ANNUAL

REPORT

2023

#BEYOUROWN #BEYOUROWN #BEYOUROWN #BEYOUROWN #BEYOUROWN #BEYOUROWN

# YOURWAY# YOURWAY # YOURWAY # YOURWAY # YOURWAY# YOURWAY # YOURWAY

# YOURWAY# YOURWAY # YOURWAY# YOURWAY # YOURWAY # YOURWAY# YOURWAY# YOURWAY

BECOME THE LEADING PREMIUM TECH-DRIVEN FASHION PLATFORM

WORLDWIDE

WE LOVE FASHION WE CHANGE FASHION

BECOME ONE OF THE TOP 100 GLOBAL BRANDS

HELLO HELLO FUTUREHELLOFUTURE FUTURE OUR MOTTO

HELLO FUTURE HELLO ...describes our strong commitment to drive long-term, sustainable, and profitable growth for HUGO BOSS.

HELLO FUTURE HELLO Further successfully executing our "CLAIM 5" strategy remains key. This includes our strong focus on innovation, digitalization, and sustainability.

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GLANCE GLANCE AT A AT A AT A GLANCE AT A GLANCE AT A AT A GLANCE AT A GLANC AT A GLANCE FISCAL YEAR 2023

EUR BILLION GROUP SALES

EUR PER SHARE DIVIDEND PROPOSAL

2023 HIGHLIGHTS HIGHLIGHTS 2023 2023 HIGHLIGHTS 2023 2023 HIGHLIGHTS 2023 2023 HIGHLIGHTS DISCOVER OUR MORE HIGHLIGHTS

+25% SHARE PRICE PERFORMANCE 2023

OUR SHARE

WE STRIVE FOR A PLANET FREE OF WASTE AND POLLUTION

SUSTAINABILITY

GROUP STRATEGY

STRONG

PROGRESS

"CLAIM 5"

STRATEGY.

ALONG OUR

WE ACHIEVED

HELLO

CUSTOMERS

03 HELLO DIGITAL

HELLO

BRANDS

04 HELLO TEAMS

ADDITIONAL INFORMATION

Additional Disclosures on the EU Taxonomy
Responsibility Statement
Auditor's Reports
General Information
Forward-Looking Statements
Ten-Year Overview
Contacts
Legal Notice
Financial Calendar 2024

LEARN OUR DIGITAL ANNUAL REPORT

Our annual report is also available online offering many interactive features. www.annualreport-2023.hugoboss.com

Due to rounding, numbers presented in this Annual Report may not add up precisely to the totals provided.

1 2 3 4 5 COMBINED MANAGEMENT REPORT

CORPORATE GOVERNANCE CONSOLIDATED FINANCIAL STATEMENTS

CHAPTER 1 TO OUR SHAREHOLDERS

10 LETTER TO SHAREHOLDERS

14 MANAGING BOARD

17 REPORT OF THE SUPERVISORY BOARD

24 SUPERVISORY BOARD

26 OUR SHARE

CONSOLIDATED FINANCIAL STATEMENTS

SHAREHOLDERS Annual Report 2023

LETTER TO SHAREHOLDERS

Daniel Grieder, Chief Executive Officer

Dear Shareholders, Dear Readers,

2023 was another year of remarkable success for HUGO BOSS. The second full year of rigorous execution of our "CLAIM 5" growth strategy brought us tremendous achievements across all business areas and strongly supported the momentum of our two brands BOSS and HUGO throughout the year. This enabled us to significantly outperform the global premium apparel market, gain further market share, and achieve record sales of EUR 4.2 billion in fiscal year 2023. Despite further investments in our business, we also recorded a strong operating profit of EUR 410 million. Consequently, we successfully achieved our full-year sales and earnings targets, which we had raised twice during the course of the year.

2023 also marked another major milestone along our growth journey. Thanks to the successful execution of "CLAIM 5," we exceeded our initial 2025 revenue target of EUR 4 billion two years ahead of plan. Back in June, we therefore provided an update on "CLAIM 5" and increased our mid-term financial ambition. We strongly believe in the great potential of BOSS and HUGO, and now aim to generate revenues of EUR 5 billion and an EBIT margin of at least 12%. This will bring us closer to becoming one of the top 100 global brands.

«FUELED BY OUR STRONG BRAND MOMENTUM, WE SUCCESSFULLY CONTINUED OUR GROWTH TRAJECTORY IN 2023.»

With "CLAIM 5," we put consumers at the center of everything we do. Our efforts to turn them into true fans of our brands are clearly paying off: Following our successful branding refresh, we continued to drive the relevance of BOSS and HUGO with spectacular campaigns and unique fashion events. Our latest Spring/Summer 2024 campaigns further build on this success, featuring supermodels Gisele Bündchen and Adwoa Aboah, along with popular BOSS ambassadors Lee Minho and Matteo Berrettini. And with our numerous digital brand initiatives, we are now clearly setting the tone on social media.

Nowhere do our brands come to life more than through our products. Today, we are fully living up to our 24/7 lifestyle promise. In this context, we continue to leverage our BOSS brand lines for Menswear, including the newly established, exclusive Camel line. Building on this, we also introduced BOSS Orange and BOSS Camel to Womenswear in 2023. Last but certainly not least, we expanded our offering at HUGO with the successful launch of HUGO Blue, placing a strong focus on denimwear. To further drive newness, we also co-created inspiring capsules with important partners such as Porsche, the American football league NFL, iconic supermodel Naomi Campbell, and TikTok superstar Bella Poarch.

Unleashing the full potential of digitalization is, and remains, the driving force to realize our vision of becoming the leading premium tech-driven fashion platform worldwide. In 2023, we further advanced our claim "Lead in Digital," by digitalizing key business activities and maintaining a strong focus on leveraging the power of data. Our HUGO BOSS Digital Campus, physically inaugurated last summer, is at the heart of our digital journey. It enables significant progress in better understanding consumers' needs, strengthening customer loyalty, and providing customized content. Our Digital Campus therefore also plays a key role in further enhancing the digital experience across all touchpoints.

Talking of touchpoints: In 2023, we took customer experience to the next level and introduced new and innovative formats. We are not only modernizing and further optimizing our store network, but also offering exciting pop-ups and hospitality experiences. As part of the reopening of our BOSS store in Dubai Mall, for example, we celebrated an impressive takeover of the iconic AURA Skypool. And at our refreshed BOSS store on London's Regent Street, we opened our first in-store BOSS Bar. Beyond that, we rolled out our latest store concepts, turning our physical touchpoints into places of emotion and digital experiences. Around 200 of our stores are already shining in new splendor, such as our new BOSS stores in Milan, Guangzhou, and idyllic Ascona. And finally, we also continued to make progress in strengthening our position in physical wholesale, gaining further visibility and market shares in key European and U.S. department stores.

Also from an operational perspective, 2023 was an exceptional year. As part of our strategic claim "Organize for Growth," we have made first important progress in implementing our supply chain's Digital TWIN and also significantly stepped up investments into our global logistics capacities. A crucial aspect in this context is the expansion of one of our key logistics centers in Germany, with a strong focus on digitalization and automation. At the same time, we are also expanding and enhancing our beautiful headquarters. With a new, modern building and the upgrade of our hospitality services, we are creating a best-in-class working experience for our more than 3,000 employees at the Metzingen site, as our people and teams are essential for the ongoing success of HUGO BOSS.

"CLAIM 5" also contains a strong commitment to sustainability. As part of our new sustainability strategy, "For a bold and better future," we want to address the biggest challenges within our industry: among others, we are intensifying our efforts by pushing zero emissions, fighting microplastics, and increasing circularity. We are fully convinced that sustainability and innovation work hand in hand, and I am excited that BOSS successfully launched its inaugural products made from AeoniQ in 2023, the world's first circular yarn. Examples like this illustrate our commitment to driving change in the fashion industry and show how we want to contribute to creating a planet free of waste and pollution. In this context, we are particularly proud that our numerous sustainability initiatives continue to be recognized externally. In 2023, we were included for the seventh consecutive year in the renowned Dow Jones Sustainability Index World, with the second-best score in our industry.

«WE WILL CONTINUE TO RIGOROUSLY EXECUTE 'CLAIM 5' WITH ALL OUR POWER AND ALL OUR PASSION.»

Dear readers, 2023 was without doubt an extremely successful year for HUGO BOSS. The strong business performance and increased relevance of our brands proves that "CLAIM 5" is the right strategy for HUGO BOSS, implemented at the right time. Building on our regained brand momentum, we are fully committed to making further progress along our "CLAIM 5" journey, as we continue to see tremendous growth opportunities for the years to come. The further successful execution remains our top priority, and we are dedicated to engaging with consumers through exciting marketing initiatives, an exceptional product range, and best-in-class experiences. And of course, we also want you, dear shareholders, to benefit from our success with a strong 25% share price increase in 2023 and a proposed dividend of EUR 1.35 per share.

While we are convinced of the future growth opportunities of HUGO BOSS, we must not forget the macroeconomic and geopolitical challenges that our industry continues to face: elevated levels of inflation and interest rates, weakening global consumer sentiment, and mounting geopolitical tensions, to just name a few. Against this backdrop, we remain particularly vigilant while, at the same time, continuing to push ahead with our strategy execution. We are confident that our brands have all it takes to continue outperforming our industry and gaining further market shares in 2024. Overall, we expect Group sales to increase within a range of 3% to 6%, and operating profit to grow between 5% and 15% to a level of around EUR 430 million to EUR 475 million.

CONSOLIDATED

Let me conclude on a personal note: What truly amazes me is the outstanding motivation of our global HUGO BOSS team. Our nearly 19,000 employees make HUGO BOSS stronger, more sustainable, and more resilient. I therefore want to thank each and every employee for the exceptional commitment and dedication to our Company. Together as one global team, we will continue with all our energy and passion to become a top 100 global brand. Thanks to our excellent team and a strong strategy in place, I am confident that we will continue to lead HUGO BOSS into a highly successful future.

Sincerely yours,

Daniel Grieder

Chief Executive Officer

CONSOLIDATED FINANCIAL STATEMENTS ADDITIONAL INFORMATION

MANAGING BOARD

Yves Müller CFO/COO

Daniel Grieder CEO

Oliver Timm CSO

ADDITIONAL INFORMATION

CHIEF EXECUTIVE OFFICER (CEO)

DANIEL GRIEDER

Daniel Grieder was born in Washington, D.C. (USA) in 1961. While studying at the University of Applied Sciences in Business Administration in Zurich (HWZ Hochschule für Wirtschaft) he founded Max Trade Service AG in 1985 (later renamed Madison Clothing Ltd.), which distributed internationally renowned brands in Switzerland, Austria, and Eastern Europe. From 1997, Daniel Grieder was largely responsible for the successful establishment of Tommy Hilfiger in Europe, taking over the position of Chief Executive Officer Tommy Hilfiger Europe in 2008. After the integration of the Tommy Hilfiger brand into Phillips-Van Heusen (PVH) Corporation, Daniel Grieder became Chief Executive Officer of Tommy Hilfiger Global and PVH Europe in 2014. Since June 2021, Daniel Grieder is Chief Executive Officer of HUGO BOSS and thus member of the Managing Board.

Daniel Grieder is Chief Executive Officer (CEO) and responsible for Business Unit BOSS Menswear, Business Unit BOSS Womenswear, Business Unit HUGO, Business Unit Footwear, Accessories, Bodywear & Hosiery (incl. Global Licenses), Corporate Communications & Public Affairs, Creative Direction, Global Marketing & Brand Communications, Group Strategy & Corporate Development (incl. Global Corporate Responsibility), and Human Resources.

CHIEF FINANCIAL OFFICER (CFO), CHIEF OPERATING OFFICER (COO), DIRECTOR OF LABOR RELATIONS

YVES MÜLLER

Yves Müller was born in Lüneburg (Germany) in 1969. He studied Business Administration at the European Business School in Oestrich-Winkel, Dijon, and San Diego. In 1994, he started his professional career at the auditing and tax

consulting company Arthur Andersen & Co. in Hamburg. During this time, Yves Müller qualified as tax consultant and auditor. In 1999, he joined Tchibo GmbH where he was appointed Chief Financial Officer in 2006. In December 2017, he became a member of the HUGO BOSS Managing Board, taking over the role of Chief Financial Officer (CFO). Since June 2022, Yves Müller additionally assumes responsibility as Chief Operating Officer (COO).

Yves Müller is responsible for Business Planning & Analysis, Construction & Procurement, Global Logistics, Global Sourcing & Production, Group Finance & Tax, Internal Audit, Investor Relations, IT (incl. Information Security), Legal, Compliance & Data Protection, Operations Excellence Projects, and Technical Product Development.

CHIEF SALES OFFICER (CSO)

OLIVER TIMM

Oliver Timm was born in 1971 in Mainz (Germany). After studying Economics at Gerhard Mercator University in Duisburg, he began his professional career at Tommy Hilfiger in 1998, where he held various positions. Amongst others, he was substantially involved in launching the American

brand on the European market. In 2005, he was appointed Managing Director of Tommy Hilfiger Germany. Following the integration of the Tommy Hilfiger brand into Phillips-Van Heusen (PVH), Oliver Timm was appointed President of PVH Europe and later Chief Commercial Officer PVH Europe. In January 2021, Oliver Timm became a member of the HUGO BOSS Managing Board, taking over the role of Chief Sales Officer (CSO).

Oliver Timm is responsible for Customer Relationship Management (CRM), Data & Analytics, Global E-Commerce & Metaverse, Global Merchandise Management, Global Retail Management, Global Retail & Wholesale, Global Sales Development, and Global Travel Retail.

1 2 3 4 5 CORPORATE COMBINED MANAGEMENT REPORT

GOVERNANCE

CONSOLIDATED FINANCIAL STATEMENTS ADDITIONAL INFORMATION

SHAREHOLDERS Annual Report 2023

REPORT OF THE SUPERVISORY BOARD

CHAIRMAN OF THE SUPERVISORY BOARD

HERMANN WALDEMER

Hermann Waldemer was born in 1957 in Munich. He graduated in business administration from the University of Regensburg in 1981 with a focus on finance and tax. Hermann Waldemer then worked as a certified tax advisor and auditor in the auditing industry before joining Philip Morris International in 1987. He held various management positions, including President Western Europe, before assuming the position of Chief Financial Officer in 2008, which he held until his departure in 2012. From 2014 to 2016, he was a member of the Board of Directors of FCA US LLC (Chrysler Group).

Hermann Waldemer was elected to the Supervisory Board of HUGO BOSS AG in 2015 and appointed Chairman in 2020.

Dear Shareholders, Dear Readers,

2023 marked a highly successful year for HUGO BOSS and another important milestone towards achieving its mid-term financial ambition. The rigorous and determined execution of the Company's "CLAIM 5" growth strategy – including significant progress achieved along key brand, product, digital, and sales initiatives – resulted in strong sales and earnings improvements. In fiscal year 2023, the Supervisory Board continued to perform its duties with utmost care, providing comprehensive advice to the Managing Board in a close, trustful collaboration while monitoring its management activities. It entirely performed the duties imposed on it by law, by the Company's Articles of Association, and its own bylaws.

CONSOLIDATED FINANCIAL STATEMENTS

ADDITIONAL INFORMATION

Composition of the Supervisory Board

In fiscal year 2023, there were two personnel changes to the Supervisory Board of HUGO BOSS AG. Effective May 9, 2023, the two employee representatives Anita Kessel and Martin Sambeth both resigned from the Supervisory Board. Daniela Liburdi joined the Supervisory Board on May 9, 2023, as the successor to Anita Kessel. Andreas Flach also joined the Supervisory Board on May 9, 2023, as Martin Sambeth's successor. On behalf of the entire Supervisory Board, I would like to thank both Anita and Martin for the good and trusting cooperation, their tireless commitment and close ties to HUGO BOSS. Supervisory Board

Collaboration between Managing Board and Supervisory Board

The Managing Board informed us regularly, comprehensively, and in a timely manner in both written and oral form of all matters of relevance for HUGO BOSS AG and its Group companies related to strategy, planning, business performance, risk assessment, changes in the risk situation, and compliance. In particular, with regard to the Company's "CLAIM 5" strategy, intense exchange took place between Managing Board and Supervisory Board throughout the year. Additionally, the Chairman of the Audit Committee and I maintained close and regular dialog with the Managing Board. We were kept promptly informed of significant developments and decisions and we reported on these at the following Supervisory Board and Committee meeting at the latest.

All members of the Supervisory Board had sufficient time to review all of the Managing Board's reports and proposals and to contribute their own ideas in Committees and Supervisory Board meetings. Any approvals were issued only after requesting clarification from the Managing Board and discussing the matter extensively with the members of the Managing Board. In urgent cases, the Supervisory Board passed resolutions by means of the circular resolution procedure. At an early stage, the Supervisory Board was directly involved in all decisions of fundamental importance to the Company.

Main topics at the meetings of the Supervisory Board

In fiscal year 2023, a total of four Supervisory Board meetings were held, one each in March, July, September, and December, with the meeting in September lasting two days. All members participated in all of these meetings, with the exception of Tanja Silvana Nitschke who was unable to attend one meeting. In addition, one resolution was passed by means of a circular resolution in February.

In 2023, the Audit Committee met four times in total. All members participated in all of the meetings. The Working Committee met also four times with all members participating in all of the meetings, with the exception of Katharina Herzog who was unable to attend one meeting, but participated in the decisions via a written vote. All committee members participated in the four meetings of the Personnel Committee, with the exception of Christina Rosenberg who was unable to attend one meeting. The Nomination Committee and the Mediation Committee did not meet during fiscal year 2023. Two meetings of the Supervisory Board, and one meeting of the Working Committee and the Personnel Committee were held in a hybrid format, allowing members of the Supervisory Board to either participate in person or virtually via videoconference.

PARTICIPATION IN MEETINGS OF THE SUPERVISORY BOARD AND ITS COMMITTEES1

Member	Supervisory Board (4)	Audit Committee (4)	Working Committee (4)	Personnel Committee (4)	Attendance rate (16)
Hermann Waldemer, Chairman	4/4	4/4	4/4	4/4	16/16
Sinan Piskin, Deputy Chairman	4/4	4/4	4/4	4/4	16/16
Iris Epple-Righi	4/4	–	4/4	–	8/8
Andreas Flach2	2/2	2/2	–	–	4/4
Katharina Herzog	4/4	–	3/4	–	7/8
Anita Kessel2	2/2	–	–	2/2	4/4
Daniela Liburdi2	2/2	–	–	2/2	4/4
Gaetano Marzotto	4/4	4/4	–	–	8/8
Luca Marzotto	4/4	–	4/4	4/4	12/12
Tanja Silvana Nitschke	3/4	–	4/4	–	7/8
Christina Rosenberg	4/4	–	–	3/4	7/8
Martin Sambeth2	2/2	2/2	–	–	4/4
Bernd Simbeck	4/4	4/4	–	4/4	12/12
Robin J. Stalker	4/4	4/4	–	–	8/8

1 The Nomination Committee and the Mediation Committee did not convene in the past fiscal year.

2 Effective May 9, 2023, the two employee representatives Anita Kessel and Martin Sambeth both resigned from the Supervisory Board. Daniela Liburdi joined the Supervisory Board on May 9, 2023, as the successor to Anita Kessel. Andreas Flach also joined the Supervisory Board on May 9, 2023, as the successor to Martin Sambeth.

The meeting of the Supervisory Board in March 2023 focused on the annual financial statements of HUGO BOSS AG and the HUGO BOSS Group as of December 31, 2022, as well as on the audit report prepared by the auditors. At this meeting, the annual financial statements and the consolidated financial statements of HUGO BOSS AG as of December 31, 2022, were approved and ratified. Furthermore, the Supervisory Board's report to the Annual General Meeting and the compensation report for fiscal year 2022 were discussed and adopted. The resolution proposals were adopted later at the Annual General Meeting of HUGO BOSS AG, which was held virtually on May 9, 2023. In addition, Oliver Timm was reappointed as a member of the Managing Board for the period until December 31, 2026, and his service agreement was renewed accordingly. Other topics included the discussion and resolution on the target achievement and target setting for the variable compensation of the members of the Managing Board and an update on the competency profile of the Supervisory Board.

At its meeting in July 2023, the Supervisory Board addressed the current business performance and the strategic further development of the Company's logistics network, including the planned expansion of the flat-packed goods warehouse near its Metzingen headquarters and the financing of this expansion. Furthermore, the Supervisory Board discussed and approved key audit matters for the fiscal year 2023 audit.

The main topics of the meeting in September 2023 included the current business performance, the execution of the "CLAIM 5" strategy and its implications on collection development, business operations, distribution, and marketing. The Supervisory Board also discussed the progress on the implementation of the Company's Digital TWIN initiative as well as the future strategic set-up for the Emerging Markets hub.

At the meeting in December 2023, the budget for fiscal year 2024 was discussed and passed. Furthermore, the ongoing progress made in executing "CLAIM 5" in 2023 was elaborated on in detail. In addition, the findings of the Supervisory Board efficiency review, collected based on a questionnaire and analyzed as well as presented by an external provider, were discussed in detail. The declaration of compliance with the German Corporate Governance Code (GCGC) was analyzed and resolved.

Current business performance, liquidity management, and the risk assessment of the Company were regularly discussed in detail at the meetings of the Supervisory Board and approved where necessary. The meetings of the Supervisory Board also involved regular, detailed reports on the contents of the previous committee meetings. In addition, in 2023, the Supervisory Board primarily focused on topics such as the further execution of the "CLAIM 5" strategy, the Company's capital structure, compliance issues, and the requirements of the GCGC.

Work of the Committees in fiscal year 2023

To perform its duties, the Supervisory Board has formed five Committees: an Audit Committee, Personnel Committee, Working Committee, Nomination Committee, and the legally required Mediation Committee. To the extent legally permissible and insofar as they have been given corresponding authorizations, individual Committees make decisions instead of the full Supervisory Board. Otherwise, they prepare decisions and topic areas for the full Supervisory Board. At regular intervals, the respective committee chairs report to the Supervisory Board in detail about the work of the committees.

In total, the Audit Committee met four times in fiscal year 2023. The main agenda of its meetings concerned the financial reporting of HUGO BOSS AG and the Group with respect to the annual, half-yearly, and quarterly financial statements, the audit of the annual and consolidated financial statements, monitoring of the risk management and internal control system, IT security matters, compliance matters, and risk management. In addition, the Audit Committee requested the declaration of independence from the external auditor and convinced itself of the auditor's independence. In addition to defining the key audit matters of the annual and consolidated financial statements for 2023 and mandating the external auditor, it approved non-audit services and placed a cap on the fees payable for such non-audit services. In addition, the results of the audit review of the combined non-financial statement were discussed.

The Personnel Committee held four meetings in fiscal year 2023. It focused on succession and retention planning and filling strategically important management positions, the compensation system for the Supervisory Board, the target achievement for fiscal year 2022, and preparing the target agreements for the Managing Board.

The Working Committee met four times in fiscal year 2023 and dealt with the current business performance, the strategic alignment of the Group, and preparations for the Annual General Meeting. In addition, the Working Committee also discussed two lease extensions in the U.S. as well as the Company's sport sponsoring activities. It furthermore approved the issue of the Company's first Schuldschein and a local financing agreement for the subsidiary in Brazil.

The Nomination Committee and the Mediation Committee did not convene in the fiscal year under review.

Corporate governance

The Supervisory Board additionally dealt with the principles of good corporate governance within the Company. In December 2023, the Managing Board and the Supervisory Board issued its latest declaration of compliance with the GCGC. The corporate governance statement can be found in the section "Corporate Governance and Corporate Governance Statement." With regard to the annual efficiency review of the Supervisory Board's activities recommended by the GCGC, the Supervisory Board decided to proceed with the tried and tested methodology of an audit using a comprehensive questionnaire. The external evaluation of the completed questionnaires and the suggestions for improvement contained therein were analyzed and discussed in detail at the Supervisory Board meeting in December 2023. Overall, the Supervisory Board drew a favorable conclusion. No individual training measures were carried out in the fiscal year.

Conflicts of interest

No conflicts of interest relating to Managing Board or Supervisory Board members arose in fiscal year 2023. In accordance with the GCGC, these would need be disclosed immediately to the Supervisory Board, as well as to the Annual General Meeting.

Audit of annual and consolidated financial statements for 2023

Deloitte Wirtschaftsprüfungsgesellschaft, Stuttgart, duly audited the consolidated financial statements of HUGO BOSS AG for fiscal year 2023, including the accounting records, which had been prepared by the Managing Board on the basis of the International Financial Reporting Standards (IFRS) in accordance with Sec. 315e (1) HGB, and issued an unqualified audit opinion. This was also the case for the annual financial statements of HUGO BOSS AG for 2023 prepared in accordance with the provisions of the German Commercial Code (HGB) as well as the combined management report for 2023 of HUGO BOSS AG and the Group. The corresponding audit mandate had been assigned by the Audit Committee of the Supervisory Board in accordance with the resolution of the Annual General Meeting held on May 9, 2023. In addition, it was agreed with the auditor that the Chairman of the Audit Committee would have to be informed during the audit without delay about any possible grounds for disqualification or factors affecting impartiality that could not be rectified immediately. It was also agreed that the external auditor is obliged to report on any findings or events arising during the performance of the audit that are of importance to the duties of

ADDITIONAL INFORMATION

the Supervisory Board. The auditor was furthermore required to inform the Supervisory Board or note in the audit report any facts that were ascertained during the audit resulting in any errors in the declaration submitted by the Managing Board and the Supervisory Board in accordance with Sec. 161 (1) Sentence 1 AktG (German Stock Corporation Act). The auditor did not issue any such reports in the fiscal year. Furthermore, the Supervisory Board has convinced itself of the auditor's independence. The possibility of engaging the auditors to perform non-audit services was also discussed. The Supervisory Board received all accounting documents and the Managing Board's proposal for the appropriation of profit as well as the audit report from the external auditor.

The annual financial statements, proposal for the appropriation of profit, consolidated financial statements and combined management report for 2023 for HUGO BOSS AG and the Group, which also contains the combined non-financial statement for HUGO BOSS AG and the Group, and the audit report were discussed and verified in advance by the Audit Committee, followed by the full Supervisory Board in the presence of the external auditor. The external auditor reported on the main findings of the audit, particularly with respect to the key audit matters that had been determined by the Audit Committee for the fiscal year. The auditor was also available to answer any questions and provide additional information. No significant shortcomings in the internal control system and risk management system as a whole were identified in connection with this. Similarly, there were no circumstances indicating any partiality on the part of the external auditor. Finally, the auditor reported on the non-audit services that had been provided in the fiscal year under review. The auditor's findings were approved. Following its final review, the Supervisory Board raised no objections.

Consequently, at its meeting of March 6, 2024, the Supervisory Board approved the financial statements for fiscal year 2023 prepared by the Managing Board. The financial statements of HUGO BOSS AG for fiscal year 2023 were therefore ratified in accordance with Sec. 172 AktG.

For fiscal year 2023, the Managing Board compiled a combined non-financial statement for HUGO BOSS AG and the Group and included this in the combined management report for 2023. The Supervisory Board commissioned Deloitte Wirtschaftsprüfungsgesellschaft, Stuttgart, to perform an audit to obtain limited assurance of this statement. All Supervisory Board members promptly received the combined non-financial statement for HUGO BOSS AG and the Group for fiscal year 2023 and the independent auditor's limited assurance report. The statement and the audit certificate of Deloitte were discussed by the full Supervisory Board on March 6, 2024. Deloitte participated in this discussion and presented the audit results. No objections were raised based on their own review of the combined non-financial statement for HUGO BOSS AG and the Group, and the result of the audit to obtain limited assurance by Deloitte Wirtschaftsprüfungsgesellschaft, Stuttgart, was noted with approval.

The compensation report for fiscal year 2023 was jointly prepared by the Managing Board and Supervisory Board in accordance with the provisions of Sec. 162 (1) and (2) AktG. The Supervisory Board approved the compensation report at its meeting on March 6, 2024. The auditor has separately audited the compensation report. The auditor has audited the compensation report separately as part of the formal audit required by law in accordance with Sec. 162 (1) and (2) AktG.

Thank You

On behalf of the Supervisory Board, I want to thank all members of the Managing Board and all employees of HUGO BOSS for their high level of personal commitment and dedication. Their tireless efforts and great passion laid the foundation for the strong financial and operational performance in fiscal year 2023 and the further progress achieved in successfully executing "CLAIM 5." I also want to thank the employee representatives of HUGO BOSS AG for their very constructive collaboration at any point in time.

Finally, I would like to express my gratitude to you, dear shareholders, for your ongoing trust in our Company.

Metzingen, March 6, 2024

The Supervisory Board

Hermann Waldemer Chairman of the Supervisory Board

CONSOLIDATED FINANCIAL STATEMENTS

ADDITIONAL INFORMATION

SUPERVISORY BOARD

Hermann Waldemer

(Blitzingen, Switzerland) Management Consultant, Chairman of the Supervisory Board, Member since 2015

Iris Epple-Righi

(Munich, Germany) Management Consultant, Member since 2020

Gaetano Marzotto

(Milan, Italy)

Chairman of the Supervisory Board, Gruppo Santa Margherita S.p.A., Fossalta di Portogruaro, Italy, Member since 2010

Luca Marzotto

(Venice, Italy) Chief Executive Officer, Zignago Holding S.p.A., Fossalta di Portogruaro, Italy, Member since 2010

Christina Rosenberg

(Munich, Germany) Management Consultant, innotail, Munich, Germany, Member since 2020

Robin J. Stalker

(Oberreichenbach, Germany) Chartered Accountant, Member since 2020

1 Since May 9, 2023.

Sinan Piskin

(Metzingen, Germany) Administrative Employee/Chairman of the Works Council HUGO BOSS AG, Metzingen, Germany, Deputy Chairman of the Supervisory Board, Member since 2008

Andreas Flach

(Weil der Stadt, Germany) Trade union secretary/project manager of Joint Development Project of IG Metall Baden-Württemberg, Member since 2023

Katharina Herzog

(Reutlingen, Germany) Senior Vice President, Group Finance & Tax HUGO BOSS AG, Metzingen, Germany, Member since 2020

Daniela Liburdi

(Sindelfingen, Germany) Administrative Employee/ Deputy Chairwoman of the Works Council HUGO BOSS AG, Metzingen, Germany, Member since 2023

Tanja Silvana Nitschke

(Inzigkofen, Germany) President of the local German Metalworkers' Union (IG Metall) Reutlingen-Tübingen, Reutlingen, Germany, Member since 2015

Bernd Simbeck

(Metzingen, Germany) Administrative Employee, HUGO BOSS AG, Metzingen, Germany, Member since 2021 (previously already from 2010 until 2015)

Anita Kessel

(Metzingen, Germany) Administrative Employee HUGO BOSS AG, Metzingen, Germany, Member from/until 2015/2023

Martin Sambeth

(Tiefenbronn, Germany) Vice President and Treasurer of the local German Metalworkers' Union (IG Metall) Karlsruhe, Karlsruhe, Germany, Member from/until 2016/2023

Shareholder representatives Employee representatives Supervisory Board Committees1

WORKING COMMITTEE

Hermann Waldemer (Chairman)
Iris Epple-Righi
Katharina Herzog
Luca Marzotto
Tanja Silvana Nitschke
Sinan Piskin

NOMINATION COMMITTEE

Hermann Waldemer (Chairman)
Gaetano Marzotto

PERSONNEL COMMITTEE

• Hermann Waldemer (Chairman)

Daniela Liburdi • Luca Marzotto
Sinan Piskin
Christina Rosenberg
Bernd Simbeck

AUDIT COMMITTEE

Robin J. Stalker (Chairman)
Andreas Flach
Gaetano Marzotto
Sinan Piskin
Bernd Simbeck • Hermann Waldemer

MEDIATION COMMITTEE

(in accordance with Sec. 27 (3) Mitbestimmungsgesetz [Co-Determination Act])

• Hermann Waldemer (Chairman)

• Daniela Liburdi • Gaetano Marzotto • Sinan Piskin

CONSOLIDATED FINANCIAL STATEMENTS

SHAREHOLDERS Annual Report 2023

OUR SHARE

HUGO BOSS shares with strong gains, up 25% in fiscal year 2023 Significant outperformance of relevant indices and most competitors

Resilience in volatile market environment through successful "CLAIM 5" execution

For global equity markets, 2023 was another year characterized by heightened macroeconomic and geopolitical uncertainties. Against the backdrop of an overall volatile and challenging market environment, HUGO BOSS shares recorded significant gains, ultimately ending the year at EUR 67.46 (2022: EUR 54.16). This was supported by the ongoing successful execution of the Company's "CLAIM 5" strategy as well as the increase of our mid-term financial ambition at the Capital Markets Day in June. Consequently, with an increase of 25%, HUGO BOSS shares considerably outperformed not only important indices but also the share price performances of most relevant competitors with the peer group being up 15% on average.

SHARE PRICE PERFORMANCE 2023 (INDEX: DECEMBER 31, 2022 = 100)

1 Burberry Group plc, Capri Holdings Ltd., G-III Apparel Group, Guess Inc., Levi Strauss & Co., Moncler Group, PVH Corp., Ralph Lauren Corp., SMCP Group, Tapestry Inc., VF Corp.

In fiscal year 2023, global equity markets faced substantial challenges stemming from persistent macroeconomic and geopolitical uncertainties. The year commenced with several focal points demanding market attention: the lingering issue of high inflation, Europe's energy crisis-induced natural gas shortage, a brief banking crisis, and China's strategic shift away from its zero-COVID policy. Notably, the trajectory of inflation and the responses of central banks emerged as the predominant theme throughout 2023. Against the backdrop of these challenges, central banks were faced with a delicate balancing act as they had to navigate between the need to aggressively raise interest rates to combat inflation and the need to avert an economic downturn. This dilemma prompted both the Fed and the ECB to raise interest rates to multiyear highs during the course of the year. Despite a relatively turbulent first half of the year, the overall mood on the markets remained optimistic, supported by data confirming the resilience of the global economy beyond

initial expectations, as reflected in particularly robust labor markets, among other things. However, the overall positive sentiment began to deteriorate in the second half of the year as the gradual but slower-than-expected easing of inflation, coupled with mounting geopolitical tensions in the Middle East, prompted a shift to a risk-off mode among capital market participants. The turning point only came in November, with signs of inflation substantially cooling and the anticipation of a return to a more accommodative monetary policy. As the hope for an imminent end to rate hikes gained traction, markets experienced a significant rebound from November onward. This year-end resurgence propelled global equity markets to perform above the annual average, concluding 2023 on an overall positive note.

HUGO BOSS SHARE IN COMPARISON TO MAJOR INDICES (CHANGE IN %)

	1 year	3 years	5 years	10 years
HUGO BOSS share	25	147	25	(35)
DAX	20	22	59	75
MDAX	8	(12)	26	64
MSCI World Textiles, Apparel & Luxury Goods	11	3	70	97

Overall, and despite the high level of macroeconomic and geopolitical uncertainty, 2023 proved to be a risk-on year for equities. In this context, Germany's major indices recorded robust gains in 2023, with the DAX up 20% and the MDAX up 8%. The MSCI World Textiles, Apparel & Luxury Goods Index, which reflects the share price performance of key companies in the apparel and luxury goods segment, also developed positively in 2023, ending the year up 11%.

THE HUGO BOSS SHARE

	2023	2022
Number of shares	70,400,000	70,400,000
Thereof outstanding shares	69,016,167	69,016,167
Thereof own shares	1,383,833	1,383,833
Share price in EUR1
Last (December 31)	67.46	54.16
High	75.26	58.52
Low	54.46	43.65
Market capitalization in EUR million (December 31)	4,749	3,813
Earnings per share in EUR2	3.74	3.04
Price-earnings ratio3	18.0	17.8
Dividend per share in EUR4	1.35	1.00
Dividend yield in %3, 4	2.0	1.8
Amount distributed in EUR million4	93	69
Payout ratio in %2, 4	36	33

¹ Xetra.

2 Based on net income attributable to shareholders.

3 Based on closing price (December 31).

Against the backdrop of the overall challenging market environment in 2023, the HUGO BOSS share showcased remarkable resilience, driven by the rigorous and successful execution of our "CLAIM 5" strategy. In the first months of 2023, investor sentiment was buoyed by expectations surrounding China's reopening and strong demand from European consumers. This enabled our share to record a very positive start to the year. Furthermore, the ongoing strong brand momentum of BOSS and HUGO and subsequent robust operational performance provided additional impetus to our share price performance – in particular, as HUGO BOSS not only exceeded its full-year guidance for 2022, which had been revised upwards twice during the course of the year, but also raised its full-year outlook for 2023 in May. At its Capital Markets Day in June 2023, HUGO BOSS gave a strategic update on "CLAIM 5" and also raised its mid-term financial ambition. As a result, our share rose to a five-year high of EUR 75.26 in mid-July. While the renewed raising of our full-year guidance for fiscal year 2023 provided further support to our share price performance in August, macroeconomic and geopolitical uncertainties further increased, amplifying concerns about consumer resilience. This was compounded by a slower-than-anticipated recovery in China and a normalization of demand in the U.S. and Europe. Consequently, the overall consumer sector faced pressure, and investors adopted a risk-off stance starting in September. This resulted in a substantial de-rating of the broader premium and luxury apparel market, including the shares of HUGO BOSS, which reached their annual low of EUR 54.46 end of October, just before the publication of Q3 results. The latter, however, provided relief to investors, demonstrating HUGO BOSS' ability to successfully navigate away from broader industry trends, thus allowing our share to partially offset losses incurred in prior weeks. Towards the end of the year, the overall brightening market sentiment provided further stimulus to our share. Ultimately, our share closed 2023 at EUR 67.46, marking a robust 25% year-over-year increase and a noteworthy outperformance compared to relevant indices and most relevant competitors.

ISIN, WKN, AND TICKER SYMBOL HUGO BOSS SHARE

ISIN	DE000A1PHFF7
WKN	A1PHFF
Ticker symbol	BOSS

Stock exchanges: Xetra, Frankfurt/Main, Stuttgart, Dusseldorf, Hamburg, Munich, Hanover, Berlin/Bremen.

The HUGO BOSS share, which is listed in the German MDAX, improved to 51st place (2022: 56th) in Deutsche Börse's free-float-adjusted market capitalization ranking at the end of 2023, based on the total number of companies in the DAX, MDAX, and SDAX. While the HUGO BOSS share ranked 48th in terms of trading volume (2022: 48th), the weighting of the HUGO BOSS share in the MDAX increased to a level of 2.7% at the end of 2023 (December 31, 2022: 2.2%). On average, around 270,000 shares per day were traded on Xetra in 2023 (2022: around 475,000). While still at a high level, trading volumes came down somewhat, reflecting both general lower volumes traded on German indices and a higher level of stability in the shareholder base through a successful shift towards long-term-oriented investors.

During 2023, PFC S.r.l. and Zignago Holding S.p.A., each controlled by the Marzotto family, maintained their strategic investment in HUGO BOSS. As of December 31, 2023, their voting rights thus continued to total 15.45%. Both companies have pooled their shares through a shareholder agreement. HUGO BOSS itself holds 1,383,833 own shares, which were purchased as part of a share buyback program between 2004 and 2007. This corresponds to a share of 1.97% or EUR 1,383,833 of the share capital. The remaining 82.55% of the shares were held in free float. Legal Disclosures

At the Annual General Meeting 2020, HUGO BOSS was granted a renewed authorization to buy back shares up to a proportion of 10% of the outstanding share capital on or before May 26, 2025. The Company did not make use of this authorization as of December 31, 2023. Legal Disclosures

In fiscal year 2023, members of the Managing Board acquired additional HUGO BOSS shares. Details on all transactions conducted by the Managing Board and the Supervisory Board on their own account reported to HUGO BOSS in accordance with Article 19 regulation (EU) No. 596/2014 (Market Abuse Regulation) is published on the Company's website at financialreleases.hugoboss.com. In total, members of the Managing Board and the Supervisory Board continued to hold around 1.5% of the shares issued by HUGO BOSS at the end of fiscal year 2023. Notes to the Consolidated Financial Statements, Note 25

The Company received several voting rights notifications from institutional investors in fiscal year 2023. The original wordings of these notifications are published on our corporate website at financialreleases.hugoboss.com.

HUGO BOSS regularly conducts analyses of the shares held in free float, in order to address institutional investors in a targeted manner. In the most recent analysis as of December 31, 2023, 97% of the shares could be allocated. Besides the regional distribution of institutional investors, the analysis also allows to determine the proportion of shares held by private shareholders. With around 10% in 2023, the latter remained on the prior-year level. Based on the share register, the Company estimates that the total number of its shareholders remained broadly stable at around 40,000 as of December 31, 2023 (2022: around 40,000).

HUGO BOSS maintains a close dialog with capital market participants and is continuously monitored by a large number of financial analysts, with 22 analysts regularly publishing research reports on HUGO BOSS (2022: 22 analysts). As of December 31, 2023, 64% of analysts recommended investors to buy our share (2022: 41%), 36% to hold our share (2022: 55%), and 0% to sell our share (2022: 4%) coupled with an average target price of EUR 79.36 (2022: EUR 59.82).

DIVIDEND PER SHARE (IN EUR)

1 Dividend proposal.

2 Due to the COVID-19 pandemic, HUGO BOSS had suspended its dividend payment for fiscal year 2019 and 2020, with the exception of the legal minimum dividend of EUR 0.04 per share.

In view of the strong operational and financial performance in 2023, the very solid financial position, and management's confidence in the Company's long-term growth opportunities, the Managing Board and the Supervisory Board intend to propose to the Annual General Meeting on May 14, 2024, a dividend of EUR 1.35 per share for fiscal year 2023, corresponding to an increase of 35% year over year (2022: EUR 1.00). Thereby, the increase in proposed dividend is higher than the increase in net income attributable to shareholders. The proposal is equivalent to a payout ratio of 36%, in line with the Company's mid-term target payout ratio of between 30% and 50%, as laid out in "CLAIM 5." Assuming that shareholders approve the proposal, the dividend will be paid out on May 17, 2024. Based on the number of shares outstanding at the end of the year, the amount distributed will total EUR 93 million (2022: EUR 69 million). Outlook

HUGO BOSS aims to inform capital market participants about the Company's current business development as well as its operational and financial performance in a timely and transparent manner as part of comprehensive communication measures. With our extensive Investor Relations activities, we speak to institutional investors, in particular, at national and international conferences as well as during numerous global roadshow activities. As part of our Capital Markets Day 2023, HUGO BOSS presented an update on its "CLAIM 5" strategy and increased its mid-term financial ambition, enabling attending financial analysts and institutional investors to directly interact with the Managing Board. Also going forward, HUGO BOSS will regularly inform capital market participants about strategic progress and developments. In addition, we regularly present HUGO BOSS to interested private shareholders at dedicated events. Our Investor Relations website group.hugoboss.com/investors is a key communication tool for providing detailed information, including press releases, voting rights notifications, financial reports, the financial calendar, and presentations of roadshows and conferences.

In 2023, the work of our Investor Relations team was awarded several times, including the renowned Institutional Investor Award by Institutional Investor (first place in consumer sector small-l and mid-cap) and the Investors' Darling Award by manager magazin, and HHL Leipzig Graduate School of Management (second place in MDAX). In addition, our HUGO BOSS 2022 Digital Annual Report received the Digital Communications Award (first place in CSR & Annual Report). With its bold motto "Power," reflecting the successful execution of numerous strategic initiatives, and its fully digital-first approach including several interactive features, our Annual Report has taken the user journey to the next level. irawards.hugoboss.com

CONSOLIDATED FINANCIAL STATEMENTS

CHAPTER 2 COMBINED MANAGEMENT REPORT

33 GROUP PROFILE

33 Business Activities and Group Structure
39 Group Strategy
50 Group Management
55 Employees and Teams
62 Product Development and Innovation
67 Sourcing and Production
71 Sustainability

76 COMBINED NON-FINANCIAL STATEMENT

98 REPORT ON ECONOMIC POSITION

98 General Economic Situation and Industry Development
101 Comparison of Actual and Forecast Business Performance
105 Earnings Development
116 Net Assets
119 Financial Position
125 HUGO BOSS AG

129 OUTLOOK

133

REPORT ON RISKS AND OPPORTUNITIES

157

OVERALL STATEMENT ON THE BUSINESS PERFORMANCE AND SITUATION OF THE GROUP

The chapters "Legal Disclosures" (pp. 202–205) and "Additional Disclosures on the EU Taxonomy" (pp. 286–288) are also part of the Combined Management Report.

CONSOLIDATED FINANCIAL STATEMENTS ADDITIONAL INFORMATION

BUSINESS ACTIVITIES AND GROUP STRUCTURE

Leading global fashion and lifestyle company with premium positioning Portfolio strategy with two unique brands – BOSS and HUGO

Strong global footprint with ~8,000 points of sale and >70 digital markets

Business activities

HUGO BOSS AT A GLANCE

1 Full-time equivalents (FTE).

HUGO BOSS, headquartered in Metzingen (Germany), is a leading global fashion and lifestyle company in the premium segment, offering a comprehensive range of high-quality women's and men's apparel, shoes, and accessories. The Company pursues a portfolio strategy, with the HUGO BOSS platform currently consisting of two globally renowned brands – BOSS and HUGO. Both brands are clearly distinguished by individual characteristics. At the same time, they share equally high standards in terms of quality, innovation, and sustainability, while ensuring that consumers are perfectly dressed 24/7 and for every occasion. Our "CLAIM 5" growth strategy is closely linked to our vision of being the leading premium tech-driven fashion platform worldwide and our ambition of becoming one of the top 100 global brands. Key to the successful execution of "CLAIM 5" is the passion and commitment of our around 19,000 employees worldwide (2022: around 17,000). In fiscal year 2023, HUGO BOSS generated record sales of EUR 4.2 billion (2022: EUR 3.7 billion), thus surpassing the EUR 4 billion threshold for the first time in the Company's history. Group Strategy

With BOSS, we are addressing consumers who lead a self-determined life, show a clear attitude, and pursue ambitions with determination, embodying the motto – "Be your own BOSS." As a 24/7 lifestyle brand, BOSS offers the perfect outfit for every occasion – from the office and formal occasions to leisure and sport. In this context, the brand covers all wearing occasions, operating four clearly distinguishable brand lines. The largest brand line, BOSS Black, focuses on the brand's modern tailoring offering as well as smart casualwear. At the same time, BOSS Camel serves an even more exclusive product assortment by focusing on the brand's high-end tailoring heritage. Casualwear products are largely offered under the BOSS Orange brand line, while BOSS Green puts a strong emphasis on athleisurewear, dressing consumers for an active lifestyle. Further strengthening its casualwear offering, which BOSS has gradually expanded in recent years, remains a key focus area, primarily intended to attract new, younger customers. At the same time, BOSS is committed to continue dominating formalwear by driving innovation in this segment and offering a superior price-value proposition.

HUGO targets consumers who consider their way of dressing as an expression of their individual personality – clearly representing the motto "HUGO your way." HUGO focuses on a broad range of both commercial and contemporary products, reflecting the brand's authentic and unconventional style while ensuring customers a stylish appearance in every situation. In this context, HUGO introduced its new HUGO BLUE brand line, which is putting a strong emphasis on seizing business opportunities in denimwear, with the first products being launched in early 2024. At the same time, the existing product range will be available under HUGO RED from now on, placing a strong focus on street tailoring. Group Strategy, "Product is Key"

In addition to a broad range of best-selling products and our seasonal BOSS and HUGO collections, inspiring capsule collections and high-impact collaborations with well-known brands and personalities increase the relevance of BOSS and HUGO. By doing so, we aim to appeal primarily to a younger audience, above all millennials with BOSS and the Gen Z at HUGO, which is of particular relevance for the premium apparel industry. To drive brand heat, boost brand awareness, and activate fans around the globe, we are pursuing two clearly distinguished marketing strategies, with a strong focus on social media. In this context, we are putting a particular emphasis on both global star-studded campaigns as well as exciting brand events. Group Strategy, "Boost Brands," "Product is Key"

Design and development of our brands' collections is mainly carried out at the Group's headquarter in Metzingen (Germany), while the development centers in Coldrerio (Switzerland) and Morrovalle (Italy) are responsible for specific product groups. In addition, we have granted licenses for the development and distribution of products including fragrances, eyewear, watches, children's fashion, as well as newly introduced lifestyle categories such as equestrian and cycling. To increase speed-to-market capabilities and shorten the product development process, products at HUGO BOSS are meanwhile predominantly developed digitally. Product Development and Innovation

In fiscal year 2023, HUGO BOSS produced 17% of its total sourcing volume at its own facilities (2022: 14%). Our five own production sites are all located in Europe, with Izmir (Turkey) accounting for the vast majority of it. As part of "CLAIM 5," already in 2022, we significantly expanded our capacities at this site by further strengthening the production of casualwear. In 2023, 83% of the global sourcing volume was sourced from external contract suppliers or procured as merchandise (2022: 86%). Partner operations are mainly located in Asia and Europe. Sourcing and Production

Digitalization represents a key enabler for implementing our Company's vision of being the leading premium tech-driven fashion platform worldwide. In order to exploit the full potential in the digital sphere, within our strategic claim "Lead in Digital" we anchored a strong commitment to further driving the digitalization of our business activities along the entire value chain. This includes all relevant areas from digital trend detection and product creation to AI-enabled pricing, digital showrooms, and innovative experiences in the metaverse. The HUGO BOSS Digital Campus is thereby at the heart of our digital activities, aiming at further expanding our digital analytics capabilities, strengthening our global online activities, and driving meaningful insights and efficiencies along our value chain. With regards to the latter, 2023 saw the launch of our important Digital TWIN initiative, a tech-driven business operations platform, which is intended to further increase the flexibility and transparency of our supply chain. Group Strategy, "Lead in Digital," "Organize for Growth"

At HUGO BOSS, we are committed to protecting our planet and ensuring a livable future for the generations to come. Consequently, we attribute high importance to sustainability, a cause that is essential to our Company's corporate responsibility and ongoing business activities. Our sustainability strategy aims at making a vital contribution to a planet free of waste and pollution. At the same time, we aim at maintaining the high quality and durability of our products, while ensuring that they are produced with social and environmental responsibility at all times. Our ambitious sustainability targets thus represent an integral part of our business and are firmly anchored in our "CLAIM 5" strategy. With our clear commitment to sustainability, we put consumers and their high expectations with regard to sustainability at the core of all business activities. Sustainability

The product offering of BOSS and HUGO is distributed across a total of 131 countries (2022: 132 countries). Our distribution activities are split into three sales regions. EMEA, which includes Europe, the Middle East, and Africa, represents by far the largest region in terms of sales with a share of 61% in 2023 (2022: 63%). The Americas and Asia/Pacific account for 23% and 14% of Group sales (2022: 22% and 13%), respectively, while the remaining 2% are generated within our licensing business (2022: 3%). Earnings Development, Sales and Earnings Development of the Business Segments

To fully leverage brand power across all points of sale, we continue to optimize our distribution structure as part of "CLAIM 5." In this context, we particularly strive at fully leveraging our high-quality channel mix to ensure a seamless brand experience across all consumer touchpoints. The distribution of BOSS and HUGO thus ranges from brick-and-mortar retail and brick-and-mortar wholesale to the digital channel.

HUGO BOSS OMNICHANNEL DISTRIBUTION

In 2023, our brick-and-mortar retail business accounted for 54% of Group sales (2022: 55%). At year-end, we operated 489 freestanding retail stores globally (2022: 470). In order to exploit the full potential of our brick-and-mortar retail business, we aim to further improve the productivity of our existing store network, which currently stands at 12,400 EUR per sq m, while also selectively expanding it across key markets. The former also includes the rollout of our latest store concepts for BOSS and HUGO, which are aimed at further enhancing the customer experience. In addition, we are running factory outlets as well as self-managed shop-in-shops in department stores as part of the concession model. In total, we operated 1,418 own brickand-mortar points of sale at year-end (2022: 1,316), with a variety of omnichannel services closely linking brick-and-mortar retail with our own online business.

Our brick-and-mortar wholesale business accounted for 25% of Group sales in the past fiscal year (2022: 25%). While department stores and specialist retailers sell BOSS and HUGO products either in separate shop-inshops or in a multi-brand environment, franchise partners operate freestanding stores independently, primarily in emerging markets not served by our own retail business. As part of "CLAIM 5," further strengthening our global franchise business remains a focus area also going forward. In total, our wholesale business includes around 6,400 brick-and-mortar points of sale, including around 350 freestanding stores managed by franchise partners (2022: around 6,100 brick-and-mortar points of sale including around 300 franchise stores). Overall, including our own freestanding retail stores, shop-in-shops, and outlets, consumers can thus experience and purchase BOSS and HUGO products at around 7,800 brick-and-mortar points of sale globally (2022: around 7,400).

In line with our strategic claim "Lead in Digital," we are also striving to continuously improve the online journey at all digital touchpoints – from our own online flagship hugoboss.com, to our online concession business, as well as digital wholesale. Having continued our double-digit growth trajectory also in the past fiscal year, our digital business has strongly outgrown the overall digital market, enabling further market share gains for BOSS and HUGO. Overall, the share of total digital sales consequently increased to 19% of Group sales in 2023 (2022: 18%). Also going forward, HUGO BOSS aims to drive superior growth in this channel, thus targeting an increase in its digital sales to a level of more than 20% of Group sales by 2025. Our own online flagship hugoboss.com plays a key role in this context. In this regard, we made further strong progress in enhancing the digital experience at this important touchpoint during the course of 2023. As of today, customers from 73 markets can shop BOSS and HUGO products via hugoboss.com (2022: 70 markets). In addition, we successfully relaunched our hugoboss.com app in early 2023, thus further strengthening the mobile shopping experience. Group Strategy, "Drive Omnichannel," Earnings Development

Group structure

All key management functions are based at our headquarters in Metzingen (Germany). The Group is managed by its parent company HUGO BOSS AG, which – as a German stock corporation – has a dual management and control structure. Consequently, the Managing Board is responsible for managing the Group and successfully executing the Group strategy. The activities of the Managing Board are monitored by the Supervisory Board, which is also on hand to advise the Managing Board. In addition to HUGO BOSS AG, the Group is made up of 64 consolidated subsidiaries that bear responsibility for their local business activities. This includes 41 subsidiaries that are organized as distribution companies as well as four production companies. Notes to the Consolidated Financial Statements, Basis of Consolidation

HUGO BOSS is structured by region, with our business segments being EMEA, the Americas, Asia/Pacific, and the license business.

	Managing Board
Central departments		Brand Management/Business Units		Human Resources
	Business Operations		Internal Audit
	Business Planning & Analysis/ Risk Management		Investor Relations
	Construction & Procurement		IT
	Corporate Communications		Legal/Compliance
	Design/Creative Management		Logistics
	Finance/Tax		Marketing
	Group Strategy		Omnichannel
Operating segments	EMEA	Americas	Asia/Pacific	Licenses
Hubs (Individual markets)	Northern Europe
	Central/ Eastern Europe	Americas (United States/ Canada/ Latin America)	China
	Western Europe		Southeast Asia/
	Emerging Markets		Pacific

HUGO BOSS GROUP STRUCTURE

The functions established in the central departments of HUGO BOSS AG cover all relevant parts of the value chain, particularly the design and creative management, product development, production, sourcing, and distribution of our collections to the respective markets. Our "CLAIM 5" strategy is designed and successfully executed on a market-level in order to ensure strong customer focus and respond dynamically to marketspecific developments. The individual markets are grouped into hubs, with local management reporting directly to the Chief Sales Officer (CSO). In doing this, we ensure close alignment between individual markets and central functions as well as short decision-making processes. In addition, certain functions are pooled in the hubs and in the central departments across countries to make the most effective use of specialist skills and to generate cost benefits.

KEY LOCATIONS/GLOBAL MARKET PRESENCE

CONSOLIDATED FINANCIAL STATEMENTS ADDITIONAL INFORMATION

SHAREHOLDERS Annual Report 2023

GROUP STRATEGY

Vision to be the leading premium tech-driven fashion platform worldwide

Driving relevance for BOSS and HUGO with the ambition of becoming one of the top 100 global brands Mid-term financial ambition raised following successful execution of "CLAIM 5" strategy

At HUGO BOSS, we see considerable business opportunities in today's rapidly changing world and are committed to fully exploiting these opportunities in the coming years. With our two unique brands, BOSS and HUGO, and their broad range of premium apparel, shoes, and accessories, we are well positioned to benefit in particular from a globally growing middle and upper class. In this context, we are especially focusing on younger consumers, such as millennials and Gen Z. The latter is particularly relevant for the premium apparel industry, as it is estimated to make up the largest consumer group within the sector by 2030. To meet the high demands of these consumer groups, we strive to further increase the relevance of both BOSS and HUGO in the coming years, based on appealing brand initiatives, products with superior price-value proposition, and a seamless consumer experience across all touchpoints. In this context, we aim to fully exploit the great potential of digitalization, making our value chain even more efficient and flexible, while consistently focusing on driving sustainability.

"CLAIM 5" growth strategy

Against this backdrop, we introduced our "CLAIM 5" growth strategy in August 2021, outlining our 2025 financial ambition. At the very heart of "CLAIM 5" is our aim to substantially increase brand relevance, drive superior top-line growth, and thus strongly increase market shares of BOSS and HUGO.

ADDITIONAL INFORMATION

"CLAIM 5" is closely linked to our vision and ambition of being the leading premium tech-driven fashion platform worldwide and becoming one of the top 100 global brands. In this context, we are putting consumers at the center of all our activities, as we aim to turn them into true fans of BOSS and HUGO and retain their loyalty. Our strategy is based on five strategic claims: "Boost Brands," "Product is Key," "Lead in Digital," "Drive Omnichannel," and "Organize for Growth." It also includes a strong commitment to sustainability, together with a rigorous executional road map, and a firm commitment on empowering people and teams. Employees and Teams

GROWTH STRATEGY "CLAIM 5"

Since the introduction of "CLAIM 5," we have achieved significant progress across all five strategic priorities. Driven by the powerful and rigorous strategy execution and supported by our bold branding refresh initiated in early 2022, momentum for both BOSS and HUGO has since accelerated sharply. In doing so, both brands made significant progress in increasing brand relevance and strongly expanded market shares worldwide. In this context, after having surpassed the EUR 3 billion threshold for the first time in 2022, Group sales already exceeded our initial mid-term financial ambition of EUR 4 billion in fiscal year 2023, thus two years ahead of plan. Consequently, at its Capital Markets Day in June 2023, HUGO BOSS provided an update on its "CLAIM 5" growth strategy and raised its mid-term top- and bottom-line ambition. HUGO BOSS is now aiming for sales of EUR 5 billion and an EBIT margin of at least 12%.

"With 'CLAIM 5,' we have introduced the right strategy at the right time. Thanks to the dedication and passion of our teams, we delivered exceptional results and exceeded our initial mid-term financial ambition of EUR 4 billion already in 2023, two years ahead of plan," says Daniel Grieder, CEO of HUGO BOSS. "And we have everything it takes to continue our success story. By rigorously executing 'CLAIM 5,' we have every confidence of delivering superior top- and bottom-line improvements also in the years to come."

OUR STRATEGY

ADDITIONAL INFORMATION

To maintain our strong momentum and deliver on our updated mid-term financial ambition, the rigorous execution of our "CLAIM 5" strategy will take center stage also going forward. At the same time, we will continue to invest into our business. In this context, we are committed to making further progress along our five strategic claims, leverage global growth opportunities, and drive noticeable top- and bottom-line improvements also in the years to come. Group Strategy, 2025 Financial Ambition

CLAIM 1 – Boost Brands

To significantly increase the relevance and perception of our brands, we comprehensively renewed the brand images of BOSS and HUGO in 2022 – from logos, to product and marketing, up to new design concepts for our physical and digital consumer touchpoints. Since the successful branding refresh, both brands present themselves significantly bolder, younger, and more emotional than ever before. Going forward, we will build on the robust brand momentum of BOSS and HUGO to further anchor our position in the consumers' minds and drive brand power in the coming years.

To further increase brand relevance, particularly among the younger audience, HUGO BOSS will continue to pursue and develop its two-brand strategy. This will continue to be supported by two clearly distinguishable marketing strategies for BOSS and HUGO aimed at activating consumers across all touchpoints and maximizing consumer impact. As part of "CLAIM 5," we will therefore continue our successful digital-first marketing strategy, supported by star-studded campaigns, inspiring collaborations, and unique brand events. To realize this, marketing investments will remain at a level between 7% and 8% of Group sales until 2025. This is aimed at further increasing the brand value of BOSS and HUGO in the years to come. Fully in line with this range, in fiscal year 2023 our marketing investments amounted to 7.8% of Group sales, and thus broadly at the prior-year level (2022: 7.9%). Combined Non-Financial Statement, Brand Power

Following up on the comprehensive branding refresh in 2022, the launch of our brands' latest global marketing campaigns represented a particular highlight in 2023. To further engage with BOSS and HUGO fans worldwide, the 360° campaigns continued to significantly drive momentum, attracting new and younger consumers while also strongly engaging our existing customer base. The BOSS campaigns for Spring/Summer and Fall/Winter 2023 – embodying the striking slogan "BOSSes aren't born. They're made." – once again featured a star-studded diverse cast, including top models Naomi Campbell and Gigi Hadid, NFL superstar Patrick Mahomes, as well as our BOSS brand ambassadors, runner Alica Schmidt, tennis champion Matteo Berrettini, and TikTok superstar Khaby Lame. The simultaneous HUGO campaigns – reinforcing the brand's mantra "HUGO your way" – focused on stars of the Gen Z, with brand ambassador and TikTok creator Bella Poarch headlining as the face of the campaigns.

To further drive brand heat and engage with consumers all over the world, both BOSS and HUGO regularly host exciting brand events. In 2023, these included highly successful see-now-buy-now fashion shows for BOSS in Miami and at Milan Fashion Week as well as popular sporting events in areas such as skiing, motor sports, and tennis. In March 2023, fully in line with our strategic claim "Lead in Digital," BOSS presented selected pieces from the Spring/Summer 2023 collection virtually at Metaverse Fashion Week. HUGO, on the other hand, celebrated London Fashion Week with the launch of its HUGO x Bella Poarch capsule collection while also hosting the live music event series "HUGO Nights" in Shanghai, among other places. On top of that, various collaborations with inspiring personalities and brands spurred momentum throughout 2023.

Altogether, our numerous brand initiatives in 2023 once again resulted in a global buzz on social media and beyond as well as a strong outperformance compared to key competitors. This became particularly evident on TikTok, where both our brands strongly outgrew key competitors in terms of reach, while BOSS also continued to outperform key peers in terms of follower growth on Instagram. Overall, this enabled us to further increase our brand value in 2023, bringing us one important step closer to our ambition of becoming one of the top 100 global brands. Combined Non-Financial Statement, Brand Power

CLAIM 2 – Product is Key

Our products are at the very heart of all our business activities. As part of "CLAIM 5," we will keep investing to maintain our superior price-value proposition. Ensuring premium quality, a high level of innovation and sustainability, and guaranteeing clear distinguishing features is intended to further strengthen the positioning of BOSS and HUGO in the premium and affordable luxury segment of the global apparel market. In this context, we will continue to put strong emphasis on further enhancing both brands' 24/7 lifestyle images, ensuring that our customers are perfectly dressed for every occasion – from the office and formal occasions to leisure and sport.

GROWTH AMBITION BY BRAND1 (IN EUR BILLION) GROWTH AMBITION BY BRAND (IN EUR BILLION)

1 As presented at our Capital Markets Day in June 2023.

By unlocking the full potential of BOSS and HUGO, we are targeting strong growth across all our brands. At BOSS, we aim at further strengthening our premium positioning in both menswear and womenswear, with a particular focus on millennials. To live up to this target and further strengthen our 24/7 lifestyle promise, at BOSS Menswear, we will continue to fully exploit the potential of the brand lines BOSS Black, BOSS Orange, BOSS Green, as well as of the exclusive BOSS Camel line introduced in late 2022. With the latter being well received across several key markets in 2023, we plan to expand the BOSS Camel product offering in 2024 and beyond, thus further strengthening our affordable luxury positioning. In 2023, building on the success within BOSS Menswear, the Camel line was also introduced to Womenswear while also having reintroduced the Orange line. Products ranging from high-end tailoring to smart casual and active lifestyles will therefore be part of both BOSS Menswear and BOSS Womenswear from now on. At HUGO, we aim at attracting particularly the Gen Z and young-minded consumers. Consequently, HUGO focuses on a broad range of both commercial and contemporary products, reflecting the brand's authentic and unconventional style while ensuring customers a stylish appearance in every situation. In this context, we

will explicitly seize opportunities in denimwear with the launch of the HUGO BLUE brand line in early 2024. At the same time, the existing product range will be available under HUGO RED from now on, placing a strong emphasis on street tailoring.

To further increase the brand relevance of BOSS and HUGO, the launch of various capsule collections and high-impact collaborations plays a key role along with both brands' main collections. In 2023, BOSS developed and launched several capsule collections with brand ambassadors such as Naomi Campbell as well as strong partners including Porsche, Samsonite, and the American football league NFL. HUGO, on the other hand, teamed up with audio lifestyle company Urbanista and brand ambassador Bella Poarch, among others. On top of that, both brands aim to leverage the full potential of new and existing hero products, such as the innovative BOSS Performance Suit, the iconic BOSS Statement Sweater, or the trendy HUGO Outerwear Jacket. Product Development and Innovation

In terms of wearing occasions, and fully in line with both brands' 24/7 lifestyle images, we are committed to leveraging our growth potential across all brands and all wearing occasions. In this context, we continue to exploit the full potential of casualwear to be among the forerunners of the trend towards a more casual lifestyle. Already today, our casualwear business accounts for around 50% of Group sales. In addition to offering a wide range of casualwear styles, the ongoing expansion in this segment also focuses on continuing to blur the lines between casualwear and formalwear. As these two occasions have become increasingly interlinked, HUGO BOSS has been able to seamlessly close the gap between tailoring and sportswear. At the same time, we will further strengthen our formalwear business, as tailoring remains firmly anchored in our Company's DNA. Through a modern interpretation, innovative product solutions, and the continuing trend towards a more casual lifestyle, formalwear continues to offer enormous potential for both our brands. Accounting for around 25% of Group sales, our brands' formalwear offerings comprise a broad variety of sharp business outfits, elegant evening wear, and innovative casual-tailoring combinations. The latter also includes our BOSS performance offering, which combines formalwear outfits with a particularly high level of comfort ranging from super-stretchable to machine-washable styles. We thus remain fully committed to being a leader in the upper premium segment of the global formalwear market also in the years to come. Our 24/7 product range is rounded off by a comprehensive range of shoes and accessories as well as other items such as bodywear and hosiery, also contributing around 25% to Group sales.

CLAIM 3 – Lead in Digital

Digitalization is an important enabler to deliver on our vision of being the leading premium tech-driven fashion platform worldwide. An essential part of our Group strategy is therefore our clear commitment to further driving digitalization along the entire value chain. Since the introduction of "CLAIM 5," we achieved strong progress in digitalizing important business activities – from digital trend detection and product creation to AI-enabled pricing, digital showrooms, and innovative experiences in the metaverse. In particular, the ongoing digitalization of our product development is of high strategic importance. As part of "Lead in Digital," we have set ourselves the goal of developing more than 90% of our products digitally by 2025 (2023: around 65%). Overall, and compared to 2019, HUGO BOSS plans to step up its investment in digitalization by more than EUR 150 million by 2025, with a significant increase already recorded in the past two fiscal years. Report on Economic Position, Earnings Development

The HUGO BOSS Digital Campus, launched in 2021 and physically inaugurated in Porto (Portugal) last year, is at the heart of our digital journey. It significantly expands our Company's digital analytics capabilities, first and foremost aimed at taking the consumer experience to new levels through the systematic use of data. Serving as an innovative and creative data hub, the Digital Campus puts strong emphasis on strengthening our global online business while driving meaningful insights and efficiencies along the entire value chain. Following the successful implementation of the global relaunch of hugoboss.com in 2022, in the past fiscal year, the Campus drove the integration of key digital features such as interactive shoppable videos and virtual try-ons, as well as the successful relaunch of the hugoboss.com app. Building on these successes, the Campus will continue to work on numerous digital initiatives, all aimed at continuously improving traffic and conversion rates in our global online business. In this context, HUGO BOSS also aims to make the best-possible use of the many advantages offered by AI. Among other things, this should enable us to link digital and physical retail even more closely in the future, to provide consumers with a seamless, best-in-class omnichannel experience.

CLAIM 4 – Drive Omnichannel

Since the introduction of "CLAIM 5" in 2021, we have made substantial progress in translating our regained brand power into the various customer touchpoints, thus providing consumers with a best-in-class omnichannel experience. Going forward, HUGO BOSS will continue to fully leverage its high-quality channel mix on a global scale, while continuing to ensure a seamless brand experience across all consumer touchpoints.

GROWTH AMBITION BY CHANNEL1 (IN EUR BILLION) GROWTH AMBITION BY CHANNEL (IN EUR BILLION)

1 As presented at our Capital Markets Day in June 2023.

With brick-and-mortar retail contributing more than 50% of Group sales also going forward, this channel is, and will remain, by far our largest in terms of revenues. In this context, we aim to further improve store productivity by at least 3% per annum to a level of more than EUR 13,000 per sq m by 2025 (2023: EUR 12,400 per sq m). This will be supported by cumulative investments in our brick-and-mortar retail business of up to EUR 600 million between 2021 and 2025, to further optimize, modernize, and selectively expand our global retail footprint. In this regard, the ongoing rollout of our latest BOSS and HUGO store concepts, which aim to be significantly more emotional, appealing, digital, and productive than the previous ones, remains key to developing our stores into true points of experience. Overall, as of December 31, 2023, around 200 BOSS and HUGO freestanding stores worldwide have been refreshed or equipped with the latest store concepts,

including key halo stores in London, Dubai, and Guangzhou. By 2025, we intend to grow our freestanding store network to around 500 points of sale, with a clear focus on driving expansion across Asia/Pacific. To surprise and connect with our BOSS and HUGO fans, we are also taking over exciting locations with engaging pop-ups and hospitality concepts around the globe, such as the BOSS Bar at our store on London's Regent Street or AURA Skypool in Dubai.

At the same time, brick-and-mortar wholesale is expected to continue contributing around 25% of Group sales. Since the introduction of "CLAIM 5," we have made important progress in fostering our position in brick-and-mortar wholesale, having noticeably increased visibility and market presence of both our brands at key European and U.S. department stores. Going forward, with a particular focus on our most important business partners, we aim to fully leverage all BOSS and HUGO brand lines to deliver a true 24/7 brand experience and drive further market share gains in wholesale. As part of our omnichannel strategy, and to take our business in emerging markets to the next level, we will also further strengthen our global franchise business by increasing the total number of freestanding franchise stores from currently around 350 to 500 over the coming years. On top of that, we continue to exploit the great potential of digitalization also in brick-and-mortar wholesale. For example, our virtual showrooms offer a seamless and expedited sales process, while simultaneously fostering sustainability and efficiency within wholesale.

Digital revenues are expected to continue their double-digit growth trajectory also in the years to come. Accordingly, the share of our digital business is targeted to increase to a level of more than 20% of Group sales by 2025. Above all, we aim to continuously improve the digital journey and drive further market share gains – from our own online flagship hugoboss.com, to our online concession business as well as digital wholesale. In 2023, we further enhanced the digital experience to support growing both traffic and conversion, which enabled our brands to drive further market share gains in the digital sphere. In this regard, the strongly enhanced e commerce experience offered at hugoboss.com as well as the successful relaunch of our hugoboss.com app both played an important role. Going forward, further optimizing and geographically expanding our global digital footprint will remain key to successfully continue our growth trajectory.

For its license business, which among others includes fragrances, eyewear, and watches, HUGO BOSS sees revenue potential of up to EUR 200 million as part of "CLAIM 5." We see considerable growth opportunities, with both existing and new product groups, and have set ourselves the target of successively exploiting this potential in the coming years. In 2023, BOSS extended its 24/7 lifestyle offering by selectively expanding its product offering into iconic lifestyle areas such as equestrian or cycling.

GROWTH AMBITION BY REGION1 (IN EUR BILLION)

1 As presented at our Capital Markets Day in June 2023.

Besides further growing across all consumer touchpoints, as part of "CLAIM 5," it is our clear ambition to continue driving broad-based growth and gaining market shares across all geographies. In the EMEA region, key markets such as Germany, the UK, and France, as well as important growth markets such as the Middle East, are all set to contribute to further revenue improvements. Growth will be supported by further enhancing and upgrading our distribution network, accelerating our franchise business, and capitalizing on business opportunities across brand lines. In the Americas, we will continue to push our 24/7 brand image particularly in the important U.S. market, where we recorded exceptionally strong momentum over the past two years. On top of that, HUGO BOSS aims to further expand visibility in U.S. department stores, rolling out digital marketplaces, and strengthening its store network in Latin America. For Asia/Pacific, the region's revenue share is expected to grow to around 20% as part of "CLAIM 5." In this context, HUGO BOSS will continue to unleash the brands' full potential in both China and Southeast Asia & Pacific. To secure our affordable luxury position across the region, we will further strengthen our distribution footprint, which also includes boosting digital and social commerce with key partners. Report on Economic Position, Earnings Development

CLAIM 5 – Organize for Growth

In order to ensure long-term success for HUGO BOSS, as part of our claim "Organize for Growth," we aim to transform our entire organization into a platform of speed and growth. Since the introduction of "CLAIM 5," we have successfully converted our operating model to a platform approach and implemented a streamlined, brand-led organizational setup, ensuring rigorous strategy execution at a global level. On top of that, we have set the path for further growth by expanding and enhancing our headquarters in Metzingen, Germany. Between 2021 and 2025, we are allocating a total investment of more than EUR 100 million in upgrading our headquarters, which also includes a new office building to be completed by 2025. In addition, to foster growth and further drive efficiencies going forward, HUGO BOSS will step up investments into its supply chain. In 2023, we launched our important Digital TWIN initiative, aimed at enabling smart decision-making through a tech-driven business operations platform while being a key enabler to meeting consumer demand even better in the future. Intended to further increase the flexibility and transparency of our supply chain, the Digital TWIN is set to positively contribute to our Company's future growth, profitability, and sustainability ambitions.

At the same time, we are continuing our nearshoring initiatives to better align our regional sourcing and production activities with our sales markets, particularly in EMEA and the Americas. This also includes our commitment to further expanding our own production in the coming years. The strengthening of our production site in Izmir (Turkey), which is by far our largest factory, plays a key role in this. Already in 2022, we have taken an important step by opening an additional plant in Izmir dedicated to the production of casualwear. On top of that, to support long-term growth, we aim to expand our global logistics capacities by around 40% by 2025. This also includes the strategic expansion of one of our key logistics hubs near our headquarters in Metzingen initiated in late 2023. This multiyear project aims to significantly increase both shipping as well as storage capacity while also focusing on the further digitalization and automation of key processes. Our strategic initiatives will enable us to react even faster and more flexibly in the future, meeting consumer demand in the best-possible way. Product Development and Innovation, Sourcing and Production

Sustainable Throughout

Sustainability continues to be at the heart of "CLAIM 5" – a cause that is essential to our corporate responsibility and ongoing business activities. We will therefore further intensify our efforts in this important area, focusing primarily on making an imminent contribution to a planet free of waste and pollution. As part of our sustainability strategy, we will, among other things, strongly increase our circularity initiatives, drive digitization and data analytics, leverage nature-positive materials, fight microplastic, and keep pushing towards zero emissions. Further details on our sustainability strategy and key sustainability targets can be found in the chapters "Sustainability" as well as "Combined Non-financial Statement" of this Annual Report. Sustainability, Combined Non-financial Statement

"Our 'CLAIM 5' strategy provides us with a strong foundation for the sustainable, long-term success of HUGO BOSS," says Daniel Grieder. "Thanks to our powerful organizational setup, our unwavering commitment to sustainability, and our highly motivated and passionate teams worldwide, we are confident in continuing our growth trajectory also in the coming years."

2025 Financial Ambition

Driven by the powerful and rigorous strategy execution, HUGO BOSS raised its mid-term top- and bottomline ambition in June 2023, two years after its introduction. After having exceeded our previous mid-term sales target of EUR 4 billion already in fiscal year 2023, HUGO BOSS aims to generate revenues of around EUR 5 billion by 2025. This represents a strong CAGR of 10% compared to the base year 2019, thus well above the anticipated industry growth. At the same time, since providing the "CLAIM 5" update, the macroeconomic and geopolitical uncertainties have increased noticeably. Against this backdrop, HUGO BOSS might reach its sales ambition with a slight delay.

Our top-line target is coupled with the ambition of achieving noticeable improvements in EBIT margin. The latter is targeted to increase to a level of at least 12% by 2025. Besides an increased focus on achieving additional efficiency improvements, this also reflects the Company's gross margin projection, which is anticipated to range between 62% and 64% until 2025. Gross margins are expected to particularly benefit from the ongoing strong brand momentum of BOSS and HUGO as well as additional efficiency gains to be realized in operations. Overall, this will more than compensate for further investments into our products, brands, digital capabilities, logistics, and distribution networks as part of "CLAIM 5."

In light of the anticipated improvements in sales and profitability, HUGO BOSS has the ambition to generate a cumulative free cash flow (including the effects of IFRS 16) of around EUR 2.5 billion between 2021 and 2025. This is aimed to be supported by strict management of trade net working capital, which is expected to improve to a level of 16% to 18% of Group sales as part of "CLAIM 5." In particular, HUGO BOSS strives to further optimize its inventory position, aiming to bringing inventories down to a level of below 20% of Group sales by 2025. At the same time, capital expenditure is targeted to range between 6% to 7% of Group sales in both 2024 and 2025.

The majority of expected cumulated free cash flow will either be reinvested in the Company or distributed to shareholders through regular dividend payments. On the latter, the payout ratio is expected to remain between 30% and 50% of net income attributable to shareholders by 2025. In line with our vision of being the leading premium tech-driven fashion platform worldwide, we continue to consider strategic investments in the areas of product and brand, sales, and digital expertise. In this context, HUGO BOSS successfully entered into a long-term strategic partnership with Swiss innovator HeiQ already in 2022. In addition, we announced our investment into a climate-first venture capital fund based in Luxembourg in late 2023, aimed at supporting start-up companies in the development of innovative solutions and technologies in the area of sustainability. Finally, in the event of excess liquidity, we also consider special dividends and share buybacks as viable alternatives to return cash to our shareholders. Sustainability

2025 FINANCIAL AMBITION

	Results 2022	Results 2023	Initial 2025 ambition1	2025 ambition2
Group sales	EUR 3.7 billion	EUR 4.2 billion	EUR 4 billion	EUR 5 billion3
Sales CAGR (2019–2025)	Increase by 31%	Increase by 15%	6%	10%
Gross margin	61.8%	61.5%	60%–62%	62%–64%
EBIT margin	9.2%	9.8%	~12%	≥12%
Cumulative free cash flow (2021–2025)	EUR 726 million (2021–2022)	EUR 821 million (2021–2023)	~EUR 2 billion	~EUR 2.5 billion

1 Initial targets as provided in August 2021.

2 Targets as provided in June 2023.

3 As macroeconomic and geopolitical uncertainties have increased noticeably since providing the "CLAIM 5" update, HUGO BOSS might reach its sales ambition with a slight delay.

To deliver on our mid-term financial ambition, the rigorous execution of "CLAIM 5" will continue to take center stage. Against the backdrop of our regained brand momentum and taking into account the strong progress we have made along our various strategic initiatives, we have created a solid foundation for sustainable and profitable growth in the years to come. Therefore, even though our industry continues to face increased macroeconomic and geopolitical uncertainties, HUGO BOSS remains confident to continue gaining market share, achieving robust earnings improvements and generating strong free cash flow to ensure sustainable value creation for shareholders until 2025 and beyond.

Our targets for fiscal year 2024 are presented in the Outlook section. Outlook

CONSOLIDATED FINANCIAL STATEMENTS

ADDITIONAL INFORMATION

SHAREHOLDERS Annual Report 2023

GROUP MANAGEMENT

Sustainable increase in enterprise value as guiding principle of HUGO BOSS

Sales and EBIT as key performance indicators for maximizing free cash flow

Group planning, reporting, and investment controlling form core elements of Group management

Key performance indicators

HUGO BOSS aims at sustainably increasing its enterprise value. The Group's internal management system is intended to support the Managing Board and the management of the respective business units in aligning all business activities with this objective. In order to increase its enterprise value, the Group focuses on maximizing free cash flow over the long term. By consistently generating positive free cash flow, the Group is confident of safeguarding the liquidity of HUGO BOSS at all times while, at the same time, facilitating the long-term growth of the business.

DEFINITION FREE CASH FLOW

Cash flow from operating activities

Cash flow from investing activities

= Free cash flow

Increasing sales and operating profit (EBIT) is key to improving free cash flow over the long term. In addition, a strict management of trade net working capital and a value-oriented capital expenditure approach support the development of free cash flow. HUGO BOSS has therefore identified four key performance indicators for increasing free cash flow. Unchanged to previous years, these comprise sales, EBIT, trade net working capital, and capital expenditure. The 2024 guidance for these key performance indicators and the underlying assumptions are presented in the "Outlook" section of this Annual Report. Outlook

FOUR KEY PERFORMANCE INDICATORS

Sales
EBIT
Trade net working capital	Free cash flow	Enterprise value
Capital expenditure

ADDITIONAL INFORMATION

While fiscal year 2023 was characterized overall by ongoing high levels of geopolitical and macroeconomic uncertainty, HUGO BOSS continued its strong momentum, recording robust top- and bottom-line improvements. This development was once again driven by the successful execution of our "CLAIM 5" growth strategy introduced in 2021. At its Capital Markets Day in June 2023, HUGO BOSS consequently provided an update of "CLAIM 5" thereby raising its mid-term financial ambition. Further details on the financial development of HUGO BOSS in fiscal year 2023 can be found in the chapters "Earnings Development," "Net Assets," and "Financial Position" of this Annual Report. Group Strategy, Earnings Development

DEVELOPMENT OF KEY PERFORMANCE INDICATORS (IN EUR MILLION)

	2023	2022	2021	2020	2019
Group sales	4,197	3,651	2,786	1,946	2,884
Operating result (EBIT)	410	335	228	(236)	344
Trade net working capital as a percentage of sales	20.8%	15.0%	17.2%	28.7%	20.1%
Capital expenditure	298	192	104	80	192

"CLAIM 5" aims to strongly accelerate the relevance of BOSS and HUGO and drive superior top-line growth. In doing so, the Company is committed to continuing its market-share-winning trajectory also in the years to come. At the same time, our strategy is intended to further ensure a sustainable increase in profitability as well as strong free cash flow generation. All initiatives aimed at driving sales growth are therefore also measured by their potential to sustainably grow operating profit (EBIT). In this context, and as part of "CLAIM 5," we aim to realize further efficiency gains, in particular in brick-and-mortar retail, to compensate for further investments into our business. Group Strategy

DEFINITION EBIT

	Earnings before taxes
–	Financial result
=	Operating profit (EBIT)

For HUGO BOSS, trade net working capital is the most important performance indicator for managing the efficient deployment of capital.

DEFINITION TRADE NET WORKING CAPITAL

	Inventories
+	Trade receivables
–	Trade payables
=	Trade net working capital

Management of inventories as well as trade receivables is the main responsibility of our subsidiaries and the respective operating central departments. The latter are also responsible for managing trade payables. These three balance sheet items are primarily managed by reference to the days of inventories outstanding, days of sales outstanding, and days of payables outstanding. Besides this, there is a specific approval process for the purchase of inventories for our retail business in order to constantly optimize inventory levels. This process takes into account sales quotas as well as expected sales growth and markdown levels.

The senior management of HUGO BOSS is jointly and directly responsible for driving profitable growth. As a result, the short-term incentive program (STI) of managers at all four management levels below the Managing Board is linked to the achievement of specific sales and EBIT targets. The ratio of trade net working capital to sales is the third component of the STI. The compensation scheme for management at the two levels below the Managing Board also includes a long-term incentive program (LTI), whose design matches that for the Managing Board. The LTI includes both financial targets and non-financial ESG (environment, social, governance) targets. The latter is related to employee satisfaction as well as our Company's performance in the area of sustainability. Consequently, the LTI is intended to ensure that senior management of HUGO BOSS pursues a sustainable business policy that is aligned to the interests of the Company. Employee and Teams, Sustainability

Investment activity is primarily focused on our own retail network, the digitalization of our business model, as well as the expansion of our global logistic capacities. As part of our strategic claim "Drive Omnichannel," we are pushing ahead with the further optimization and modernization of our global store network, with the vast majority of our own stores being refreshed by the end of 2025. In line with our claim "Lead in Digital," digital investments are pushed along the entire value chain – from digital trend detection and product creation to digital showrooms, the continuous enhancement of our own online business, to our general IT infrastructure. Going forward, as part of our claim "Organize for Growth," HUGO BOSS also aims to step up investments into its global logistic capacities. This also includes the strategic expansion of one of our key logistic hubs near our headquarters in Metzingen initiated in late 2023. A specific approval process exists for material investment projects. Apart from qualitative analyses, e.g., with respect to potential store locations, this also includes an analysis of each project's net present value. Financial Position, Capital Expenditure, Group Strategy

In light of the anticipated top- and bottom-line improvements, HUGO BOSS is confident of generating strong free cash flow in the future. This is to be supported by improved management of trade net working capital and the efficient use of capital expenditure. The majority of expected accumulated free cash flow will either be reinvested into the Company or distributed to shareholders via regular dividend payments. In doing so, HUGO BOSS is pursuing a profit-based dividend policy aimed at allowing shareholders to participate appropriately in the Group's earnings development. The Company's payout ratio until 2025 is projected to be in a range of between 30% and 50% of net income attributable to shareholders (2023: 36%). In line with our vision of being the leading premium tech-driven fashion platform worldwide, we are also considering strategic investments. In addition, in the event of excess liquidity, we also consider special dividends and share buybacks as viable alternatives to return cash to our shareholders. We analyze our balance sheet structure at least once a year to determine its efficiency and ability to support future growth and to simultaneously provide sufficient safety in the event that the Company's business performance falls short of expectations. Financial Position, Capital Structure and Financing

HUGO BOSS is structured by region, with our business segments being EMEA, the Americas, Asia/Pacific, and the license business. Within the three regions, individual markets are grouped into hubs, with local management reporting directly to the Chief Sales Officer (CSO), while the global license business is part of the Chief Executive Officer (CEO) resort. In doing so, we ensure close alignment between individual markets and central functions as well as short decision-making processes. In fiscal year 2023, all segments contributed to the robust increase in sales and EBIT. Business Activities and Group Structure, Earnings Development, Sales and Earnings Development of the Business Segments

Core elements of the Group's internal management system

The Group's planning, management, and monitoring activities focus on optimizing the key performance indicators described above. The core elements of our internal management system are Group planning, Group-wide, IT-enabled financial reporting, and investment controlling.

Group planning at HUGO BOSS generally refers to a rolling multiyear period and is prepared as part of the annual, Group-wide budget process, taking into account the current business situation and the underlying "CLAIM 5" strategy. Based on targets set by the Managing Board, our Group's subsidiaries prepare sales, earnings, and investment budgets as well as forecasts for trade net working capital for their respective markets or divisions. Based on this, our product development and sourcing units derive mid-term capacity planning. The Business Planning & Analysis division, which reports into the CFO/COO, reviews these plans for plausibility and aggregates them to form the overall Group planning. The latter is updated on a regular basis, taking into account the actual business performance as well as any opportunities and risks.

Additionally, HUGO BOSS regularly conducts liquidity assessments, based on the expected cash flow development for any given year. This aims to identify financial risks at an early stage and to take appropriate measures concerning financing and investment requirements. Financial Position

On a monthly basis, the Managing Board and management of Group subsidiaries are informed about the operational business performance through standardized, IT-enabled reports of varying detail, supplemented by ad hoc analyses. Actual data compiled by our Group-wide, IT-based reporting system is compared against budget data on a monthly basis. Any deviations are analyzed and planned countermeasures are discussed. In addition, developments with a significant impact on the Group's net assets, financial position, and results of operations are immediately reported to the Managing Board.

The Company is particularly focused on monitoring early indicators suitable for obtaining an indication of future business performance. In this context, the sales performance in our own retail business, the wholesale order intake, and the performance of our replenishment business are analyzed on a weekly basis. In addition, benchmarking against relevant competitors is performed at regular intervals. The continuous monitoring of early indicators is intended to enable us to identify deviations from the budget at an early stage and take appropriate countermeasures.

The Group's investment controlling appraises planned investment projects with respect to their contribution to our Company's overall profitability targets. This ensures that projects are only launched in case of an expected positive contribution to enhancing the Group's economic profile. In addition, subsequent analyses are conducted at regular intervals to verify the profitability of projects that have already been realized. Appropriate countermeasures are taken in the event of any negative deviations from the initial profitability targets.

In light of heightened levels of geopolitical and macroeconomic uncertainty, in 2023 there was a particular close dialog between the Managing Board, Business Planning & Analysis, the management of our central divisions, and our Group's subsidiaries. Corporate planning was regularly reviewed and updated throughout the year. In doing so, both the various negative macroeconomic factors and their potential business implications as well as the stronger than initially anticipated top- and bottom-line performance were regularly taken into account. In light of our robust business performance, we raised our initial full-year 2023 sales and earnings forecast as published in March 2023 twice during the course of fiscal year 2023, and successfully achieved our twice-revised sales and earnings targets. Report on Economic Position, Comparison of Actual and Forecast Business Performance

	Results 2022	Initial forecast 20231	Results 2023
Group sales	EUR 3,651 million	Increase at a mid-single-digit percentage rate	Increase by 15% to EUR 4.2 billion
Operating result (EBIT)	EUR 335 million	EUR 350 million to EUR 375 million	Increase by 22% to EUR 410 million
Trade net working capital as a percentage of sales	15.0%	~17%	Increase by 580 bp to 20.8%
Capital expenditure	EUR 192 million	EUR 200 million to EUR 250 million	Increase by 55% to EUR 298 million

COMPARISON OF ACTUAL AND FORECAST DEVELOPMENT OF KEY PERFORMANCE INDICATORS

1 As published on March 9, 2023. The outlook was updated twice over the course of the year. Further details can be found in the chapter "Comparison of Actual and Forecast Business Performance" of this Annual Report.

CONSOLIDATED FINANCIAL STATEMENTS

EMPLOYEES AND TEAMS

HUGO BOSS as an attractive global employer of around 19,000 employees

HR management focused on attracting, retaining, and developing talents

Positioning as one of the best employers in the fashion industry

At HUGO BOSS, we firmly believe that the passion and dedication of our employees are vital for the successful execution of our "CLAIM 5" growth strategy. A strong commitment to empowering people and teams is therefore firmly anchored in "CLAIM 5," guided by our HUGO BOSS values entrepreneurial spirit, personal ownership, team mentality, simplicity & quality, and youthful spirit. Our values serve as the foundation for day-to-day cooperation. They foster a spirit of mutual trust, thereby promoting creativity as well as fast and rigorous execution. The aim is to create an environment that enables all employees to develop their individual talents and thus directly contribute to the success of "CLAIM 5." On top of that, HUGO BOSS strives to maintain its positioning as one of the most attractive employers in the fashion industry. This, in turn, should enable us to attract the best talents in the sector. Group Strategy

HUGO BOSS VALUES

As an international company, diversity, equity, and inclusion (DE&I) is a fundamental element of our corporate culture. At HUGO BOSS, all employees are guaranteed a discrimination-free working environment with equal opportunities and an inclusive work culture. At the same time, DE&I is at the heart of our journey to make a positive impact on our industry, as reflected by our Company's bold mission statement "We Love Fashion. We Change Fashion." Organizationally, the important topic of DE&I is firmly anchored in the Global Employee Experience department as part of Global Human Resources, with the Global DE&I team focusing on further raising awareness of DE&I throughout the Company. In addition, a diversity task force of employees with multiple backgrounds and from various locations and functional areas supports the execution of defined measures and promotes selected topics within the Company. To amplify awareness of our inclusive workplace, we launched the MIX & MATCH initiative in 2023, bundling numerous internal and external measures aimed at promoting and fostering a culture where differences are celebrated. 2023 also saw the implementation of additional employee training on diversity and inclusion, such as "anti-discrimination

and anti-harassment," "unconscious bias," and "inclusion in action." We are convinced that intensifying our DE&I activities has a positive impact on employee satisfaction while also considering it as a relevant factor by potential applicants. Combined Non-Financial Statement, Employee Matters

Attracting talents

HUGO BOSS aims at further strengthening its position as a top employer in the global fashion industry. This is intended to enable us to continue attracting the best talents for HUGO BOSS. In general, the global employer branding campaign "That's my HUGO BOSS" builds a core element of our recruitment activities, aimed at drawing the attention of talents around the world to the broad range of activities and diverse personalities at HUGO BOSS. On top of that, the Company also runs dedicated employer branding campaigns to further attract specialists in key areas such as IT and Digital, paying off directly on the Company's vision to become the leading premium tech-driven fashion platform worldwide. Our global recruitment strategy centers around the HUGO BOSS Careers website, offering several digital features like a chatbot and tailored job recommendations for a first-class digital experience. Furthermore, talents are recruited by means of directly approaching qualified candidates via business-focused social networks. In this context, HUGO BOSS launched its corporate influencer program "Creators Club" in 2023, as part of which a select group of HUGO BOSS employees from various locations regularly share diverse and authentic perspectives on life and work at HUGO BOSS, thus aiming to further increasing employer attractiveness. On top of that, we regularly present ourselves to potential applicants at career fairs.

To attract young talents, we offer school graduates, students, and young professionals a variety of different programs, including a diverse range of apprenticeships as well as a broad selection of dual study programs. In 2023, there were a total of 82 apprentices and dual students at HUGO BOSS AG (2022: 94 apprentices and dual students), with 36 new apprentices and dual students having started their professional education during the year (2022: 33 new apprentices and dual students). The professional education we offer young talents is tailored to our business-specific needs and is continuously aligned with our strategic priorities. In particular, we have expanded our selection of apprenticeships in the important area of digital in recent years, including offerings such as Digital Commerce Management and IT Specialist education. At the same time, we also expanded our range of dual study programs in 2023 to include Global Commerce Management, Business Fashion Management, and Data Science & AI. Internships and the "HUGO BOSS CareerLunch" offer further opportunities to get young talents interested in working at HUGO BOSS during their studies. The latter aims to bring us together with top talents in an informal setting and thus attract potential applicants to HUGO BOSS through internal Company insights.

At HUGO BOSS, we seek to constantly improve our external reputation and awareness among potential applicants. Consequently, we conduct active reputation management on relevant rating platforms and social networks. Target group-specific and product-related campaigns are intended to evoke interest and enthusiasm for our Company. Various awards are proof positive for our successful HR work while, at the same time, serving to increase awareness among potential applicants. In the "Working in Fashion 2023" study conducted by the German industry magazine TextilWirtschaft, we once again took third place, thus maintaining our strong ranking. Within the study, HUGO BOSS was ranked first in terms of the Company's future potential and second in the categories of salary levels, opportunities for promotion and training, and attractive products. Furthermore, within the global study "World's Best Employers 2023" by Forbes

and Statista, HUGO BOSS improved its ranking significantly in 2023 and, for the first time, made it into the top 200 globally. In addition, based on an independent study in collaboration with Statista and the Financial Times, HUGO BOSS was able to maintain its strong midfield-position among the Top 50 Diversity Leaders in Europe in 2023.

Retaining and developing employees

Our employees are crucial to the success of HUGO BOSS. In addition to attracting new talents, we therefore place a strong emphasis on retaining talents and supporting them in their individual development. Besides a fair and market-oriented compensation as well as attractive benefits offered to our employees, HUGO BOSS attaches particular importance to a common and supportive leadership mindset within the Company as well as various opportunities for individual development.

HUGO BOSS regards fair pay as an essential aspect of our personnel work and aims to strengthen the loyalty of our employees to the Company by means of a fair, transparent, and competitive compensation structure. Based on a regular assessment of all jobs in Germany as well as international key positions, the vast majority of our employees are remunerated based on job-specific salary bands. These are based on external salary benchmarks, covering several sectors, and are intended to further increase transparency. Over the past few years, HUGO BOSS carried out an assessment of almost all positions worldwide to establish a uniform compensation system based on Group-wide salary bands. This is intended to ensure that our global compensation system is fair, competitive, and independent of gender or other diversity characteristics. In 2023, the HUGO BOSS Managing Board further strengthened its commitment to fair pay by signing a global Fair Pay Commitment, which was made available to all employees on the Company-wide intranet. Overall, we regard fair remuneration as a key factor to further increase both employee satisfaction and our attractiveness as an employer.

Our compensation system includes fixed and variable salary components, bonuses above the collective bargaining scale, non-cash compensation, and other benefits. It complies with industry and collective bargaining agreements and incorporates national and regional benchmarks. At HUGO BOSS AG, there are also works agreements that govern compensation components such as the employee performance bonus. In addition to their basic salary, non-tariff employees receive a 13th monthly salary installment and a shortterm incentive (STI) linked to annual Company targets. The compensation scheme at the two levels below the Managing Board also includes a long-term incentive program (LTI) that extends over several years and matches the targets of the Managing Board. Compensation Report

In order to offer our employees an additional benefit, HUGO BOSS successfully launched its employee share investment program (SHIP) in 2023. This gives employees across more than 20 countries the opportunity to acquire a certain number of HUGO BOSS shares at regular intervals and at favorable conditions, and thus participate directly in the Company's success. The program was very well received by our employees in its first year, resulting in an overall participation rate of around 20%, with the rate at HUGO BOSS AG even exceeding 40%. HUGO BOSS aims to expand the SHIP to additional Company locations going forward, thus increasing the number of eligible employees.

Aimed at further increasing employer attractiveness and creating an enjoyable, best-in-class workplace experience for our more than 3,000 employees at the Metzingen (Germany) campus, HUGO BOSS continues to invest into further upgrading and expanding its headquarters, with overall investments exceeding EUR 100 million. This includes the construction of a new office building with 350 additional workstations by 2025 as well as the reopening of the completely renovated employee restaurant and barista bar in 2023. To offer a more modern and welcoming experience, we also redesigned our campus' visitor and employee entrance area with new green areas, and a lounge-like foyer and reception.

We are convinced that a balanced personal and professional life fosters a productive and motivated workforce. Consequently, we offer our employees a wide range of options to strengthen work-life balance. Numerous initiatives for flexible working enable most of our employees at the Metzingen campus to work in an agile and cross-functional manner, also with the support of flexible and modern office concepts. Our hybrid working model "Threedom of Work" applies to commercial and administrative staff in Germany and provides for three days of attendance at the Metzingen site, whereas employees are free to choose their work location on the other two days. While similar models have already been established in other Group companies, the conventional mobile working concept is available to almost all our administrative employees worldwide. In addition, trust-based working hours, individual part-time arrangements, as well as newly established job-sharing and co-leadership models complement our offerings and are intended to contribute to both increased employee retention and satisfaction. In addition, HUGO BOSS promotes the work-life balance in the form of numerous family-friendly offers, which are described in more detail in the section "Combined Non-Financial Statement." Combined Non-Financial Statement, Employee Matters

We also attach great importance to promoting the health and performance of our employees, including numerous activities to improve physical and mental health. Employees in Germany, Switzerland, and Turkey, for example, can use the Company's own fitness centers free of charge and participate in a wide range of different on-site and digital sport and coaching courses. A balanced nutritional concept in our HUGO BOSS restaurants is intended to improve the personal well-being of our employees. At the central distribution centers in Germany and for production employees in Metzingen, health measures also include movement breaks, massages, and back training courses.

Development offerings at HUGO BOSS include a strong focus on leadership mentality, as we are convinced that it has a significant impact on our Company's performance and commitment of employees and teams, thus strongly contributing to achieving the targets set out in "CLAIM 5." Regular workshops aim to firmly anchor the leadership mindset within our Company, supporting a common understanding of leadership at HUGO BOSS. In addition, we consider a good leadership culture to be a key enabler in sustainably increasing employee satisfaction. Our concept of leadership mindset envisions that leaders should act as enablers, providing their employees with a framework for their daily work, offering them support, and, at the same time, encouraging them to regularly surpass themselves. In addition, leaders at HUGO BOSS are expected to connect people and teams and to strengthen the team spirit and sense of togetherness.

In addition to vertical promotions, HUGO BOSS generally considers internal job changes across departments and divisions as crucial for promoting talents and long-term employee retention. As part of this commitment, HUGO BOSS enhanced the digital employee experience with the relaunch of our internal career platform "GLOBAL JOBS" in 2023. With a fresh look and feel and digital features, such as a chatbot, the platform redefines internal jobs searches, while underlining our dedication to technological advancement. The digital employee recommendation program "HUGO BOSS Spotted," which was updated and extended in 2023, provides a transparent recommendation process to support the appropriate filling of vacancies by internal talents. To further boost the motivation, commitment, and qualification of employees, we also offer a wide range of training and development opportunities. This includes the Employee Development Program (EDP), the Leadership Development Program (LDP), the High Potential Program (HIPOSS), as well as the Experienced Leaders Collection (ELC) introduced in 2023. All material opportunities for individual development are described in detail in the "Combined Non-Financial Statement" within this Annual Report. Combined Non-Financial Statement, Employee Matters

In order to improve employee retention in the long term, we are striving to strengthen the identification of our employees with HUGO BOSS and its goals. A variety of internal communication measures is intended to contribute to this, aimed at strengthening the exchange both among employees as well as between employees and senior management. In addition to regular Managing Board updates, this also includes the opportunity to enter into direct exchange with the Managing Board as part of internal events. Beyond that, Company- and brand-specific news is also communicated in real time to employees in 36 countries via our global employee app "My HUGO BOSS" (2022: 36 countries). The app also offers our employees various digital conveniences, such as quick access to emails, digital business cards, or our internal career platform. To further increase community engagement within our organization, the app also features a social video wall. In addition, we launched our new global intranet "ONE" in 2023, serving as an additional communication platform for all employees worldwide. Important and centralized news about HUGO BOSS and our brands, enriched with live streams and videos, but also external content, such as industry news, are made available to employees via this channel.

77% EMPLOYEE SATISFACTION

HUGO BOSS determines the satisfaction and the needs of its employees as part of an employee survey conducted annually in cooperation with Great Place to Work Germany. The findings provide our Company with important impetus for the further development of its personnel work and corporate culture. The results of the annual employee survey also represent an important component of the compensation within the long-term incentive program (LTI). With a Group-wide participation rate of 77%, overall employee satisfaction amounted to 77% in 2023 (2022: participation rate of 70% and overall satisfaction of 78%). We have set ourselves the goal of maintaining a strong level of at least 75% of overall satisfaction also in the years to come. Combined Non-Financial Statement, Employee Matters

Employee figures

NUMBER OF EMPLOYEES1 AS OF DECEMBER 31

1 Full-time equivalent (FTE) excluding apprentices, interns, and temporary workers.

At the end of fiscal year 2023, on a full-time equivalent basis, 18,738 employees worked for HUGO BOSS (2022: 16,930). The increase compared to the prior year is in line with our strategic pillar "Organize for Growth," aimed at ensuring the ongoing successful execution of "CLAIM 5." It primarily reflects the further strengthening of our global retail business, key headquarters functions such as Omnichannel and IT, as well as our production and logistics teams. The average age of our global workforce was 36 years, thus unchanged to the prior year (2022: 36 years).

EMPLOYEES AS OF DECEMBER 31 (IN %)

Our global positioning is also reflected in our workforce. In 2023, around 80% of our employees were based outside of Germany (2022: 80%). Within Germany, employees from almost 100 different nations worked for HUGO BOSS (2022: 93 nations). While 12,920 employees (2022: 11,384) worked in the commercial sector at the end of 2023, 5,818 employees (2022: 5,545) were assigned to industrial activities.

EMPLOYEES IN MANAGEMENT

With a share of 59%, women continued to make up the majority of the workforce at HUGO BOSS (2022: 60%) at year-end. Across all management levels, 50% of positions were held by women at the end of 2023, thus remaining unchanged to the prior year (2022: 50%). The Managing Board has set the target of achieving a proportion of women of at least 40% in the first management level below the Managing Board and at least 50% in the second management level by 2025. As of December 31, 2023, the proportion of women at the first management level below the Managing Board was 29%, while it was 44% at the second management level below the Managing Board. Both proportions were hence broadly in line with the prior-year level (December 31, 2022: 28% and 46%, respectively). Corporate Governance and Corporate Governance Statement

CONSOLIDATED FINANCIAL STATEMENTS ADDITIONAL INFORMATION

SHAREHOLDERS Annual Report 2023

PRODUCT DEVELOPMENT AND INNOVATION

Digitalization of product development of high strategic relevance

Focus on innovative materials in terms of performance and sustainability

Capsule collections and collabs to drive excitement among BOSS and HUGO

At HUGO BOSS, we put strong efforts on developing collections and products that meet the highest customer demands in terms of design and quality, as well as innovation and sustainability. These requirements are firmly embedded in our strategic claim "Product is Key," which puts consumers and our products at the center of everything we do. As part of our "CLAIM 5" strategy, we aim to further optimize the price-value proposition to guarantee highest quality, a superior degree of innovation and sustainability, and features that enable our brands to clearly distinguish themselves from the competition. The potential of digitalization is to be fully exploited throughout the entire product development process. Inspiring capsule collections and high-impact collaborations with well-known brands and personalities are also intended to spur the relevance of BOSS and HUGO while driving excitement among both brands. Group Strategy, "Product is Key"

The design and product development process at HUGO BOSS involves the transformation of a creative idea into a commercial product. The work is carried out at our three development centers in Metzingen (Germany), Coldrerio (Switzerland), and Morrovalle (Italy). While the majority of our collections are developed at the Group headquarters in Metzingen, the Coldrerio site is mainly responsible for the development of the product categories shirts, knitwear, shoes and accessories, as well as bodywear and hosiery. In Morrovalle, we develop high-quality shoes and leather accessories.

Product development process

PRODUCT DEVELOPMENT PROCESS AT HUGO BOSS

The product development process starts with a creative idea, constantly considering customer expectations. Our collections are centered around brand strategy, brand values, as well as global mega and fashion trends. To ensure a holistic brand message, collection and brand communication are closely aligned right from the start of the development process. The transformation of the creative idea and designs into specific collections also takes into account sell-through rates of previous collections as well as feedback gathered from wholesale partners and consumers alike. In the conventional product development process, the second step sees our design teams' creative ideas tailored in the pattern design phase. Technical product development then turns the models into prototypes and tests their suitability for the industrial production process. In conventional product development, the prototyping is followed by the manufacture of sample collections to ensure that the products meet our high standards in terms of quality and fit. Once production has been completed, the collections are ready to be sold via the respective distribution channels. While historically all the more relevant, the conventional product development process has become less important in recent years, as we have been able to successfully drive digitalization in this area.

>90% DIGITALLY DEVELOPED PRODUCTS BY 2025

The digitalization of product development is of high strategic importance to HUGO BOSS. In line with our strategic claim "Lead in Digital," we have set ourselves the goal of developing more than 90% of our products digitally by 2025. Thanks to further important progress made in the evolution of immersive 3D simulations and the expansion of digital development to additional product groups over the past few years, we were able to further increase the proportion of digitally developed products to around 65% in fiscal year 2023 (2022: around 55%). Already today, we are able to run the entire product development process digitally. One prime example in this regard will be our capsule collection Aston Martin x BOSS as part of the exclusive BOSS Camel brand line. Set to launch in the second half of 2024, it will be developed digitally – from first sketches and the selection of materials to the distribution of the styles via our digital channels. Overall, digital workflows allow us to operate more flexibly throughout the entire value chain, shorten lead times, and consequently adapt more effectively and quickly to changes in consumer trends and customer demand. In addition, the digitally developed styles are also used in distribution – for example, when selling our collections to wholesalers via digital showrooms or via "virtual try-on" to our end-customers on hugoboss.com. At the same time, we are convinced that the ongoing digitalization of our product development process will also contribute positively to our sustainability ambitions, as it allows for predicting trends more accurately, better anticipating customer preferences, and further reducing the need for physical samples, thus minimizing waste and reducing our CO2 emissions. Sustainability

In order to remain at the forefront of rapidly evolving technologies in digital product development, HUGO BOSS continuously invests in strengthening the expertise of its employees. Already today, thanks to our strong expertise in the field of digital product development, dedicated trainings for further increasing 3D competence are conducted in-house, fostering a true digital mindset with an end-to-end understanding of all relevant digital processes. To further expand knowledge with regards to 3D design, additional trainings were introduced in 2023 while the Company also hosted internal events to strengthen the knowledge exchange among employees. On top of that, we further strengthened our expertise and innovation capabilities by setting up a dedicated 3D design team, implementing innovative software solutions while adapting knowledge from the gaming world, among other things.

GOVERNANCE

CONSOLIDATED FINANCIAL STATEMENTS

ADDITIONAL INFORMATION

SHAREHOLDERS Annual Report 2023

Key areas of product innovation

As part of our "CLAIM 5" growth strategy, we are committed to unlocking the full potential of BOSS and HUGO by perfectly dressing our customers 24/7 and for every occasion. Driving casualization along our collections and further optimizing wearing comfort through the increased use of innovative materials are of particular importance and thus a key area of production innovation at HUGO BOSS. With BOSS, we continue to drive innovation, particularly with our athleisurewear offering as part of BOSS Green. In 2023, putting strong emphasis on dressing consumers for an active lifestyle, we launched selected functional capsule collections, for example in tennis with brand ambassador Matteo Berrettini, while also introducing a new highly functional collection with runner Alica Schmidt as part of BOSS Womenswear. To further elevate the wearing comfort within our BOSS formalwear assortment, already in 2022 we introduced the BOSS Performance product range, which combines formalwear outfits with sportswear elements, thereby perfectly matching the needs of our customers. It ranges from super-stretchable and machine-washable styles to lightweight and wrinkle-free products that can be easily carried in hand luggage. In 2023, we further expanded the performance product range to BOSS Womenswear, while, at the same time, further implementing performance functionalities into our existing product range as part of BOSS Menswear, making use of the experience gained in prior years. This includes, for example, tech-linen or tech-flannel suits, made of performance stretch material thus offering increased levels of comfort. On top of that, we expanded our product portfolio by introducing HUGO BLUE in early 2024, a new line under the HUGO brand. With a clear focus on denimwear, HUGO BLUE is particularly dedicated to leveraging the full potential of the HUGO brand, with jersey, knitwear, outerwear pieces, and accessories completing the offering. Group Strategy, "Product is Key"

We are fully committed to living up to growing customer expectations in terms of sustainability. To this end, we increasingly rely on innovative, sustainable materials, and manufacturing techniques in the development of our collections. As part of our long-term strategic partnership with HeiQ AeoniQ, we are focusing on the joint development and production of a sustainable, circular, and recyclable cellulose yarn with the aim of replacing environmentally harmful polyester and nylon. In this context, we successfully launched the first two BOSS polo shirts made of almost 90% AeoniQ together with BOSS brand ambassador Matteo Berrettini in the first half of 2023, which were recognized with the 2023 ISPO Award for setting new standards in the field of more sustainable performance apparel. Later that year, three additional outerwear styles crafted in AeoniQ fabric formed a limited-edition capsule collection, which was made available with the BOSS Milan Fashion Show in September. On top of that, as part of our "BETTER BOSS" initiative, which unites our circularity ambitions and our goal of creating 60% of our products from lower-impact materials by 2025, we launched a fully circular capsule collection in late 2023, made from recycled textiles and thus extending the product lifetime. A particular highlight within this was three all-gender pieces crafted exclusively from recycled wool. Also at HUGO, we strive to maximize our positive impact as part of our sustainability ambitions, particularly within our "WE ACT" product range. This covers products made from at least 60% more sustainable raw materials such as regenerative cotton. Going forward, leveraging such initiatives is set to support our goal of enabling 80% of BOSS and HUGO products to become circular by 2030. The latter is also firmly anchored in our sustainability strategy, which contains a strong commitment to "Increase Circularity." Sustainability

GOVERNANCE

ADDITIONAL

The four main collections of BOSS and HUGO are designed to offer customers both a broad range of core products as well as a variety of seasonal and particularly fashion-conscious styles. Besides these main collections, we team up with other well-known brands and personalities to create inspiring capsule collections and high-impact collaborations. In doing so, we want to constantly increase the relevance of BOSS and HUGO and excite consumers all over the globe. In 2023, BOSS launched several capsules together with its brand ambassadors, as well as with strong partners including Porsche, Samsonite, and the American football league NFL. Fiscal year 2023 also saw the development of a dedicated BOSS Womenswear capsule with British supermodel Naomi Campbell, which will be launched in early 2024 and comprises styles from versatile outerwear to cozy sweatshirts. HUGO, on the other hand, teamed up with audio lifestyle company Urbanista and brand ambassador and TikTok superstar Bella Poarch, among others. Exceptional collaborations like these will continue to play a key role in attracting new and younger consumers and fully unlocking the great potential of both brands in the future. Group Strategy, "Product is Key"

Key R&D figures

The research and product development (R&D) departments of HUGO BOSS are staffed primarily by fashion and 3D designers, tailors, shoe and clothing technicians, and engineers. As of December 31, 2023, the number of employees in this area totaled 751 (2022: 656).

RESEARCH AND PRODUCT DEVELOPMENT EXPENSES

In line with our strategic claims "Product is Key" and "Organize for Growth," our R&D expenses grew 11% to EUR 89 million in 2023, with the majority of the increase mainly resulting from an increase in personnel expenses. At 71%, personnel expenses continued to account for the majority of R&D expenses last fiscal year (2022: 71%). The remainder is primarily composed of other department expenses. In 2023, R&D costs were again mostly recognized as expenses at the time they were incurred. In addition, production-related development expenses are included in the cost of conversion of inventories. No development expenses were recognized as internally generated intangible assets due to the predominantly short product life cycles.

CONSOLIDATED FINANCIAL STATEMENTS ADDITIONAL INFORMATION

SHAREHOLDERS Annual Report 2023

SOURCING AND PRODUCTION

Strategic focus on increasing efficiency, flexibility, and speedto-market

Tech-driven business operations platform to support growth and traceability

Step up of investments in global logistics network

Platform for speed and growth

As part of our "CLAIM 5" strategy, we strive to generate significant growth across all brands, regions, and consumer touchpoints. An efficient and robust operational infrastructure forms the basis for achieving our medium-term financial targets. The strategic claim "Organize for Growth" thus aims to further optimize and flexibilizing our sourcing and production activities in order to create a strong and robust platform for growth and speed-to-market.

The sourcing and production of high-quality products is a crucial factor for meeting high customer expectations on design, functionality, comfort, and longevity at all times. In addition to ensuring these quality characteristics, we are constantly striving for best-in-class solutions to further increase the resilience, efficiency, and flexibility of our global sourcing and production activities. In this context, a key element is the further digitalization along the entire value chain, as we aim to respond even faster to changing market trends and thus meeting customer demand.

Therefore, we are pushing ahead with implementing our important Digital TWIN, a smart and tech-driven business operations platform aimed at strongly enhancing real-time data utilization. By creating a digital copy of our supply chain and using artificial intelligence, we aim at further improving demand planning and better aligning our various planning activities. This, in turn, is intended to provide the most accurate procurement of products and fabrics, both in terms of timing and quantity. Along with efficient logistics planning and a smart inventory allocation, we want to ensure that customer demand is met even more effectively, while at the same time benefiting from lower cost and higher full-price sell-through. At the same time, increased transparency will enable us to establish end-to-end product traceability, which is also fully in line with our sustainability ambitions.

In 2023, our cross-functional project team made substantial progress in advancing several of our TWIN's key project initiatives. In particular, we made significant initial advances in key processes, such as further increasing transparency in our global procurement processes, refined our target operating models, and identified various new technology solutions. Building on the success of first pilot implementations, 2024 will see the global rollout of our TWIN's key traceability features. In addition, we will start with the implementation of a new product life-cycle model as well as state-of-the-art planning solutions.

Sourcing volumes and regional split

In terms of value, 17% of the total sourcing and production volume in 2023 was produced at our own production facilities (2022: 14%), with the increase compared to the prior year reflecting the full utilization of our fourth production facility in Izmir (Turkey), dedicated towards casualwear, which commenced operations in late 2022. At the same time, 83% comprises products sourced from independent contract suppliers or sourced as merchandise (2022: 86%).

REGIONAL SPLIT OF SOURCING AND PRODUCTION VOLUME (IN %)

HUGO BOSS attaches great importance to a regionally balanced strategic sourcing mix in order to minimize risks such as local or regional capacity shortfalls as far as possible. In 2023, 52% of our merchandise was sourced in EMEA, representing a noticeable increase compared to last year (2022: 46%). In line with our strategic ambition of further promoting "nearshoring," we have set ourselves the goal of aligning our regional sourcing activities closer with our sales markets, aimed at ensuring shorter lead times and increasing speedto-market capabilities. In this context, we aim to keep the share of our sourcing activities in EMEA at a level of around 50% also in the years to come. With a share of 26% of our global sourcing and production volume (2022: 23%), Turkey not only accounts for about half of our European sourcing activity, but also represents by far for the largest sourcing market for HUGO BOSS. Our own production in Izmir meanwhile accounts for 15% of the global sourcing and production volume in 2023 (2022: 12%). Besides Turkey, Portugal, and Italy also represent relevant sourcing markets within EMEA.

At 46%, the Asian share of our global sourcing and production volume noticeably decreased in 2023 (2022: 51%), fully in line with our medium-term ambition, which aims to bring this share down to a level of around 40%. Within Asia, Vietnam and China represent 13% and 10% of our global sourcing and production volume. Hence, while both markets were among the most important sourcing markets also last year, their share of sourcing volume has come down meaningfully as compared to the prior-year period (2022: 15% and 17%).

ADDITIONAL INFORMATION

To benefit from the proximity to the important U.S. market, we are committed to also strengthening our sourcing footprint in the Americas. While the latter currently stands at 2% (2022: 3%), it is our ambition to increase the share towards a level of around 10% in the years to come. In this context, we are in the process of identifying and onboarding new suppliers, mainly located in markets of Latin America such as Peru or Mexico, with initial progress made during 2023.

Own production as a competitive advantage

As part of "CLAIM 5," we significantly expanded our own production capacity in recent years. In addition to greater independence from external factors, this allows us to react more quickly and flexibly to any changes in customer demand and to fully leverage in-season replenishment opportunities. In addition, it enables us to gain important expertise in the further development of production technologies and quality standards. Our five own production facilities are located in Izmir (Turkey), Metzingen (Germany), Radom (Poland), Morrovalle (Italy), and Coldrerio (Switzerland).

Our largest own production site in Izmir, extended with a fourth factory in 2022, plays a key role in this. Initially focused on the manufacturing of formalwear, the Izmir site meanwhile dedicates around 20% of its production volume to casualwear, covering product categories such as trousers, jackets, and jersey. Already today, Izmir thus accounts for more than 5% of our global casualwear sourcing, enabling us to react even more flexibly to changes in consumer demand also in this important segment. In 2023, we also started manufacturing products from our exclusive BOSS Camel brand line in Izmir, ensuring excellent product quality with a luxury look and feel by fully leveraging our long-standing tailoring heritage and highly sophisticated craftmanship skills.

The production site in Metzingen mainly produces products for BOSS Camel, including tailored BOSS "Made to Measure" suits, along with prototypes and sample styles. Business shoes and sneakers are the main focus of production in Radom and Morrovalle, while BOSS "Made to Measure" shirts are produced in Coldrerio.

Network of experienced and specialist suppliers

In order to ensure excellent processing quality and high product availability, HUGO BOSS works together with an extensive network of experienced and specialist suppliers. In fiscal year 2023, we continued to expand our global network of finished goods suppliers to fully serve the strong customer demand spurred by the successful execution of "CLAIM 5." Consequently, we sourced finished goods from a total of 205 external tier-1 suppliers (2022: 184) using 267 production facilities (2022: 233). In addition, we procured raw materials from 371 external tier-1 suppliers (2022: 328) using 397 production facilities (2022: 360).

HUGO BOSS strives to establish and maintain long-term strategic partnerships with its suppliers, with the average duration of our relationship with strategic suppliers exceeding ten years. In this context, we see ourselves as a strong partner, supporting suppliers in the further development and professionalization of processes and workflows. Alongside economic criteria, we attach great importance to the careful selection of suppliers, in which environmental and social aspects play an essential role. The cooperation is based on respect for human rights, compliance with applicable working standards, and occupational health and safety. The HUGO BOSS Supplier Code of Conduct forms the basis for all supplier relationships and provides an important framework for the structuring of business activities. We constantly review compliance with the Code of Conduct in the form of regular environmental and social audits in the production facilities and support our suppliers with training on relevant topics. For instance, we offer training programs aimed at assisting strategic partners in enhancing the digital skills of their workforce. At the same time, we are strongly involved in the further development of international standards and play an active role in external collaborations to shape more sustainable textile supply chains. Combined Non-Financial Statement, Respect for Human Rights

Expansion of own logistics infrastructure

The storage of inventories is centered on selected sites, which in most cases are directly operated by HUGO BOSS. Our distribution centers for hanging goods, flat-packed goods, and the Company's global online business, all located in proximity to the headquarters in Metzingen, form the core of our Group-wide logistics network. The latter is supplemented by selected local or regional warehouses, including our own warehouse in Savannah (USA) and those operated by third parties, for example in China or the UK.

To further support the successful execution of our "CLAIM 5" growth strategy, in 2023, HUGO BOSS began stepping up investments into its logistics network. In this context, we aim to increase our unit capacity from currently around 65 million to around 90 million in the medium term. In particular, we are significantly expanding our distribution center for flat-packed goods close to our headquarters in Metzingen, responding to the increased global customer demand for BOSS and HUGO. As part of this multiyear project, we are investing more than EUR 100 million, with a strong focus on the further digitalization and automatization of processes, and the implementation of state-of-the-art robotics solutions. Scheduled for completion by 2026, the expansion is aimed at increasing our warehouse's shipping and storage capacity by around 75%.

CONSOLIDATED FINANCIAL STATEMENTS

SHAREHOLDERS Annual Report 2023

SUSTAINABILITY

Sustainability as an integral part of HUGO BOSS business activities

New sustainability strategy based on five key pillars

Renewed inclusion in the Dow Jones Sustainability Index World and Europe

HUGO BOSS considers its diverse sustainability initiatives along the entire value chain as both a crucial corporate responsibility and a prerequisite to inspire customers and thus further strengthen its position as a leading global premium fashion platform. With our constantly evolving business model, we are equally committed to protecting our environment, living up to social and societal expectations, and practicing responsible corporate governance. In doing so, our numerous environmental, social, and governance (ESG) activities aim to generate added value for our Company, employees, shareholders, customers, business partners, and society, ensuring long-term success for HUGO BOSS.

Sustainability strategy

OUR SUSTAINABILITY STRATEGY

HUGO BOSS regards sustainability as an important element of its "CLAIM 5" strategy and thus as an integral part of our business activities. Consequently, being "Sustainable Throughout" is firmly embedded in our daily business activities. In line with our bold commitment to strongly support creating a planet free of waste and pollution, we developed our new Sustainability Strategy in 2023, focusing on five key pillars and their corresponding targets: increase circularity, drive digitization and data analytics, leverage nature-positive materials, fight microplastic, and push zero emissions. By embracing these pillars, we are paving the way towards a better and more sustainable future.

GOVERNANCE

CONSOLIDATED FINANCIAL STATEMENTS

ADDITIONAL INFORMATION

Increase circularity

HUGO BOSS puts strong emphasis on developing products of highest quality that embody timeless design. As part of our strategic focus on increasing circularity, we aim to extend the longevity of our products, close material loops, and prioritize the use of recycled and renewable materials. By fostering the development of circular products, we are committed to conserving resources and further reducing waste. In this context, we have set ourselves the ambitious target of having 80% circular products by 2030 (2023: 17%). Our brands' CIRCULAR styles adhere to three key principles: being recyclable, being made with renewable or recycled raw materials, and being designed for longevity.

To achieve this goal, we have launched various initiatives, including expanding our products' recycling potential. On top of that, we are also exploring circular business models such as repair and resale. To ensure consistency and adherence to circular principles, we have developed a dedicated Circular Product Policy, setting the criteria for circularity in our design and development processes. We are also providing training for our employees in circular design and product development, with a focus on the shared creative potential of our Design and Product Development departments. In particular, we have introduced a mandatory digital Circularity training program, covering the use of recycled and renewable materials as well as making circular design choices. Combined Non-Financial Statement, Environmental Matters

Drive digitization and data analytics

In line with our vision of becoming the leading premium tech-driven fashion platform worldwide, we are fully committed to embracing digital innovation and exploiting our many digital opportunities. In order to "Lead in Digital," we are digitalizing our business activities across the entire value chain and harnessing the power of data. We are convinced that the ongoing digitalization of our value chain will also contribute positively to our sustainability ambitions. As part of this, we have set ourselves the target to develop over 90% of our products digitally by 2025 (2023: around 65%).

HUGO BOSS is fully committed to digital design and product development, bringing prototypes to life through immersive 3D simulations, and captivating its customers through cutting-edge interactive product presentations. Having transformed all relevant physical development steps into digital processes, we have already made significant strides in reducing the need for physical samples in recent years. Going forward, we aim to exploit the full potential of advanced data analytics by gathering insights that drive our decisionmaking processes and empower us to further optimize our use of materials in production. By accurately forecasting trends and anticipating customer preferences, we aim to minimize waste and reduce our CO2 emissions. Being at the heart of our digital journey, our Digital Campus will leverage our Company's data end to end to make meaningful, data-driven decisions, while also exploiting the many advantages offered by AI. Product Development and Innovation

CONSOLIDATED FINANCIAL STATEMENTS

ADDITIONAL INFORMATION

Leverage nature-positive materials

We recognize that our Company and its two brands BOSS and HUGO are highly connected to functioning ecosystems, from the materials used for our products to our impact on the environment. Going forward, therefore, we want to leverage the immense potential of regenerative farming by putting strong emphasis on sourcing materials that not only reduce our industry's environmental footprint but also contribute to biodiversity preservation. While traditional agriculture has an adverse impact on soil health, the climate, and biodiversity, we firmly believe that it can be transformed into a powerful nature-based solution. To foster regenerative farming practices, we are closely collaborating with our partners and suppliers, pioneering resilient systems for the future. Our goal is to embrace nature-positive materials, sourcing 100% of our natural materials in alignment with regenerative farming principles or through closed-loop recycling by 2030. Closed-loop recycling also involves utilizing recycled pre- or post-consumer textile waste, thus further reducing our impact on the environment.

To reach this ambitious target, among other things, we are collaborating with Raddis Cotton, a non-governmental organization dedicated to regenerative agriculture and the empowerment of female farmers. As part of this, BOSS launched a limited capsule collection for Spring/Summer 2023, including t-shirts, sweatshirts, and tracksuit bottoms made entirely from cotton grown regeneratively in South India. While we plan to continue this collaboration in 2024, we also intend to establish similar partnerships in the future. At the same time, we are also encouraging our suppliers to do so as well.

Fight microplastic

The intensive use of synthetic fibers, such as polyester and nylon, is one of the main causes of microplastics, contributing to environmental pollution and potential harm to ecosystems. In particular when washing clothes, both in the production process and in the use phase, microplastics are released into the water. To reduce the amount of microplastics ending up in the oceans, we aim to completely phase out polyester and nylon in our products by 2030, by constantly exploring and leveraging true alternatives to synthetic fibers.

Achieving this ambitious target depends, to a large extent, on the widespread availability of alternative raw materials. Taking this into account, already in 2022, we entered into a long-term strategic partnership with Swiss innovator HeiQ to jointly develop and scale AeoniQ, the world's first sustainable, circular, closed-loop cellulose yarn. It is aimed at substituting oil-based yarns, such as polyester and nylon, while also binding carbon from the atmosphere during growth. In 2023, BOSS successfully launched its first two polo shirts made of almost 90% AeoniQ, while also showcasing three respective outerwear styles at its Fall/Winter 2023 fashion event in Milan. Going forward, we will continue to grow this partnership by gradually increasing the use of AeoniQ yarn in our brands' collections. Product Development and Innovation

GOVERNANCE

CONSOLIDATED FINANCIAL STATEMENTS

ADDITIONAL INFORMATION

SHAREHOLDERS Annual Report 2023

Push zero emissions

At HUGO BOSS, we have set ourselves ambitious targets to reduce our CO2 emissions and thus contribute to climate protection. In particular, together with other companies in the fashion industry, we are committed to reach net zero CO2 emissions by 2050. As part of this commitment, we are pursuing the goal of effectively reducing our CO2 emissions along the entire value chain (Scope 1, Scope 2, and Scope 3) by at least 50% by 2030 (base year: 2019), and thus without additional offsetting.

To achieve these goals, we are implementing numerous measures and initiatives both at our own sites and in the supply chain. Among other things, we are fostering regenerative farming to significantly reduce emissions in the procurement of raw materials. Additionally, we are collaborating closely with our suppliers to reduce energy consumption in production and are committed to limiting the use of airfreight throughout the supply chain. To further reduce CO2 emissions at our own production sites, we keep investing primarily in energy-efficient technologies, the modernization and renewal of technical equipment, and increasing the share of renewable energies. Combined Non-Financial Statement, Environmental Matters

A solid ESG core

Our Sustainability Strategy and the corresponding five strategic pillars are built on a strong ESG fundament, which is deeply embedded in our Company and guides us in all of our business activities. We actively participate in numerous initiatives aimed at creating a greener planet while fostering social and governance cohesion. In addition to measures taken to protect the environment and ecosystems, we therefore consider sustainable production processes to be crucial. Consequently, HUGO BOSS puts strong emphasis on ensuring the safety and well-being of its own employees and those in the value chain. Above all, this includes attaching the upmost importance to compliance with international human and labor rights and fair pay practices. At the same time, HUGO BOSS is convinced that good and responsible corporate governance is a key factor for long-term business success. Combined Non-Financial Statement, Respect for Human Rights

ESG ratings and rankings

Our strong commitment to sustainability is regularly acknowledged and rewarded by various well-known ESG ratings and rankings. This reinforces our dedication to responsible business practices and our ongoing efforts to have a positive impact on the environment and society. With our approach of following transparent reporting and sustainable business practices, we remain committed to continuing to lead the way in our industry, in line with our bold mission statement "We Love Fashion, We Change Fashion."

KEY ESG RATINGS AND RANKINGS

Elaboration	Score
With 87 points in the 2023 Corporate Sustainability Assessment (CSA), HUGO BOSS was included in the Dow Jones Sustainability Index (DJSI) World for the 7th consecutive year, taking second place in the industry.	87
In 2023, HUGO BOSS was rewarded with a B by CDP for its overall climate action, scoring an A for the climate targets and Scope 1 & 2 emissions.	B
HUGO BOSS achieved an AA score in the 2023 MSCI assessment, revealing over-industry average practices regarding product carbon footprint, raw material sourcing, and governance.	AA
ISS ESG assessed the HUGO BOSS' overall ESG performance with C+ (Prime), therefore exceeding the sector specific threshold.	C+
In 2024, HUGO BOSS was assessed with a score of 13.0, signifying that the Company is exposed to a low ESG risk and applies good management practices.	13.0
HUGO BOSS was rewarded with a 6.24 (Leading) ESG score, accompanied by a high transparency disclosure.	6.24

Due to our continuous efforts in the area of sustainability and our ongoing high level of transparency, HUGO BOSS has been included in the renowned Dow Jones Sustainability Index (DJSI) World for the seventh consecutive time. In addition, we also achieved inclusion in the DJSI Europe for the fourth time in a row. In the associated Corporate Sustainability Assessment (CSA), we once again secured a strong second place in the global textiles, apparel & luxury goods industry. We excelled in various key areas, such as Human Rights, Waste Management, Customer Relationship Management, Data Protection, and Innovation Management, achieving "best in class" scores in these criteria. In 2023, we received further external recognition by being awarded with the Golden Planet Award for our active implementation of important sustainability measures. In addition, HUGO BOSS received the ESG Transparency Award, honoring our transparent and comprehensive reporting on sustainability matters.

Investment in sustainability

HUGO BOSS is also increasing its dedication to sustainability by investing in Collateral Good Ventures Fashion I, a venture capital fund focused on promoting sustainability in the fashion industry and along the textile value chain. The fund will use HUGO BOSS' contribution to support startups and companies developing innovative solutions in areas such as raw material upcycling, microfiber prevention, and repair and care solutions. HUGO BOSS will contribute around 10% of the fund's total target volume of EUR 100 million.

CONSOLIDATED FINANCIAL STATEMENTS

COMBINED NON-FINANCIAL STATEMENT

Statement summarizes material disclosures on non-financial aspects

Eight topics identified as material within the meaning of Section 289c (3) of the German Commercial Code (HGB) Definition of reported performance indicators is oriented towards GRI Standards

About this combined non-financial statement

Under Sections 315b and 315c HGB ["Handelsgesetzbuch": German Commercial Code] in conjunction with Sections 289b to 289e HGB, the Company hereby publishes this combined non-financial statement for HUGO BOSS AG and the HUGO BOSS Group. It substantively summarizes the material disclosures for our Company regarding the five required aspects of environmental matters, employee matters, social matters, respect for human rights, and anti-corruption and bribery matters, as well as regarding the EU Taxonomy. In preparation of the statement, HUGO BOSS oriented itself toward the Global Reporting Initiative (GRI) Standards, particularly for the definition of the reported performance indicators.

As part of the reporting process, HUGO BOSS has analyzed whether risks exist that are associated with its own business activities, its business relationships, as well as its products or services, and that very likely have or could have serious adverse impacts on the aspects listed above. HUGO BOSS has not identified such risks.

Unless otherwise noted, the disclosures made in this statement reflect equally the perspective of HUGO BOSS AG and that of the Group. Any references to information outside the combined non-financial statement – with the exception of references to the chapter "Business Activities and Group Structure" as part of the combined management report – are information going beyond the mandatory disclosures under the German Commercial Code and do not form part of the statement. The combined non-financial statement was subject to a voluntary review with limited assurance according to ISAE 3000 (Revised). Limited Assurance Report of the Independent Practitioner Regarding the Combined Non-financial Statement

Description of the business model

HUGO BOSS is one of the leading fashion and lifestyle companies in the premium segment of the global apparel market. Our business model is described in detail in the chapter "Business Activities and Group Structure" of this Annual Report. Business Activities and Group Structure

GOVERNANCE

CONSOLIDATED FINANCIAL STATEMENTS ADDITIONAL INFORMATION

Derivation of material topics

The basis used for selecting the topics presented in this statement is a materiality analysis conducted by HUGO BOSS in 2019, which encompassed, in particular, a materiality review according to Section 289c (3) HGB. It has been analyzed to what extent the topics are of particular relevance for understanding the Company's development, performance, position, and the impact of its activity on the five required aspects. In 2023, HUGO BOSS reviewed its materiality analysis, confirming its continued validity.

OVERVIEW OF MATERIAL TOPICS, TARGETS, AND 2023 PERFORMANCE OF HUGO BOSS GROUP

Aspects	Material topics1	Targets	2023 performance
Environmental matters	Climate action in production	Reaching net zero climate-damaging emissions by 2050; Effectively reducing CO2 emissions along the entire value chain by at least 50% by 2030 (base year: 2019)	(1)% vs. prior year²; +42% vs. base year²
	Circularity	Enabling 80% of our apparel products to become circular by 2030	17% circular apparel products
Employee matters	Employer attractiveness	Further enhancing employer attractiveness	77% employee satisfaction
Social matters	Brand power	Becoming one of the top 100 global brands	Substantial increase in brand value
	Data protection	Ruling out any contraventions of applicable data protection laws as far as possible	No such violations in the sense of cases established by authorities or courts
Respect for human rights	Human rights and labor standards in production	Complying with statutory and internal Company requirements on both human rights and labor standards	86% of sourcing volume sourced from finished goods suppliers with one of the two highest attainable social compliance
	Occupational safety in production	Guaranteeing occupational safety at all times	performance levels
Anti-corruption and bribery matters	Avoidance of corruption and anti-competitive behavior	Preventing legal violations such as corruption, bribery, and antitrust violations	No such violations in the sense of cases established by authorities or courts

1 The aspects "Climate action in production," "Human rights and labor standards in production," and "Occupational safety in production" relate to both the

production activities of HUGO BOSS itself and the production activities of independent suppliers. 2 Not subject to the voluntary review with limited assurance according to ISAE 3000 (Revised).

Organizational structure and responsibilities

At HUGO BOSS, sustainability is firmly anchored in its "CLAIM 5" growth strategy. The overall responsibility for the sustainable development of the Group lies with the Managing Board. Strategic responsibility is assigned to the Group Strategy and Corporate Development division, which reports directly to the Chief Executive Officer (CEO). Operational responsibility along the supply chain lies with Business Operations, while Investor Relations is responsible for sustainability reporting. Both divisions report to the Chief Financial Officer (CFO)/ Chief Operations Officer (COO). He is also responsible for the central Sustainability Committee, which consists of representatives of the main business areas involved in sustainability topics and drives relevant decision-making processes in the area of sustainability. Managing Board

GOVERNANCE

CONSOLIDATED FINANCIAL STATEMENTS

ADDITIONAL INFORMATION

SHAREHOLDERS Annual Report 2023

Code of Conduct

HUGO BOSS has summarized Group-wide principles of conduct in its Code of Conduct and in more detailed Group policies, thus creating the basis for ensuring the legality of all employee activities. The focus is on regulations governing conduct in compliance with competition law, the avoidance of conflicts of interest, the appropriate handling of company information, data protection, fair working conditions and respectful treatment, as well as anti-corruption. Employees are continuously familiarized with the regulations of the publicly-available Code of Conduct and the Group policies. Likewise, our Supplier Code of Conduct forms the basis for all supplier relationships and provides an important framework for the structuring of business activities. We constantly review compliance with the Supplier Code of Conduct in the form of regular audits in the production facilities and support our suppliers with training on relevant topics.

Corporate Sustainability Reporting Directive

In fiscal year 2023, HUGO BOSS dealt intensively with the Corporate Sustainability Reporting Directive (CSRD) that will apply from fiscal year 2024 onwards. In this context, important steps were taken as part of a crossdivisional project to comply with the associated comprehensive future reporting requirements. In particular, HUGO BOSS is in the process of conducting a double materiality assessment intended to be finalized in early 2024. It aims to identify the environmental, social, and governance (ESG) topics that are material to HUGO BOSS, especially in connection with the European Sustainability Reporting Standards (ESRS) applicable from 2024 onwards. In its Sustainability Statement for fiscal year 2024, HUGO BOSS will report in detail on all topics assessed as material.

Environmental matters

Climate action in production

In the global textile and apparel industry, CO2 emissions mainly occur in the cultivation and production of textile fibers and during energy-intensive processing stages, such as dyeing, washing, or bleaching. HUGO BOSS is conscious of its shared responsibility to protect the environment and the climate. The implementation and development of environmentally and climate-friendly processes at our suppliers is as important to us as the implementation of corresponding measures at our own production sites.

Internal guidelines and standards on climate action issues in the supply chain are defined by the central Group Strategy and Corporate Development division and implemented in close cooperation with the Sustainable Supply Chain Management department. In addition, the central Environmental Management team coordinates appropriate measures at the Company's own production sites in close alignment with the local management teams. The Managing Board, in person of the CFO/COO, is regularly informed about the progress made toward achieving the Group's climate protection targets, particularly within the Sustainability Committee. In addition, the Group Strategy and Corporate Development division reports directly to the CEO.

Targets

As a signatory to the Fashion Industry Charter for Climate Action under the auspices of the United Nations Framework Convention on Climate Change (UNFCCC), HUGO BOSS, together with other companies in the fashion industry, is striving for net zero climate-damaging emissions by 2050. As part of our commitment to this target, our sustainability strategy places great emphasis on significantly reducing emissions not only in our own area of responsibility but also along the entire value chain. As a first important milestone, we are pursuing the target of effectively reducing our CO2 emissions along the entire value chain by at least 50% by 2030 (base year: 2019), and thus without additional offsetting. The scope 1, scope 2 and scope 3 emission categories included in this target are presented in the table below.

Measures

We are committed to global climate protection with numerous measures and initiatives at our own sites and in the supply chain. In order to define suitable measures, HUGO BOSS is actively collaborating with other signatories to the Fashion Industry Charter for Climate Action. In fiscal year 2023, we focused, among other things, on collaborating with other signatories in joint working groups addressing crucial topics such as "decarbonization," "lowering carbon manufacturing," and "policy engagement."

In line with the UNFCCC, we also work together with our suppliers to sustainably reduce environmental impacts along the supply chain. In this context, compliance with legal environmental requirements is an integral part of all supplier contracts. In addition, our Environmental Policy published on our corporate website describes a variety of environmental protection principles, both for our own production sites and those of our suppliers. It reflects our activities and objectives pursued within the framework of the Fashion Industry Charter for Climate Action. Our Supplier Code of Conduct also contains comprehensive guidelines for compliance with environmental protection requirements. In addition, HUGO BOSS sets binding sustainability criteria for its suppliers with regard to the use and processing of textile fibers and materials for its more sustainable product offering in the publicly available WE CARE commitment.

As part of regular environmental audits conducted by external auditors, we monitor, among other things, our suppliers' energy consumption and CO2 emissions. In the event that violations of environmental requirements are identified, we work together with the respective supplier to develop action plans, the implementation of which is reviewed in follow-up audits. We also carry out relevant training sessions to inform our suppliers regularly about environmental and climate protection measures and to work towards the establishment of standardized energy and environmental management systems. This also includes trainings towards good carbon accounting practices. In order to increase the transparency and measurability of the environmental impacts of our partners, in cooperation with the Fashion Industry Charter for Climate Action and selected signatories, in 2021 we developed an online "Climate Action Training for the Fashion Industry." The training provides garment, textile, and footwear manufacturers with basic knowledge of climate change, the environmental impact of the fashion industry, energy efficiency, and renewable energy, as well as practical expertise on carbon accounting.

To further intensify its measures to achieve net zero by 2050, HUGO BOSS has developed a decarbonization roadmap. In this context, in 2023, we conducted a greenhouse gas (GHG) assessment to identify potential additional measures to sustainably reduce greenhouse gas emissions in our upstream value chain. Going forward, we aim at further intensifying the collaboration with our suppliers to effectively reduce emissions in our supply chain, focusing on suppliers with the highest emissions, particularly those with high energy demands.

In order to reduce the emissions and other environmental impacts associated with the cultivation and processing of natural materials, and fully in line with our Sustainability Strategy, we want to "leverage nature positive materials" by exploiting the potential of regenerative farming. Going forward, this means putting an even stronger emphasis on sourcing materials that not only reduce our industry's environmental footprint but also contribute to biodiversity preservation. Our goal is to source 100% of natural materials in alignment with regenerative farming principles or through closed-loop recycling by 2030, thus also contributing to climate protection. This also includes cotton, which is by far the most used material at HUGO BOSS. Sustainability

The climate impact of our own production activities is relatively low compared with that of external suppliers, as in particular the upstream stages of the value chain involve CO2-intensive processes. Nevertheless, the reduction of energy consumption and CO2 emissions at our own production sites plays an important role for achieving our targets. We continue to develop our Environmental Management in line with the international standards ISO 14001 (environmental management) and ISO 50001 (energy management). Our own production site in Izmir (Turkey) – by far the largest of our own production sites globally – has already been certified in accordance with both standards since 2014.

To further reduce CO2 emissions at our own production sites, we are investing primarily in energy-efficient technologies, the modernization and renewal of technical equipment, and increasing the share of renewable energies. For example, HUGO BOSS has been obtaining its energy from renewable sources at all its own facilities since 2020. In this context, in 2023, we commissioned new photovoltaic systems at our production sites in Izmir (Turkey), Morrovalle (Italy), Coldrerio (Switzerland), and Radom (Poland), while we also continued investing in LED lighting. The knowledge gained as part of our own environmental management will help us make further progress in reducing the environmental and climate impact in the supply chain together with our suppliers in the coming years.

Performance indicators

Our scope 1 and market-based scope 2 emissions in fiscal year 2023 amounted to 30,063t, which is broadly in line with the prior-year level (2022: 29,921t), but 7% below the base year (2019: 32,064t). This development mainly reflects a reduction in Group-wide energy consumption and an increase in the share of green electricity compared to the base year. The scope 3 emissions, which were not subject to the voluntary review with limited assurance according to ISAE 3000 (Revised), amounted to 1,056,845t in 2023, representing a 1% decrease compared to the prior year (2022: 1,063,612t), and an increase of 44% compared to the base year (2019: 731,576t). The latter primarily reflects the strong business performance of HUGO BOSS in recent fiscal years, as the large majority of our CO2 emissions are generated in the cultivation and production of textile fibers and during energy-intensive processing stages. The scope 3 emission categories included herein are presented in the table below. In fiscal year 2023, our total CO2 emissions calculated according to the Greenhouse Gas Protocol (GHG Protocol) thus amounted to 1,086,908t, representing a 1% decrease compared

to the prior year (2022: 1,093,533t) and a 42% increase compared to the base year (2019: 763,640t). The scope 3 emissions included in the total CO2 emissions were not subject to the voluntary review with limited assurance according to ISAE 3000 (Revised).

TOTAL DIRECT, INDIRECT AND OTHER GREENHOUSE GAS EMISSIONS (IN T CO2e)¹

Scope 1²	2023	2022	Base year: 2019³
Own vehicles	3,915	3,068	3,094
Direct energy consumption	7,523	8,033	9,029
Total Scope 1	11,438	11,101	12,123
Scope 2 (market-based)⁴
Indirect energy consumption	18,625	18,820	19,941
Total Scope 2	18,625	18,820	19,941
Scope 3⁵
3.1 Purchased goods and services	939,898	931,590	645,516
3.3 Fuel- and energy-related activities	8,059	7,555	8,138
3.4 Upstream transportation and distribution	67,878	86,698	38,868
3.5 Waste generated in operations	2,278	1,972	708
3.6 Business travel	7,042	4,092	7,012
3.7 Employee commuting	5,026	4,594	9,387
3.8 Upstream leased assets	3,167	3,821	5,809
3.12 End-of-life treatment of sold products	23,497	23,290	16,138
Total Scope 3	1,056,845	1,063,612	731,576
Total greenhouse gas emissions⁶	1,086,908	1,093,533	763,640

1 Greenhouse gas emissions are calculated based on the GHG Protocol. Due to improvement of data quality and corresponding corrections during the year,

prior-year figures have been adjusted retrospectively.

2 Scope 1 emissions: direct emissions from owned or controlled sources. 3 2019 data is not part of the auditing scope.

4 Scope 2 emissions: indirect emissions from the generation of purchased energy. Scope 2 emissions are calculated according to the market-based approach using specific supplier emission factors for certified green electricity. For conventional electricity, specific country emission factors are used. Location-based scope 2 emissions amounted to 38,758t in 2023 (2022: 38,793t).

5 Scope 3 emissions are not subject to the voluntary review with limited assurance according to ISAE 3000 (Revised). Scope 3 emissions calculation is based on both supplier-based and average-data methods. For "purchased goods and services," emissions are calculated as follows: Raw material production emissions (Tier 4 and Tier 3 Suppliers) include those from the conversion of raw materials into yarns. Manufacturing emissions (Tier 2 and Tier 1 Suppliers) encompass processes converting yarns into fabrics and finished goods. "Fuel- and energy-related activities" relate to emissions from the production of purchased fuels and energy not covered in Scope 1 or Scope 2. "Upstream transportation and distribution" emissions are calculated using primary data per each shipping mode to our warehouses and from the warehouses to our retail stores and our wholesale partners. "Waste generated in operations" comprises waste generated at HUGO BOSS, disposed by third-party providers. "Business travel" emissions are derived from flight data based on comprehensive tracking, while "employee commuting" emissions are estimated using average-data methods and national statistics. "Upstream leased assets" emissions include emissions of leased retail spaces. Emissions in connection with "end-of-life treatment of sold products" are calculated using the IMPACT 2022+ LCIA method, as primary data is not available.

6 The scope 3 emissions included in the total greenhouse gas emissions are not subject to the voluntary review with limited assurance according to ISAE 3000 (Revised).

Circularity

In light of the comprehensive environmental impact of the global textile and apparel industry, HUGO BOSS considers itself responsible for making a positive contribution to protecting ecosystems and preserving valuable resources. We have therefore firmly anchored the topic of circularity in our sustainability strategy. In this context, the design of our BOSS and HUGO products, which is fundamentally geared towards durability, becomes even more important.

Due to its strategic importance to HUGO BOSS, the topic of circularity is managed by the central Group Strategy and Corporate Development division, which, among other things, defines and coordinates the future direction and objectives. Operational responsibility lies primarily with the design, product, and sales managers, who define and implement corresponding product-related measures. In addition, topic-specific task forces systematically drive the exchange of experience in the area of circularity. Within the framework of the Sustainability Committee, the Managing Board, in person of the CFO/COO, is regularly informed on the progress in achieving the Company's circularity targets. There is also a direct reporting line from Group Strategy and Corporate Development to the CEO.