Annual Report 2023

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Net Assets

Increase in total assets reflects strong business performance in 2023

Higher inventory position aims to support top-line momentum

Trade net working capital as a percentage of sales amounts to 20.8%

Total assets increased by 11% to EUR 3,472 million at the end of fiscal year 2023 (December 31, 2022: EUR 3,127 million), reflecting higher investments in both current and non-current assets, aimed at supporting the Company’s top-line momentum and the successful execution of “CLAIM 5” also going forward.

Statement of financial position as of December 31

(in %)

2022 2023 44 31 11 10 3 1 43 31 13 8 5 0 2023 2022 36 20 7 4 26 38 10 7 6 16 6 23 1 0 Assets Lease liabilities Other liabilities Trade payables Provisions and deferred taxes Shareholders' equity Equity and liabilities 3,127 3,472 3,472 3,127 Inventories Trade receivables Other assets Cash and cash equivalents Assets heldfor sale (in EUR million)

The share of current assets increased slightly to 52% as of December 31, 2023 (December 31, 2022: 51%), largely reflecting an increase in trade net working capital. Accordingly, the share of non-current assets slightly decreased to 48% at the end of fiscal year 2023 (December 31, 2022: 49%). The equity ratio increased to a level of 38% by year-end (December 31, 2022: 36%). Consolidated Financial Statements, Consolidated Statement of Financial Position

Trade net working capital as of December 31 (in EUR million)







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Trade net working capital (TNWC) increased by 46% on a currency-adjusted basis, with the moving average of TNWC as a percentage of sales based on the last four quarters amounting to 20.8% (December 31, 2022: 15.0%). As part of this, inventories were up 11% currency-adjusted. The vast majority of the Company’s inventories reflects core merchandise as well as fresh merchandise for current and upcoming collections, aimed at supporting the top-line momentum. In light of implemented measures to reduce inventory levels, the Company recorded a gradual normalization of inventories towards the end of fiscal year 2023. Consequently, at 25.4%, inventories as a percentage of Group sales were well below the prior-year level. Based on this, HUGO BOSS remains confident of improving inventories to a level below 20% of Group sales by 2025. At the same time, trade receivables were up 47%, mainly reflecting our strong performance in both brick-and-mortar and digital wholesale as well as the ongoing expansion of our global franchise business as part of “CLAIM 5.” Trade payables, on the other hand, came in moderately below the prior-year level. This development primarily reflects lower order volumes as part of our measures to reduce core merchandise inflow going forward, which more than compensated for positive effects in connection with a higher utilization of our supplier financing program. Notes to the Consolidated Financial Statements, Notes 12 and 13

Property, plant, and equipment, intangible assets, and right-of-use assets increased by 12% compared to the prior-year level, totaling EUR 1,521 million at year-end (December 31, 2022: EUR 1,356 million). This mainly reflects the ongoing strong investment activity, aimed at supporting the successful execution of “CLAIM 5” also going forward. Other assets were down 8% to EUR 363 million (December 31, 2022: EUR 393 million), mainly due to a decrease in deferred tax assets. Cash and cash equivalents amounted to EUR 118 million at the end of fiscal year 2023 (December 31, 2022: EUR 147 million). As previously disclosed during the year, HUGO BOSS is currently revisiting its business model in Russia, which includes considerations to convert it into a wholesale business. Accordingly, the Company classified all respective assets, amounting to EUR 27 million, as assets held for sale as of December 31, 2023. Notes to the Consolidated Financial Statements, Accounting Policies, Notes 8 and 14

The total of current and non-current lease liabilities, primarily relating to the rental of retail store locations as well as logistics and administration properties, decreased by 1% to EUR 793 million as of the reporting date (December 31, 2022: EUR 804 million). At year-end, current and non-current financial liabilities amounted to EUR 340 million (December 31, 2022: EUR 122 million), including EUR 175 million of proceeds from the Company’s first Schuldschein loan issued in 2023. Provisions and deferred tax liabilities slightly decreased to EUR 220 million compared to the prior-year level (December 31, 2022: EUR 225 million). Other liabilities amounted to EUR 216 million at the end of the fiscal year, and were thus 3% below the prior-year level (December 31, 2022: EUR 223 million), mainly driven by lower income tax liabilities. Liabilities held for sale, related to the Group’s business in Russia, amounted to EUR 19 million as of December 31, 2023. Notes to the Consolidated Financial Statements, Accounting Policies, Notes 9, 17, 19, and 20, Financial Position, Capital Structure and Financing