H&m Hennes & Mauritz Ab Class B · OMXSTO:HM_B
H&m Hennes & Mauritz Ab Class B — Shareholder Meeting (2018)
42 slides from H&m Hennes & Mauritz Ab Class B's shareholder meeting presentation, 2018
Slide 1: H&M group annual general meeting 2018
H&M group annual general meeting 2018 H&M-GRUPPEN
Slide 2: Apparel – a global market
Apparel – a global market Packaged Food 2,0 Second largest Apparel 1,2 6% consumer Home and Garden 0,9 Industry Tobacco 0,7 1,1 1,2 Alcoholic Drinks 0,6 Consumer Electronies 0,6 Personal Accessories 0,5 Soft Drinks 0,5 Global growth Beauty and Personal Care 0,4 2012 2017 6% Consumer Appliances 0,4 2
Slide 3: Market with big growth potential
Market with big growth potential Market growth outlook Strong online 10% penetration and 2017 - 2022 growth apparel retail value (€T) 1.2 10% 1.3 online penetration (%) apparel 16% 20-25% 1.7%H&M group global market share 7% 2017 2022e 2012 2017 2022e Note: overall growth, constant prices, fixed 201
Slide 4: A market in transformation
A market in transformation Tech as the catalyst Changing Changing customer competitive behaviour landscape H&M-GRUPPEN
Slide 5: Changing customer behaviour – higher expectations
Changing customer behaviour – higher expectations personalised design, quality and frictionless price anywhere social anytime services & sustainability experiences H&M-GRUPPEN
Slide 6: The competitive landscape is changing
The competitive landscape is changing New Big online Niche online business platforms players models H&M-GRUPPEN
Slide 7: H&M group
H&M group H&M-GRUPPEN
Slide 8: ARKET
ARKET H&M-GRUPPEN
Slide 9: ARKET
ARKET • ARKET new brand 2017 – essential products for women, men, children and the home – café based on the New Nordic Food Manifesto • Online on arket.com in 18 European countries • Stores in London, Brussels, Copenhagen, Munich, Amsterdam and Berlin – ARKET’s first store in Sweden to open in Stock
Slide 10: Shared group assets
Shared group assets global store multibrand country organisations online platforms network central functions global financial large data assets talent & skills sourcing resources demand driven supply chain advanced analytics & AI tech foundation H&M-GRUPPEN
Slide 11: Our way
Our way Customer first Values-driven Sustainability Long-term view culture H&M-GRUPPEN
Slide 12: Sustainable development
Sustainable development H&M-GRUPPEN
Slide 13: Sustainable development
Sustainable development • Sustainability key part in the H&M group’s success – sustainability targets for all group functions, brands and countries • Longt-term, responsible and ethical way • Read more about our sustainability work – sustainabilty report in accordance with the annual accounts act –
Slide 14: H&M-GRUPPEN
H&M-GRUPPEN
Slide 15: Sales 2017
Sales 2017 H&M group 232 bn SEK H&M 215 bn SEK New business 17.3 bn SEK online online online 29 bn 26 bn 3.0 bn 12.5% 12% 17% store store store 203 bn 189 bn 14.3 bn 87.5% 88% 83% H&M-GRUPPEN
Slide 16: Sales development
Sales development SEK BILLION 230 2008-2017 +140% 200 170 140 110 80 2,000 3,000 4,000 stores stores stores 50 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 29 store markets 69 store markets 8 online markets 43 online markets 2 brands 8 brands CONSTANT CURRENCIES INCL. VAT COMPARISON TO FINANCIA
Slide 17: Sales growth per channel
Sales growth per channel SEK BILLION SEK BILLION store sales online sales 300 30 250 25 2008-2017 2008-2017 +118% +741% 200 20 +8% AAGR +25% AAGR 150 15 100 10 50 5 0 0 2008 2010 2012 2014 2016 2008 2010 2012 2014 2016 CONSTANT CURRENCIES INCL. VAT COMPARISON TO FINANCIAL YEAR ENDING 30 NOV 2007 H&M
Slide 18: Sales and results
Sales and results MSEK 2017 2016 Sales including VAT 231,771 222,865 Sales excluding VAT 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 -4,6
Slide 19: Our priority action areas
Our priority action areas • Restlessly develop our brands, focusing on H&M • Accelerate our key enablers • New growth • Good cost control and efficiencies H&M-GRUPPEN
Slide 20: Restlessly develop our brands, focusing on H&M
Restlessly develop our brands, focusing on H&M H&M-GRUPPEN
Slide 21: H&M-GRUPPEN
H&M-GRUPPEN
Slide 22: Restlessly develop our brands, focusing on H&M
Restlessly develop our brands, focusing on H&M • Product and assortment • Physical stores – develop new concepts and new formats at the same time as optimising our existing store portfolio • Online store – further enhanced through additional testing and faster development • Seamless – friction-free
Slide 23: Product and assortment
Product and assortment • Design, quality, price and sustainability • Always be relevant for the customer • Composition and balance – right products in the right volume in the right channels H&M-GRUPPEN
Slide 24: Physical stores
Physical stores • Improve shopping experience – inspiring, relevant and convenient – for the local customer • Develop new store concepts and formats • Optimise the stores portfolio – approximately 170 store closures 2018 – renegotiations, rebuilds, relocations and adjustment of store space – adapt t
Slide 25: Online store
Online store • Continued development of the online store – personalisation, improved experience and faster development • Digital features and social media – image search – #HMxME – personalised product feeds • Faster deliveries • Free online deliveries and returns for H&M Club H&M-GRUPPEN
Slide 26: Seamless
Seamless • Seamless – continued integration of the physical and digital stores – friction-free customer experience across channels • Omni features for the connected customer – click-and-collect – online returns in store – scan-and-buy – mobile in store • Faster and more flexible deliveries and easy
Slide 27: Accelerate our key enablers
Accelerate our key enablers H&M-GRUPPEN
Slide 28: Accelerate our key enablers
Accelerate our key enablers • Demand driven supply chain • Advanced analytics and AI • Continued investments in our tech foundation H&M-GRUPPEN
Slide 29: Supply chain
Supply chain • Demand driven supply chain – faster, more flexible and efficient • Product segmentation • Optimised logistic network • Digitalisation and automation – 3D and RFID – global roll-out of RFID for increased availability – new highly automated warehouses H&M-GRUPPEN
Slide 30: Advanced analytics and AI
Advanced analytics and AI • Expanded iniatives in advanced analytics and AI – empower the creation of the right products and the best customer experience • Trend detection and design support • Demand forecasting, quantification and allocation • Price management • Personalisation H&M-GRUPPEN
Slide 31: Tech foundation
Tech foundation • Investments in our tech foundation – robust and scalable backbone • Faster development of consumer-facing technologies and applications – for a further improved experience H&M-GRUPPEN
Slide 32: New growth
New growth H&M-GRUPPEN
Slide 33: New growth
New growth • Continued digital expansion for existing brands • New stores for existing brands • New concepts, brands and initiatives H&M-GRUPPEN
Slide 34: Digital expansion
Digital expansion • Continued digital expansion for existing brands – new markets – widening the assortment – partnerships; online platforms and social commerce • H&M and H&M Home opened on Tmall in mainland China • H&M online opened in India – H&M online in 45 markets (March 2018) H&M-GRUPPEN
Slide 35: New stores
New stores • New stores for existing brands – emerging markets focus for H&M – H&M to open in Uruguay and Ukraine in 2018 • For 2018 approximately 220 new stores net are planned for the H&M group H&M-GRUPPEN
Slide 36: H&M-GRUPPEN
H&M-GRUPPEN
Slide 37: COS
COS H&M-GRUPPEN
Slide 38: H&M-GRUPPEN
H&M-GRUPPEN
Slide 39: Afound
Afound • Afound, a new marketplace for off-price • Carefully selected, broad and diverse range of attractively discounted products – well-known fashion and lifestyle brands for women and men – external brands and H&M group brands • Afound to open in Sweden in 2018 online and with physical stores – f
Slide 40: Good cost control and efficiencies
Good cost control and efficiencies H&M-GRUPPEN
Slide 41: Good cost control and efficiencies
Good cost control and efficiencies • With good cost control, operating costs are expected to continue to increase at a slow rate • Weaker US dollar is currently having a favourable impact on purchasing costs • Great potential for lower markdown costs in relation to sales from 2019 onwards H&M-GRUPPE
Slide 42: H&M-GRUPPEN
H&M-GRUPPEN