HUGO BOSS BRAND POWERPOINT

1. HUGO BOSS BRAND © PRODUCT STRATEGY

2. The HUGO BOSS Group is one of the market leaders in the premium and luxury segment of the global apparel market . The Group, which is based in Metzingen in Germany and employs a workforce of almost 12,500 people, generated annual sales of EUR 2.4 billion in fiscal year 2013 and is among the world's most profitable apparel manufacturers of the apparel market with its brand world, HUGO BOSS targets different, clearly differentiated consumer groups. BRIEF HISTORY 1924 Company founded by Hugo Ferdinand Boss 1970 HUGO BOSS developed into a fashion-lifestyle company 1985 Going public 2007 Permira takes over share majority 2012 Record sales and profits Headquarters, Metzingen

3. The brands cover an extensive product range consisting of classic-modern business wear, elegant evening wear and sportswear, shoes and leather accessories, licensed fragrances, eyewear, watches, children’s fashion, motorcycle helmets, mobile phones and accessories , and home textiles. HUGO BOSS sells its products in 127 countries worldwide. Today customers can purchase HUGO BOSS products at more than 7,100 points of sale .

4. MANAGING BOARD Christoph Auhagen (CBO) Responsible for Brand Management, Creative Management, Sourcing and Manufacturing Member of the Managing Board since December 2009. Mark Langer (CFO) Responsible for Controlling, Investor Relations, Finance,Legal and Compliance, HR, Logistics, IT and Central Services Director for Labor Relations. Member of the Managing Board since January 2010 Claus-Dietrich Lahrs (CEO) Responsible for Distribution, Retail, Licenses, Communication and Global Replenishment. Member of the Managing Board since August 2008.

5. CORE IDENTITY The brand stands for innovation, creativity and progress The brand implements stringent design and quality standards to produce superior products that deliver value for money . All the brand collections adhere to a lifestyle philosophy featuring a distinctive brand signature The country of origin for the brand is Germany

6. EXTENDED IDENITTY The main fashion brand, BOSS, is modeled by a chisel-chinned hunk with the long hair of a racecar driver. He doesn’t look like he would be anybody’s boss though, more the maverick loner than a dynamic leader with your destiny in his hands. The women counterpart is a striking and arrogant-looking and in her late twenties The BOSS consumer no longer worries about "making it." He has achieved a success level that is beyond the norm, allowing him to enjoy the most luxurious cars, yachts and private jets the world has to offer. Men who choose BOSS are to be admired and envied in equal measure

7. EXTENDED IDENITTY The essence of Hugo BOSS fashion: Confidence, Power, Masculinity. Personal and professional goals achieved with easy self confidence The BOSS consumers have fun, enjoy life and take risks. They don't care about rules but live their life on their own way. Independent, unconventional and modern Creative people who are on the move. HUGO is the look and feel of London, Berlin and New York — the style for individualists.

8. BRAND POSITIONING Fashion statement dictates brand positioning

9. BRAND ARCHITECTURE The men’s wear collections is represented by the BOSS BLACK, BOSS SELECTION, BOSS ORANGE AND BOSS GREEN LINES AND THE HUGO-BRAND Strengthen product offering in luxury segment Sharpen DNA of ‘Sportswear Elegance’ Increase focus on the Asian consumer Offer the best price-value relationship in the premium segment Enhance clarity of product branding Firmly establish BOSS Orange as key premium lifestyle brand at wholesale Convince in leading edge technical innovation Strengthen distribution in golf performance accounts Maximize commercial potential of golf pro cooperation

10. BRAND ESSENCE

11. STRATEGIC RATIONALE CUSTOMER / BRAND SEGMENTATION goes vertical BOSS: Distribution to increasingly penetrate luxury segment BOSS ORANGE / BOSS GREEN: Traditional positioning with enlarged distribution HUGO: Refocus brand on tailoring Key focus on premium department stores, relevant multi-brand retailers and pure online Key focus on monobrand stores (incl. airports), SiS lifestyle presen-tations in key luxury departments stores, and opinion-leading wholesale accounts Key focus on SiS lifestyle presen-tation and utilization for category expansion

12. VALUE PROPOSITION Functional benefits include high-quality, fashionable clothing with European design   Emotional benefits of this brand are that it makes you feel like the consummate sophisticate, for whom only the very finest fabrics and tailoring will do   Self-expressive benefits include its ability to allow your self-expression to have a strong sense of character

13. BRAND STRATEGY Has high brand awareness – 90 – 100% amongst target audience and Has high share of buyers within target group 40 – 60% buyers at BOSS BLACK/ SELECTION / HUGO , 15 – 30% at BOSS ORANGE / GREEN Further leverage existing strengths to continue growth with BOSS BLACK in premium men’s wear Expand the share of business done with BOSS Selection to underline core competence in men’s wear (full canvas ) Make sure that women get the same attention as men already enjoy

14. To make a more visible fashion statement with the shoes and accessories range To avoid cannibalization, the focus will be on stand alone positioning for each brand in comparison with the past where brand architecture showed overlapping and similar price positions Unlock the brand potential by developing retail strategies that will: Gain more control over brand and product presentation Unlock potential in major growth markets with focused retail expansion in the right format

15. Intensify online shopping in key markets to benefit from growth story Control factory outlet business more closely Focus on geographical expansion to drive business outside Europe to: Be less dependent on mature markets in Western and Central Europe although there is still market share to gain Benefit from double digit growth in emerging markets in Asia, Russia and Eastern Europe Find the right access to mature markets such as the USA and Japan to capture the full momentum of the premium market

16. Deliver sustainable and profitable growth by: Monitoring and improving profitability of own retail Managing trade partner profitability more stringently Reducing net working capital to a healthy level Decreasing complexity in operations, sourcing and manufacturing as well as the supply chain Performance initiatives launched in in anticipation of weakening market conditions: Strengthening cost cautiousness and tight monitoring of cost drivers Retail turnaround Fine tuning the regional price structure Net working-capital optimization

17. MAJOR COMPETITORS

18. REVENUE – BY PRODUCT CATEGORY

19. REVENUE BY REGION

20. GLOBAL MARKET PRESENCE