Net assets

Total assets increased significantly as a result of the first-time application of IFRS 16, amounting to EUR 2,877 million at the end of the year. This was mainly driven by the first-time capitalization of right-of-use assets amounting to EUR 877 million. Excluding the effects of IFRS 16, total assets increased 7% to EUR 1,993 million (December 31, 2018: EUR 1,858 million). This is mainly attributable to property, plant and equipment and intangible assets, which grew 24%. Besides an increase in capital expenditure, this was driven by the addition of tangible fixed assets as part of the full acquisition of a leasing property company that had previously been under the joint control of HUGO BOSS and another party. Financial Position, Capital Expenditure, Notes to the Consolidated Financial Statements, Note 8 and 9

The share of non-current assets increased to 60% as of December 31, 2019. Excluding the effects of the IFRS 16, the share increased to 42% (December 31, 2018: 37%). This is also attributable to the increase in property, plant and equipment and intangible assets. Accordingly, the share of current assets was 40% at the end of the year. Excluding the effects of the new accounting standard, the share was 58%, and hence below the prior year level (December 31, 2018: 63%). The equity ratio was 35% at the end of the year. Excluding the effects of IFRS 16, the equity ratio was 51% and thus slightly below the prior year level (December 31, 2018: 53%). Consolidated Financial Statements, Consolidated Statement of Financial Position

Adjusted for currency effects, inventories remained at the prior year level. In line with the performance of the wholesale business, trade receivables declined slightly on a currency-adjusted basis. Trade payables increased, mainly as a result of temporal shifts in the receipt of invoices. Adjusted for currency effects, trade net working capital was 3% below the prior year level. The moving average of trade net working capital compared to sales on the basis of the last four quarters was 20.1%. This corresponds to an increase of 40 basis points compared to the prior year (2018: 19.7%).

Other assets were 2% above the prior year level. Excluding the effects of IFRS 16, they decreased only slightly compared to the end of 2018. The 6% increase in provisions and deferred tax liabilities mainly resulted from higher provisions for pensions. Other liabilities decreased in 2019. However, excluding the effects of IFRS 16, they increased 15% driven by higher income tax liabilities associated with the tax field audit at HUGO BOSS AG. Notes to the Consolidated Financial Statements, Note 17 and 19

Total current and non-current financial liabilities increased 24% to EUR 218 million at year-end (December 31, 2018: EUR 176 million). The increase is primarily attributable to the take-over of a loan as part of the full acquisition of a leasing property company that had previously been under the joint control of HUGO BOSS and another party. Notes to the Consolidated Financial Statements, Note 8 and 20