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Net assets

In fiscal year 2015, the development of the Group’s key financial reporting indicators continued to be strongly influenced by the continued expansion of its own retail business. Investments into the sales network led to higher intangible assets, property, plant and equipment and inventories. Efficiency of capital employed, defined as the ratio of trade net working capital to sales, was slightly above the level achieved at the end of 2014 as of the reporting date.

Statement of financial position as of December 31 (in %)

Statement of financial position as of December 31 – assets (in %) (bar chart)

For absolute figures please refer to the Statement of Financial Position

Increase in total assets due to higher inventories, property, plant and equipment and intangible assets

Total assets rose by 8% as of the end of fiscal year 2015 to EUR 1,800 million (December 31, 2014: EUR 1,662 million). This change was driven in particular by an increase in inventories and property, plant and equipment and intangible assets in which currency effects and the expansion of the Group’s own retail business played a key role. At 58%, the share of current assets decreased slightly compared to the prior year (December 31, 2014: 60 %). The share of non-current assets as of December 31, 2015 accordingly came to 42% (December 31, 2014: 40%).

Increase in assets due to higher investments

Property, plant and equipment and intangible assets had risen at the end of the reporting period by 17% compared to the prior year to EUR 622 million (December 31, 2014: EUR 531 million). This was due to currency effects and in particular to the increase in investments. Financial Position, Capital Expenditure

Inventories as of December 31 (in EUR million)

Inventories as of December 31 (in EUR million) (bar chart)

Currency-adjusted increase of 3% in inventories

Inventories increased by 10% to EUR 560 million as of December 31, 2015 (December 31, 2014: EUR 507 million). Adjusted for exchange rate effects, the increase came to only 3%. The slightly higher volume of inventories was largely driven by the further expansion of the Group’s own retail business.

Trade receivables as of December 31 (in EUR million)

Trade receivables as of December 31 (in EUR million) (bar chart)

Currency-adjusted 7% decrease in trade receivables

Trade receivables decreased by 4% year on year to EUR 240 million (December 31, 2014: EUR 251 million). Adjusted for exchange rate effects, this equates to a decrease of 7 %. This was mainly due to declining wholesale business in the reporting period.

Other assets rose by 22% year on year to EUR 297 million (December 31, 2014: EUR 243 million). This development is mainly attributable to an increase in deferred tax assets because of additional temporary differences, higher tax receivables and higher refund claims from returns. Notes to the Consolidated Financial Statements, Note 7

Cash and cash equivalents came to EUR 81 million as of the reporting date (December 31, 2014: EUR 129 million), principally due to decreasing free cash flow. Financial Position, Statement of Cash Flows

Statement of financial position as of December 31 (in %)

Statement of financial position as of December 31 – equity and liabilities (in %) (bar chart)

For absolute figures please refer to the Statement of Financial Position

Increase in equity ratio to 53%

Equity had increased as of the reporting date by 13% to EUR 956 million (December 31, 2014: EUR 844 million). The equity ratio thus rose to 53% as of the reporting date (December 31, 2014: 51%).

Provisions and deferred taxes, at EUR 183 million, were 7% lower than in the prior year (December 31, 2014: EUR 196 million). This includes provisions for pensions and other personnel expenses of EUR 94 million (December 31, 2014: EUR 91 million). Other provisions came to EUR 81 million (December 31, 2014: EUR 95 million) and deferred tax liabilities to EUR 8 million (December 31, 2014: EUR 10 million). The decrease in other provisions chiefly results from the utilization of the provision recognized in the previous year for the early termination of the contract with a trade agent in the Middle East and the reversal of the provision recognized last year in connection with the sale of the production facility in Cleveland, Ohio. Notes to the Consolidated Financial Statements, Note 25

Trade payables as of December 31 (in EUR million)

Trade payables as of december 31 (in EUR million) (bar chart)

Currency-adjusted 2% increase in trade payables

Trade payables increased by 6% year on year to EUR 272 million driven by quantity effects (December 31, 2014: EUR 255 million). After currency adjustments, this corresponds to a rise of 2%.

Other liabilities increased by 10% year on year to EUR 214 million (December 31, 2014: EUR 195 million) and, in addition to VAT liabilities and social security liabilities, mainly contain accruals of rental obligations for the Group’s own retail business as well as accrued vacation, wages and salaries. The year-on-year change primarily results from an increase in the accruals of rental obligations as a result of the expansion of the Group’s own retail business.

Total current and non-current financial liabilities increased by 3% to EUR 176 million as of the reporting date (December 31, 2014: EUR 172 million). The main driver was the increased cash outflow from capital expenditure on property, plant and equipment as well as intangible assets. Due to favorable interest rates, in addition to the utilization of EUR 75 million (December 31, 2014: EUR 100 million) of the syndicated loan, greater use was also made of short-term credit facilities for financing as of the reporting date.

Trade net working capital (in % of sales)

Trade net working capital (in % of sales) (bar chart)

Positive development of trade net working capital in local currencies

Trade net working capital is the HUGO BOSS Group’s key performance indicator for measuring the efficiency of capital employed. The only components factored into the calculation of this indicator are inventories, trade receivables and trade payables. Trade net working capital increased by 5% year on year to EUR 528 million (December 31, 2014: EUR 503 million). In local currencies, the value of this indicator was 2% below that in the prior year. The increase in inventories was fully compensated by the lower trade receivables and higher trade payables. The moving average of trade net working capital as a percentage of sales on the basis of the last four quarters, at 19.5%, was 40 basis points higher than in the prior year (2014: 19.1%).

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