H&m Hennes & Mauritz Ab Class B · OMXSTO:HM_B
H&m Hennes & Mauritz Ab Class B — FY2017 Earnings Presentation
20 slides from H&m Hennes & Mauritz Ab Class B's earnings presentation, Jan 31, 2018
Slide 1: Telephone Conference 31 January 2018 – Full-Year Report 2017
H & M Hennes & Mauritz AB TELEPHONE CONFERENCE 31 JANUARY 2018 FULL-YEAR REPORT 2017
Slide 2: Presenters: CEO, CFO, Investor Relations
• KARL-JOHAN PERSSON CEO • JYRKI TERVONEN CFO • NILS VINGE INVESTOR RELATIONS
Slide 3: 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 4: Sales
SALES SEK m incl VAT 250,000 + 4% 231,771 200,000 222,865 150,000 2016 100,000 2017 - 4% 50,000 61,098 58,481 0 Q4 Full year
Slide 5: Gross Profit and Gross Margin
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
Slide 6: Selling and Administrative Expenses
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 Q4 Full year
Slide 7: Profit After Financial Items
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
Slide 8: Sales and Profits – Fourth Quarter
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 operating margin, % 9.6 13.9 Net financial items 52 55 Profit after financial items 4,873 7,409 Tax -880 -1,495 Profit for the period 3,993 5,914
Slide 9: Sales and Profits – Full Year
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 10: Stock-in-Trade
STOCK-IN-TRADE SEK m 35,000 + 6% 30,000 33,712 31,732 25,000 20,000 2016 15,000 2017 10,000 5,000 0 30 November
Slide 11: Key Data
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 12: Three Main Action Areas
THREE MAIN ACTION AREAS • Accelerating our transformation in a rapidly changing industry • Three main action areas – be restless around the core – our customer offering – invest in enablers – new technology and ways of working – drive growth – both traditional and new
Slide 13: Our Customer Offering
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
Slide 14: Invest in Enablers
INVEST IN ENABLERS • Invest in enablers – new technology and ways of working • Product development and supply chain – faster, more flexible and responsive • Advanced analytics and AI • Tech foundation – scalable and stable platforms – consumer-facing apps and new technologies like Cloud, RFID, 3D
Slide 15: Drive Growth
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 16: New Brands
NEW BRANDS • The H&M group develops new brands – for new customer needs and new segments • We have eight unique brands, all scalable • H&M, COS, Monki, Weekday, & Other Stories, Cheap Monday, ARKET and H&M Home • In 2018 our ninth brand will open, Afound
Slide 17: H & M Hennes & Mauritz AB
H & M Hennes & Mauritz AB
Slide 18: Afound
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 with physical stores – first
Slide 19: Introducing Our Conscious Sportswear Collection
INITFOR THE LONG RUN INTRODUCING OUR CONSCIOUS SPORTSWEAR COLLECTION
Slide 20: H & M Hennes & Mauritz AB
oO a & H & MHennes & Mauritz AB WEEKDAY @@ -MONKL aM Rotw Herrin, ARKET
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