Annual Report 2021

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In November 2021, HUGO BOSS signed a revolving syndicated loan of EUR 600 million, with the majority of the loan intended to provide additional financial flexibility for the successful execution of “CLAIM 5”. The loan can be used for general corporate purposes, for guarantees, and for the supplier financing program. It has a term of three years including two options for extending the term by one year each and an option to increase the credit volume by up to EUR 300 million. The syndicated loan agreement contains a standard covenant requiring the maintenance of financial leverage, defined as the ratio of net financial liabilities (including lease liabilities in accordance with IFRS 16) to EBITDA. As of December 31, 2021, financial leverage totaled 1.1, thus well below the maximum permissible level. The interest rates of the loan are also linked to the fulfillment of defined ESG criteria. At the end of fiscal year 2021, the syndicated loan was not drawn, with the exception of uses for guarantees amounting to EUR 18 million and for the supplier financing program amounting to EUR 63 million (December 31, 2020: use of EUR 152 million of the former loan, of which EUR 105 million was drawn for general corporate purposes, EUR 17 million for guarantees and EUR 30 million for the supplier financing program). Sustainability

The former syndicated loan of HUGO BOSS in the amount of EUR 633 million was replaced in November 2021. In the wake of the COVID-19 pandemic, in 2020, HUGO BOSS had agreed a covenant suspension with its financing banks until June 30, 2021 for this loan. On July 1, 2021 the respective agreement was reinstated. Due to the strong sales and earnings performance in the course of fiscal year 2021, the level of the covenant to be complied with was significantly undershot, both at this point in time as well as in the remaining course of the year.

To further secure liquidity, HUGO BOSS possesses committed and uncommitted bilateral credit lines totaling EUR 204 million (December 31, 2020: EUR 204 million), of which EUR 116 million were drawn down at the end of the reporting period (December 31, 2020: EUR 161 million). The additional loan commitments of EUR 275 million that the Company had secured in 2020 to ensure high levels of financial flexibility during the pandemic expired at the agreed maturity date in June 2021, without having been drawn at any point in time. In addition, HUGO BOSS had at its disposal cash and cash equivalents in the amount of EUR 285 million at the end of 2021 (December 31, 2020: EUR 125 million). Notes to the Consolidated Financial Statements, Note 15, Financial Position, Consolidated Statement of Cash Flows and Free Cash Flow

The Group’s liabilities totaled EUR 1,796 million at the end of the fiscal year (December 31, 2020: EUR 1,811 million), corresponding to a 66% share of total assets (December 31, 2020: share of 70%). Of this amount, EUR 795 million was attributable to current and non-current lease liabilities (December 31, 2020: EUR 862 million), primarily relating to the rental of retail store locations as well as logistics and administration properties. Current and non-current financial liabilities totaled EUR 135 million at the end of the fiscal year (December 31, 2020: EUR 281 million). Net Assets, Notes to the Consolidated Financial Statements, Note 9 and 20