H&m Hennes & Mauritz Ab Class B · OMXSTO:HM_B
H&m Hennes & Mauritz Ab Class B — 9M 2017 Earnings Presentation
17 slides from H&m Hennes & Mauritz Ab Class B's earnings presentation, Sep 28, 2017
Slide 1: Telephone Conference 28 September 2017 - Nine-Month Report 2017
H & M Hennes & Mauritz AB TELEPHONE CONFERENCE 28 SEPTEMBER 2017 NINE-MONTH REPORT 2017
Slide 2: Presenters: Karl-Johan Persson, Jyrki Tervonen, Nils Vinge
• KARL-JOHAN PERSSON CEO • JYRKI TERVONEN CFO • NILS VINGE INVESTOR RELATIONS
Slide 3: Sales
SALES SEK m incl VAT + 7% 175,000 173,290 150,000 161,767 125,000 100,000 2016 75,000 + 5% 2017 50,000 56,802 59,383 25,000 0 Q3 Nine months
Slide 4: Nine Months 2017
NINE MONTHS 2017 • Digitalisation changes fashion retail – rapid and profitable H&M group online growth – online accounts for 25-30% of sales in some established markets • Six new H&M online markets and first H&M stores in three new markets successfully opened • Continued very good development at CO
Slide 5: Gross Profit and Gross Margin
GROSS PROFIT AND GROSS MARGIN Gross profit SEK m 53.6% 80,000 54.6% 80,161 76,150 60,000 2016 40,000 54.0% 51.4% 2017 20,000 26,471 26,350 0 Q3 Nine months
Slide 6: Selling and Administrative Expenses
SELLING AND ADMINISTRATIVE EXPENSES SEK m 70,000 + 8% 60,000 64,413 59,681 50,000 40,000 2016 30,000 + 6% 2017 20,000 20,224 21,411 10,000 0 Q3 Nine months
Slide 7: Profit After Financial Items
PROFIT AFTER FINANCIAL ITEMS SEK m 20,000 - 4% 15,000 16,630 15,936 10,000 2016 - 20% 2017 5,000 6,301 5,016 0 Q3 Nine months
Slide 8: Sales and Profits - Third Quarter
SALES AND PROFITS THIRD QUARTER SEK m 2017 2016 Net sales 51,229 48,982 Gross profit 26,350 26,471 gross margin, % 51.4 54.0 Operating profit 4,939 6,247 operating margin, % 9.6 12.8 Net financial items 77 54 Profit after financial items 5,016 6,301 Tax -1,179 -1,481 Profit for the period 3,837 4,82
Slide 9: Stock-in-Trade
STOCK-IN-TRADE SEK m 35,000 + 8% 30,000 33,583 31,231 25,000 20,000 2016 15,000 2017 10,000 5,000 0 31 August
Slide 10: Key Data
KEY DATA SEK m 31 Aug 2017 31 Aug 2016 Stock-in-trade 33,583 31,231 Cash flow from current operations 16,239 17,549 Investments 8,611 9,288 Cash and cash equivalents and short- 9,665 8,680 term investments Return on shareholders' equity, % * 33.3 34.4 * rolling twelve months
Slide 11: Seamless Shopping with Omni Channel
SEAMLESS SHOPPING WITH OMNI CHANNEL • Integration of physical stores and online store – for a seamless shopping experience • Omni features – click & collect, online returns in store, mobile payments, scan & buy, store stock status – improvements, roll-outs and testing ongoing
Slide 12: Our Online Stores
OUR ONLINE STORES • Broadening the assortment • Develop functions and capabilities – navigation, check-out, personalisation – #HM Gallery and My Style – image recognition in H&M mobile app • Improving delivery services – more and faster options, same-day and time-slot deliveries tested • H&M group o
Slide 13: Expansion and Optimisation
EXPANSION AND OPTIMISATION • Eight new H&M online markets 2017 – online shopping in 43 markets by year-end • First H&M stores in Kazakhstan, Colombia, Iceland, Vietnam and Georgia open 2017 • Store portfolio optimisation: renegotiation, rebuilds, relocations, adjustment of store space and closures –
Slide 14: Product Development and Supply Chain
PRODUCT DEVELOPMENT AND SUPPLY CHAIN • Advanced analytics enable improvements in quantification, allocation, pricing, design and personalised communication • New technology to improve purchasing methods – shorter lead times and increased precision in planning the assortment • Faster lead times, a mo
Slide 15: New Brands
NEW BRANDS • We develop, launch and build global brands – important part of the H&M group’s growth strategy • Eight unique brands – H&M, COS, & Other Stories, Cheap Monday, Monki, Weekday, H&M Home and ARKET • ARKET opened online in 18 European markets and with stores in London, Copenhagen and Bruss
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Slide 17: H & M Hennes & Mauritz AB
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