H&m Hennes & Mauritz Ab Class B · OMXSTO:HM_B

H&m Hennes & Mauritz Ab Class B — Q3 2018 Earnings Presentation

18 slides from H&m Hennes & Mauritz Ab Class B's earnings presentation, Sep 27, 2018

  1. Slide 1: Conference Call 27 September 2018 - Nine-Month Report 2018

    H & M Hennes & Mauritz AB CONFERENCE CALL 27 SEPTEMBER 2018 NINE-MONTH REPORT 2018

  2. Slide 2: Presenters: CEO, CFO and Investor Relations

    • KARL-JOHAN PERSSON CEO • JYRKI TERVONEN CFO • NILS VINGE Obs! FÖR INVESTOR RELATIONS TUNG BILD

  3. Slide 3: Third Quarter 2018

    THIRD QUARTER 2018 • H&M group transformation work continues – gradually improved sales, increased market share in most markets • Sales +9% to SEK 64.8 billion incl VAT – increase +4% in local currencies • Problems related to implementation of new logistics systems – negative effect on sales in some

  4. Slide 4: Financial Data

    FINANCIAL DATA

  5. Slide 5: Sales

    SALES SEK m incl VAT + 3% 175,000 173,290 178,817 150,000 125,000 100,000 2017 75,000 + 9% 2018 50,000 59,383 64,800 25,000 0 Q3 Nine months

  6. Slide 6: Sales in Largest Markets

    SALES IN 10 LARGEST MARKETS THIRD QUARTER Q3 - 2018 Q3 - 2017 Change in % SEK m incl VAT SEK Local curr Germany 9,851 8,748 13 6 USA 6,869 7,198 -5 -10 UK 4,330 3,726 16 9 France 3,749 3,752 0 -7 China 3,225 2,660 21 13 Sweden 2,821 2,619 8 8 Spain 2,490 2,265 10 3 Italy 2,319 2,301 1 -6 Netherlands

  7. Slide 7: Gross Profit and Gross Margin

    GROSS PROFIT AND GROSS MARGIN Gross profit SEK m 53.6% 52.1% 80,000 80,161 80,295 60,000 2017 40,000 51.4% 50.3% 2018 20,000 26,350 28,091 0 Q3 Nine months

  8. Slide 8: Selling and Administrative Expenses

    SELLING AND ADMINISTRATIVE EXPENSES SEK m + 7% 70,000 69,104 60,000 64,413 50,000 40,000 2017 30,000 + 13% 2018 20,000 24,115 21,411 10,000 0 Q3 Nine months

  9. Slide 9: Profit After Financial Items

    PROFIT AFTER FINANCIAL ITEMS SEK m 20,000 - 29% 15,000 15,936 10,000 11,287 2017 2018 - 20% 5,000 5,016 4,012 0 Q3 Nine months

  10. Slide 10: Sales and Profits

    SALES AND PROFITS THIRD QUARTER SEK m 2018 2017 Net sales 55,821 51,229 Gross profit 28,091 26,350 gross margin, % 50.3 51.4 Operating profit 3,976 4,939 operating margin, % 7.1 9.6 Net financial items 36 77 Profit after financial items 4,012 5,016 Tax -913 -1,179 Profit for the period 3,099 3,837 E

  11. Slide 11: Key Data

    KEY DATA SEK m 31 Aug 2018 31 Aug 2017 Stock-in-trade 38,719 33,583 Cash flow from current operations 14,920 16,239 Investments 8,505 8,611 Cash and cash equivalents and short- 13,963 9,665 term investments Return on shareholders' equity, % * 23.9 33.3 * rolling twelve months

  12. Slide 12: Strategic Focus Areas

    STRATEGIC FOCUS AREAS • Best customer experience • Fast and flexible product flow • New growth Morris & Co x H&M

  13. Slide 13: Best Customer Experience - Assortment

    BEST CUSTOMER EXPERIENCE – ASSORTMENT • Develop the assortment of all our brands – ever-increasing customer expectations • H&M highest priority – fashion and quality at the best price, in a sustainable way Morris & Co x H&M

  14. Slide 14: Best Customer Experience - Shopping Experience

    BEST CUSTOMER EXPERIENCE – SHOPPING EXPERIENCE • Improving shopping experience across channels • Localised product selection, display and image – scaling up to selected H&M stores • Self-service check-out – test at H&M full-concept store in Sweden • H&M online – improved filters, size recommendation

  15. Slide 15: Best Customer Experience - Store and Online Integration

    BEST CUSTOMER EXPERIENCE – STORE AND ONLINE INTEGRATION • Continued integration of store and online – roll-out continues of click&collect and online returns in store • Digital features for a richer, more relevant shopping experience across channels – in-store mode – find-in-store – H&M Home voice st

  16. Slide 16: Fast and Flexible Product Flow

    FAST AND FLEXIBLE PRODUCT FLOW • Investments in supply chain to become faster, more flexible and more efficient – advanced analytics and AI enable improvements in quantification and allocation – optimised logistics network and increased automation • New logistics systems enable increased integration

  17. Slide 17: New Growth

    NEW GROWTH • Plan to offer online in all existing store markets and other markets – H&M to open online in Mexico and Egypt (franchise) in 2018/19 – global online roll-out continues • COS to open online in China and on Tmall in 2018 • Focus on emerging markets for H&M store expansion • Store portfoli

  18. Slide 18: H & M Hennes & Mauritz AB

    H & M Hennes & Mauritz AB 4M COS WEEKDAY MONKL #MHOME otter Sores ARKET AFOUND

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