions held respective member committees compensation supervisory board activity membership committee compensation granted beyond compensation described consequently current system foresee variable compensation components attendance fees compensation paid following annual general meeting decides approval supervisory board respective past fiscal year members supervisory board members supervisory board committee part fiscal year receive pro rata compensation month service part thereof members supervisory board reimbursed expenses incurred connection performance duties value added tax vat reimbursed company members supervisory board entitled invoice company separately vat exercise right fiscal year compensation system supervisory board applied full set art company articles association fiscal year members supervisory board receive compensation benefits services provided individually particular consulting mediation services furthermore loans advances granted members supervisory board contingent liabilities favor compensation supervisory board function compensation membership committee working committee audit committee personnel committee nomination committee chairman chairman chairman chairman eur eur eur ordinary member ordinary member ordinary member ordinary member eur eur eur eur ordinary member eur base amount deputy chairman eur times base amount chairman eur times base amount corporate governance consolidated financial statements additional information combined management report shareholders annual report individualized disclosure compensation supervisory board following table shows compensation components awarded due current former members supervisory board fiscal year including respective relative share accordance sec aktg accordance art company articles association total amount compensation supervisory board due following annual general meeting decides approval supervisory board respective past fiscal year disclosure fiscal year relates fixed compensation awarded supervisory board activities fiscal year payout fiscal year compensation awarded committee membership fiscal year payout fiscal year compensation awarded due fixed compensation base amount compensation committee work total compensation current members supervisory board hermann waldemer chairman eur thous sinan piskin deputy chairman eur thous iris epple righi eur thous andreas flach since may eur thous katharina herzog eur thous daniela liburdi since may eur thous gaetano marzotto eur thous luca marzotto eur thous tanja silvana nitschke eur thous christina rosenberg eur thous bernd simbeck eur thous robin stalker eur thous former members supervisory board anita kessel may eur thous martin sambeth may eur thous effective may two employee representatives anita kessel martin sambeth resigned supervisory board daniela liburdi joined supervisory board may successor anita kessel andreas flach joined supervisory board may successor martin sambeth set art company articles association four receive pro rata compensation activities fiscal year corporate governance consolidated financial statements additional information combined management report shareholders annual report fiscal years compensation awarded due former members part supervisory board past ten fiscal years employee representatives members trade union declared pass compensation hans böckler foundation accordance guidelines german trade union confederation comparative presentation compensation earnings development following comparative presentation shows annual change compensation awarded due current former members managing board supervisory board company earnings development terms sales ebit group net income net income hugo boss compensation employees full time equivalent basis latter based average wages salaries hugo boss employees throughout group respective fiscal year comparative information managing board supervisory board compensation comparison employee compensation earnings development annual change key earnings figures group sales group operating result ebit group net income net income hugo boss employee compensation employees hugo boss group compensation managing board members managing board december daniel grieder chairman since yves müller since spokesperson managing board oliver timm since accordance sec sentence egaktg einführungsgesetz zum aktiengesetz german introductory act stock corporation act comparison average employee compensation full time equivalent basis last five fiscal years pursuant sec sentence aktg yet included compensation report absolute terms group wide average compensation employees full time equivalent basis increased slightly eur thousand fiscal year eur thousand reflecting salary increases partly offset lower bonus payments absolute terms group wide average compensation employees full time equivalent basis remained broadly stable fiscal year amounting eur thousand eur thousand salary increases broadly offset lower bonus payments currency effects increase largely reflected salary increases backdrop high level global inflation measures implemented fiscal year connection covid reduce working hours personnel costs well currency effects corporate governance consolidated financial statements additional information combined management report shareholders annual report annual change former members managing board heiko schäfer ingo wilts mark langer chairman ordinary member bernd hake christoph auhagen claus dietrich lahrs chairman compensation supervisory board members supervisory board december hermann waldemer since chairman since sinan piskin since deputy chairman since iris epple righi since andreas flach since katharina herzog since daniela liburdi since gaetano marzotto since luca marzotto since tanja silvana nitschke since christina rosenberg since bernd simbeck since robin stalker since former members supervisory board antonio simina deputy chairman anita kessel kirsten kistermann christophe fridolin klumpp michel perraudin chairman axel salzmann martin sambeth corporate governance consolidated financial statements additional information combined management report shareholders annual report ceo investment opportunity resolution approve compensation system members managing board passed large majority annual general meeting approval rate compensation report hugo boss resolved lower majority annual general meeting supervisory board managing board primarily attribute outcome possible concerns regarding ceo investment opportunity agreement established daniel grieder marzotto family prior appointment chief executive officer hugo boss june time voting result seen fundamental criticism key elements compensation system structure compensation report aim taking voting result account addressing feedback gathered capital market participants enhancing level transparency hugo boss expanded disclosures ceo investment opportunity already compensation report additional details outlined aim acknowledge concerns raised provide clearer understanding agreement supervisory board seeks ensure full transparency regarding ceo investment opportunity reaffirm view agreement create conflict interest shareholders hugo boss instead fully aligned shareholder interests third party agreement thus part compensation system prior daniel grieder assuming duties ceo investment opportunity agreed daniel grieder marzotto family aims provide additional incentive substantial sustainable increase share price hugo boss ceo investment opportunity represents third party agreement daniel grieder marzotto family thus explicitly part compensation system accordance sec aktg therefore also included maximum compensation daniel grieder conflicts interest existing supervisory board discussed ceo investment opportunity plenary meeting june noted approval opinion supervisory board conflicts interest particularly regard shareholder hugo boss arising ceo investment opportunity directly tied long term share price performance hugo boss ultimately shareholders hugo boss benefit sustainable increase share price sustainable increase share price required ceo investment opportunity implemented setting investment vehicle titled zpg holding zpg zpg bought hugo boss shares mid average share price eur hold shares occurrence called liquidity event context daniel grieder invested total amount eur million ordinary shares zpg rest investment provided pfc zignago holding controlled marzotto family third party bank financing pfc zignago holding hold remainder ordinary shares corporate governance consolidated financial statements additional information combined management report shareholders annual report certain preference shares limited economic rights ranking senior ordinary shares liquidity events exercise call option zpg exercise put option daniel grieder zpg selling hugo boss shares third party call option may exercised zpg either event daniel grieder leaves hugo boss period days following ordinary expiration employment contract hugo boss call option exercised based reason daniel grieder responsible termination daniel grieder based good cause receive lower either fair market value zpg shares amount initial investment call option exercised without daniel grieder given cause termination hugo boss based good cause receive fair market value zpg shares put option may exercised daniel grieder average hugo boss share price period days exceeds specific thresholds minimum share price required exercising put option eur representing increase compared average purchase price hugo boss shares eur increase compared share price hugo boss december consideration event exercising put option case zpg sells hugo boss shares third party fair market value zpg shares held daniel grieder fair market value zpg shares held daniel grieder linked difference average purchase price hugo boss shares eur average share price hugo boss shares days prior liquidity event average share price hugo boss days prior liquidity event ranges eur eur daniel grieder receive back contributed amount eur million average share price days prior liquidity event less eur amount correspondingly lower depending average share price contrast average share price days prior liquidity event eur higher fair market value zpg shares held daniel grieder increases depending share price performance hugo boss example average share price eur would result fair market value eur million average share price eur fair market value eur million average share price eur fair market value eur million liquidity event occurred december backdrop challenging volatile trading environment consumer discretionary stocks share price hugo boss fluctuated eur eur throughout fiscal year december share price hugo boss eur thus well minimum threshold eur required exercise put option consequently end fiscal year conditions place could caused potential liquidity event also since ceo investment opportunity established average share price hugo boss never reached minimum threshold eur consecutive day period thereby preventing exercise put option corporate governance consolidated financial statements additional information combined management report shareholders annual report underscores ambitious nature ceo investment opportunity requires successful long term business development ultimately driving sustainable increase share price view supervisory board even minimum share price reached ceo investment opportunity offers strong incentive exercise put option immediately fair value expected increase line potential share price appreciation share summary supervisory board hugo boss convinced ceo investment opportunity aligns interests shareholders providing additional incentive consistent successful sustainable execution company group strategy supports long term business success hugo boss significant share price appreciation enhanced shareholder value metzingen march hugo boss managing board supervisory board corporate governance consolidated financial statements additional information combined management report shareholders annual report legal disclosures corporate governance statement corporate governance statement pursuant sec sec hgb forms part combined management report found corporate website cgs hugoboss com also included section corporate governance corporate governance statement annual report disclosures takeover law disclosures takeover law pursuant sec sec hgb part audited combined management report presented explained far managing board aware need declarations sec sentence aktg composition subscribed capital subscribed capital hugo boss consists par value registered ordinary shares pro rata amount share capital eur per ordinary share shares fully paid shares rights obligations attached shareholder rights obligations derive provisions aktg particular sec aktg restrictions voting rights transfer shares share confers one vote annual general meeting determines shareholders proportion company profits include shares held company company derives rights cases sec aktg voting right affected shares excluded law shares company capital exceeding voting rights basis voting rights notifications received company december accordance sec wphg wertpapierhandelsgesetz german securities trading act following direct indirect shares company capital reach exceed voting rights several shares company capital exceed voting rights legal disclosures form part combined management report corporate governance statement published corporate website corporate governance consolidated financial statements additional information combined management report shareholders annual report according voting rights notifications february received pfc vicenza italy zignago holding fossalta portogruaro italy companies together hold voting rights according notification agreement companies resulting voting rights held companies attributed respective company specifically pfc directly holds voting rights accordance sec wphg zignago holding directly holds voting rights accordance sec wphg addition pfc holds voting rights zignago holding holds voting rights via instruments pursuant sec wphg total combined investment thus exceeds voting rights according voting rights notification december voting rights pursuant sec wphg allocated shareholder frasers group plc michael ashley subject notification obligation addition held voting rights instruments pursuant sec wphg time december voting rights pursuant sec wphg voting rights pursuant sec wphg according voting rights notifications december received sih partners lllp wilmington delaware united states america usa company holds voting rights pursuant sec wphg addition voting rights instruments pursuant sec wphg voting rights instruments pursuant sec wphg held time december notification direct indirect capital investments december hugo boss notified direct indirect capital investments reach exceed voting rights notifications changes share voting rights held available corporate website financialreleases hugoboss com addition reportable shareholdings notified fiscal year found annual financial statements hugo boss fiscal year shares special rights granting control authority shares special rights granting control authority voting right controls shares held employees company capital voting right controls applicable employees hold shares capital hugo boss unable directly exercise control rights corporate governance consolidated financial statements additional information combined management report shareholders annual report appointment dismissal managing board appointment dismissal members managing board hugo boss accordance sec sec aktg sec mitbestg mitbestimmungsgesetz german determination act conjunction art articles association accordance art articles association managing board comprises least two members number members managing board determined supervisory board pursuant art articles association supervisory board appoint chairman deputy chairman managing board supervisory board revoke person appointment managing board appointment position chairman managing board due cause accordance art articles association members managing board may rule older years age appointed appointed supervisory board five years amendments articles association amendments articles association made resolutions passed annual general meeting unless prescribed otherwise german stock corporation act resolutions passed pursuant art articles association simple majority votes cast majority capital represented passing resolution required simple majority share capital represented resolution passed pursuant art articles association supervisory board authorized make amendments articles association affect wording powers managing board respect issue repurchase shares resolution annual general meeting may managing board hugo boss may supervisory board consent increase share capital eur may issuing new registered shares cash non cash basis repeatedly authorized capital general shareholders subscription right however managing board authorized subject approval supervisory board exclude subscription rights shareholders maximum share capital avoid fractional amounts case capital increase exchange contributions kind event issue price new shares case cash based capital increases significantly quoted price shares already listed stock exchange time issue price finally determined time close possible time shares placed shares issued including shares issued shares sold exclusion subscription rights pursuant sec clause aktg applied directly analogy may exceed share capital either time authorization becomes effective time exercised resolution annual general meeting may managing board authorized may consent supervisory board issue convertible bonds bonds warrants profit participation rights income bonds combinations instruments registered form made bearer without maturity several times including different tranches simultaneously total nominal amount eur context share capital conditionally increased eur issue new par value registered shares conditional capital conditional capital increase shall implemented corporate governance consolidated financial statements additional information combined management report shareholders annual report extent holders creditors conversion warrant rights arising bonds make use bonds satisfy conversion warrant obligations offer shares means satisfying rights obligations implemented general shareholders subscription right however managing board authorized subject approval supervisory board exclude subscription right shareholders maximum share capital case bonds issued return cash consideration whose issue price substantially lower theoretical market value bonds calculated accordance generally accepted methods used financial mathematics avoid fractional amounts necessary grant holders creditors bonds subscription right bonds would granted shareholder case bonds issued non cash contribution shares issued including shares issued shares sold exclusion subscription rights pursuant sec sentence aktg applied directly analogy may exceed total share capital time authorization becomes effective time exercised addition managing board authorized subject consent supervisory board exclude subscription rights income bonds profit participation rights issued without warrant conversion rights warrant conversion obligations income bonds profit participation rights bond like character pursuant resolution annual general meeting may managing board authorized may acquire shares company total share share capital outstanding may value lower share capital outstanding time authorization exercised authorization exercised directly hugo boss company dependent hugo boss holds majority interest commissioned third parties permits acquisition shares fully partial amounts several times acquisition made stock exchange public offer addressed shareholders submit sale offers granting put options shareholders authorization also allows restriction principle equal treatment shareholders rights shareholders sell shares company connection acquisition shares shares acquired authorization sold stock exchange offer addressed shareholders also excluding subscription rights shareholders consent supervisory board also redeemed compensation precluding subscription rights shareholders acquisition companies investments companies sale price significantly lower current quoted price admission share foreign stock exchanges addition managing board authorized consent supervisory board precluding subscription rights shareholders offer shares current former employees members executive bodies hugo boss affiliated companies well use shares fulfillment conversion warrant rights conversion obligations hugo boss affiliated companies use shares carry stock dividend addition case offer shareholders purchase shares subscription right fractional shares may excluded resolution annual general meeting may managing board authorized acquire shares using equity derivatives corporate governance consolidated financial statements additional information combined management report shareholders annual report change control regulations syndicated loan taken hugo boss hugo boss international guaranteed hugo boss well bilateral lines credit contain standard market conditions grant contracting parties additional termination rights event change control known change control clauses compensation agreements service agreements current members managing board contain provision event change control acquisition voting rights hugo boss contracting parties granted additional termination right certain circumstances service agreement fact terminated member managing board must compensated compensation report corporate governance consolidated financial statements additional information combined management report shareholders annual report chapter consolidated financial statements consolidated income statement consolidated statement comprehensive income consolidated statement financial position consolidated statement changes equity consolidated statement cash flows notes consolidated financial statements fiscal year notes consolidated income statement notes consolidated statement financial position notes managing board supervisory board additional disclosures members supervisory board managing board publication shareholdings hugo boss corporate governance consolidated financial statements additional information combined management report shareholders annual report consolidated income statement period january december consolidated income statement eur thousand notes sales cost sales gross profit sales selling marketing expenses administration expenses operating result ebit net interest income expenses interest similar income interest similar expenses financial items financial result earnings taxes income taxes net income attributable equity holders parent company non controlling interests earnings per share eur dividend per share eur basic diluted earnings per share dividend proposal corporate governance consolidated financial statements additional information combined management report shareholders annual report consolidated statement comprehensive income period january december consolidated statement comprehensive income eur thousand net income items reclassified profit loss remeasurements defined benefit plans items may reclassified subsequently profit loss currency differences gains losses cash flow hedges comprehensive income net tax total comprehensive income attributable equity holders parent company non controlling interests total comprehensive income corporate governance consolidated financial statements additional information combined management report shareholders annual report december consolidated statement financial position eur thousand assets notes property plant equipment intangible assets right use assets deferred tax assets non current financial assets non current assets non current assets inventories trade receivables current tax receivables current financial assets current assets cash cash equivalents assets held sale current assets total equity liabilities subscribed capital shares capital reserve retained earnings accumulated comprehensive income equity attributable equity holders parent company non controlling interests group equity non current provisions non current financial liabilities non current lease liabilities deferred tax liabilities non current liabilities non current liabilities current provisions current financial liabilities current lease liabilities income tax payables trade payables current liabilities liabilities held sale current liabilities total consolidated statement financial position annual report corporate governance consolidated financial statements additional information combined management report shareholders consolidated statement changes equity period january december consolidated statement changes equity eur thousand retained earnings accumulated comprehensive income group equity subscribed capital shares capital reserves legal reserves reserves currency translation gains losses cash flow hedges total non controlling interests non controlling interests group equity notes january net income income comprehensive income dividend payment share based payments changes basis consolidation december january net income income comprehensive income dividend payment share based payments changes basis consolidation december corporate governance consolidated financial statements additional information combined management report shareholders annual report period january december consolidated statement cash flows eur thousand notes net income depreciation amortization gain loss monetary positions ias unrealized net foreign exchange gain loss non cash transactions income tax expense income interest expenses income change inventories change receivables assets change trade payables liabilities result disposal non current assets change provisions pensions change provisions income taxes paid cash flow operating activities investments property plant equipment investments intangible assets equity investments disposal subsidiaries net cash disposed impact sales property plant equipment intangible assets interest received cash flow investing activities dividends paid equity holders parent company dividends paid non controlling interests proceeds current financial liabilities repayment current financial liabilities proceeds non current financial liabilities repayment lease liabilities interest paid cash flow financing activities exchange rate related changes cash cash equivalents change cash cash equivalents cash cash equivalents beginning period cash cash equivalents end period consolidated statement cash flows corporate governance consolidated financial statements additional information combined management report shareholders annual report notes consolidated financial statements fiscal year general information hugo boss publicly listed stock corporation registered offices holy allee metzingen germany company registered commercial register stuttgart local court hrb purpose hugo boss subsidiaries together hugo boss group development marketing distribution apparel shoes accessories premium segment global apparel industry lifestyle products consolidated financial statements hugo boss december prepared accordance international financial reporting standards ifrs issued international accounting standards board iasb adopted european union additional regulations pursuant sec hgb handelsgesetzbuch german commercial code consolidated financial statements combined management report hugo boss metzingen approved managing board submission supervisory board decision march due rounding presentation eur thousand possible individual figures consolidated financial statements add stated total financial reporting first time application following new standards amendments ifrs accounting standards issued iasb effective fiscal year beginning january material impact amounts disclosures group financial statements results operations includes amendment ias classification liabilities current non current amendment ias non current liabilities covenants amendment ias ifrs supplier finance arrangements amendment ifrs lease liability sale leaseback corporate governance consolidated financial statements additional information combined management report shareholders annual report following new standards interpretations amendments existing standards interpretations issued international accounting standards board iasb partially endorsed effective fiscal years beginning january applied preparing consolidated financial statements amendments either material impact presentation group financial position results operations currently process reviewed application amendment ias lack exchangeability iasb effective date january amendments ifrs ifrs classification measurement financial instruments iasb effective date january annual improvements ifrs accounting standards volume iasb effective date january ifrs presentation disclosure financial statements replaces ias iasb effective date january ifrs subsidiaries without public accountability disclosures iasb effective date january consolidation principles basis consolidation comprises hugo boss subsidiaries including structured entities hugo boss exercise direct indirect control hugo boss deemed exercise control parent company power subsidiary account voting rights exposed variable returns involvement subsidiary able use power subsidiary affect amount returns subsidiary deconsolidated soon parent company relinquishes control subsidiaries immaterial impact group net assets financial position results operations included consolidated financial statements impact considered immaterial aggregated sales earnings total assets make less corresponding group figures reassessed reporting date non consolidated subsidiaries measured fair value cannot determined reliably cost reported non current financial assets structured entities controlled parent company also consolidated entities structured way controlled parent company regardless holds voting comparable rights case example exercise voting rights confined administrative tasks material activities governed contracts joint ventures consolidated using equity method joint control contractually agreed sharing control arrangement exists decisions relevant activities require unanimous consent parties sharing control changes parent ownership interest subsidiary result loss control accounted equity settled transactions corporate governance consolidated financial statements additional information combined management report shareholders annual report basis consolidation reporting period january december number consolidated companies decreased compared december fiscal year hugo boss merged hugo boss international markets hugo boss ticino hugo boss trade mark management verwaltungs gmbh hugo boss nationale beteiligungsgesellschaft mbh addition hugo boss dienstleistung gmbh previously inactive renamed eightyards gmbh deconsolidated due immateriality company dedicated recycling group surplus materials commence business operations first quarter third quarter hugo boss completed sale subsidiary hugo boss rus llc accordingly company derecognized related assets liabilities held sale emea segment deconsolidated hugo boss rus llc august loss sale investment recognized administration expenses consolidated income statement hugo boss increased shares ownership yourdata digital campus unipessoal lda based porto portugal fiscal year hugo boss contractual right acquire remaining shares company period july price based achievement relevant kpis december fair value call option assessed nil related financial liabilities since fiscal year yourdata digital campus unipessoal lda included consolidated financial statements hugo boss decisive voting rights company business combinations company obtains control one businesses constitutes business combination within meaning ifrs business combinations accounted using acquisition method cost acquisition measured aggregate consideration transferred measured acquisition date fair value amount non controlling interest acquiree identifiable assets acquired liabilities assumed including contingent liabilities business combination measured acquisition date fair values non controlling interests measured proportionate share fair value identifiable assets liabilities acquisition related costs recognized profit loss incurred goodwill goodwill resulting business combination excess consideration transferred fair value non controlling interest assets acquired liabilities assumed consideration lower fair value net assets acquiree difference reassessed recognized profit loss corporate governance consolidated financial statements additional information combined management report shareholders annual report initial recognition goodwill carried cost functional currency foreign acquiree less accumulated impairment losses goodwill recognized tested impairment annually whenever indication assets might impaired intercompany transactions effects intercompany transactions eliminated receivables liabilities consolidated companies offset intercompany gains losses pertaining intangible assets property plant equipment inventories eliminated intercompany income offset corresponding intercompany expenses deferred taxes recognized temporary differences arising consolidation accordance ias determination functional currency group reporting currency euro functional currency parent company hugo boss functional currency subsidiaries included consolidated financial statements typically corresponding local currency subsidiaries conduct significant portion sales sourcing activities financing currency corresponding local currency functional currency currency primary business environment accordingly euro functional currency hugo boss textile industry ltd turkey company conducts business euros foreign currency transactions balances separate financial statements transactions foreign currency translated exchange rates valid dates transactions monetary items cash cash equivalents receivables payables denominated foreign currencies translated functional currency closing rates resulting exchange rate gains losses recognized profit loss financial items non monetary items denominated foreign currencies measured fair value translated rate prevailing time fair value determined non monetary items measured historical acquisition cost translated rate transaction date hyperinflation turkey classified hyperinflationary economy therefore ias financial reporting hyperinflationary economies applies group sales subsidiary turkey accordingly financial statements hugo boss magazacilik ltd sti izmir turkey turkish lira functional currency restated changes general purchasing power retrospectively since january financial statements based historical cost approach prior year amounts translated group currency euro closing rate december pursuant ias effects changes foreign exchange rates comparative amounts previous reporting period restated corporate governance consolidated financial statements additional information combined management report shareholders annual report additionally order reflect changes general purchasing power balance sheet date carrying amounts non monetary assets liabilities shareholders equity comprehensive income subsidiaries hyperinflationary economies restated terms measuring unit applicable balance sheet date indexed using general price index accordance ias however restatement required non monetary assets liabilities well monetary items carried amounts current end balance sheet date net realizable value fair value represent money held received paid items statement profit loss expressed terms measuring unit applicable balance sheet date non monetary assets restated following ias still subject impairment assessment accordance relevant ifrs standards translation group currency euro amounts translated closing rate december application ias resulted gain net monetary position eur thousand loss eur thousand group financial position result operations fiscal year table details specific inputs used apply ias fiscal year input parameters turkey date ias initial application january consumer price index tüketici fiyat endeks rakamları index december index december adjustment factor furthermore ias applicable hugo boss textile industry ltd turkey comprising group production facility izmir functional currency euro translation separate financial statements financial statements foreign group companies whose functional currency euro translated group reporting currency euro items translated using modified closing rate accordance ias assets including goodwill liabilities translated closing rates income statement items translated average monthly exchange rates reporting period differences currency translation income statements average rates statements financial position closing rates reported without effect profit loss comprehensive income currency difference resulting translation equity historical rates likewise posted comprehensive income currency differences recognized comprehensive income reclassified income statement corresponding group company sold corporate governance consolidated financial statements additional information combined management report shareholders annual report important exchange rates applied consolidated financial statements developed relation euro follows currency average rate closing rate eur canada cad china cny mexico mxn switzerland chf turkey try uae aed united kingdom gbp usd accounting policies financial statements hugo boss german foreign subsidiaries prepared pursuant uniform accounting policies accordance ifrs recognition income expenses income recognized extent probable economic benefits flow group income reliably measured income measured fair value consideration received income reported deductions including discounts price deductions net vat specific recognition criteria described must also met income recognized sale merchandise goods income recognized accordance ifrs hugo boss recognizes income sale goods control goods transferred buyer wholesale channel case soon delivery wholesale partner executed obligations affecting acceptance goods wholesale partner settled group brick mortar retail business control passes customer upon payment goods sales recognized transactions customers completed sales via group online channel recognized upon delivery goods customer date delivery deemed date control merchandise goods sold passes customer payment terms applied correspond payment terms customary industry per country corporate governance consolidated financial statements additional information combined management report shareholders annual report customers option exchange goods similar products return goods credits certain conditions accordance contractual agreements amounts expected returns deferred sales based historical experience return rates periods liability obligation return accounts payable asset right return goods customer recognized amount respective inventories less handling costs potential impairment shop fit contributions retailers recognized income statement sales deductions license income license income recognized period generated accordance terms underlying agreements interest income expense interest recognized pro rata temporis taking account effective yield assets appropriate liabilities functional costs operating expenses essentially allocated individual functional areas based respective cost centers expenses incurred connection cross functional activities projects spread among functional costs concerned using adequate allocation principle research development costs research costs recognized expenses incur product development costs likewise expensed incurred satisfy criteria recognition internally generated intangible assets production related development costs generally included calculation cost unfinished finished goods essentially comprise cost technical product development third phase collection creation process income taxes tax rates tax laws used calculate income tax enacted substantively enacted reporting date countries group operates generates taxable income receivables liabilities current income taxes recognized extent amount already paid exceeds amount due extent yet paid respect current prior periods corporate governance consolidated financial statements additional information combined management report shareholders annual report accordance ias deferred tax assets deferred tax liabilities recognized temporary differences tax bases separate entities carrying amounts consolidated financial statements accordance ifrs certain consolidation adjustments company calculate deferred taxes initial recognition goodwill permissible assessing recoverability deferred tax assets group relies forecast assumptions used elsewhere consolidated financial statements management reporting among things increased costs reduction circularity efforts offset improved efficiency aligning external internal developments well utilizing target costing measures ensure financial non financial objectives met deferred tax assets also include tax credits result expected utilization existing unused tax losses subsequent years realization assumed sufficient probability deferred tax assets deferred tax liabilities presented net basis extent deferred tax assets deferred tax liabilities relate taxable entity including enforceable right offset corresponding taxes deferred tax assets deferred tax liabilities measured tax rates expected apply temporary differences reverse income taxes recorded income statement exception relating items recognized directly equity property plant equipment property plant equipment used business operations longer one year measured cost less accumulated depreciation cost conversion includes costs directly allocable production process well appropriate portion production related overheads underlying useful lives correspond expected useful lives within group property plant equipment generally depreciated using straight line method line ias accounting government grants disclosure government assistance investment grants received offset acquisition production costs corresponding asset buildings leasehold improvements third party land depreciated term underlying lease agreements lower useful lives useful lives depreciation methods property plant equipment intangible assets reviewed periodically ensure depreciation method period consistent expected pattern economic benefits respective assets corporate governance consolidated financial statements additional information combined management report shareholders annual report intangible assets intangible assets recognized probable future economic benefit use asset flow company cost asset reliably measured acquired intangible assets measured acquisition cost internally generated intangible assets measured conversion cost capitalization requirements ias intangible assets met cumulatively expenses incurred development phase internally generated intangible assets capitalized time arise subsequent periods internally generated intangible assets acquired intangible assets measured acquisition conversion cost less accumulated amortization impairment losses intangible assets finite useful life systematically amortized using straight line method useful life intangible assets infinite useful life tested impairment year carrying amount asset longer recoverable impairment loss recognized intangible assets include software licenses trademark reacquired rights impairment non financial assets every reporting date non financial assets property plant equipment right use assets leases including intangible assets goodwill reviewed indications impairment triggering events event indication recoverable amount asset estimated irrespective whether indication impairment intangible assets indefinite useful lives goodwill acquired business combination tested impairment annually recoverable amount higher fair value asset less costs disposal value use value use present value expected cash flows expected cash flows discounted using tax weighted average cost capital reflects risks specific asset determining fair value less costs disposal external appraisals taken account available possible estimate recoverable amount individual asset recoverable amount smallest identifiable group assets generates largely independent cash inflows asset belongs cash generating unit cgu determined carrying amount asset cgu exceeds corresponding recoverable amount impairment loss immediately recognized profit loss cgu impaired carrying amount goodwill allocated unit reduced first remaining impairment loss reduces non current assets cgu pro rata corporate governance consolidated financial statements additional information combined management report shareholders annual report following impairment loss recognized prior periods asset cgu higher recoverable amount impairment loss reversed maximum recoverable amount reversal limited amortized carrying amount would determined impairment loss recognized past impairment loss reversed profit loss reversals impairment losses recognized goodwill permitted inventories raw materials supplies well merchandise generally measured moving average cost work progress finished goods measured cost cost conversion work progress finished goods includes direct material direct labor proportionate material production overheads production related amortization depreciation insofar consequence production also included general administrative expenses product development expenses expenses social facilities expenses voluntary social benefits occupational pensions extent related production incurred production period borrowing costs expensed incurred extent criteria recognition carrying amount asset met inventories measured lower cost estimated selling price ordinary course business less estimated cost make sale leases accordance ifrs leasing relationship exists lessor contractually transferred right use identified asset defined period return consideration lessee ifrs lessee recognizes lease liability amount present value future lease payments corresponding right use asset statement financial position lease payments comprise total fixed lease payments less incentive payments conclusion contract variable lease payments linked index interest rate amounts expected paid residual value guarantees lease extension options included exercise reasonably certain contractually agreed payments compensation event early termination lease lessee must also recognized cannot assumed reasonable certainty lease continued lease payments discounted interest rate implicit lease agreement interest rate cannot readily determined incremental borrowing rate used adjusted country specific risk lease term right use asset recognized parallel generally capitalized value lease liability lease payments already made directly attributable costs must also included payments received lessor connection lease deducted restoration obligations arising leases must also taken account measuring right use asset provision must recognized obligation right use asset amortized straight line basis term lease corporate governance consolidated financial statements additional information combined management report shareholders annual report depreciation capitalized right use asset recognized income statement respective functional areas interest expense compounding recognized lease liability recognized financial result financial instruments financial instrument contract gives rise financial asset one entity financial liability equity instrument another entity financial assets financial liabilities extent currently relevant hugo boss classified following categories fvtpl financial assets liabilities valued fair value profit loss financial assets liabilities valued amortized cost effective interest method fvtoci financial assets valued fair value comprehensive income financial assets financial liabilities classified categories upon initial recognition except financial liabilities classified fvtoci financial assets three classification categories financial assets debt instruments equity instruments derivatives debt instruments initially classified ifrs using two stage test whereby respective cash flow conditions business model management financial assets examined test takes place financial asset level financial assets initially recognized fair value plus minus case financial asset fair value profit loss fvtpl directly attributable transaction costs relating acquisition purchases disposals financial assets recognized value settlement date day group obliged purchase sell asset fair values recognized statement financial position market prices corresponding financial assets available fair value determined using generally accepted valuation models reference current market parameters techniques include using recent arm length market transactions reference current market value another instrument substantially discounted cash flow analysis valuation models cash cash equivalents recognized statement financial position comprise cash hand bank balances short term deposits original term less three months measured amortized cost fair value profit loss amortized cost fair value comprehensive income corporate governance consolidated financial statements additional information combined management report shareholders annual report hugo boss calculates records loss allowance according expected credit loss model ifrs financial instruments classified fvtpl except trade receivables expected credit loss ecl allocated using three stages stage expected credit losses within next twelve months includes contracts significant increase credit risk since initial recognition portion lifetime expected credit losses represents expected credit losses resulting default events financial instrument possible within next twelve months reporting date recognized stage expected credit losses lifetime credit impaired financial asset significant increase credit risk since initial recognition yet credit impaired moved stage measured lifetime expected credit loss resulting possible default events expected life financial instrument stage expected credit losses lifetime credit impaired financial asset defined credit impaired default transferred stage measured lifetime expected credit loss trade receivables loans receivables subsequently measured amortized cost less loss allowances using effective interest rate method expected credit losses simplified approach taken account accordingly loss allowance lifetime calculated trade receivables classified credit impaired based external benchmarking information considers forward looking macroeconomic factors internal empirical data additionally certain guarantees place reduce potential credit risks doubts recoverability trade receivables recognized lower present value estimated future cash flows credit risk management purpose hugo boss determines whether credit risk financial instrument increased significantly considering reasonable supportable information available regularly compare risk default occurring reporting date risk default occurring initial recognition financial instrument evaluation whether credit risk financial asset changed group utilizes reasonable reliable information available without excessive cost expenses case debtor facing financial difficulty legal case hugo boss recognizes individual bad debt allowance trade receivables classified credit impaired moved stage individual bad debt allowance recognized group continues conduct recovery measures collect receivables due nevertheless financial instrument may also treated default internal external information indicates full collection outstanding payment viewed unlikely individual impairment rates used case financial asset written entirely derecognized reasonable expectation recovery derecognitions booked net time corresponding amount allowance needs adjusted corporate governance consolidated financial statements additional information combined management report shareholders annual report financial assets fair value profit loss fvtpl include financial assets cash flows principle interest principal amount outstanding except equity instruments accounted fvtpl also fvtoci furthermore financial assets held business model including hold collect hold collect sell presented fvtpl addition derivatives including embedded derivatives separated host contract classified hedging instruments hedge accounting according ifrs classified fvtpl gains losses financial assets recognized profit loss financial assets amortized cost non derivative financial assets contractual cash flows consist solely payments principal interest principal amount outstanding held aim collecting contractual cash flows trade receivables cash cash equivalents business model hold collect initial recognition financial assets amortized cost subsequently carried amortized cost using effective interest method less loss allowances gains losses financial assets recognized income statement financial liabilities financial liabilities primarily include trade payables liabilities banks lease liabilities derivative financial liabilities liabilities measured fair value initial recognition directly attributable transaction costs taken account appropriate financial liabilities amortized cost subsequently measured amortized cost using effective interest method hugo boss enters reverse factoring agreements trade payables supplier transferred financial intermediary changes presentation original trade payables may occur would case liabilities differed nature function trade payables result liabilities would presented separately financial liabilities fair value profit loss fvtpl include financial liabilities held trading derivatives including embedded derivatives separated host contract used hedging instruments hedge accounting classified held trading gains losses liabilities held trading financial liabilities fvtpl option elected recognized profit loss corporate governance consolidated financial statements additional information combined management report shareholders annual report derivative financial instruments hedge accounting hugo boss derivative financial instruments solely used hedging financial risks arise operating financing activities liquidity management mainly includes interest rate risks currency risks derivative financial instruments measured fair value upon initial recognition subsequent reporting date derivatives recognized assets fair value positive liabilities fair value negative requirements hedge accounting set ifrs met hugo boss designates documents hedge relationship date derivative contract entered cash flow hedge cash flow hedges utilized hedge variability cash flows received paid expected transactions highly probable forecasted transaction documentation hedging relationship includes objective strategy risk management type hedging relationship nature risk hedged identification eligible hedging instrument eligible hedged item well assessment effectiveness requirements comprising risk mitigating economic relationship absence deteriorating effects credit risk appropriate hedge ratio hedging transactions regularly assessed determine whether effectiveness requirements met designated derivative financial instruments longer qualify hedge accounting qualifying criteria hedge accounting longer met derivative financial instruments classified held trading measured fair value profit loss provisions provisions recognized past event led current legal constructive obligation third parties expected lead future outflow resources estimated reliably provisions reviewed reporting date adjusted reflect current best estimate provisions term one year discounted using risk free interest rate effect time value money material amount provision equals present value expenditures expected required settle obligation provisions deconstruction obligations provisions deconstruction obligations connection group retail stores recognized liabilities present value best estimate amount required settle obligation corresponding assets capitalized equivalent amount included measurement corresponding right use asset depreciated term lease agreement corporate governance consolidated financial statements additional information combined management report shareholders annual report provisions pensions measurement pension provisions relates group obligation provide benefit based contribution based plans ias mandates use projected unit credit method provision benefit based plans takes account future adjustments salaries pensions year end present value determined using projected unit credit method compared fair value plan assets employer pension liability insurance extent offsetting permissible asset ceiling actuarial gains losses immediately posted full comprehensive income actuarial gains losses reclassified comprehensive income consolidated net income subsequent years applies effects asset ceiling net interest determined multiplying net pension liability discount rate underlying gross pension obligation dbo reported financial result difference actual interest return plan assets anticipated return plan assets obtained using discount rate posted separately comprehensive income service cost reported relevant functional costs contributions contribution based pension schemes recognized expenses income statement maturity share based compensation programs share based compensation programs accounted accordance ifrs equity settled share based payments forming part restricted stock units program eligible senior management measured fair value equity instruments grant date fair value grant date equity settled share based payments expensed straight line basis vesting period based group estimate number equity instruments eventually vest impact revision original estimates recognized profit loss cumulative expense reflects revised estimate corresponding adjustment reserves resulting expense recorded within personnel expenses corresponding adjustment capital reserves cash settled share based payments forming part long term incentive program lti members managing board eligible senior middle management measured using option price model liability reporting date liability settled date settlement fair value liability remeasured changes fair value recognized profit loss respective fiscal year resulting expense recorded personnel expenses affected functional costs liability recognized provision personnel expenses share based program associated ceo investment opportunity measured fair value equity instruments grant date corporate governance consolidated financial statements additional information combined management report shareholders annual report contingent liabilities contingent assets contingent liabilities recognized disclosed notes consolidated financial statements unless outflow resources embodying economic benefits unlikely contingent assets likewise recognized disclosed notes consolidated financial statements inflow economic benefits probable estimation uncertainties judgments preparation group consolidated financial statements requires management make judgments estimates assumptions affect reported amounts income expenses assets liabilities disclosure contingent liabilities end reporting period estimates judgments made obtain fair presentation group net assets financial position results operations addition main judgments estimates used specified respective notes consolidated financial statements hugo boss subject variety external risks mainly connection macroeconomic political social developments well environmental health aspects backdrop current risks inflation global supply chain disruptions geopolitical risks management monitors current development closely light high level geopolitical macroeconomic uncertainty particularly close dialog managing board business planning analysis management central divisions group subsidiaries corporate planning regularly reviewed updated throughout year additionally hugo boss applies following estimates assumptions inventories measured taking account risk provisions appropriate current business environment hugo boss applies global merchandise logic catering customer demand across brands regions channels aiming aligned global launch seasons merchandise model reflects way group assesses recoverability inventories incorporating seasonal approach improved devaluation factor carrying amount inventories reflected statement financial position inventory write downs reflected income statement recoverability trade receivables assessed valuing trade receivables loss allowance calculated based external benchmarking information internal empirical data accounting estimates parameters refined fiscal year probabilities default based past current future conditions subsidiaries hugo boss prepare analysis aging structure trade receivables follow uniform rules example regard credit assessment handling doubtful receivables corporate governance consolidated financial statements additional information combined management report shareholders annual report notes consolidated income statement sales cost sales sales eur thousand brick mortar retail brick mortar wholesale digital licenses total information sales region found note segment reporting cost sales eur thousand total cost purchase thereof cost materials cost conversion cost materials part cost sales include inbound freight duty costs eur thousand eur thousand selling marketing expenses eur thousand expenses retail business sales organization thereof brick mortar retail expenses marketing expenses thereof expenses thereof income invoicing marketing expense logistic expenses total thereof sundry taxes corporate governance consolidated financial statements additional information combined management report shareholders annual report expenses company retail business sales organization mainly comprise personnel expenses wholesale retail sales well amortization right use assets accordance ifrs addition item includes sales related commissions outbound freight duty charges credit card fees impairment losses assets amounting eur thousand reversal impairment losses eur thousand item also includes losses derecognition impairment losses trade receivables amount eur thousand eur thousand logistic expenses mainly include personnel expenses warehouse logistics expenses full service agreement external provider right use depreciation administration expenses eur thousand administrative expenses research development expenses thereof personnel expenses thereof depreciation amortization thereof operating expenses total thereof sundry taxes administration expenses mainly comprise personnel expenses respective departments maintenance costs operating expenses legal consulting fees well depreciation amortization non current assets research development expenses primarily relate collection development administration expenses include income eur thousand eur thousand includes reversal provisions amounting eur thousand eur thousand furthermore government grants eur thousand received recognized profit loss eur thousand corporate governance consolidated financial statements additional information combined management report shareholders annual report financial result eur thousand interest similar income interest similar expenses net interest income expenses exchange rate gains losses receivables liabilities gains losses hedging transactions financial income expenses financial items financial result interest income includes income bank deposits amounting eur thousand eur thousand interest income eur thousand eur thousand interest expenses include expenses financial liabilities amount eur thousand eur thousand interest expenses amount eur thousand eur thousand items mainly comprise interest expenses lease payments eur thousand eur thousand valuated incremental borrowing rate addition interest loans also includes net interest amount pension provisions interest non financial liabilities tax liabilities tax audits interest expenses valuation present value non current provisions amount eur thousand eur thousand exchange rate gains losses receivables liabilities comprise exchange rate gains eur thousand eur thousand well exchange rate losses eur thousand eur thousand result hedging transactions contains effects fair value measurement derecognition foreign exchange forwards income taxes eur thousand current taxes deferred taxes total income taxes include corporate income tax plus solidarity surcharge trade tax german group companies together comparable income taxes foreign group companies furthermore current income taxes include top taxes based global minimum tax legislation corporate governance consolidated financial statements additional information combined management report shareholders annual report hugo boss domestic income tax rate amounts tax rates abroad range current income taxes fiscal year include non current expenses eur thousand eur thousand non current benefits eur thousand eur thousand effects deductible withholding taxes eur thousand eur thousand following table presents reconciliation expected income tax expense would theoretically incurred current domestic income tax rate applied group level current income tax expense reported group domestic income tax rate applied takes account corporate income tax rate including solidarity surcharge trade tax rate due increase trade tax rate metzingen germany overall group tax rate also risen compared previous year eur thousand earnings taxes anticipated income tax tax effect permanent items tax rate related deviation thereof effects changes tax rates thereof adjustment tax amount diverging local tax rate tax refund tax arrears deferred tax effects prior years valuation allowance deferred tax assets tax effects distributable profit subsidiaries deviations income tax expenditure reported income tax burden tax effect permanent items relates reduction income tax burden tax free income eur thousand eur thousand offset tax effects non deductible business expenses eur thousand eur thousand tax rate related deviations caused global distribution profits diverging local tax rates different countries fiscal year revaluations recognized deferred tax assets expected realized foreseeable future resulting tax benefit eur thousand eur thousand comprehensive income includes deferred tax income eur thousand eur thousand income prior year deferred tax income fiscal year based recognition actuarial gains losses pension provisions equity corporate governance consolidated financial statements additional information combined management report shareholders annual report deferred tax assets liabilities presented net basis pertain taxable entity taxation authority deferred taxes consolidated statement financial position related following items eur thousand deferred tax assets deferred tax liabilities deferred tax assets deferred tax liabilities provisions liabilities unused tax losses inventory measurement recognition measurement non current assets receivables measurement financial liabilities financial assets retained earnings subsidiaries differences recognition measurement net amount netting total deferred tax assets eur thousand eur thousand non current time eur thousand eur thousand deferred tax liabilities non current deferred taxes ifrs balance sheet items reported net basis deferred tax asset lease liabilities eur thousand eur thousand deferred tax liability right use assets eur thousand eur thousand resulting net deferred tax asset eur thousand eur thousand reported within financial liabilities financial assets table distributable profits foreign subsidiaries paid coming years partly germany tax expense attributable distribution germany eur thousand eur thousand recognized deferred tax liability addition deferred taxes recognized distributable profits subsidiaries paid subsidiaries extent withholding tax payable future dividends withholding tax charges deferred tax liability eur thousand eur thousand recognized deferred tax liabilities due differences respective net assets taxable carrying amount shares subsidiaries amounting eur thousand eur thousand recognized profits currently intended permanently reinvested profits distributed germany would subject taxation germany possibly trigger withholding tax countries distributions therefore generally result additional tax expense corporate governance consolidated financial statements additional information combined management report shareholders annual report deferred tax assets losses carried forward deductible temporary differences recognized extent taxable temporary differences exist sufficient taxable profits respect tax authority taxable entity subsequent years recoverability assessment based detailed planning operational results units group prepared annually part group wide budget planning process approved supervisory board reporting date deferred tax assets amounting eur thousand eur thousand accounted group companies losses reporting period prior period unused income tax losses pertain domestic foreign group companies broken follows eur thousand expiry within year years years years years years unlimited carryforward total prior years corresponding deferred tax asset eur thousand recognized unused tax losses december eur thousand fiscal year deferred taxes recognized losses carried forward eur thousand eur thousand expiration date losses classified follows eur thousand expiration date years unlimited carryforward total corporate governance consolidated financial statements additional information combined management report shareholders annual report judgments deferred tax assets recognized unused tax losses made extent probable taxable profits available future unused tax losses utilized probability future usability assessed taking account various factors future taxable results planning periods past results measures already taken increase profitability well available tax planning strategies hugo boss applies forecast period four years purpose actual figures may differ estimates income tax receivables relate mainly tax advance payments reimbursement claims based reasonable estimates extent reimbursement financial administration office judged largely probable basis relevant case law assessment also takes account estimates local external experts external tax audit initiated hugo boss assessment periods based information available date company identified tax risks recognized corresponding provisions hugo boss applied temporary exception issued iasb may accounting requirements deferred taxes ias accordingly group neither recognizes discloses information deferred tax assets liabilities related pillar two income taxes december government germany hugo boss parent company incorporated enacted pillar two income taxes legislation effective january legislation parent company required pay germany top tax profits subsidiaries taxed effective tax rate less hugo boss performed assessment determine jurisdictions affected impact global minimum tax first step identify whether cbcr safe harbour rules applicable jurisdictions qualifying rules jurisdictional effective tax rate calculated using simplified approach based assessment top tax eur thousand determined united arab emirates addition simplified pillar two calculation resulted qualified domestic minimum top tax eur thousand turkey consequently group current tax expense related global minimum tax amounts eur thousand hugo boss continues monitor pillar two legislative developments evaluate potential impact future financial performance corporate governance consolidated financial statements additional information combined management report shareholders annual report earnings per share shares outstanding could diluted earnings per share december december eur thousand net income attributable equity holders parent company average number shares outstanding earnings per share eps eur excluding shares basic diluted earnings per share additional disclosures consolidated income statement personnel expenses eur thousand cost sales selling marketing expenses administration expenses total eur thousand wages salaries social security expenses income retirement employee benefits total employees average headcount year follows industrial employees commercial administrative employees total corporate governance consolidated financial statements additional information combined management report shareholders annual report ordinary depreciation eur thousand cost sales selling marketing expenses administration expenses total impairments write ups eur thousand brick mortar retail intangible assets incl goodwill right use assets total impairment losses shown negative reversals impairment losses shown positive corporate governance consolidated financial statements additional information combined management report shareholders annual report notes consolidated statement financial position intangible assets property plant equipment eur thousand gross value jan currency differences additions disposals transfers gross value dec accumulated amortization depreciation impair ment jan currency differences depreciation impairment write disposals transfers accumulated amortization depreciation impair ment dec net value dec software licenses rights brand rights goodwill intangible assets lands buildings technical equipment machinery equipment operating office equipment construction progress property plant equipment total software licenses rights brand rights goodwill intangible assets lands buildings technical equipment machinery equipment operating office equipment construction progress property plant equipment total corporate governance consolidated financial statements additional information combined management report shareholders annual report software licenses rights item software licenses rights mainly contains software software licenses well intangible assets identified course purchase price allocations amortization items recognized administrative expenses intangible assets mainly relate software group wide erp system consisting industry solutions sap afs sap retail necessary software solutions operational business additions eur thousand eur thousand essentially arose investments conversion group wide erp system sap hana software expansion online business addition useful life erp software programs extended five years due longer life cycles significant impact fiscal year brand rights reported brand rights amounting eur thousand eur thousand primarily attributable brand rights acquired use brand names boss hugo hugo boss united states italy classified assets infinite useful lives infinite useful life stems estimate indefinite use registered brand name property plant equipment land charges connection land buildings amount eur thousand eur thousand impairment losses eur thousand eur thousand write ups eur thousand eur thousand recognized property plant equipment mainly relate equipment individual retail stores terms property plant equipment buildings generally amortized useful life years technical facilities machines useful life years facilities operating office equipment years purchase obligations purchase obligations investments amounting eur thousand eur thousand amount eur thousand eur thousand attributable property plant equipment eur thousand intangible assets eur thousand obligations december due settlement within one year corporate governance consolidated financial statements additional information combined management report shareholders annual report leases hugo boss entered substantial number leases rental retail stores well office warehouse space lease agreements usually term years agreements including purchase renewal options group exercises judgments effect addition basic rental period extension options included extension already finally negotiated landlord contract duly signed parties reasonable certainty therefore given contract signed leases low value assets short term lease liabilities option immediate expense recognition exercised similarly leases variable rents minimum rent contractually fixed expensed immediately accordingly right use assets lease liabilities recognized types leases implications company leases balance sheet income statement consolidated statement cash flows december presented leases balance sheet additions depreciation changes right use assets lease agreements divided assets underlying leases december follows eur thousand stores warehouse offices others total carrying amount january changes basis consolidation additions depreciation impairment write disposal transfers differences carrying amount december carrying amount january changes basis consolidation additions depreciation impairment write disposal transfers differences carrying amount december corporate governance consolidated financial statements additional information combined management report shareholders annual report maturity analysis lease liabilities following table shows breakdown lease liabilities according maturities eur thousand due within one year due one five years due five years total undiscounted interests total leases income statement eur thousand ifrs relevant lease expenses depreciation right use assets impairment write ups right use assets net income disposal right use assets interest expenses lease liabilities income expenses foreign exchange differences lease liabilities non ifrs relevant lease expenses expenses variable lease payments expenses short term leases expenses leases low value assets income subleases total lease cash outflow encompassing repayment lease liabilities interest expenses payments short term leases payments lease low value assets variable lease payments amounted eur thousand eur thousand thereof amount eur thousand relates repayment lease liabilities eur thousand reporting date accured rent payments eur thousand eur thousand corporate governance consolidated financial statements additional information combined management report shareholders annual report material future non recognized lease payments maturities following future lease payments included valuation lease liabilities result ifrs eur thousand due due due total variable lease payments payments uncertain termination options payments uncertain extension options total lease payments addition payments short term leases leases software low value assets expected although immaterial perspective hugo boss determination future balance sheet lease payments based management assumptions regarding term leases amount lease payment determining future lease payments hugo boss assumes remaining term original lease plus one time exercise renewal options yet sufficiently certain based current knowledge future variable lease payments derived basis sales planned directly operated stores dos outlets bottom projected using comparable store sales growth rate lfl future payments uncertain renewal options take account contracts renewal options existing december based assumption constant future rental payments impairment testing impairment test must performed assets within scope ias triggering events impairment reporting date intangible assets indefinite useful lives goodwill annual impairment test performed irrespective existence indications ordinary depreciated property plant equipment amortized right use assets level group retail stores hugo boss group retail stores directly operated stores dos identified cgus smallest group assets generate independent cash inflows depreciated assets dos including right use assets leasing contracts subjected impairment testing indicators changes planning assumptions resulting carrying amount exceeding recoverable amount assets preparing annual budget planning hugo boss carries triggering event test respective dos level event shortfall defined sales profitability ratios compared latest budget non current assets respective dos subjected impairment testing corporate governance consolidated financial statements additional information combined management report shareholders annual report recoverable amount dos determined calculating value use basis discounted cash flow calculations planned cash flows dos budget planning adopted managing board approved supervisory board hugo boss used determine value use reporting date furthermore gross profit margin upstream units well corporate assets level subsidiary level dos taken account forecast period determined basis individual remaining term lease leading asset following first planning year derived approved budget planning country cgu specific revenue cost developments used basis remaining useful life growth rates used based expected nominal retail growth respective market corresponding planning year dos growth rates range low single digit high single digit percentages end remaining useful life assumed respective dos wound sale operating assets carrying amount determining value use dos cash flows discounted weighted average cost capital tax maturity equivalent risk free interest rate market risk premium applied calculated pre tax interest rates impairment loss recognized allocated proportionately non current assets cgu however asset may written respective fair value purpose fair values right use assets determined separately information actual lease extensions new leases comparable retail stores used derive market rent thus fair value internal data available comparable properties market rent derived using estimates external real estate specialists properties comparable locations conditions lease concluded correspond current market conditions derived actual lease agreements estimates external real estate specialists assumed right use asset recoverable fair value exceeds calculated value use corresponding cgu impairment loss resulting calculation value use cgu allocated non current assets cgu impairment tests carried current fiscal year resulted gross impairment losses non current assets eur thousand eur thousand recognized profit loss selling marketing expenses amount eur thousand related property plant equipment eur thousand right use assets impairment losses attributable regions part impairment analysis additional triggering event test used determine whether indications stores impaired past able improve earnings situation extent reversal necessary reversal impairment losses amounting eur thousand eur thousand recognized selling marketing expenses fiscal year overall related net impairment losses eur thousand fiscal year net reversal impairment losses eur thousand corporate governance consolidated financial statements additional information combined management report shareholders annual report goodwill intangible assets infinite useful life impairment assessment based detailed earnings balance sheet investment plans next fiscal year group units adopted management part company wide budget planning process taking account current business situation approved supervisory board years approved medium term planning respective subsidiary used valuation model possibly adjusted future expansion investments new store openings year terminal value sales cost trends extrapolated using country specific growth rates based year nominal gdp growth respective country oxford economics used extrapolation planning capital expenditure current net operating assets based budget planning data updated assumptions estimates made management cost capital taxes determined using wacc model hugo boss used discount cash flow forecasts local currency includes standard market country specific risk premiums country risk premium premium currency risk inflation risk premium cost capital taxes used december based risk free interest rate market risk premium following table shows carrying amounts main assumptions used determine value use fair value less costs disposal goodwill intangible assets indefinite useful lives allocated respective groups cgus goodwill arising acquisition mono brand stores former franchise partners previous fiscal years allocated respective sales units group cgus production units regarded corporate assets corporate assets included impairment test sales units intangible assets indefinite useful lives aggregated country level impairment test trademark rights use brand names market italy performed country level eur thousand carrying amount assumptions goodwill intangible assets indefinite useful life weighted pre tax wacc long term growth rate sales unit france sales unit italy sales unit united kingdom sales unit dubai sales unit mainland china sales unit macau china sales unit south korea sales unit thailand sales unit canada sales corporate units total corporate governance consolidated financial statements additional information combined management report shareholders annual report eur thousand carrying amount assumptions goodwill intangible assets indefinite useful life weighted pre tax wacc long term growth rate sales unit france sales unit italy sales unit united kingdom sales unit dubai sales unit mainland china sales unit macau china sales unit south korea sales unit thailand sales unit canada sales corporate units total recoverable amount group cgus determined value use using cash flow projections based medium term financial plans approved managing board supervisory board restructuring measures group committed investments related current operations increase profitability tested group cgus taken account following detailed planning phase country specific sales growth rates used based nominal retail growth impairment loss goodwill recognized fiscal year well prior period trademarks indefinite useful lives addition determining value use level respective cgu recoverable amount determined second step basis fair value less costs disposal stage measurement hierarchy ifrs based sales forecast respective market adopted management part budget process approved supervisory board addition country specific sales growth rates used following five year detailed planning period planned sales extrapolated using growth rate corresponding long term nominal retail growth respective markets fiscal years impairment loss incurred trademark rights indefinite useful lives corporate governance consolidated financial statements additional information combined management report shareholders annual report key assumptions used calculate value use fair value less costs disposal following key assumptions estimation uncertainties judgments management underlie calculation value use fair value less costs disposal aforementioned assets ebit net income sustainable nominal retail growth market rent levels discount rates expected useful life dos estimation growth rates growth rates generally derived published industry related market research based country specific nominal retail growth growth rates implemented calculation value use particularly detailed planning phase onwards perpetual annuity estimation market rent values internal external lease data comparable properties used derive fair value rights use discount rates discount rates reflect current market assessments risks specific cgu takes account interest effect risks specific assets useful life dos forecast period based average remaining terms lease agreements determined reviewed annual basis climate related impacts sustainability vital part claim cause essential hugo boss corporate responsibility ongoing business activities line group commitment support creating planet free waste pollution group remains focused five key pillars actively address big industry challenges increasing circularity driving digitization data analytics leveraging nature positive materials fighting microplastics pushing towards zero emissions additional information climate related measures please refer climate change section combined non financial statement efforts reduce climate related impacts may lead increased production sourcing costs however anticipated efficiency gains along value chain expected offset additional costs throughout financial planning product development hugo boss aligns target costing external macroeconomic developments well internal ambitions sustainability targets hugo boss also control mechanisms place track target achievements result corrective actions improvement taken corporate governance consolidated financial statements additional information combined management report shareholders annual report sensitivity changes assumptions december scenarios critical measurement parameters discount rate used growth rates underlying forecast cash flows determined verify values use regard growth rates management considered acceleration adjustment well deceleration adjustment group sales performance fiscal year possible acceleration increase growth rates would result reversal impairment losses property plant equipment right use assets amount eur thousand slowdown decrease growth rates would result additional impairments eur thousand regard market rent level management assumes adjustment market conditions downward upward case conceivable event reduction average market rent level additional impairment loss right use amounting eur thousand would recognized event increase market rent level reversal impairment losses right use assets eur thousand would recognized order review determined values use goodwill management considers deceleration sales performance well average relative increase discount rate possible furthermore groups cgus goodwill allocated slowdown relative sales growth extrapolate cash flow forecasts following detailed planning period considered possible discount rate increase values use goodwill would exceed respective carrying amounts completely impaired already case previous year sales development decrease values use goodwill would exceed respective carrying amounts growth rate sales reduced order extrapolate cash flow forecasts following detailed planning period value use goodwill would exceed carrying amount already case previous year financial assets eur thousand thereof current thereof non current thereof current thereof non current financial assets thereof equity investments tax refund claims prepayments assets total corporate governance consolidated financial statements additional information combined management report shareholders annual report financial assets include positive market values currency hedges amounting eur thousand eur thousand well rent deposits group retail stores eur thousand eur thousand financial assets also include receivables credit card companies amounting eur thousand eur thousand tax refund claims tax prepayments mostly vat receivables assets mainly include prepayments service agreements amount eur thousand eur thousand reimbursement claims returns amount eur thousand eur thousand receivables supplier arrangements amount eur thousand eur thousand fiscal year hugo boss continued long term strategic partnership heiq aeoniq llc fully owned subsidiary swiss innovator heiq plc equity investment eur thousand made fiscal year additionally hugo boss invested eur thousand collateral good ventures fashion climate first venture capital fund aimed accelerating sustainability fashion industry following commitment made inventories eur thousand finished goods merchandise raw materials supplies work progress total carrying amount inventories recorded net realizable value eur thousand eur thousand impairment inventories resulted net expense eur thousand impairment reversals eur thousand included cost sales trade receivables eur thousand trade receivables gross accumulated allowance trade receivables net corporate governance consolidated financial statements additional information combined management report shareholders annual report december aging analysis trade receivables follows eur thousand trade receivables gross accumulated allowance trade receivables net trade receivables gross accumulated allowance trade receivables net total thereof overdue thereof overdue days days days thereof impaired prior year figures split align current year presentation better comparability trade receivables non interest bearing movement allowances doubtful accounts developed follows eur thousand allowances doubtful accounts january additions use release currency differences allowances doubtful accounts december maximum credit risk trade receivables corresponding gross value eur thousand eur thousand reporting date expected credit losses trade receivables recognized accordance ifrs fiscal year amounted eur thousand eur thousand eur thousand eur thousand added course year december receivables written amount eur thousand eur thousand still subject recovery measures expenses income allowances trade receivables reported selling marketing expenses event deterioration financial position wholesale customers concession partners amounts actually derecognized exceed bad debt allowances already recognized adverse impact results operations corporate governance consolidated financial statements additional information combined management report shareholders annual report pursuant general terms conditions sales ownership goods supplied transferred wholesale partners upon complete payment receivables collateral provided group individual receivables receivables wholesale customers respect whose assets insolvency proceedings initiated evaluated case case basis impaired expected receivable recovery amount cash cash equivalents eur thousand balances banks cash items cheques cash hand total equity equity made subscribed capital shares capital reserve capital reserves retained earnings accumulated comprehensive income retained earnings contain profits generated past entities included consolidated financial statements effects revaluation pension provisions accumulated comprehensive income contains differences arising translation outside profit loss foreign currencies used financial statements foreign subsidiaries well effects measurement outside profit loss cash flow hedges tax subscribed capital fully paid share capital hugo boss remains unchanged eur thousand december consists par value registered ordinary shares arithmetical value per share eur authorized capital managing board hugo boss may consent supervisory board increase share capital eur thousand may issuing new registered shares cash non cash basis repeatedly authorized capital shareholders generally entitled subscription right however managing board authorized consent supervisory board exclude shareholders subscription rights full part cases specified article paragraph articles association corporate governance consolidated financial statements additional information combined management report shareholders annual report conditional capital resolution annual general meeting may managing board authorized may consent supervisory board issue bearer registered convertible bonds bonds warrants profit participation rights participating bonds combinations instruments without maturity restrictions total nominal amount eur thousand several times also simultaneously different tranches context share capital conditionally increased eur thousand issuing new registered par value shares conditional capital conditional capital increase carried extent holders creditors make use conversion option rights bonds fulfil conversion option obligations shares tendered forms fulfillment used servicing managing board make use authorization fiscal year capital management order increase enterprise value group focuses maximizing free cash flow long term consistently generating positive free cash flow group confident able safeguard liquidity hugo boss times facilitate long term growth increasing sales operating profit ebit key improving free cash flow long term addition strict management trade net working capital value oriented capital expenditure approach support development free cash flow order maintain adjust capital structure group may adjust dividend payments shareholders repay capital shareholders issue new shares hugo boss pursuing profit based dividend policy aimed allowing shareholders participate appropriately group earnings development company target payout ratio laid claim projected range net income attributable shareholders line company vision leading premium tech driven fashion platform worldwide also considering strategic investments medium term event excess liquidity hugo boss also considers share buybacks viable alternatives return cash shareholders balance sheet structure analyzed least year determine efficiency ability support future growth simultaneously provide sufficient safety event company business performance falls short expectations hugo boss revolving syndicated loan eur thousand disposal providing additional financial flexibility successful execution strategic initiatives proceeds facility used general corporate purposes concluded november term three years including two options extending term one year option increase credit volume eur thousand extension options successfully exercised term extended syndicated loan contains standard covenant requiring maintenance financial leverage defined ratio net financial liabilities including lease liabilities accordance ifrs ebitda december financial leverage totaled thus well maximum permissible level december syndicated loan based variable interest rates applicable credit margins depending external credit rating fulfillment defined esg criteria end fiscal year utilization revolving credit facility totaled eur thousand eur thousand used issue bank guarantees december utilization eur thousand eur thousand used issue bank guarantees corporate governance consolidated financial statements additional information combined management report shareholders annual report eur thousand liabilities due banks incl lease liabilities cash cash equivalents net financial liabilities operating profit depreciation amortization ebitda total leverage shares number shares amounts overall percentage amounts subscribed capital annual general meeting hugo boss granted renewed authorization buy back company shares proportion outstanding share capital may company make use authorization december dividend despite decline earnings fiscal year managing board supervisory board intend propose annual general meeting may dividend eur per share fiscal year reflecting increase compared prior year level eur decision underscores company robust financial position well management confidence long term growth opportunities continued ability generate significantly positive free cash flow future proposal equivalent payout ratio group net income attributable shareholders fiscal year line company mid term target payout ratio assuming shareholders approve proposal dividend paid may based number shares outstanding end year amount distributed total eur thousand eur thousand dividend eur thousand paid shares outstanding fiscal year eur thousand corresponds eur per share eur per share corporate governance consolidated financial statements additional information combined management report shareholders annual report provisions eur thousand provisions pensions non current provisions non current provisions current provisions total provisions eur thousand eur thousand comprise current provisions eur thousand eur thousand non current provisions eur thousand eur thousand mainly include non current provisions personnel expenses connection long term incentive program lti explanations regarding lti provided note share based payment risk free interest rates used discount non current provisions range depending term currency question fiscal year provisions developed follows eur thousand balance jan changes currency consolidated group compounding addition use release balance dec provisions personnel expenses provisions deconstruction obligations costs litigation pending legal disputes provisions restructuring provisions total provisions personnel expenses provisions personnel expenses mainly concern provisions short medium term profit sharing bonuses severance payment claims phased retirement arrangements overtime expected eur thousand eur thousand personnel provisions paid twelve months corporate governance consolidated financial statements additional information combined management report shareholders annual report provisions deconstruction obligations non current provisions deconstruction obligations relate group retail stores warehouses office space used group companies recognized basis expected settlement amounts rental period agreed upon estimates made terms cost well actual timing utilization provisions costs litigation pending legal disputes provisions costs litigation pending legal disputes include various individually immaterial ongoing litigations well litigation costs protection brand rights provisions classified current miscellaneous provisions based reasonable estimates provisions recognized potential ramifications legal issues assessment also takes account estimation local external experts lawyers tax advisors deviations original estimates actual outcome impact group net assets financial position results operations given period share based payment equity settled share based payment part restricted stock units plan rsup introduced hugo boss fiscal year eligible senior management granted options purchase ordinary shares hugo boss employee share option converts one ordinary share company exercise amounts paid payable recipient receipt options options carry neither rights dividends voting rights options recognized price equal quoted market price hugo boss shares grant date vesting period three years options forfeited employee leaves group options vest number share options outstanding december aggregate amount estimated fair values options granted totals eur thousand eur thousand following inputs binomial model made july share price grant date july eur expected volatility expected life years risk free rate expected dividend yields corporate governance consolidated financial statements additional information combined management report shareholders annual report expected volatility determined calculating historical volatility group share price past four years expected life used model based management best estimate effects non transferability exercise restrictions behavioral considerations event changes group eligible senior management fair values reviewed group recognized total personnel expenses eur thousand fiscal year eur thousand related equity settled share based payment transactions cash settled share based payment large part long term provisions personnel expenses consists long term incentive program lti implemented beginning fiscal year lti serves long term share based compensation component managing board eligible senior middle management staff hugo boss december four tranches lti lti tranche issued january lti tranche issued january lti tranche issued january lti tranche issued january plan total duration four years split performance term three years qualifying period one year plan participant receives individual number virtual shares called performance shares initial grant beginning performance term calculated follows individual lti budget euro average hugo boss share price last three months prior date granting initial grant number virtual shares issued december remaining terms plan follows lti tranche number virtual shares initial grant remaining terms years year years years corporate governance consolidated financial statements additional information combined management report shareholders annual report final entitlement participants plan depends following components individual number performance shares initial grant target achievement predefined targets components relative total shareholder return rtsr return capital employed roce degree employee satisfaction score annual corporate sustainability assessment csa dow jones sustainability index djsi average hugo boss share price last three months qualifying period detailed explanation individual target components found compensation report part annual report final entitlement paid cash later six weeks resolution passed management hugo boss regarding confirmation annual financial statement corresponding fiscal years respectively accordingly lti tranche paid fiscal year lti classified share based cash settled compensation therefore accounted pursuant standards ifrs expected entitlement plan participant basis calculation long term personnel provision recognized pro rata basis term respective plans evaluated reporting date amount entitlement provision evaluated using monte carlo simulation considering following components expected degree attainment individual target components listed fair value per share option performance shares expected hugo boss share price end period fair value performance shares calculated external expert using option pricing model corporate governance consolidated financial statements additional information combined management report shareholders annual report fair values four plans december compared previous year follows lti tranche fair values per share option fair values per share option eur eur eur eur eur eur eur fair value measurement respective plans based following parameters hugo boss share price reporting date eur expected dividend return expected volatility risk free interest rate lti tranche risk free interest rate lti tranche risk free interest rate lti tranche risk free interest rate lti tranche december four tranches totaling eur thousand eur thousand recognized provisions therefore total income cash settled share based payment pursuant ifrs eur thousand expense eur thousand recognized personnel expenses fiscal year ceo investment opportunity prior daniel grieder assuming duties ceo investment opportunity agreed daniel grieder marzotto family aimed providing additional incentive substantial sustainable increase share price hugo boss ceo investment opportunity represents third party agreement daniel grieder marzotto family thus explicitly part compensation system accordance sec aktg therefore also included maximum compensation daniel grieder conflicts interest existing supervisory board discussed ceo investment opportunity plenary meeting june noted approval opinion supervisory board conflicts interest particularly regard shareholder hugo boss arising ceo investment opportunity directly tied long term share price performance hugo boss ultimately shareholders hugo boss benefit sustainable increase share price corporate governance consolidated financial statements additional information combined management report shareholders annual report sustainable increase share price required ceo investment opportunity implemented setting investment vehicle titled zpg holding zpg zpg bought hugo boss shares mid average share price eur hold shares occurrence called liquidity event context daniel grieder invested total amount eur million ordinary shares zpg rest investment provided pfc zignago holding controlled marzotto family third party bank financing pfc zignago holding hold remainder ordinary shares certain preference shares limited economic rights ranking senior ordinary shares liquidity events exercise call option zpg exercise put option daniel grieder zpg selling hugo boss shares third party call option may exercised zpg either event daniel grieder leaves hugo boss period days following ordinary expiration employment contract hugo boss call option exercised based reason daniel grieder responsible termination daniel grieder based good cause receive lower either fair market value zpg shares amount initial investment call option exercised without daniel grieder given cause termination hugo boss based good cause receive fair market value zpg shares put option may exercised daniel grieder average hugo boss share price period days exceeds specific thresholds minimum share price required exercising put option eur representing increase compared average purchase price hugo boss shares eur increase compared share price hugo boss december consideration event exercising put option case zpg sells hugo boss shares third party fair market value zpg shares held daniel grieder fair market value zpg shares held daniel grieder linked difference average purchase price hugo boss shares eur average share price hugo boss shares days prior liquidity event average share price hugo boss days prior liquidity event ranges eur eur daniel grieder receive back contributed amount eur million average share price days prior liquidity event less eur amount correspondingly lower depending average share price contrast average share price days prior liquidity event eur higher fair market value zpg shares held daniel grieder increases depending share price performance hugo boss example average share price eur would result fair market value eur million average share price eur fair market value eur million average share price eur fair market value eur million corporate governance consolidated financial statements additional information combined management report shareholders annual report liquidity event occurred december backdrop challenging volatile trading environment consumer discretionary stocks share price hugo boss fluctuated eur eur throughout fiscal year december share price hugo boss eur thus well minimum threshold eur required exercise put option consequently end fiscal year conditions place could caused potential liquidity event also since ceo investment opportunity established average share price hugo boss never reached minimum threshold eur consecutive day period thereby preventing exercise put option grant date fair value closely aligned nominal value investment shares acquired ceo along changes vesting conditions fiscal year concluded result expenses according accounting implications ifrs provisions pensions similar obligations provisions pensions recognized obligations future current post employment benefits eligible current former employees benefits agreed pension plans depend part length service eligible employee general company pension plans classified two types plans defined contribution plans defined benefit plans hugo boss plans defined benefit plans past year main defined benefit plans granted germany switzerland characteristics plans described following defined benefit plans germany since fiscal year direct pension obligations germany distinction also made general individually agreed benefits general benefits granted employee joined company prior july entitled benefits company pension plans employees first receive benefits plan upon reaching age temporary employment agreements excluded benefits comprise post employment benefit form old age pension early retirement benefit disability benefit surviving dependents benefit form dependent child benefit individually agreed benefits granted active former members managing board benefits take form post employment benefit old age pension disability annuity take form surviving dependents benefit surviving spouse dependent child benefit active members managing board received pension commitments regulated individual contracts amounts measured percentage contractually agreed pensionable income depending duration membership managing board basis determining pensionable income defined base salary employment contract managing board members takes form defined benefit group pays annual pension contribution reinsurance contract life managing board member corresponds pensionable compensation calculated basis basic salary accordance employment contract form pension commitment also used future appointments managing board corporate governance consolidated financial statements additional information combined management report shareholders annual report addition hugo boss offers managing board senior management opportunity acquire additional pension benefits salary conversions deferred compensation agreements additional pension granted form retirement benefits optionally form occupational disability benefits surviving dependents benefits form lump sum payment event death pension benefits paid monthly pension whereby surviving dependents benefits also granted lump sum germany company pension plan individually agreed benefits deferred compensation agreements funded plan assets employer pension liability insurance qualifying insurance policy within meaning ias conjunction ias seq assets concerned classified non marketable assets employer pension liability insurance taken general benefits granted switzerland switzerland employee pension plans must allocated pension fund separate employer bvg bundesgesetz über die berufliche alters hinterlassenen und invalidenvorsorge swiss federal act occupational retirement survivors disability pension plans imposes minimum benefits hugo boss uses collective foundation provide employees economic consequences old age disability death model foundation assets plan assets board trustees collective foundation responsible investment policy present majority plan assets invested fixed interest securities sovereign bonds supreme governing body collective foundation comprises equal number employer employee representatives plans financed employer employee contributions defined percentage insured wage old age pension calculated retirement assets accumulated upon reaching pensionable age multiplied conversion rates specified fund regulations employees opt receive pension benefits lump sum payment retirement assets benefit payments swiss plans encompass old age pensions disability benefits surviving dependents benefits collective foundation change financing system contributions future benefits time addition collective foundation terminate affiliation agreement hugo boss event latter would join another welfare fund depending conditions affiliation agreement current partial liquidation rules deficit risks increasing life expectancy current pensions transferred pension obligations breakdown follows eur thousand present value defined benefit obligation fair value plan assets net defined benefit liability germany switzerland others total additional defined benefit plans place austria france italy mexico turkey corporate governance consolidated financial statements additional information combined management report shareholders annual report amount pension obligations determined using actuarial methods accordance ias employee benefits fair value plan assets includes assets held reinsurance policies germany assets held exclusively insurance companies switzerland fiscal year funding status benefit obligations pursuant ias follows eur thousand change present value benefit obligation present value benefit obligation january currency differences service cost interest expense payments settlements remeasurement carrying amount actuarial gains losses due changes financial assumptions actuarial gains losses due changes demographic assumptions actuarial gains losses due experience adjustments benefits paid contribution participants plan past service cost changes benefit obligation present value benefit obligation december changes plan assets fair value plan assets january currency differences expected return plan assets expected return plan assets without interest income payments settlements benefits paid contribution employer contribution participants plan changes benefit obligation fair value plan assets december funding status benefits funded plan assets corporate governance consolidated financial statements additional information combined management report shareholders annual report december eur thousand eur thousand present value defined benefit obligation financed employer pension liability insurance eur thousand eur thousand foundation assets remaining eur thousand eur thousand unfunded actuarial assumptions underlying calculation present value pension obligations december discretion exercised extent expense benefit based plans determined based actuarial calculations involves making assumptions discount rates future wage salary increases mortality rates future pension increases discount rates used based market yields high quality fixed interest corporate bonds following premises defined actuarial assumptions discount rate germany switzerland future pension increases germany switzerland future salary increases germany switzerland pension benefits germany determined basis biometric principles accordance mortality tables prof klaus heubeck bvg mortality tables used measure obligations swiss companies sensitivity analysis key actuarial assumptions hugo boss exposed special risks connection aforementioned defined benefit plans funding status pension obligations influenced changes present value defined benefit obligations changes fair value plan assets determined using actuarial methods make assumptions concerning discount rates future pension increases future wage salary increases mortality rates future deviations actual conditions underlying assumptions lead increase decrease present value defined benefit obligations fair value plan assets addition future amendments accounting standards governing accounting treatment pension obligations affect pertinent items net assets financial position results operations corporate governance consolidated financial statements additional information combined management report shareholders annual report change key actuarial parameters according scenarios presented effects presented table present value pension obligations december conducting sensitivity analysis parameter altered ceteris paribus combination changes assumptions thus excluding interdependencies parameters addition ranges values deemed reasonably plausible date preparing next set consolidated financial statements selected eur thousand change present value pension obligations discount rate december increase basis points decline basis points future pension increases december increase basis points decline basis points future salary increases december increase basis points decline basis points life expectancy december increase percent decline percent breakdown pension expenses period pension expenses period composed following items eur thousand current service costs past service costs net interest costs recognized pension expenses comprehensive statement income expense plan assets without interest effects recognized actuarial gains losses recognized remeasurement carrying amount comprehensive statement income net interest expense calculated multiplying net pension obligation discount rate underlying measurement defined benefit obligation dbo case deferred compensation commitments current service cost incurred year deferral increase service rendered increase benefits granted corporate governance consolidated financial statements additional information combined management report shareholders annual report fiscal year group expects employer contributions plan assets eur thousand eur thousand duration duration benefit based plans december years germany years years switzerland years defined contribution plans employer contributions contribution based plans totaled eur thousand fiscal year eur thousand reported personnel expenses main contribution based plan hugo boss germany contribution based plans receive contributions statutory pension insurance employer contribution employer funded direct insurance germany financial liabilities interest bearing non interest bearing financial obligations respective reporting date reported financial liabilities broken follows eur thousand remaining term year remaining term year financial liabilities due banks lease liabilities financial liabilities thereof non ifrs relevant rental contracts retail business total financial liabilities include negative market values derivative financial instruments amounting eur thousand eur thousand corporate governance consolidated financial statements additional information combined management report shareholders annual report following tables show terms conditions financial liabilities remaining term weighted average interest rate carrying amount eur thous weighted average interest rate carrying amount eur thous liabilities due banks year years years financial liabilities year years years hugo boss revolving syndicated loan eur thousand disposal providing additional financial flexibility successful execution strategic initiatives proceeds facility used general corporate purposes concluded november term three years including two options extending term one year option increase credit volume eur thousand extension options successfully exercised term extended end fiscal year utilization revolving credit facility totaled eur thousand eur thousand used issue bank guarantees december utilization eur thousand eur thousand used issue bank guarantees fiscal year schuldschein loan recognized settlement amount eur thousand divided four tranches different maturities floating rate fixed rate coupons two tranches totaled eur thousand maturing october two tranches totaled eur thousand maturing october funds used general corporate purposes directly attributable transaction costs eur thousand incurred connection issuance schuldschein loan deducted fair value initial recognition expensed subsequent periods fiscal year hugo boss secured real estate financing amount eur thousand expansion headquarters metzingen germany maturity period ten years corporate governance consolidated financial statements additional information combined management report shareholders annual report following table shows contractually agreed undiscounted cash flows non derivative financial liabilities derivative financial instruments negative fair value eur thousand expected cash flows non derivative financial liabilities carrying amount total cash flows year years years financial liabilities due banks lease liabilities financial liabilities derivative financial liabilities undesignated derivatives total non derivative financial liabilities financial liabilities due banks lease liabilities financial liabilities derivative financial liabilities undesignated derivatives total prior year figures expected cash flows restated nominal values liabilities eur thousand total current non current total current non current liabilities thereof indirect taxes thereof social security accrued vacation wages salaries thereof right return obligations arising rights return calculated basis historical return rates corporate governance consolidated financial statements additional information combined management report shareholders annual report additional disclosures financial instruments carrying amounts fair values category financial instruments eur thousand assets ifrs category carrying amount fair value carrying amount fair value cash cash equivalents trade receivables financial assets thereof equity investments fvtpl undesignated derivatives fvtpl financial assets liabilities financial liabilities due banks trade payables thereof reverse factoring lease liabilities financial liabilities thereof undesignated derivatives fvtpl financial liabilities hugo boss implemented supplier financing programs support suppliers programs outstanding trade payables settled supplier maturity via use credit institution context credit institution pays invoice amount less discount supplier earlier whereas hugo boss pays full invoice amount due credit institution original liability owed supplier remains basis unchanged acknowledgement debt nature trade payables assessed remain unaffected hugo boss included amounts supplier financing programs working capital range payment due dates days line industry standards remained unaffected trade payables subject subject supplier financing programs significant non cash changes carrying amount trade payables subject supplier financing programs total reverse factoring credit limit reporting date amounts eur thousand eur thousand utilized volume amounts eur thousand eur thousand payments received suppliers credit institutions correspond carrying amount trade payables supplier financing programs corporate governance consolidated financial statements additional information combined management report shareholders annual report following methods assumptions used estimate fair values cash cash equivalents trade receivables financial assets trade payables current financial liabilities close carrying amounts mainly due short term maturities instruments fair value loans banks financial liabilities obligations finance leases non current financial liabilities calculated discounting future cash flows using rates currently available debt similar terms credit risk remaining maturities december marked market value derivative asset positions net credit valuation adjustment attributable derivative counterparty default risk credit risk counterparty lead significant effects fair value hierarchy group uses following hierarchy determining disclosing fair value financial instruments valuation techniques level quoted unadjusted prices active markets identical assets liabilities level techniques inputs significant effect recorded fair value observable either directly indirectly level techniques use inputs significant effect recorded fair value based observable market data december financial instruments measured fair value category fvtpl assigned level fiscal year transfers level level level financial instruments measured fair value comprised forward exchange contracts assets amounted eur thousand eur thousand liabilities amounted eur thousand eur thousand fair value financial instruments carried amortized cost statement financial position also determined using level method fair value assets liabilities allocated level measured using input parameters active markets fiscal year circumstances occurred would caused application non recurring fair value measurements corporate governance consolidated financial statements additional information combined management report shareholders annual report net result measurement category eur thousand interest income expenses changes fair value currency translation bad debt losses disposal financial instruments derivatives fvtpl financial assets measured amortized cost financial liabilities measured amortized cost interest financial instruments reported interest result note financial result bad debt allowances recognized trade receivables allocable category reported selling marketing expenses exchange gains losses translation foreign currency receivables liabilities well fair value changes effects disposals exchange rate hedges reported financial items changes liabilities financial activity eur thousand gross value jan cash flows changes portfolio change maturity currency translation effects gross value dec liabilities arising financing activities short term financial liabilities due banks long term financial liabilities due banks lease liabilities total liabilities arising financing activities short term financial liabilities due banks long term financial liabilities due banks lease liabilities total corporate governance consolidated financial statements additional information combined management report shareholders annual report offsetting financial instruments eur thousand gross amounts recognized assets gross amounts offset liabilities net asset amounts disclosed statement fin pos liabilities offset statement fin pos cash deposits received offset statement fin pos net amounts trade receivables financial assets thereof derivates total trade receivables financial assets thereof derivates total eur thousand gross amounts recognized liabilities gross amounts offset assets net liabilities amounts disclosed statement fin pos assets offset statement fin pos cash deposits received offset statement fin pos net amounts trade payables financial liabilities thereof derivates total trade payables financial liabilities thereof derivates total liabilities eur thousand eur thousand offset trade receivables reporting date outstanding credit notes customers assets offset trade payables receivables form outstanding credit notes suppliers amounted eur thousand eur thousand master agreements financial instrument contracts place hugo boss counterparties governing offsetting derivatives prescribe derivative assets derivative liabilities counterparty combined single offsetting receivable liability corporate governance consolidated financial statements additional information combined management report shareholders annual report hedging policy financial derivatives following table shows nominal amounts fair value derivative financial instruments eur thousand nominal values fair values nominal values fair values assets currency hedging contracts liabilities currency hedging contracts interest hedging contracts total nominal values principal amounts hedged fair values derivative financial instruments recognized financial assets financial liabilities necessarily correspond amounts generated future normal market conditions reported fair value derivative financial instruments gain eur thousand loss eur thousand stems financial assets liabilities classified held trading amount recognized comprehensive income net losses fair value measurement currency hedges eur thousand eur thousand reclassified operating income fiscal year currency risk hedges hedge currency risks hugo boss occasionally enters hedging transactions mitigate risks group operates production facilities izmir turkey hugo boss textile industry ltd among locations functional currency subsidiary euro however certain local payments including wages salaries social security contributions transport costs made turkish lira try results transaction risk local group perspective due fluctuating exchange rate euro turkish lira hedging strategy aims limit transaction risks future cash flows hedged using forward exchange contracts linked effective hedging relationship cash flow hedges per ifrs hedge accounting hugo boss implemented rolling hedging strategy cash flow hedges target hedge ratio underlying exposure built time rolling hedging allows hugo boss participate market opportunities time smooth hedged rate addition ability react changes forecast exposures improved corporate governance consolidated financial statements additional information combined management report shareholders annual report maturities derivative financial instruments generally correspond hedged item therefore risk hedging instrument corresponds hedged risk result hugo boss prospectively assumes economic relationship hedged item hedging instrument reviewed regular basis less often every reporting date addition cross currency basis spread ccbs contained hedging instrument evaluated reporting date classified immaterial results underlying risk currency forward contract identical hedged risk exchange rate risk eur try hugo boss sets hedging ratio hedging relationship indicated principle differences planned actual due dates cash flows cause partial inefficiency furthermore inefficiency may occur calculation difference values hedging transaction hedged item since currency basis forward points excluded designating hedging instruments based historical experience hugo boss anticipates hedged items currently designated cash flow hedges accrue reporting date december open forward exchange contracts hedging future cash flows try hedging instruments company designated hedging relationships impact balance sheet hand december open forward exchange contracts hedge currency risks economical purpose already noted additional information detailed description financial risks please refer risk opportunities report combined management report corporate governance consolidated financial statements additional information combined management report shareholders annual report notes notes statement cash flows statement cash flows shows change cash cash equivalents reporting period using cash transactions accordance ias sources applications cash flows categorized according whether relate operating investing financing activities cash inflows outflows operating activities calculated indirectly basis group net income period contrast cash flows investing financing activities directly derived cash inflows outflows changes items statement financial position presented statement cash flows cannot derived directly statement financial position account exchange rate translations detailed description cash flows reported consolidated statement cash flows available note cash cash equivalents non cash expenses income concern particular unrealized exchange rate gains losses fair value changes derivative financial instruments recognized profit loss non cash changes financial liabilities segment reporting managing board hugo boss manages company geographic areas group companies responsible distribution hugo boss products sold licensed products third parties respective sales markets managing directors subsidiaries report regional directors charge turn report managing board hugo boss organizational structure enables direct implementation group objectives taking account specific market conditions accordingly operating segments organized three regions europe including middle east africa emea americas asia pacific addition license division distribution companies hugo boss assigned corresponding region global licenses business hugo boss third parties allocated license division managing board hugo boss chief operating decision maker hugo boss management regional business segments aligned value added contribution group level important performance indicator used managing board make decisions resources allocated segments ebit segment result thus defined ebit sales units plus gross margin sourcing units intra group royalties group financing including interest income expenses income taxes managed group wide basis allocated operating segments corporate governance consolidated financial statements additional information combined management report shareholders annual report management operating figures inventories trade receivables assigned sales markets items regularly reported managing board consequently segment assets contain trade receivables inventories liabilities part internal management reporting segment liabilities therefore disclosed accounting rules applied segment information line accounting rules hugo boss described accounting policies managing board regularly reviews certain effects recognized statement comprehensive income including particular amortization depreciation impairment losses capital expenditure property plant equipment intangible assets well right use assets also regularly reported managing board part internal reporting making component segment reporting expenses assets cannot directly allocated sales markets license segment reported reconciliations corporate units consolidation group wide central functions pooled corporate units remaining expenses sourcing production units make operating cost center operating income allocated corporate units eur thousand emea americas asia pacific licenses total operating segments sales segment profit sales segment assets capital expenditure impairments thereof property plant equipment thereof intangible assets thereof rights use assets thereof write depreciation amortization corporate governance consolidated financial statements additional information combined management report shareholders annual report eur thousand emea americas asia pacific licenses total operating segments sales segment profit sales segment assets capital expenditure impairments thereof property plant equipment thereof intangible assets thereof rights use assets thereof write depreciation amortization reconciliation reconciliation segment figures group figures presented sales eur thousand sales operating segments corporate units incl consolidation total operating income eur thousand segment profit ebit operating segments corporate units incl consolidation ebit hugo boss net interest income expenses financial items earnings taxes hugo boss corporate governance consolidated financial statements additional information combined management report shareholders annual report segment assets eur thousand segment assets operating segments corporate units incl consolidation current tax receivables current financial assets current assets cash cash equivalents non current assets held sale current assets hugo boss non current assets total assets hugo boss capital expenditure eur thousand capital expenditure operating segments corporate units incl consolidation total impairments write ups eur thousand impairments write ups operating segments corporate units incl consolidation total impairment losses shown negative reversals impairment losses shown positive depreciation amortization eur thousand depreciation amortization operating segments corporate units incl consolidation total corporate governance consolidated financial statements additional information combined management report shareholders annual report geographic information eur thousand third party sales non current assets germany emea markets north latin american markets china asian markets total non current assets allocated country company registered office located irrespective segment structure related party disclosures reporting period january december following transactions requiring disclosure conducted related parties related parties related parties comprise members managing board supervisory board compensation managing board total compensation managing board amounts eur thousand eur thousand expenses short term benefits totaled eur thousand eur thousand service cost eur thousand eur thousand incurred company pension plans share based compensation expense amounted eur thousand eur thousand total compensation members managing board pursuant sec german commercial code hgb amounted eur thousand fiscal year eur thousand amount eur thousand related basic compensation including fringe benefits eur thousand special compensation granted eur thousand amount eur thousand eur thousand attributable short term incentive sti agreed fiscal year amount eur thousand attributable long term incentive lti resulting subscription rights granted addition loans granted members managing board fiscal year contingent liabilities entered favor persons members managing board purchase boss hugo products reduced prices part fringe benefits kind granted part salary personal needs corporate governance consolidated financial statements additional information combined management report shareholders annual report former members managing board surviving dependents received total remuneration eur thousand eur thousand includes compensation attributable long term incentive lti short term incentive sti amounting eur thousand eur thousand pension obligations former members managing board surviving dependents amount eur thousand eur thousand corresponding plan assets form reinsurance amount eur thousand eur thousand compensation supervisory board supervisory board received compensation activities amounting eur thousand fiscal year total compensation amounts eur thousand related party disclosures members managing board supervisory board together held around around shares issued hugo boss end fiscal year subsequent events end fiscal year preparation consolidated financial statements march material macroeconomic sociopolitical industry related company specific changes management expects significant impact group earnings net assets financial position corporate governance code december managing board supervisory board hugo boss issued declaration compliance prescribed sec aktg available shareholders company website cgs hugoboss com corporate governance consolidated financial statements additional information combined management report shareholders annual report group auditor fees eur thousand deloitte network deloitte gmbh wirtschafts prüfungs gesellschaft audit services assurance services tax advisory services services total deloitte network deloitte gmbh wirtschafts prüfungs gesellschaft audit services assurance services tax advisory services services total fiscal year audit services provided group auditor mainly included statutory audit annual consolidated financial statements additionally assurance services included audit obtain limited assurance combined non financial statement tax advisory services related tax filing subsidiaries abroad corporate governance consolidated financial statements additional information combined management report shareholders annual report managing board member managing board responsibility daniel grieder brissago switzerland metzingen germany chairman managing board member managing board since june global marketing brand communication creative direction business unit boss menswear business unit boss womenswear business unit hugo business unit footwear accessories bodywear hosiery incl global licenses human resources corporate communications public affairs group strategy corporate development incl global corporate responsibility digital platform brand product yves müller hamburg metzingen germany member managing board since december group finance tax business planning analysis investor relations operations excellence projects global sourcing production technical product development global logistics incl information security legal compliance data protection internal audit construction procurement digital platform finance operations oliver timm meerbusch metzingen germany member managing board since january global sales development global retail wholesale customer relationship management crm data analytics global merchandise management global travel retail global retail management global commerce metaverse digital platform omnichannel sales corporate governance consolidated financial statements additional information combined management report shareholders annual report supervisory board shareholder representatives employee representatives hermann waldemer blitzingen switzerland management consultant chairman supervisory board may member since sinan piskin metzingen germany administrative employee chairman works council hugo boss metzingen germany deputy chairman supervisory board member since iris epple righi munich germany management consultant member since andreas flach weil der stadt germany trade union secretary german metalworkers union metall frankfurt germany member since may gaetano marzotto milan italy chairman supervisory board gruppo santa margherita fossalta portogruaro italy member since katharina herzog reutlingen germany senior vice president group finance tax hugo boss metzingen germany member since luca marzotto venice italy chief executive officer zignago holding fossalta portogruaro italy member since daniela liburdi sindelfingen germany administrative employee hugo boss metzingen germany member since may christina rosenberg munich germany management consultant innotail munich germany member since tanja silvana nitschke inzigkofen germany coordinator tarifpolitische bildungsoffensive metall baden württemberg reutlingen germany member since robin stalker oberreichenbach germany chartered accountant member since bernd simbeck metzingen germany administrative employee hugo boss metzingen germany member since previously already corporate governance consolidated financial statements additional information combined management report shareholders annual report additional disclosures members supervisory board managing board members supervisory board hugo boss also members supervisory board following companies iris epple righi bambuser stockholm sweden global online ltd petah tikva israel sennheiser electronic wedemark germany andreas flach rolls royce power systems friedrichshafen germany rolls royce solutions gmbh friedrichshafen germany katharina herzog hugo boss holding netherlands amsterdam netherlands hugo boss international amsterdam netherlands gaetano marzotto style capital sgr milan italy golmar italia turin italy golmar holding turin italy zignago holding fossalta portogruaro italy zignago vetro fossalta portogruaro italy luca marzotto florence milano italy forte forte sarcedo italy isotex engineering trissino italy itaca equity holding milano italy multitecno fossalta portogruaro italy santa margherita fossalta portogruaro italy santex rimar group trissino italy serliana milano italy smit trissino italy sperotto rimar trissino italy techwald next trissino italy vetri speciali trento italy zignago vetro fossalta portogruaro italy christina rosenberg josef tretter gmbh munich germany villeroy boch mettlach germany robin stalker schaeffler herzogenaurach germany schmitz cargobull horstmar germany members mentioned supervisory board mandates companies member holds position chairman vice chairman corporate governance consolidated financial statements additional information combined management report shareholders annual report members managing board daniel grieder non executive member board directors rieter holding winterthur switzerland member managing board hugo boss holds mandate supervisory boards comparable supervisory bodies companies belonging hugo boss reporting period reporting period members managing board held mandates supervisory boards comparable supervisory bodies group companies purpose group management monitoring publication annual consolidated financial statements hugo boss published german register companies website hugo boss metzingen march hugo boss managing board daniel grieder yves müller oliver timm corporate governance consolidated financial statements additional information combined management report shareholders annual report shareholdings hugo boss unless stated otherwise interest capital amounts following companies fully consolidated eur thousand company registered office equity hugo boss international amsterdam netherlands hugo boss holding netherlands amsterdam netherlands hugo boss internationale beteiligungs gmbh metzingen germany hugo boss usa inc new york usa hugo boss cleveland inc new york usa hugo boss fashion inc new york usa hugo boss florida inc new york usa hugo boss licensing inc new york usa hugo boss retail inc new york usa hugo boss china retail ltd shanghai china hugo boss limited london united kingdom hugo boss lotus hong kong ltd hong kong china hugo boss hong kong ltd hong kong china hugo boss canada inc toronto canada hugo boss benelux cia madrid spain hugo boss futtaim uae trading dubai hugo boss textile industry ltd izmir turkey hugo boss ticino coldrerio switzerland hugo boss mexico mexico city mexico hugo boss france sas paris france hugo boss benelux amsterdam netherlands hugo boss middle east llc dubai hugo boss brasil ltda são paulo brazil hugo boss magazacilik ltd sti izmir turkey hugo boss holdings pty ltd preston australia hugo boss schweiz zug switzerland hugo boss shoes accessories italia morrovalle italy hugo boss portugal companhia lisbon portugal hugo boss scandinavia stockholm sweden hugo boss italia milan italy hugo boss australia pty ltd preston australia hugo boss hellas llc athens greece hugo boss macau ltd macau china lotus shenzhen commerce ltd shenzhen china shenzhen china hugo boss nordic aps copenhagen denmark hugo boss guangdong trading ltd guangzhou china hugo boss belgium bvba diegem belgium corporate governance consolidated financial statements additional information combined management report shareholders annual report eur thousand company registered office equity hugo boss vermögensverwaltungs gmbh metzingen germany hugo boss ireland limited dublin ireland hugo boss stiftung ggmbh metzingen germany hugo boss thailand ltd bangkok thailand hugo boss korea ltd seoul south korea hugo boss finland helsinki finland hugo boss south east asia pte ltd singapore salam stores hugo boss wll doha qatar hugo boss shoes accessories poland radom poland rosata grundstücks vermietungsgesellschaft mbh objekt dieselstraße metzingen germany hugo boss malaysia sdn bhd kuala lumpur malaysia hugo boss holding sourcing coldrerio switzerland yourdata digital campus unipessoal lda porto portugal rosata grundstücks vermietungsgesellschaft mbh objekt metzingen grünwald germany hugo boss estonia tallinn estonia eightyards gmbh metzingen germany hugo boss beteiligungsgesellschaft mbh metzingen germany hugo boss latvia sia riga latvia gramolera grundstücks vermietungsgesellschaft objekt ticino mbh metzingen germany gretana grundstücks vermietungsgesellschaft mbh objekt grünwald germany hugo boss new zealand ltd auckland new zealand hugo boss belgium retail bvba diegem belgium hugo boss japan tokyo japan hugo boss benelux retail amsterdam netherlands figures correspond financial statements possible profit transfer subsidiaries according internally consolidated ifrs financial statements directly affiliated hugo boss investments equity share subgroup financial statement include following companies hugo boss cleveland inc hugo boss fashion inc hugo boss florida inc hugo boss licensing inc hugo boss retail inc hugo boss usa inc companies profit transfer agreement hugo boss investments equity share consolidation ifrs contractual agreements investments equity share investments share capital voting rights consolidation ifrs contractual agreements subsidiaries exercise exemption sec hgb handelsgesetzbuch german commercial code investments equity share consolidation ifrs contractual agreements investment consolidated previously hugo boss dienstleistungs gmbh corporate governance consolidated financial statements additional information combined management report shareholders annual report chapter additional information additional disclosures combined non financial statement responsibility statement auditor reports general information forward looking statements ten year overview contacts legal notice financial calendar annual report corporate governance consolidated financial statements additional information combined management report shareholders information disclosed chapter part company combined non financial statement part combined management report combined non financial statement subject voluntary review limited assurance according isae revised material esg related impacts risks opportunities following tables provide information company material impacts risks opportunities resulting double materiality assessment dma line efrag guidance assessment conducted gross basis thus excluding influence implemented mitigation measures material impacts additional disclosures combined non financial statement topical esrs sub topic sub sub topic material impact value chain stage climate change climate change hugo boss like broader textile industry climate impact primarily greenhouse gas emissions linked fossil fuel use upstream value chain including raw material cultivation extraction well processing manufacturing textiles apparel products additional emissions arise company business well value chain example transportation particularly air freight adds emissions also washing drying disposing textiles impacts environment contributing global warming upstream operations production downstream climate change energy energy consumption especially fossil fuels significant source emissions textile industry particularly raw material extraction wet processing majority company emissions originates upstream value chain energy use global retail operations administration contributes emissions energy used washing drying products use phase also exacerbates environmental footprint upstream operations downstream pollution pollution water textile production impacts water quality particularly dyeing finishing processes untreated wastewater chemicals used raw material extraction pesticides fertilizers contaminate water bodies especially regions poor agricultural practices affecting environment people upstream pollution pollution soil textile production degrades soil overgrazing poor farming practices excessive use chemicals improper disposal textile waste contaminate soil groundwater impacting environment public health surrounding communities upstream downstream pollution substances concern substances high concern textile production relies various harmful chemicals including fertilizers cotton farming pollutants fabric processing improper discharge chemicals affects local ecosystems water soil contamination harms human health affected regions upstream pollution microplastics synthetic textiles contribute release microplastics primarily washing wearing microplastics pollute oceans ecosystems indirectly impacting marine life human health entering food chain downstream annual report corporate governance consolidated financial statements additional information combined management report shareholders topical esrs sub topic sub sub topic material impact value chain stage water marine resources water withdrawals water consumption fiber production particularly cotton significantly impacts water availability exacerbates water scarcity regions cotton farming prevalent textile manufacturing processes dyeing washing also require substantial amounts water impacting environment people upstream biodiversity ecosystems biodiversity ecosystems textile industry drives biodiversity loss excessive use toxic herbicides pesticides habitat destruction raw material farming deforestation virgin materials overproduction leads waste much ends landfills burned harming ecosystems communities relying environments upstream downstream circular economy resources inflows including resource use resources outflows toxic chemicals textile waste impede recycling necessitating continuous extraction new raw materials extraction harms environment deforestation excessive water use pollution negatively affecting ecosystems human health upstream circular economy waste inefficient textile recycling leads significant waste often ending landfills incinerated contributing environmental degradation lack packaging reuse recycling systems exacerbates issue waste contributes environmental degradation also affecting people reducing local air soil quality particularly surrounding communities downstream workforce working conditions working time employees wholesale retail sectors including sales staff well employees production logistics administration may work long hours impact health work life balance productivity advanced economies extended hours may linked career growth opportunities emerging markets developing economies often driven comparatively lower wage levels operations workforce working conditions adequate wages ensuring adequate wages employees hugo boss fosters financial security job satisfaction loyalty across workforce fair compensation helps attract retain talent improving productivity overall performance commitment enhances employee well also strengthens business resilience long term success operations workforce working conditions freedom association existence works councils information consultation participation rights workers certain regions textiles produced workers rights may disregarded making challenging workers negotiate better conditions hugo boss employees work regions may face difficulties organizing advocating rights operations production workforce working conditions work life balance fashion industry white collar blue collar employees may face increased workloads extended hours peak seasons often necessitating overtime lead stress fatigue adversely affecting overall well work life balance operations workforce equal treatment opportunities gender equality equal pay work equal value despite progress workforce representation women continue underrepresented senior leadership roles across many industries contributing ongoing disparities career progression pay equity systemic challenges limit opportunities women particularly higher level roles slowing progress toward achieving gender parity equal pay across workforce operations workforce equal treatment opportunities training skills development insufficient training hinder employee development skills productivity increasing risk errors workplace accidents particularly roles demand specialized safety skills textile production operations workforce equal treatment opportunities employment inclusion persons disabilities lack accessibility infrastructure workplaces hinders employees disabilities limiting ability perform tasks independently impeding creation inclusive work environment operations annual report corporate governance consolidated financial statements additional information combined management report shareholders topical esrs sub topic sub sub topic material impact value chain stage workforce equal treatment opportunities measures violence harassment workplace neglecting address violence harassment workplace creates environment underrepresented groups feel vulnerable undermining efforts cultivate diversity inclusivity welcoming work culture operations workforce equal treatment opportunities diversity lack diversity result employee disengagement individuals may feel undervalued excluded due factors nationality gender religion disability thereby reducing morale team cohesion operations workers value chain working conditions secure employment intense competition textile production particularly developing economies heightens job insecurity lower tier workers many women without social security reliance subcontractors diminishes accountability worker rights upstream workers value chain working conditions working time workers fiber production particularly natural fibers often endure long working hours challenging conditions similar risks extend yarn fabric production within textile supply chain upstream workers value chain working conditions adequate wages high competition among suppliers combined limited employee representation result low wages increase informal labor without legal protections coupled unpaid overtime heightens risk wage theft labor rights violations across supply chain upstream workers value chain working conditions freedom association including existence work councils textile industry workers often face challenges expressing concerns negotiating better wages working conditions due restricted freedom association absence work councils challenge particularly pronounced among suppliers subcontractors developing countries restricting workers ability advocate improved conditions upstream workers value chain working conditions collective bargaining many regions textile supply chain workersface barriers collective bargaining limiting ability negotiate fair wages improved working conditions especially prevalent countries weak labor protections restrictions unionization collective agreements often result exploitation reduced workplace rights upstream workers value chain working conditions health safety workers across textile supply chain face health safety risks including exposure pesticides cotton farming toxic chemicals dyeing processes hazards jeopardize safety well workers upstream workers value chain equal treatment opportunities gender equality equal pay work equal value gender inequality persists textile supply chain women often earning lower pay male counterparts work addition women frequently underrepresented leadership positions gender based discrimination limit career advancement access equal opportunities disparity hinders efforts achieve workplace equity equal pay equal value upstream workers value chain work related rights child labor child labor remains concern global textile industry particularly production natural fibers yarn children often work hazardous conditions long hours depriving education childhood development opportunities upstream workers value chain work related rights forced labor forced labor prevalent textile supply chain raw materials manufacturing vulnerable groups including migrant workers women children often subjected exploitation especially regions weak labor protections upstream business conduct corporate culture lack defined corporate culture lead workplace conflicts unclear expectations companies fail comply laws regulations due insufficient awareness training risk negatively impacting employees communities operations business conduct protection whistleblowers insufficient whistleblower protection across value chain undermines ability expose unethical practices fostering distrust limiting company capacity address resolve issues effectively upstream operations downstream business conduct animal welfare without adequate transparency control use animal derived materials leather wool apparel products risks unethical treatment animals within supply chain impacting animal welfare upstream operations production annual report corporate governance consolidated financial statements additional information combined management report shareholders material risks opportunities topical esrs sub topic sub sub topic material risk opportunity climate change climate change mitigation insufficient climate change mitigation strategies failure transition low carbon economy may result regulatory challenges reputational damage financial losses climate change climate change adaptation inability adapt physical operational impacts climate change disrupt operations supply chains infrastructure increasing vulnerability extreme weather events long term risks workers value chain working conditions working time failure vendors supply chain partners monitor enforce compliance working time regulations value chain workers could lead legal penalties worker exploitation reputational harm workers value chain working conditions adequate wages vendors supply chain partners offering inadequate wages market rates non compliance minimum wage laws lead worker dissatisfaction legal risks supply chain instability workers value chain work related rights failure vendors supply chain partners comply child labor forced labor regulations result severe human rights violations consumers end users information related impacts consumers end users failure safeguard consumer privacy ensure freedom expression provide access accurate information lead privacy violations data breaches loss consumer trust annual report corporate governance consolidated financial statements additional information combined management report shareholders overview esrs disclosure requirements following table provides overview esrs disclosure requirements respective application status within consolidated non financial statement differentiated applied partially applied material applied material requirements esrs disclosure requirements disclosure requirement application status paragraph disclosure requirement application status paragraph esrs partially applied combined non financial statement esrs applied esrs applied esrs applied esrs gov partially applied governance corporate governance corporate governance statement esrs applied esrs gov applied esrs iro applied esrs gov applied esrs partially applied policies related pollution esrs gov applied esrs partially applied actions related pollution esrs gov applied esrs partially applied targets related pollution esrs sbm partially applied business model strategy value chain business activities group structure group strategy esrs applied esrs sbm partially applied interests views stakeholders esrs applied esrs sbm partially applied double materiality assessment additional disclosures combined non financial statement esrs applied esrs iro applied double materiality assessment esrs iro applied esrs iro partially applied double materiality assessment additional disclosures combined non financial statement esrs partially applied policies related water resources esrs gov applied esrs partially applied actions related water resources esrs partially applied transition plan climate change esrs applied esrs sbm applied esrs material esrs iro applied esrs applied esrs partially applied policies related climate change esrs sbm applied esrs partially applied actions related climate change esrs iro applied esrs partially applied targets related climate change esrs partially applied transition plan biodiversity ecosystems esrs partially applied energy consumption mix esrs partially applied policies related biodiversity ecosystems esrs partially applied greenhouse gas emissions esrs partially applied actions relation biodiversity ecosystems annual report corporate governance consolidated financial statements additional information combined management report shareholders disclosure requirement application status paragraph disclosure requirement application status paragraph esrs partially applied targets related biodiversity ecosystems esrs sbm applied esrs applied esrs sbm applied esrs applied esrs partially applied policies related workers value chain esrs iro applied esrs partially applied engaging workers value chain esrs partially applied policies related resource use circular economy esrs partially applied grievance mechanisms remediation processes esrs partially applied actions related resource use circular economy esrs partially applied actions related workers value chain esrs partially applied targets related resource use circular economy esrs partially applied targets related workers value chain esrs partially applied resource inflows esrs sbm material esrs applied esrs sbm material esrs applied esrs material esrs sbm applied esrs material esrs sbm applied esrs material esrs partially applied policies related workforce esrs material esrs partially applied engagement workforce esrs material esrs partially applied grievance mechanisms remediation processes esrs sbm applied esrs partially applied targets actions related workforce esrs sbm applied esrs partially applied targets actions related workforce esrs partially applied policies related consumers end users esrs partially applied characteristics workforce esrs partially applied engaging consumers end users esrs applied esrs partially applied grievance mechanisms remediation processes esrs partially applied freedom association collective bargaining esrs partially applied actions related consumers end users esrs partially applied diversity equity inclusion esrs partially applied targets related consumers end users esrs partially applied adequate wages esrs gov applied esrs material esrs partially applied business conduct esrs applied esrs material esrs applied esrs partially applied prevention detection corruption bribery esrs material esrs partially applied targets related prevention detection corruption bribery esrs applied esrs material esrs applied esrs material esrs partially applied targets related measures violence harassment annual report corporate governance consolidated financial statements additional information combined management report shareholders additional esg data points materiality thresholds following table provides information additional esg data points dma materiality thresholds additional esg data points environment total waste disposed metric tons total net freshwater consumption cubic meters social employee lost time injury frequency rate ltifr contractors lost time injury frequency rate ltifr number work related fatalities employees number work related fatalities contractors operations lost time injury frequency rate ltifr measures number work related injuries prevent employees third party contractors returning work next scheduled workday shift calculated number injuries per one million hours worked annual report corporate governance consolidated financial statements additional information combined management report shareholders esg datapoints deriving legislation following table disclosed accordance esrs provides overview datapoints derive legislation esg datapoints deriving legislation disclosure requirement data point sfdr reference pillar reference benchmark regulation reference climate law reference paragraph esrs gov board gender diversity corporate governance corporate governance statement esrs gov percentage board members independent corporate governance corporate governance statement esrs gov statement due diligence applied esrs sbm involvement fossil fuel activities material esrs sbm involvement chemical production material esrs sbm iii involvement controversial weapons material esrs sbm involvement tobacco cultivation material esrs transition plan climate neutrality transition plan climate change esrs undertakings excluded paris aligned benchmarks applied esrs ghg emission reduction targets targets related climate change esrs energy consumption fossil sources energy consumption mix esrs energy consumption mix energy consumption mix esrs energy intensity high climate impact sectors energy consumption mix esrs gross scope total ghg emissions greenhouse gas emissions esrs gross ghg emissions intensity greenhouse gas emissions esrs ghg removals carbon credits applied esrs exposure climate related physical risks applied esrs disaggregation physical risk asset location applied annual report corporate governance consolidated financial statements additional information combined management report shareholders disclosure requirement data point sfdr reference pillar reference benchmark regulation reference climate law reference paragraph esrs real estate asset value energy efficiency classes applied esrs portfolio exposure climate related opportunities applied esrs pollutants emitted air water soil applied esrs water marine resources policies related water resources esrs dedicated policy water marine resources material esrs sustainable oceans seas applied esrs total water recycled reused material esrs total water consumption per net revenue material esrs sbm applied esrs sbm applied esrs sbm applied esrs sustainable land agriculture practices policies applied esrs sustainable oceans seas practices policies applied esrs policies address deforestation policies related biodiversity ecosystems esrs non recycled waste material esrs hazardous waste radioactive waste material esrs sbm risk incidents forced labour material esrs sbm risk incidents child labour material esrs human rights policy commitments policies related workforce esrs due diligence policies issues addressed ilo conventions policies related workforce esrs processes preventing trafficking human beings material esrs workplace accident prevention policy management system policies related workforce esrs grievance complaints handling mechanisms grievance mechanisms remediation processes esrs number fatalities number rate work related accidents additional esg data points materiality thresholds esrs number days lost injuries accidents fatalities illness additional esg data points materiality thresholds annual report corporate governance consolidated financial statements additional information combined management report shareholders disclosure requirement data point sfdr reference pillar reference benchmark regulation reference climate law reference paragraph esrs unadjusted gender pay gap applied esrs excessive ceo pay ratio applied esrs incidents discrimination targets related measures violence harassment esrs non respect ungps business human rights oecd guidelines targets related measures violence harassment esrs sbm significant risk child labour forced labour value chain applied esrs human rights policy commitments policies related workers value chain esrs policies related value chain workers policies related workers value chain esrs non respect ungps business human rights principles oecd guidelines policies related workers value chain esrs due diligence policies issues addressed ilo conventions policies related workers value chain esrs human rights issues incidents connected value chain actions related workers value chain esrs human rights policy commitments material esrs non respect ungps business human rights ilo principles oecd guidelines material esrs human rights issues incidents material esrs policies related consumers end users policies related consumers end users esrs non respect ungps business human rights oecd guidelines applied esrs human rights issues incidents material esrs united nations convention corruption applied esrs protection whistle blowers whistleblowing policy channels raise concerns esrs fines violation anti corruption anti bribery laws targets related prevention detection corruption bribery esrs standards anti corruption anti bribery actions related prevention detection corruption bribery annual report corporate governance consolidated financial statements additional information combined management report shareholders additional disclosures taxonomy following tables disclosed accordance annex annex annex delegated regulation article taxonomy provide information taxonomy eligible taxonomy aligned proportions sales capex opex taxonomy disclosure regarding turnover fiscal year financial year substantial contribution criteria dnsh criteria significantly harm proportion taxo nomy aligned eligible turnover economic activities codes turn pro portion turn over² climate change mitigation climate change adap tation water pollution circular economy bio diversity climate change mitigation climate change adap tation water pollution circular economy bio diversity minimum safe guards³ category enabling activity⁴ category transi tional activity⁵ eur million taxonomy eligible activities environmentally sustainable activities taxonomy aligned turnover environmentally sustainable activities taxonomy aligned enabling⁴ transitional⁵ taxonomy eligible environmentally sustainable activities taxonomy aligned activities turnover taxonomy eligible environmentally sustainable activities taxonomy aligned activities turnover taxonomy eligible activities taxonomy non eligible activities turnover taxonomy non eligible activities total yes taxonomy eligible taxonomy aligned activity relevant environmental objective taxonomy eligible taxonomy aligned activity relevant environmental objective eligible taxonomy eligible activity relevant objective eligible taxonomy non eligible activity relevant environmental objective abbreviation relevant objective economic activity eligible make substantial contribution well section number activity relevant annex covering objective taxonomy eligible aligned sales fiscal year binding taxonomy criteria yet available core business hugo boss compliance social minimum safeguards specified taxonomy regulation according taxonomy regulation activities directly enable activities make significant contribution one environmental targets according taxonomy regulation activities support transition climate neutral economy annual report corporate governance consolidated financial statements additional information combined management report shareholders taxonomy disclosure regarding capex fiscal year financial year substantial contribution criteria dnsh criteria significantly harm pro por tion taxo nomy aligned eli gible capex economic activities codes capex pro portion capex² climate change mitigation climate change adap tation water pollution circular economy bio diversity climate change mitigation climate change adap tation water pollution circular economy bio diversity minimum safe guards³ category enabling activity⁴ category transi tional activity⁵ eur million taxonomy eligible activities environmentally sustainable activities taxonomy aligned capex environmentally sustainable activities taxonomy aligned enabling⁴ transitional⁵ taxonomy eligible environmentally sustainable activities taxonomy aligned activities construction new buildings ccm capex taxonomy eligible environmentally sustainable activities taxonomy aligned activities capex taxonomy eligible activities taxonomy non eligible activities capex taxonomy non eligible activities total yes taxonomy eligible taxonomy aligned activity relevant environmental objective taxonomy eligible taxonomy aligned activity relevant environmental objective eligible taxonomy eligible activity relevant objective eligible taxonomy non eligible activity relevant environmental objective abbreviation relevant objective economic activity eligible make substantial contribution well section number activity relevant annex covering objective ccm climate change mitigation construction new buildings capital expenditure capex considered taxonomy regulation comprise additions property plant equipment intangible assets including additions rights use assets long term leases compliance social minimum safeguards specified taxonomy regulation according taxonomy regulation activities directly enable activities make significant contribution one environmental targets according taxonomy regulation activities support transition climate neutral economy annual report corporate governance consolidated financial statements additional information combined management report shareholders taxonomy disclosure regarding opex fiscal year financial year substantial contribution criteria dnsh criteria significantly harm proportion taxo nomy aligned eli gible opex economic activities codes opex pro portion opex² climate change mitigation climate change adap tation water pollution circular economy bio diversity climate change mitigation climate change adap tation water pollution circular economy bio diversity minimum safe guards³ category enabling activity⁴ category transi tional activity⁵ eur million taxonomy eligible activities environmentally sustainable activities taxonomy aligned opex environmentally sustainable activities taxonomy aligned enabling⁴ transitional⁵ taxonomy eligible environmentally sustainable activities taxonomy aligned activities opex taxonomy eligible environmentally sustainable activities taxonomy aligned activities opex taxonomy eligible activities taxonomy non eligible activities opex taxonomy non eligible activities total yes taxonomy eligible taxonomy aligned activity relevant environmental objective taxonomy eligible taxonomy aligned activity relevant environmental objective eligible taxonomy eligible activity relevant objective eligible taxonomy non eligible activity relevant environmental objective abbreviation relevant objective economic activity eligible make substantial contribution well section number activity relevant annex covering objective accordance specifications set annex delegated acts article taxonomy hugo boss previous year refrain presenting taxonomy eligible aligned operating expenses opex fiscal year due immateriality compliance social minimum safeguards specified taxonomy regulation according taxonomy regulation activities directly enable activities make significant contribution one environmental targets according taxonomy regulation activities support transition climate neutral economy corporate governance consolidated financial statements additional information combined management report shareholders annual report responsibility statement best knowledge accordance applicable reporting principles consolidated financial statements give true fair view assets liabilities financial position profit loss group management report combined management report hugo boss includes fair review development performance business position hugo boss group together description principal opportunities risks associated expected development group metzingen march hugo boss managing board daniel grieder yves müller oliver timm corporate governance consolidated financial statements additional information combined management report shareholders annual report auditor reports independent auditor report hugo boss metzingen germany report audit consolidated financial statements combined management report audit opinions audited consolidated financial statements hugo boss metzingen germany subsidiaries group comprise consolidated statement financial position december consolidated income statement comprehensive income consolidated statement changes equity consolidated statement cash flows financial year january december notes consolidated financial statements including material accounting policy information addition audited combined management report parent group hugo boss metzingen germany financial year january december accordance german legal requirements audited content combined non financial statement pursuant sections german commercial code hgb included combined management report well corporate governance statement pursuant sections hgb referred section legal disclosures combined management report addition audited content section combined management report marked unaudited pertaining management report entitled key features internal control risk management system opinion basis knowledge obtained audit accompanying consolidated financial statements comply material respects ifrs accounting standards issued international accounting standards board iasb hereafter ifrs accounting standards adopted additional requirements german commercial law pursuant section hgb compliance requirements give true fair view assets liabilities financial position group december financial performance financial year january december accompanying combined management report whole provides appropriate view group position material respects combined management report consistent consolidated financial statements complies german legal requirements appropriately presents opportunities risks future development audit opinion combined management report cover content combined non financial statement included combined management report combined corporate governance statement referred section legal disclosures combined management report mentioned section report marked unaudited pertaining management report corporate governance consolidated financial statements additional information combined management report shareholders annual report pursuant section sentence hgb declare audit led reservations relating legal compliance consolidated financial statements combined management report basis audit opinions conducted audit consolidated financial statements combined management report accordance section hgb audit regulation referred subsequently audit regulation compliance german generally accepted standards financial statement audits promulgated institut der wirtschaftsprüfer idw responsibilities requirements principles described auditor responsibilities audit consolidated financial statements combined management report section auditor report independent group entities accordance requirements european law german commercial professional law fulfilled german professional responsibilities accordance requirements addition accordance article point audit regulation declare provided non audit services prohibited article audit regulation believe audit evidence obtained sufficient appropriate provide basis audit opinions consolidated financial statements combined management report key audit matters audit consolidated financial statements key audit matters matters professional judgment significance audit consolidated financial statements financial year january december matters addressed context audit consolidated financial statements whole forming audit opinion thereon provide separate audit opinion matters following present key audit matters determined course audit accounting rental lease agreements recoverability non current assets allocated group directly operated stores presentation key audit matters structured follows description including reference corresponding information consolidated financial statements auditor response accounting rental lease agreements consolidated financial statements include right use leasing objects meur respective current non current lease liabilities meur corresponds approx consolidated statement financial position total respectively particular items result closed rental lease agreements hugo boss group directly operated stores composition contract portfolio regularly subject significant changes due contract amendments terminations expiring contracts new contracts corporate governance consolidated financial statements additional information combined management report shareholders annual report background increased risk misstatements accounting regard completeness recognition contracts presentation consolidated financial statements reason considered accounting rental lease agreements key audit matter disclosures accounting rental lease agreements included sections accounting valuation principles leases notes consolidated financial statements audit obtained understanding processes set approving recording validating rental lease agreements assessed design implementation well effectiveness selected accounting related internal controls ensure complete recognition correct calculation value right use lease liabilities also assessed new contracts contract amendments financial year sample basis regard accounting treatment accordance ifrs compared relevant data rental lease agreements data used determine value use lease liabilities arithmetical accuracy valuation also checked sample basis regard right use assets lease liabilities depreciation interest expenses order assess completeness leases recognized balance sheet tested appropriate accounting treatment accordance ifrs sample basis addition performing interviews also assessed completeness correctness disclosures notes consolidated financial statements required ifrs recoverability non current assets allocated group directly operated stores material share non current assets hugo boss group relates assets assigned group directly operated stores hereafter referred dos disclosed rights use assets leased objects assets disclosed property plant equipment subject impairment tests balance sheet date indications impairment group dos determined cash generating units part impairment test future cash inflows determined basis planning adopted executive directors approved supervisory board discounted using discounted cash flow method planning carried forward using industry country specific growth rates context expectations future market developments country specific assumptions also taken account discounting based weighted cost capital respective cash generating unit result valuation highly dependent executive directors assessment future cash inflows specific growth rates weighted cost capital used discounting therefore subject uncertainties discretion background classified recoverability non current assets allocated group dos key audit matter within scope audit corporate governance consolidated financial statements additional information combined management report shareholders annual report disclosures determination recognition valuation assets allocated dos included sections accounting valuation methods impairment tests within notes consolidated financial statements part audit obtained understanding processes controls place tested appropriateness implementation processes established company effectiveness selected related controls assessed valuation model particular methodological mathematical accuracy involvement internal valuation experts assess quality reliability corporate planning compared planning selected financial years actual results achieved analyzed significant deviations individual cases planning accuracy verified whether data sources used calculation planned future cash flows form appropriate basis particular comparing planning adopted executive directors approved supervisory board questioning responsible key assumptions premises planning addition critically examined planning checked plausibility taking account macroeconomic sector specific market expectations significant portion respective value use results forecast cash flows period detailed planning period basically one year critically assessed particular sustainable retail growth rate applied phase comparing internal external data assessed derivation discount rates individual components involvement internal valuation experts particular questioning appropriateness peer group comparing market data used external evidence verifying mathematical accuracy model also examined completeness accuracy disclosures notes consolidated financial statements required ias information executive directors supervisory board responsible information information comprises report supervisory board combined non financial statement included combined management report combined corporate governance statement referred section legal disclosures combined management report additionally shown chapter corporate governance corporate governance statement annual report chapter combined management report marked unaudited pertaining management report entitled key features internal control risk management system remuneration report pursuant section aktg corporate governance consolidated financial statements additional information combined management report shareholders annual report executive directors confirmations pursuant section sentence section sentence hgb regarding consolidated financial statements combined management report parts annual report expect section legal disclosures consolidated financial statements audited content disclosures combined management report auditor report thereon supervisory board responsible report supervisory board executive directors supervisory board responsible statement according section aktg concerning german corporate governance code part combined corporate governance statement remuneration report otherwise executive directors responsible information audit opinions consolidated financial statements combined management report cover information consequently express audit opinion form assurance conclusion thereon connection audit responsibility read information identified consider whether information materially inconsistent consolidated financial statements audited content disclosures combined management report knowledge obtained audit otherwise appears materially misstated responsibilities executive directors supervisory board consolidated financial statements combined management report executive directors responsible preparation consolidated financial statements comply material respects ifrs accounting standards adopted additional requirements german commercial law pursuant section hgb consolidated financial statements compliance requirements give true fair view assets liabilities financial position financial performance group addition executive directors responsible internal control determined necessary enable preparation consolidated financial statements free material misstatement whether due fraud fraudulent financial reporting misappropriation assets error preparing consolidated financial statements executive directors responsible assessing group ability continue going concern also responsibility disclosing applicable matters related going concern addition responsible financial reporting based going concern basis accounting unless intention liquidate group cease operations realistic alternative corporate governance consolidated financial statements additional information combined management report shareholders annual report furthermore executive directors responsible preparation combined management report whole provides appropriate view group position material respects consistent consolidated financial statements complies german legal requirements appropriately presents opportunities risks future development addition executive directors responsible arrangements measures systems considered necessary enable preparation combined management report accordance applicable german legal requirements able provide sufficient appropriate evidence assertions combined management report supervisory board responsible overseeing group financial reporting process preparation consolidated financial statements combined management report auditor responsibilities audit consolidated financial statements combined management report objectives obtain reasonable assurance whether consolidated financial statements whole free material misstatement whether due fraud error whether combined management report whole provides appropriate view group position material respects consistent consolidated financial statements knowledge obtained audit complies german legal requirements appropriately presents opportunities risks future development well issue auditor report includes audit opinions consolidated financial statements combined management report reasonable assurance high level assurance guarantee audit conducted accordance section hgb audit regulation compliance german generally accepted standards financial statement audits promulgated institut der wirtschaftsprüfer idw always detect material misstatement misstatements arise fraud error considered material individually aggregate could reasonably expected influence economic decisions users taken basis consolidated financial statements combined management report exercise professional judgment maintain professional skepticism throughout audit also identify assess risks material misstatement consolidated financial statements combined management report whether due fraud error design perform audit procedures responsive risks obtain audit evidence sufficient appropriate provide basis audit opinions risk detecting material misstatement resulting fraud higher risk detecting material misstatement resulting error fraud may involve collusion forgery intentional omissions misrepresentations override internal control corporate governance consolidated financial statements additional information combined management report shareholders annual report obtain understanding internal control relevant audit consolidated financial statements arrangements measures relevant audit combined management report order design audit procedures appropriate circumstances purpose expressing audit opinion effectiveness internal control arrangements measures group evaluate appropriateness accounting policies used executive directors reasonableness estimates made executive directors related disclosures conclude appropriateness executive directors use going concern basis accounting based audit evidence obtained whether material uncertainty exists related events conditions may cast significant doubt group ability continue going concern conclude material uncertainty exists required draw attention auditor report related disclosures consolidated financial statements combined management report disclosures inadequate modify respective audit opinions conclusions based audit evidence obtained date auditor report however future events conditions may cause group cease able continue going concern evaluate overall presentation structure content consolidated financial statements including disclosures whether consolidated financial statements present underlying transactions events manner consolidated financial statements give true fair view assets liabilities financial position financial performance group compliance ifrs accounting standards adopted additional requirements german commercial law pursuant section hgb plan perform audit consolidated financial statements order obtain sufficient appropriate audit evidence regarding financial information entities business activities within group serves basis forming audit opinions consolidated financial statements combined management report responsible direction supervision inspection audit procedures performed purposes group audit remain solely responsible audit opinions evaluate consistency combined management report consolidated financial statements conformity german law view group position provides perform audit procedures prospective information presented executive directors combined management report basis sufficient appropriate audit evidence evaluate particular significant assumptions used executive directors basis prospective information evaluate proper derivation prospective information assumptions express separate audit opinion prospective information assumptions used basis substantial unavoidable risk future events differ materially prospective information corporate governance consolidated financial statements additional information combined management report shareholders annual report communicate charged governance regarding among matters planned scope timing audit significant audit findings including significant deficiencies internal control identify audit provide charged governance statement complied relevant independence requirements communicate relationships matters may reasonably thought bear independence applicable actions taken safeguards applied eliminate independence threats matters communicated charged governance determine matters significance audit consolidated financial statements current period therefore key audit matters describe matters auditor report unless law regulation precludes public disclosure matter legal regulatory requirements report audit electronic reproductions consolidated financial statements combined management report prepared publication pursuant section hgb audit opinion performed audit accordance section hgb obtain reasonable assurance whether electronic reproductions consolidated financial statements combined management report hereinafter referred esef documents prepared publication contained file sha value eceef abaa acc meet material respects requirements electronic reporting format pursuant section hgb esef format accordance german legal requirements audit covers conversion information contained consolidated financial statements combined management report esef format therefore covers neither information contained electronic reproductions information contained file identified opinion electronic reproductions consolidated financial statements combined management report prepared publication contained file identified meet material respects requirements electronic reporting format pursuant section hgb beyond audit opinion audit opinions accompanying consolidated financial statements accompanying combined management report financial year january december contained report audit consolidated financial statements combined management report express assurance opinion information contained within electronic reproductions information contained file identified basis audit opinion conducted audit electronic reproductions consolidated financial statements combined management report contained file identified accordance section hgb basis idw auditing standard audit electronic reproductions financial statements management reports prepared publication purposes pursuant section hgb idw aus corporate governance consolidated financial statements additional information combined management report shareholders annual report responsibilities context described group auditor responsibilities audit esef documents section audit firm applied requirements idw quality management standards responsibilities executive directors supervisory board esef documents executive directors parent responsible preparation esef documents based electronic files consolidated financial statements combined management report according section sentence hgb tagging consolidated financial statements according section sentence hgb addition executive directors parent responsible internal control considered necessary enable preparation esef documents free material intentional unintentional non compliance requirements electronic reporting format pursuant section hgb supervisory board responsible overseeing process preparing esef documents part financial reporting process group auditor responsibilities audit esef documents objective obtain reasonable assurance whether esef documents free material intentional unintentional non compliance requirements section hgb exercise professional judgment maintain professional skepticism throughout audit also identify assess risks material intentional unintentional non compliance requirements section hgb design perform audit procedures responsive risks obtain audit evidence sufficient appropriate provide basis audit opinion obtain understanding internal control relevant audit esef documents order design audit procedures appropriate circumstances purpose expressing assurance opinion effectiveness controls evaluate technical validity esef documents whether file containing esef documents meets requirements delegated regulation version force balance sheet date technical specification electronic file evaluate whether esef documents enable xhtml reproduction content equivalent audited consolidated financial statements audited combined management report evaluate whether tagging esef documents inline xbrl technology ixbrl accordance requirements articles delegated regulation version force balance sheet date enables appropriate complete machine readable xbrl copy xhtml reproduction corporate governance consolidated financial statements additional information combined management report shareholders annual report information pursuant article audit regulation elected group auditor general meeting may engaged supervisory board september group auditor hugo boss metzingen germany without interruption since financial year declare audit opinions expressed auditor report consistent additional report audit committee pursuant article audit regulation long form audit report matter use auditor report auditor report must always read together audited consolidated financial statements audited combined management report well audited esef documents consolidated financial statements combined management report converted esef format including versions submitted inclusion company register merely electronic reproductions audited consolidated financial statements audited combined management report take place particular esef report audit opinion contained therein used solely together audited esef documents made available electronic form german public auditor responsible engagement german public auditor responsible engagement marco koch stuttgart germany march deloitte gmbh wirtschaftsprüfungsgesellschaft thomas reitmayr marco koch wirtschaftsprüfer wirtschaftsprüfer german public auditor german public auditor corporate governance consolidated financial statements additional information combined management report shareholders annual report report independent auditor audit remuneration report accordance section aktg hugo boss metzingen germany audit opinion conducted formal audit remuneration report hugo boss metzingen financial year january december assess whether disclosures required section german stock corporation act aktg made remuneration report accordance section aktg audited content remuneration report opinion disclosures required section aktg made material respects accompanying remuneration report audit opinion cover content remuneration report basis audit opinion conducted audit remuneration report accordance section aktg compliance idw auditing standard audit remuneration report pursuant section aktg idw aus responsibilities requirements standard described auditor responsibilities section report audit firm applied idw quality assurance standard requirements quality management audit firm idw fulfilled professional responsibilities accordance german public auditor act wpo professional charter german public auditors german sworn auditors vbp including requirements independence responsibilities executive board supervisory board executive board supervisory board responsible preparation remuneration report including related disclosures complies requirements section aktg addition responsible internal control determined necessary enable preparation remuneration report including related disclosures free material misstatement whether due fraud error corporate governance consolidated financial statements additional information combined management report shareholders annual report auditor responsibilities objective obtain reasonable assurance whether disclosures required section aktg made material respects remuneration report express opinion report audit planned conducted audit way able determine whether remuneration report formally complete comparing disclosures made remuneration report disclosures required section aktg accordance section aktg neither audited correctness content disclosures completeness content individual disclosures adequate presentation remuneration report stuttgart germany march deloitte gmbh wirtschaftsprüfungsgesellschaft thomas reitmayr marco koch wirtschaftsprüfer wirtschaftsprüfer german public auditor german public auditor corporate governance consolidated financial statements additional information combined management report shareholders annual report limited assurance report independent practitioner regarding combined non financial statement hugo boss metzingen germany assurance conclusion conducted limited assurance engagement combined non financial statement hugo boss metzingen germany financial year january december included section combined non financial statement combined management report parent group complying sections german commercial code hgb including disclosures complying requirements article regulation included combined non financial statement hereafter referred combined non financial statement references information company outside group management report external sources documentation expert opinions mentioned combined non financial statement subject assurance engagement furthermore assurance engagement cover prior year disclosures marked unassured based procedures performed evidence obtained nothing come attention causes believe accompanying combined non financial statement financial year january december prepared material respects accordance sections hgb requirements article regulation specifying criteria presented executive directors company basis assurance conclusion conducted assurance engagement accordance international standard assurance engagements isae revised assurance engagements audits reviews historical financial information issued international auditing assurance standards board iaasb procedures performed limited assurance engagement vary nature timing less extent reasonable assurance engagement consequently level assurance obtained substantially lower assurance would obtained reasonable assurance engagement performed responsibilities isae revised described section german public auditor responsibilities assurance engagement combined non financial statement corporate governance consolidated financial statements additional information combined management report shareholders annual report independent entity accordance requirements european law german commercial professional law fulfilled german professional responsibilities accordance requirements audit firm applied requirements idw quality management standards international standard quality management isqm believe evidence obtained sufficient appropriate provide basis assurance conclusion responsibilities executive directors supervisory board combined non financial statement executive directors responsible preparation combined non financial statement accordance applicable german legal european requirements well specifying criteria presented executive directors company designing implementing maintaining internal control considered necessary enable preparation combined non financial statement accordance requirements free material misstatement whether due fraud fraudulent reporting combined non financial statement error responsibility executive directors includes selecting applying appropriate reporting policies preparing combined non financial statement well making assumptions estimates ascertaining forward looking information individual sustainability related disclosures supervisory board responsible overseeing process preparation combined non financial statement inherent limitations preparing combined non financial statement applicable german legal european requirements contain wording terms subject considerable interpretation uncertainties authoritative comprehensive interpretations yet published executive directors made interpretations wording terms combined non financial statement executive directors responsible reasonableness interpretations wording terms may interpreted differently regulators courts legality measurements evaluations sustainability matters based interpretations uncertain quantification non financial performance indicators disclosed combined non financial statement also subject inherent uncertainties inherent limitations also affect assurance engagement combined non financial statement corporate governance consolidated financial statements additional information combined management report shareholders annual report german public auditor responsibilities assurance engagement combined non financial statement objective express limited assurance conclusion based assurance engagement conducted whether matters come attention cause believe combined non financial statement prepared material respects accordance applicable german legal european requirements specifying criteria presented executive directors company issue assurance report includes assurance conclusion combined non financial statement part limited assurance engagement accordance isae revised exercise professional judgment maintain professional skepticism also obtain understanding process used prepare combined non financial statement identify disclosures material misstatement due fraud error likely arise design perform procedures address disclosures obtain limited assurance support assurance conclusion risk detecting material misstatement resulting fraud higher risk detecting material misstatement resulting error fraud may involve collusion forgery intentional omissions misrepresentations override internal control consider forward looking information including appropriateness underlying assumptions substantial unavoidable risk future events differ materially forward looking information summary procedures performed german public auditor limited assurance engagement involves performance procedures obtain evidence sustainability information nature timing extent selected procedures subject professional judgment performing limited assurance engagement evaluated suitability criteria whole presented executive directors combined non financial statement inquired executive directors relevant employees involved preparation combined non financial statement preparation process internal controls related process corporate governance consolidated financial statements additional information combined management report shareholders annual report evaluated reporting policies used executive directors prepare combined non financial statement evaluated reasonableness estimates related information provided executive directors performed analytical procedures tests details made inquiries relation selected information combined non financial statement considered presentation information combined non financial statement considered process identifying taxonomy eligible taxonomy aligned economic activities corresponding disclosures combined non financial statement restriction use issue report stipulated engagement letter agreed company including general engagement terms wirtschaftsprüferinnen wirtschaftsprüfer wirtschaftsprüfungsgesellschaften german public auditors public audit firms dated january institut der wirtschaftsprüfer idw draw attention fact assurance engagement conducted company purposes report intended solely inform company result assurance engagement consequently may suitable aforementioned purpose accordingly report intended used third parties basis making financial decisions based responsibility company alone accept responsibility third parties assurance conclusion modified respect stuttgart germany march deloitte gmbh wirtschaftsprüfungsgesellschaft thomas reitmayr daniel oehlmann wirtschaftsprüfer wirtschaftsprüfer german public auditor german public auditor corporate governance consolidated financial statements additional information combined management report shareholders annual report general information performance hugo boss best reflected consolidated financial statements like many companies hugo boss refrained including figures separate financial statements parent company hugo boss report sake clarity presentation statements continue prepared accordance german commercial code hgb published company website group hugoboss com forward looking statements document contains forward looking statements reflect management current views respect future events words anticipate assume believe estimate expect intend may plan project similar expressions identify forward looking statements statements subject risks uncertainties risks uncertainties occur assumptions underlying statements prove incorrect actual results may materially different expressed implied statements hugo boss intend assume obligation update forward looking statement speaks date made annual report sales eur million sales brand boss menswear boss womenswear hugo sales segments emea americas asia pacific licenses sales distribution channel brick mortar retail brick mortar wholesale digital licenses results operations eur million gross profit gross margin ebit ebit margin ebitda net income attributable equity holders parent company net assets liability structure december eur million trade net working capital non current assets equity equity ratio total assets financial position dividend eur million free cash flow net financial liabilities december capital expenditure depreciation amortization total leverage december amount distributed additional key figures employees december personnel expenses eur million number group retail points sale shares eur earnings per share dividend per share last share price december number shares december hugo boss recorded non cash impairment charges related negative impact covid group retail business amount eur million application ifrs fiscal year partially limits comparability performance indicators towards prior year figures additional information first time application ifrs presented annual report starting presentation aligned claim strategy fiscal year retail sales reported including company online sales fiscal year wholesale sales reported including online sales generated wholesale excluding non cash impairment charges ebit amounted minus eur million excluding non cash impairment charges ebit margin amounted excluding non cash impairment charges net income amounted minus eur million excluding non cash impairment charges depreciation amortization amounted eur million net financial liabilities ebitda including impact ifrs net financial liabilities ebitda excluding impact ifrs dividend proposal legal minimum dividend eur per share wake covid pandemic full time equivalent fte excluding non cash impairment charges eps amounted minus eur ten year overview corporate governance consolidated financial statements additional information combined management report shareholders annual report contacts investor relations phone email investor relations hugoboss com christian stöhr senior vice president investor relations phone email christian_stoehr hugoboss com carolin westermann senior vice president global corporate communications phone email carolin_westermann hugoboss com legal notice hugo boss holy allee metzingen germany phone group hugoboss com release date thursday march conception design nexxar gmbh vienna www nexxar com photos managing board andreas pohlmann corporate governance consolidated financial statements additional information combined management report shareholders annual report financial calendar may first quarter results may annual general meeting august second quarter results first half year report november third quarter results