H&m Hennes & Mauritz Ab Class B · OMXSTO:HM_B
H&m Hennes & Mauritz Ab Class B — FY2018 Earnings Presentation
23 slides from H&m Hennes & Mauritz Ab Class B's earnings presentation, Jan 31, 2019
Slide 1: Conference Call 31 January 2019 – Full-Year Report 2018
H & M Hennes & Mauritz AB CONFERENCE CALL 31 JANUARY 2019 FULL-YEAR REPORT 2018
Slide 2: Presenters: CEO, CFO and Investor Relations
• KARL-JOHAN PERSSON CEO • JYRKI TERVONEN CFO • NILS VINGE INVESTOR RELATIONS
Slide 3: Fourth Quarter 2018 in Brief
FOURTH QUARTER 2018 IN BRIEF • Rapidly changing industry • Stronger collections generate increased full-price sales and lower markdowns in Q4 – sequential inventory improvement in Q4 vs Q3 • Positive signals from accelerated transformation • Ramped-up initiatives to secure transitions of platforms a
Slide 4: Financial Data
FINANCIAL DATA
Slide 5: Sales
SALES SEK m net sales + 5% 200,000 210,400 200,004 150,000 2017 100,000 2018 + 12% 50,000 50,407 56,414 0 Q4 Full year
Slide 6: Sales per Market
SALES PER MARKET TEN LARGEST MARKETS – FOURTH QUARTER Number of stores Germany 468 USA 578 UK 304 China 530 France 237 Sweden 175 Italy 179 Spain 172 Netherlands 144 Russia 139 SEK m 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000
Slide 7: Gross Profit and Gross Margin
GROSS PROFIT AND GROSS MARGIN Gross profit SEK m 120,000 52.7% 54.0% 100,000 108,090 110,887 80,000 60,000 2017 40,000 54.2% 2018 55.4% 20,000 27,929 30,592 0 Q4 Full year
Slide 8: Selling and Administrative Expenses
SELLING AND ADMINISTRATIVE EXPENSES SEK m 100,000 + 9% 95,394 80,000 87,521 60,000 2017 40,000 2018 + 14% 20,000 26,290 23,108 0 Q4 Full year
Slide 9: Profit After Financial Items
PROFIT AFTER FINANCIAL ITEMS SEK m 25,000 - 25% 20,000 20,809 15,000 15,639 2017 10,000 2018 5,000 - 11% 4,873 4,352 0 Q4 Full year
Slide 10: Sales and Profits – Fourth Quarter
SALES AND PROFITS FOURTH QUARTER SEK m 2018 2017 Net sales 56,414 50,407 Gross profit 30,592 27,929 gross margin, % 54.2 55.4 Operating profit 4,302 4,821 operating margin, % 7.6 9.6 Net financial items 50 52 Profit after financial items 4,352 4,873 Tax -809 -880 Profit for the period 3,543 3,993 Ea
Slide 11: Sales and Profits – Full Year
SALES AND PROFITS FULL YEAR SEK m 2018 2017 Net sales 210,400 200,004 Gross profit 110,887 108,090 gross margin, % 52.7 54.0 Operating profit 15,493 20,569 operating margin, % 7.4 10.3 Net financial items 146 240 Profit after financial items 15,639 20,809 Tax -2,987 -4,625 Profit for the period 12,6
Slide 12: Key Data
KEY DATA SEK m 30 Nov 2018 30 Nov 2017 Stock-in-trade 37,721 33,712 Cash flow from current operations 21,287 21,587 Investments 12,828 12,471 Cash and cash equivalents and short- 11,590 9,718 term investments Dividend (SEK) 9.75* 9.75 Return on shareholders' equity, % 21.4 26.8 Average number of emp
Slide 13: Strategic Focus Areas
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Slide 14: Strategic Focus Areas
STRATEGIC FOCUS AREAS • Strategic focus areas for the H&M group transformation work – best customer offering – fast, efficient and flexible product flow – tech foundation of stable and scalable infrastructure – new growth
Slide 15: Best Customer Offering – Assortment
BEST CUSTOMER OFFERING – ASSORTMENT • Improvement of H&M assortment – increased full-price sales and customer satisfaction – investments in customer offering – fashion and quality at the best price, in a sustainable way • Continued increase in share of sustainable materials in 2018 Morris & Co x H&M
Slide 16: Best Customer Offering – Shopping Experience
BEST CUSTOMER OFFERING – SHOPPING EXPERIENCE • Continued tests to improve shopping experience in H&M’s stores • Upgrades of hm.com and H&M’s mobile app • Continued integration of physical stores and online – click-and-collect and online returns in store – scan-and-buy in 47 markets – roll-out of in-
Slide 17: Fast, Efficient and Flexible Product Flow
FAST, EFFICIENT AND FLEXIBLE PRODUCT FLOW • Continued investments in supply chain • Three new fulfilment centres in the fourth quarter – Kamen in Germany – Stryków and Boleslawiec in Poland • New fulfilment centres planned to open in Madrid and London around year-end 2019/2020 • AI for trend detecti
Slide 18: Tech Foundation
TECH FOUNDATION • Stable and scalable infrastructure • All H&M’s 47 online markets now on the new online platform – successful online transition in Germany in January 2019 – enables further improvements for customers • Ramped-up initiatives in the fourth quarter to secure upcoming transitions of log
Slide 19: New Growth
NEW GROWTH • For 2019 approx 175 new stores net planned – approx 335 new stores to open, of which 240 H&M stores, with a focus on growth markets – Intensified store portfolio optimisation, including approx 160 store closures • Option to renegotiate almost 1, 000 store contracts in 2019 • Global roll
Slide 20: Slide 20
Slide 21: H&M Group Brands
H&M GROUP BRANDS • COS, Monki, Weekday, H&M Home, & Other Stories, ARKET and Afound – continued growth opportunities for all brands • Prioritising and focusing on core business – Cheap Monday to close down in 2019 – part of ongoing transformation work
Slide 22: Slide 22
Slide 23: H & M Hennes & Mauritz AB
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H & M Hennes & Mauritz — FY2018 Earnings Presentation on 6ix