H&m Hennes & Mauritz Ab Class B · OMXSTO:HM_B
H&m Hennes & Mauritz Ab Class B — H1 2017 Earnings Presentation
26 slides from H&m Hennes & Mauritz Ab Class B's earnings presentation, Jun 29, 2017
Slide 1: Telephone Conference 29 June 2017 - Six-Month Report 2017
H & M Hennes & Mauritz AB TELEPHONE CONFERENCE 29 JUNE 2017 SIX-MONTH REPORT 2017
Slide 2: Presenters: CEO, CFO, Investor Relations
• KARL-JOHAN PERSSON CEO • JYRKI TERVONEN CFO • NILS VINGE INVESTOR RELATIONS
Slide 3: Second Quarter 2017
SECOND QUARTER 2017 • Sales +10% to SEK 59.5 billion including VAT; +5% in local currencies • Profit after financial items SEK 7.7 billion, +10% • Increasing digitalisation changes fashion retail – continued rapid and profitable growth of the H&M group’s online business • Continued very good develop
Slide 4: Sales
SALES SEK m incl VAT 125,000 + 9% 113,907 100,000 104,965 75,000 + 10% 2016 50,000 59,538 54,341 2017 25,000 0 Q2 Six months
Slide 5: Gross Profit and Gross Margin
GROSS PROFIT AND GROSS MARGIN Gross profit SEK m 60,000 54.7% 54.9% 50,000 53,811 49,679 40,000 57.1% 30,000 57.6% 2016 29,345 20,000 26,980 2017 10,000 0 Q2 Six months
Slide 6: Selling and Administrative Expenses
SELLING AND ADMINISTRATIVE EXPENSES SEK m 50,000 + 9% 40,000 43,002 39,457 30,000 + 8% 2016 20,000 2017 21,695 20,028 10,000 0 Q2 Six months
Slide 7: Profit After Financial Items
PROFIT AFTER FINANCIAL ITEMS SEK m 12,000 + 6% 10,000 10,920 10,329 + 10% 8,000 7,708 6,000 7,002 2016 2017 4,000 2,000 0 Q2 Six months
Slide 8: Sales and Profits
SALES AND PROFITS SECOND QUARTER SEK m 2017 2016 Net sales 51,383 46,874 Gross profit 29,345 26,980 gross margin, % 57.1 57.6 Operating profit 7,650 6,952 operating margin, % 14.9 14.8 Net financial items 58 50 Profit after financial items 7,708 7,002 Tax -1,811 -1,645 Profit for the period 5,897 5,
Slide 9: Key Data
KEY DATA SEK m 31 May 2017 31 May 2016 Stock-in-trade 32,148 25,339 Cash flow from current operations 10,942 12,566 Investments 5,528 5,633 Cash and cash equivalents and short- 10,655 8,387 term investments Return on shareholders' equity, % * 37.7 39.0 * rolling twelve months
Slide 10: Stock-in-Trade
STOCK-IN-TRADE SEK m 35,000 + 27% 30,000 32,148 25,000 25,339 20,000 2016 15,000 2017 10,000 5,000 0 31 May
Slide 11: Our Online Offering
OUR ONLINE OFFERING • Improvement, diversification and expansion of our online offering – more and faster delivery options – more payment alternatives – a broader range of products • 8 new online markets for H&M 2017 – Turkey, Taiwan, Hong Kong, Macau, Singapore and Malaysia opened during spring – T
Slide 12: An Integrated Shopping Experience
AN INTEGRATED SHOPPING EXPERIENCE • We are integrating our physical stores with the online store – for a seamless, smooth and inspiring shopping experience • Global store network gives us a unique proximity to our customers – physical stores create hubs for fast deliveries, pick-up and returns – our
Slide 13: Advanced Analytics
ADVANCED ANALYTICS • Investments in advanced analytics allow further improvements in areas such as: – product range development – quantification and allocation – personalised communication
Slide 14: Supply Chain Optimisation
SUPPLY CHAIN OPTIMISATION • Optimisation of the supply chain – investments to bear fruit gradually • Increased speed, efficiency and flexibility
Slide 15: Profitable Store Growth
PROFITABLE STORE GROWTH • The H&M group continues its expansion in existing and new markets – approx. 400 new stores net planned to open 2017 – Growth markets focus for new stores • New H&M markets in 2017 – Kazakhstan and Colombia opened during spring and very well received – Iceland, Georgia and V
Slide 16: Optimisation of the Store Portfolio
OPTIMISATION OF THE STORE PORTFOLIO • Development and optimisation of the store portfolio • Rebuilds, relocations and additional store space – approx. 100 store closures in 2017 • Development of our H&M stores with a new visual expression – for a more inspiring in-store customer experience
Slide 17: Global Brands
GLOBAL BRANDS • We develop, launch and build new global brands – an important part of the H&M group’s strategy • COS’ revenue to reach approx. SEK 10 billion 2017 – profitability in line with the H&M brand • COS, & Other Stories, Monki, Weekday, Cheap Monday and H&M Home – contribute to an increasin
Slide 18: ARKET – New Brand
ARKET – NEW BRAND
Slide 19: Vogue: Arket press coverage
VOGUE Arket: The Ideal Everyday Uniform GRAZ PNewee Arket: A First Look At The Debut Collection From H&M's New Brand ict on Arket? I's really ood. Set cit makes fom the ground up (ater than an afer sounds god but means relatively Kile), the new concept tore fom the - — HAM aroup certainly lives up t
Slide 20: London
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Slide 21: Copenhagen
COPENHAGEN
Slide 22: ARKET – New Brand
ARKET – NEW BRAND • ARKET’s first store to open at Regent Street in London and in 18 European markets at arket.com – launching after summer 2017 • More stores to open during autumn – in London, Brussels, Copenhagen and Munich • ARKET’s first store in Stockholm to open spring 2018
Slide 23: Rapid Online Growth
RAPID ONLINE GROWTH • The H&M group’s online sales show rapid growth and good profitability – account for 25-30% of total sales in some established markets • Estimated online sales growth of at least 25% per year going forward, with a profitability in line with our physical stores
Slide 24: Fast-Paced Development
FAST-PACED DEVELOPMENT • Investments for continued profitable growth many years to come • We develop our business with quality at a fast pace • Further strengthening of the H&M group’s position – in a growing and rapidly changing market
Slide 25: Slide 25
Slide 26: H & M Hennes & Mauritz AB
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