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Glossary

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A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
A

American depositary receipts (ADRS)

American Depositary Receipts are share certificates issued by American banks and traded instead of shares. ADRs enable non-US stock corporations to access the US stock market.

B

Brand

With its brand world including the core brand BOSS, the brand BOSS Green, the brand BOSS Orange and the brand HUGO, HUGO BOSS targets different, clearly differentiated groups.

C

Cash flow statement

The aim of the cash flow statement is to create transparency regarding changes in a company‘s liquidity funds. It describes in detail the type, amount and sources of the cash flows.

Cash pooling

Cash pooling describes a cash management technique to concentrate the groups liquidity in master accounts. This has a positive effect on the net interest income/expense. You can differ between the so called real and unreal cash pooling. The unreal cash pooling is only used to optimize the interest. This is achieved by a fictitious compensation of the valued accounting balance of the involved accounts. There is no amount brought forward to the main account. In contrast, the real cash pooling transfers the groups liquidity to a parents company’s or a for a finance company controlled master account. The subsidiary involved in the cash pooling and the parent company or the finance company agree, that the bank account balances of the subsidiary are transferred every working day to the master account. In this case, the original account is set to zero.

Complexity of the collection

Describes the number of color, shape, theme and fabric concepts that a collection comprises.

Compliance

Compliance means to undertake all reasonable measures in order to ensure adherence to the laws, statutory regulations and the Company‘s internal policies and their observance by Group companies.

Core Range

The core range is a pre-defined range developed in line with the requirements of each collection. The core range is at the heart of every collection and largely defines its statement.

Corporate Governance

Corporate Governance defines the principles and legal framework for management and monitoring at the Company. In Germany, these principles are set out in the Corporate Governance Code.

Covenants

Covenants are clauses in a loan agreement or contractual obligations given by a borrower for the term of a loan agreement. They generally relate to the observation of upper and/or lower limits for cetain key financial performance indicators.

D

Days inventory outstanding (DIO)

The time between receiving goods as inventory and the sale of the finished product.

Days payables outstanding (DPO)

Time between receiving an invoice and making payment on trade payables.

Days sales outstanding (DSO)

Time between issuing an invoice and receiving payment on trade receivables.

Derivatives

A derivative is a financial instrument, whose change in value is linked to an underlying asset such as shares, bonds, currencies or commodities or to market indexes and which is settles at a future date. It does not require an initial net investment or a comparatively low initial net investment.

Directly operated stores (DOS)

Directly operated stores are monobrand stores (cf. monobrand sales format) and shops operated directly by HUGO BOSS.

Diversity

Diversity refers to heterogeneity and differences among employees, executives and mebers of the Supervisory Boad of HUGO BOSS AG. For example, diversity can relate to the nationality, gender or age of specific groups of people.

E

EBIT

Earnings before interest and taxes. EBIT is a key business performance indicator which shows a company´s operating profit in a certrain period not including taxes and interest.

EBITDA before special items

EBITDA before special items refers to Earnings before interest, taxes, depreciation and amortization not including special items. EBITDA is a key performance indicator which measures operating profitability depreciation effects from investment activity. EBITDA before special itrems is the most important performance indicator for the HUGO BOSS Group.

(Adjusted) EBITDA margin

The (adjusted) EBITDA margin descripes the ratio of EBITDA (before special items) (cf. EBITDA before special items).

F

Franchise

Franchise is a distribution system of providing goods and services according to a business model. Franchise is based upon a close and ongoing collaboration between legally and financially independent undertakings. As franchisor, HUGO BOSS supplies its trading partners, which operate franchise stores, with the HUGO BOSS store concept as well as the corresponding marketing know how for selling the HUGO BOSS products.

Free cashflow

Free cash flow is calculated by adding up the operating cash flow and the cash flow from investing activities. To increase its enterprise value, HUGO BOSS focuses on maximizing free cash flow.

Freefloat

Shares of the HUGO BOSS AG in free float are continuously available for trading on the equity market. They are not held by institutional investors, i.e. they are not held in order to pursue long-term strategic objections.

G

Goodwill

Goodwill resulting from a business combination represents the difference between the consideration transferred plus the amount of the shares wothout a controlling influence, and the assets acquired and liabilities assumed.

Global reporting initiative (GRI)

The Global Reporting Initiative (GRI) supports organizations and companies sustainability reporting. Companies can measure their economic, environmental and social performance on the basis of the principles published by the GRI.

Group‘s own retail business

In the Group‘s own retail business, sales of HUGO BOSS products are made directly to the end customer via directly operated stores (cf. directly operated stores), outlet stores and the HUGO BOSS online store, in contrast to sales in wholesale business (cf. wholesale).

I

International Accounting Standards (IAS)

IAS are international financial reporting standards which were issued from the predeecessor institute of the International Accounting Standard Board (IASB), the International Accounting Standards Committee (IASC).They are still valid and will be expanded by IFRS (see IFRS).

International Financial Reporting Standards (IFRS)

IFRS are international financial reporting standards for companies that are issued by the International Accounting Standards Board (IASB). They provide worldwide transparent and comparable accounting of consolidated financial statements, and make it easier to compare publicly traded companies.

ISO 9001

ISO 9001 determines the criteria for a quality management system. It can be employed by any organization, regardless of size and sector.

ISO 50001

ISO 50001 is an international standard to support organizations in establishing systematic energy management. Organizations can decide freely whether to implement this standard.

L

Like-for-like sales development

Sales trend within the Group´s own retail business (cf. Group´s own retail business) for comparable areas, i.e. not including newly opened or recently closed points of sale.

M

Made to measure

As part of the core brand BOSS, the Made to Measure line offers particularly high-quality bespoke suits. The Made to Measure line emphasizes the exclusivity of the core brand BOSS while focusing on the desire for individual style.

Multi-brand sales format

Multi-brand sales format

Mono-brand sales format

Mono-brand sales formats are used to sell the products of only one brand at one particular point of sale

N

Net financial liabilities

Net financial liabilities comprise all interest-bearing financial and other liabilities less non-operating cash and cash equivalents and short-term investments.

O

Out-Of-Home Media

Out-of-home media refers to forms of advertising which reach customers outside their homes and offices. This includes traditionally for example advertising pillars and billboards, but also advertisement on busses, telephone boxes or at airports.

P

Plain Vanilla Currency Options

A plain vanilla option is defined as a standard option in securities business without special features or product design.

Point of sale (POS)

All businesses where HUGO BOSS products are sold - i.e. stores, shops and the online store (cf. stores) - are points of sale. They can be operated directly by the Group (cf. Group‘s own retail business) or by wholesale partners (cf. wholesale).

Preorder

Preorders are orders received for future deliveries. Wholesale partners place orders on a seasonal basis in the HUGO BOSS showrooms (cf. showroom) for the goods presented there (collection). In addition, the goods can be reordered irrespective of season using the HUGO BOSS replenishment (cf. replenishment).

R

Replenishment

Replenishment of goods which allows HUGO BOSS to react to short-time surges in demand from trading partners.

Restricted Substances List (RSL)

The RSL is valid worldwide and lists chemicals and other substances that a product may not contain or may contain only to a restricted degree.

Royalties

A royalty is the permission to use another‘s trademark for commercial purposes in exchange for the payment of a sum of money (royalty fee). Granting of royalties enables HUGO BOSS to benefit from the expertise and potentially different distribution structure of the licensee. Products manufactured for HUGO BOSS by licensees include fragrances, eyewear, watches, children‘s fashion, motorcycle helmets, mobile phones, mobile accessories and home textiles.

S

Season

A collection is delivered and sold over a particular period of time (season).

Segments

Under IFRS 8 (cf. IFRS), a segment is a component of an entity that engages in non-derivative business activities from which it may earn revenues. The operating segment results (cfl. EBITDA before special items) are regularly reviewed by a company's responsible governing body. The HUGO BOSS Group has defined the following segments: Europe, Americas, Asia/Pacific and Royalties (cf. royalty).

Shop-in-shop

As shop-in-shop is sales space in department stores designed according to the shop concept of the Group’s own retail stores and in which only HUGO BOSS products are offered.

Showroom

The showroom is where the collection is presented to wholesale customers (cf. wholesale) who can then place their orders (cf. preorder).

Special items

HUGO BOSS defines special items as expenses with no direct connection to the business activity. This includes for example expenses relating to strategic realignment or reorganization of individual business segments.

Stock Appreciation Rights Program (SAR-Program)

The SAR-program was created by HUGO BOSS for Managing Board members and executives. As part of this program, executives of HUGO BOSS AG and its subsidiaries were granted a certain number of participation rights. These rights enable them to benefit from any increase in the value of Company´s shares. The participation rights solely grant a claim to cash settlement, not a claim to HUGO BOSS AG shares.

Stores

A Store is a sale area with its own entrance, selling exclusively HUGO BOSS products via appropriate shop concept. Stores can be operated directly by the Group (cf. directly operated stores) or a franchise (cf. franchise)

T

Trade net working capital

Trade net working capital is calculated as the total of inventories and trade receivables less trade payables.

V

Publications persuant to section § 15a German trading act WpHG

Publications pursuant to Section 15a WpHG are notifiable securities transactions, so called directors' dealings. Directors' dealings are own-account transactions entered into by members of the management with HUGO BOSS AG securities. Pursuant to Section 15a WpHG, members of the management are required to disclose such transactions.

W

Wholesale

In contrast to the direct sale of goods via the Group‘s own retail business (cf. Group‘s own retail business), sales in wholesale business are made indirectly via retails partners‘ sales space. Wholesale purchases HUGO BOSS goods either through traditional preorder (cf. preorder) business or via replenishment (cf. replenishment) and sells them on to the end customer.

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