H&m Hennes & Mauritz Ab Class B · OMXSTO:HM_B
H&m Hennes & Mauritz Ab Class B — FY2017 Earnings Presentation
11 slides from H&m Hennes & Mauritz Ab Class B's earnings presentation, Jan 31, 2018
Slide 1: Press Conference 31 January 2018 – Full-Year Report 2017
H & M Hennes & Mauritz AB PRESS CONFERENCE 31 JANUARY 2018 FULL-YEAR REPORT 2017 • KARL-JOHAN PERSSON CEO • NILS VINGE INVESTOR RELATIONS 1
Slide 2: Rapidly Changing Industry
RAPIDLY CHANGING INDUSTRY • Fashion retail – a large and growing market • Digitalisation driving rapid change – challenges and opportunities • New competitive landscape • Changing customer behaviour – online shopping growing fast, mobile is central – reduced traffic to physical stores • Customer exp
Slide 3: 2017 in Brief
2017 IN BRIEF • Sales including VAT +4% to SEK 232 billion; +3% in local currencies • H&M group online sales developed well • The newer brands of the group developed well • Successful launch of ARKET in August 2017 • H&M physical store sales affected by new customer behaviour with reduced traffic to
Slide 4: Gross Profit and Gross Margin; Selling and Administrative Expenses
GROSS PROFIT AND GROSS MARGIN Gross profit SEK m 120,000 55.2% 54.0% 100,000 106,177 108,090 80,000 60,000 2016 40,000 2017 57.0% 55.4% 20,000 30,027 27,929 0 Q4 Full year SELLING AND ADMINISTRATIVE EXPENSES SEK m 100,000 + 6% 80,000 87,521 82,354 60,000 2016 40,000 2017 + 2% 20,000 22,673 23,108 0
Slide 5: Profit After Financial Items; Sales and Profits Fourth Quarter
PROFIT AFTER FINANCIAL ITEMS SEK m 30,000 25,000 - 13% 24,039 20,000 20,809 15,000 2016 2017 10,000 - 34% 5,000 7,409 4,873 0 Q4 Full year SALES AND PROFITS FOURTH QUARTER SEK m 2017 2016 Net sales 50,407 52,720 Gross profit 27,929 30,027 gross margin, % 55.4 57.0 Operating profit 4,821 7,354 operat
Slide 6: Sales and Profits Full Year; Stock-in-Trade
SALES AND PROFITS FULL YEAR SEK m 2017 2016 Net sales 200,004 192,267 Gross profit 108,090 106,177 gross margin, % 54.0 55.2 Operating profit 20,569 23,823 operating margin, % 10.3 12.4 Net financial items 240 216 Profit after financial items 20,809 24,039 Tax -4,625 -5,403 Profit for the period 16,
Slide 7: Key Data; Three Main Action Areas
KEY DATA SEK m 30 Nov 2017 30 Nov 2016 Stock-in-trade 33,712 31,732 Cash flow from current operations 21,587 23,775 Investments 12,471 13,346 Cash and cash equivalents and short- 9,718 9,446 term investments Dividend (SEK) 9.75* 9.75 Return on shareholders' equity, % 26.8 31.2 Average number of empl
Slide 8: Our Customer Offering; Invest in Enablers
OUR CUSTOMER OFFERING • Constant improvements of the core – our customer offering • Improve customer experience in the physical stores • Optimise the store portfolio • Strengthen the experience and offering online • Integration of physical and digital stores – for a great shopping experience INVEST
Slide 9: Drive Growth; New Brands
DRIVE GROWTH • Drive growth – expansion with online, stores and digital market places • Online in 44 H&M markets, of which 8 added in 2017 – Kuwait (Dec 2017), India, Saudi Arabia and United Arab Emirates to open online 2018 • H&M, H&M Home on Tmall in mainland China 2018 • Total of approx. 220 new
Slide 10: Afound
H & M Hennes & Mauritz AB AFOUND • Afound, a new market place for off price • Carefully selected, broad and diverse range of discounted products – well-known fashion and life style brands for women and men – external brands as well as H&M group brands • Afound to open in Sweden in 2018 online and wi
Slide 11: Conscious Sportswear Collection
INIT FOR THE LONG RUN INTRODUCING OUR CONSCIOUS SPORTSWEAR COLLECTION & H & M Hennes & Mauritz AB HM = COS WEEKDAY GC MONKL ME RetiorStras — ARKET 11
H & M Hennes & Mauritz — FY2017 Earnings Presentation on 6ix