H&m Hennes & Mauritz Ab Class B · OMXSTO:HM_B
H&m Hennes & Mauritz Ab Class B — Shareholder Meeting (2019)
26 slides from H&m Hennes & Mauritz Ab Class B's shareholder meeting presentation, 2019
Slide 1: Annual General Meeting 2019
Annual General Meeting 2019 Karl-Johan Persson, CEO
Slide 2: Industry in transformation
Industry in transformation • Rapid tech development • Changing customer behaviour — higher expectations — more shopping online — new role of the physical stores • Changing competitive landscape
Slide 3: 2018 in brief
2018 in brief • Accelerated transformation • Sales growth in local currencies — full year +3% — Q4 +6% • Online sales +21% in local currencies for the full year
Slide 4: Sales 2018
Sales 2018 Net sales SEK m 250,000 + 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 5: Fourth quarter 2018
Fourth quarter 2018 • Stronger collections generate more full-price sales — lower markdowns — increased market share • Fashion and quality at the best price in a sustainable way
Slide 6: Sales per market
Sales per market Ten largest markets - Q4 2018 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 2,000 4,000 6,000 8,000 10,000
Slide 7: Sales Q1 2019
Sales Q1 2019 Net sales SEK m 60,000 + 10% 50,000 51,015 46,181 40,000 30,000 2018 20,000 2019 10,000 0 Q1
Slide 8: Sales and profits
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 9: Accelerated transformation
Accelerated transformation • New logistics systems • Well-executed replacement of online platform in Germany in Q1 2019 — shorter delivery times — store and online integration • All H&M online markets now on the new platform • Improved customer experience
Slide 10: Strategic focus areas
Strategic focus areas • Best customer offering • Fast, efficient and flexible product flow • Tech foundation of stable and scalable infrastructure • Adding new growth
Slide 11: Best customer offering
Best customer offering • Improved assortment — increased full-price sales — more recurring customers — higher customer satisfaction • Investments in the customer offering — fashion and quality at the best price in a sustainable way
Slide 12: Improved shopping experience
Improved shopping experience • Improving in-store and online shopping experience • Enhanced H&M store experience — ongoing tests get positive response — more happy customers and increased sales
Slide 13: Online store upgrade
Online store upgrade • H&M’s mobile app and hm.com — improved navigation and product presentation — more payment options — shorter delivery times • New digital features — Perfect fit, Visual search and more
Slide 14: Integrating physical stores and online
Integrating physical stores and online • Seamless shopping experience — click & collect — online returns in store — scan & buy — in-store-mode — find-in-store • Convenient and accessible
Slide 15: Loyalty programme for H&M’s customers
Loyalty programme for H&M’s customers • H&M’s customer loyalty programme further developed — more relevant offers • Membership doubled in 2018 — more than 35 million members today • New markets 2019 — US, Canada, Russia and more
Slide 16: Product flow
Product flow • Supply-chain investments — fast, efficient and flexible product flow • New logistic centres • Advanced analytics and AI • Differentiated buying to increase precision and shorten lead times
Slide 17: New logistics centres
New logistics centres • Three new logistics centres in Q4 2018 — Kamen, Germany — Stryków and Bolesławiec, Poland • Automation in Poznań, Poland • New logistics centres outside London and Madrid 2019/2020 • High-tech logistics centre planned on US West Coast in 2020
Slide 18: Advanced analytics and AI
AI • Advanced analytics and AI • Increasingly important support — trend detection — quantification and allocation — pricing — personalisation
Slide 19: Tech foundation
Tech foundation • Stable and scalable infrastructure — transition completed to new online platform globally — new logistics systems • Further improvements for customers • Faster development of customer- facing technologies
Slide 20: Adding new growth
Adding new growth • Global roll-out of online continues — four new H&M online markets in 2018 • H&M very well received on Tmall in China 2018 • Mexico and Egypt (franchise) new online markets for H&M in 2019 • H&M to launch on Myntra and Jabong in 2019 — India’s largest e-commerce platforms
Slide 21: Adding new growth
Adding new growth • Focus on growth markets for H&M’s store expansion • Bosnia-Herzegovina new market in March 2019 — H&M very well received • Intensified optimisation of the store portfolio • Approx. 175 new stores net for the H&M group 2019
Slide 22: H&M Group
H&M Group Hd ~ a yl 7 H&M Group
Slide 23: Our brands
Our brands • H&M, COS, Monki, Weekday, H&M Home, & Other Stories, ARKET and Afound • Continued good growth opportunities for all brands • Priorities with focus on the core business — Cheap Monday closing in 2019 — part of ongoing transformation
Slide 24: Sustainable development
Sustainable development • 95% sustainable cotton in 2018 • Climate positive value chain 2040 goal • Global cooperation on wages in the textile industry — follows UN recommendations • Information about supplier, factory and materials — for each H&M garment
Slide 25: H&M Group
H&M Group
Slide 26: H&M Group
H&M Group HAM = CcOS WEEKDAY MONK #MHOME ctw Senn ARKET AFOUND