Legal structure of the Group reflects dual management and control structure

All main management functions are based at the Group’s headquarters in Metzingen, Germany. As the parent company, HUGO BOSS AG is responsible for the management of the Group. As a German stock corporation, HUGO BOSS AG has a dual management and control structure. The Managing Board has overall responsibility for the strategy and management of the Group. The Supervisory Board monitors the management activities of the Managing Board and also advises it. In addition to HUGO BOSS AG, the HUGO BOSS Group is made up of 58 consolidated subsidiaries that hold sole responsibility for their local business activities. 36 subsidiaries are organized as distribution companies and three as production companies. Notes to the Consolidated Financial Statements, Basis of Consolidation

Regional alignment of organizational structure

The HUGO BOSS Group is regionally aligned. The Group’s business segments are the regions Europe (including the Middle East and Africa), the Americas and Asia/Pacific as well as the licensing business.

Markets implement Group strategy

The Group strategy is developed in the central divisions. These functions also cover main elements of the value chain, particularly the development, production and sourcing of the collections and distribution in the markets. The structure of the sales strategy in the Group’s own retail business and in its wholesale business as well as the implementation of other important elements of the Group strategy such as brand communications is based on Group-wide parameters for the individual markets. This ensures a strictly customer-centric approach and enables swift responses to developments in specific markets. The individual markets are placed in hubs that are managed by a responsible director who reports directly to the Chief Sales Officer of HUGO BOSS AG. This ensures close alignment with the central functions and short decision-making processes. In addition, certain functions are pooled in the hubs on a cross-country basis to make effective use of specialist skills and to generate cost benefits.