Net assets

Property, plant and equipment and intangible assets increased slightly to EUR 669 million (December 31, 2012: EUR 666 million). This was mainly driven by investment for the expansion of the retail network in Germany and Austria as part of the takeover and opening of a net figure of 32 new locations.

Inventories increased by 9% at the end of fiscal year 2013 to EUR 170 million (December 31, 2012: EUR 156 million). The main driver behind this development is the 17% increase in finished goods in connection with the worldwide expansion of the Group's own retail business. By contrast, raw materials and supplies decreased by 13%. This development was largely a consequence of strict inventory management. As a result of the new business strategy, collection creation cycles were shortened, leading to shorter order lead times.

Trade receivables with external wholesale partners increased by 14% year on year to EUR 25 million (December 31, 2012: EUR 22 million). The main driver behind this development was an increased volume of deliveries made in the months of November and December compared to the prior year. Days sales outstanding deteriorated slightly compared to the prior year.

Receivables from affiliated companies saw an increase of EUR 65 million (December 31, 2012: EUR 31 million). This development is essentially attributable to the larger volume of receivables due from affiliated companies.

At EUR 29 million, other assets were up 22% year on year (December 31, 2012: EUR 24 million). These and mainly pertain to bonus receivables from suppliers, credit card receivables as well as income tax and VAT receivables. Apart from the increase in income tax receivables, credit card receivables in particular increased as of the end of the year due to an increase in sales.

Cash and cash equivalents, as the sum of cash on hand and balances with banks, decreased by EUR 4 million to EUR 3 million compared to the prior year (December 31, 2012: EUR 7 million).

The equity and liabilities side was mainly affected by an increase in liabilities. These increased by 16% to EUR 355 million as of the reporting date (December 31, 2012: EUR 306 million). A key driver behind this development is the rise in liabilities due to affiliated companies on account of the newly obtained intercompany loan of EUR 100 million from HUGO BOSS International B.V. At EUR 88 million, trade payables were up 3% year on year (December 31, 2012: EUR 85 million).

On aggregate, provisions increased to EUR 110 million as of the reporting date (December 31, 2012: EUR 99 million). This increase is primarily attributable to an increase in tax provisions.

Trade net working capital is HUGO BOSS AG's key performance indicator for measuring the efficient use of capital. The only components factored into the calculation of this indicator are inventories, trade receivables and trade payables. Trade net working capital increased by EUR 14 million year on year to EUR 107 million (December 31, 2012: EUR 93 million). The increase in inventories and trade receivables was only partially counterbalanced by an increase in trade payables.