HUGO BOSS on the capital market

• Major German indices with single-digit gains in 2020
• Implications of COVID-19 pandemic weigh on HUGO BOSS share price performance
• Investor Relations website wins prestigious award

Capital markets had an upbeat start into the year 2020. Supported by generally low levels of unemployment, continued low interest rates, declining trade tension between the U.S. and China as well as the hope of a swift resolution to Brexit, share prices were maintained at last year’s high levels. However, in light of the global spread of COVID-19, this development came to an abrupt end, with the implications of the pandemic dominating large parts of 2020. Both indices, the DAX and MDAX, fell to their annual low in mid-March, which also marked the lowest level in more than four years. In light of the rapid implementation of major fiscal and economic measures, both indices saw a rapid recovery throughout the year, returning to pre-crisis levels only a few months later. Towards the end of the year, however, this upward trend was somewhat dampened. While the outcome of the U.S. election and the successful introduction of various vaccines provided further support to equity markets, a growing number of infections and renewed lockdowns, especially in Europe, cast a shadow over the economic outlook. Overall, despite the sharp decline in March, the DAX rose by 4% in 2020, while the MDAX gained 9%.

Despite the impact of the COVID-19 pandemic, the MSCI World Textiles, Apparel & Luxury Goods Index, which reflects the share price performance of major companies in the apparel and luxury goods segment, recorded significant growth in 2020 and ended the year up 21%. In particular, share price development in the luxury goods sector, which had been comparatively less affected by the effects of the pandemic, was extremely robust.

The start of fiscal year 2020 was also positive for the HUGO BOSS share, supported by the publication of preliminary results for fiscal year 2019, which was well received by market participants. However, following the spread of COVID-19 towards the end of January, the HUGO BOSS share faced increasing pressure as the year progressed. Temporary store closures due to global lockdowns, considerable restrictions of public life as well as international travel restrictions had a significant negative impact on business development and weighed on the HUGO BOSS share. As a consequence, and reflecting the negative implications of COVID-19, HUGO BOSS was not able to maintain its outlook for fiscal year 2020, whereupon it was withdrawn on March 18. In view of encouraging results for the third quarter, the HUGO BOSS share was able to offset some of its losses by the end of the year. This development was supported by the outcome of the U.S. election and the hopes of a rapid distribution of vaccines. Consequently, the HUGO BOSS share closed the year 2020 at a price of EUR 27.29. Compared with the prior year, this corresponds to a decline of 37%.

In 2020, PFC S.r.l. and Zignago Holding S.p.A., which are both controlled by the Marzotto family, further expanded their strategic investment in HUGO BOSS AG. As of December 31, 2020, they held a total of 15.45% of the voting rights in HUGO BOSS AG. Both companies have pooled their shares through a shareholder agreement. HUGO BOSS AG itself holds 1,383,833 of its own shares, which were purchased as part of a share buyback program between 2004 and 2007. This corresponds to a share of 1.97% of the share capital. The other 82.58% of the Company’s shares remain in free float. As of December 31, 2020, 0.78% of the voting rights pursuant to Sec. 34 WpHG [“Wertpapierhandelsgesetz”: German Securities Trading Act] were allocated to Michael Ashley according to the voting rights notification of July 3, 2020. In addition, he held a further 9.25% of the voting rights through instruments pursuant to Sec. 38 (1) No. 2 WpHG at that time. Legal Disclosures

No use was made of the authorization given at the Annual Shareholders’ Meeting in 2015 to acquire shares in the Company up to a maximum of 10% of the share capital outstanding on or before May 11, 2020. Consequently, that option has now expired. At the 2020 Annual Shareholders’ Meeting, the Company was granted a new authorization to repurchase shares up to 10% of the outstanding share capital on or before May 26, 2025. As of December 31, 2020, the Company has not made use of this option. Legal Disclosures

In fiscal year 2020, members of the Managing Board and Supervisory Board acquired further shares of HUGO BOSS. Thus, the Company received a total of 18 notifications pursuant to Sec. 15a WpHG concerning the acquisition or sale of securities of HUGO BOSS AG. These were published on the corporate website at financialreleases.hugoboss.com. In total, the members of the Managing Board and Supervisory Board held around 1% of the shares issued by HUGO BOSS AG at the end of fiscal year 2020. Notes to the Consolidated Financial Statements, Note 25

The Company received several voting rights notifications from institutional investors in the reporting period from January 1 to December 31, 2020. The original wordings of these notifications are published on the corporate website at financialreleases.hugoboss.com.

The Company regularly conducts analyses of the shares held in free float, in order to address institutional investors of HUGO BOSS in a targeted manner. In the most recent analysis, approximately 96% of the shares have been assigned again. Besides the regional distribution of the institutional investors, the analysis also enables the Company to determine the proportion of shares held by private shareholders. The latter decreased from 17% in the prior year to 15% in 2020. Based on the share register, the Company estimates the total number of its shareholders at around 47,000 as of December 31, 2020 (2019: around 40,000).

On the basis of market capitalization adjusted for free float and the total number of companies in the DAX, MDAX and SDAX, at the end of the year, the HUGO BOSS share, which is listed on the MDAX, took 89th place (2019: 65th) in Deutsche Börse’s ranking. In addition, the HUGO BOSS share ranked 59th by trading volume (2019: 36th). The weighting of the HUGO BOSS share in the MDAX at the end of December amounted to 0.5% (December 31, 2019: 1.0%). On average, around 600,000 shares per day were traded on Xetra in 2020 (2019: around 455,000).

Against the backdrop of the negative implications of the COVID-19 pandemic, and in order to safeguard the Company’s financial stability, HUGO BOSS suspended its dividend payment for fiscal year 2019, with the exception of the legal minimum dividend of EUR 0.04 per share. In light of the very challenging nature of fiscal year 2020 as well as the persisting high uncertainty with regard to the further development of the pandemic, the Managing Board and Supervisory Board of HUGO BOSS intend to propose to the Annual Shareholders’ Meeting to only pay the legal minimum dividend of EUR 0.04 per share also for fiscal year 2020. In doing so, the Company aims at further strengthening its internal financing capability. At the same time, HUGO BOSS remains confident of returning to its profit-based dividend policy in the medium term, which aims to allow shareholders to participate appropriately in the Group’s earnings development. Outlook

As part of comprehensive communication measures, HUGO BOSS is committed to inform capital market participants about current developments in a timely and transparent manner. The dialog between institutional investors and HUGO BOSS takes place in particular as part of national and international conferences and numerous roadshow activities. In addition, the Company presents itself to interested private shareholders at dedicated events, that are organized in cooperation with local banks. Due to the pandemic, these events were held virtually in 2020. In addition, the Investor Relations website group.hugoboss.com/investors is a key communication tool for providing detailed information and key figures. In 2020, HUGO BOSS was awarded first place in the “Best IR website (mid-cap)” category at the prestigious IR Magazine Awards (Europe). In addition, the Company received the iNOVA Silver Award in the category “Online Annual Reports: Premium Apparel” in 2020.