HUGO BOSS on the capital market

• German indices with strong gains in 2019
• Adjustment of the full-year outlook weighs on HUGO BOSS share price performance
• Dividend of EUR 2.75 per share proposed

Even though the year 2019 was characterized by geopolitical uncertainties and recession fears, this only slightly dampened the otherwise buying mood of investors. In particular, the continuing low interest rate level led investors to continue to invest strongly in the equity markets in 2019. In addition, the robust U.S. economy spread confidence among many capital market participants. Short-term volatility on the stock markets mainly resulted from concerns about China’s economic development and uncertainties surrounding Brexit and the trade conflict between the U.S. and China. However, at the end of the year, in particular the easing of tariffs provided an additional upswing on many important indices. As a result, the lead German index DAX and the equity index MDAX also ended the year with strong gains. While the DAX increased by 25% in the course of the year, the MDAX did even better and ended the year with an increase of 31%.

The MSCI World Textiles, Apparel & Luxury Goods Index, which reflects the share price development of major companies in the apparel and luxury goods segment, was able to recover from the losses of the prior year and increased significantly in 2019, posting growth of 38%. Here, the share price performance of stocks from the luxury goods sector was particularly strong.

After a positive start to the year 2019, the HUGO BOSS share came under increasing pressure as the year progressed. In the second quarter, the escalating trade conflict between the United States and China led to significant share price declines, particularly in the premium and luxury goods sector. The HUGO BOSS share was unable to defy this challenging environment. In the third quarter, persisting macroeconomic uncertainties, particularly in North America, and the difficult environment in Hong Kong caused by the political demonstrations and unrest, burdened the Group’s sales and earnings development. Against this backdrop, HUGO BOSS adjusted its full-year targets on October 10. This resulted in a considerable decline in the share price. By the end of the year, an easing of the trade conflict between the U.S. and China as well as confidence of capital market participants in the Company achieving its adjusted full year targets meant that the HUGO BOSS share was able to recover some of the share price losses. Ultimately, the HUGO BOSS share closed the year 2019 at a price of EUR 43.26. Compared with prior year’s closing price, this corresponds to a decline of 20%.

As was the case in the prior year, PFC S.r.l. and Zignago Holding S.p.A., two entities controlled by the Marzotto family, hold 10% of the voting rights of HUGO BOSS AG. Both companies have pooled their shares by way of a shareholder agreement. 88% of the Company’s shares remain in free float. HUGO BOSS AG still holds 1,383,833 of its own shares, which were purchased as part of a share buyback program between 2004 and 2007. This corresponds to a share of 1.97% of the share capital. No use was made in 2019 of the authorization given at the Annual Shareholders’ Meeting in 2015 to acquire shares in the Company up to a share of no more than 10% of the share capital outstanding on or before May 11, 2020. Legal Disclosures

Three notifications in accordance with Sec. 15a WpHG [“Wertpapierhandelsgesetz”: Securities Trading Act], either to sell or to purchase shares of HUGO BOSS AG, were presented to the Company by members of the Managing Board and Supervisory Board in the reporting period from January 1 to December 31, 2019. These were published on the corporate website at financialreleases.hugoboss.com. In total, members of the Managing Board and Supervisory Board together still hold less than 1% of the shares issued by HUGO BOSS AG. Notes to the Consolidated Financial Statements, Note 26

The Company received several voting rights notifications from investors in the reporting period from January 1 to December 31, 2019. The Company published the original wordings of these notifications on the corporate website at financialreleases.hugoboss.com.

The Company regularly conducts analyses of the shares held in free float, in order to address institutional investors of HUGO BOSS in a more targeted manner. Thus, 98% of the shares were again assignable in the most recent analysis. Besides the regional distribution of the institutional investors, the analysis also enables the Company to determine the proportion of shares held by private shareholders. The latter increased from 10% in the prior year to 17% in 2019. Based on the share register, the Company estimates the total number of its shareholders currently at around 40,000 (2018: around 35,000).

At the end of the year, the HUGO BOSS share, which is listed on the MDAX, took 65th place (2018: 52nd) in Deutsche Börse’s ranking calculated on the basis of market capitalization adjusted for free float and based on the total number of companies in the DAX, MDAX and SDAX. The HUGO BOSS share ranked 36th (2018: 43rd) by trading volume. The weighting of the HUGO BOSS share in the MDAX at the end of December came to 1.0% (December 31, 2018: 1.6%). On average, around 455,000 shares per day were traded on Xetra in 2019 (2018: around 315,000).

HUGO BOSS pursues a profit-based dividend policy that allows shareholders to participate appropriately in the Group’s earnings development. The Managing Board and the Supervisory Board intend to propose to the Annual Shareholders’ Meeting on May 7, 2020, a dividend of EUR 2.75 per share for fiscal year 2019 (2018: EUR 2.70). The proposal is equivalent to a payout ratio of 93% of the Group’s net income attributable to the equity holders of the parent company in 2019 (2018: 79%). Assuming that the shareholders approve the proposal, the dividend will be paid out on May 12, 2020. Based on the number of shares outstanding at year-end, the amount distributed will come to EUR 190 million (2018: EUR 186 million).

HUGO BOSS wants to inform the capital market participants about current developments in the Group in a timely and transparent manner as part of comprehensive communication measures. The dialog between institutional investors and HUGO BOSS takes place in particular as part of national and international conference visits and numerous roadshow activities. In addition, the Company presents itself to interested private investors at dedicated events in cooperation with local banks. In addition to regular personal dialog, the Investor Relations website group.hugoboss.com/investors of HUGO BOSS AG is a key communication tool for providing detailed information and key figures. In the prestigious IR Magazine Awards (Europe), HUGO BOSS took first place in the category “Best overall investor relations (small to mid-cap)” in 2019. In addition, the Institutional Investor magazine awarded the HUGO BOSS Investor Relations program second place in the “Best IR in Germany (small and mid-cap)” category last year amongst other recognitions.