H&m Hennes & Mauritz Ab Class B · OMXSTO:HM_B
H&m Hennes & Mauritz Ab Class B — Q2 2018 Earnings Presentation
17 slides from H&m Hennes & Mauritz Ab Class B's earnings presentation, Jun 28, 2018
Slide 1: Telephone Conference 28 June 2018
H & M Hennes & Mauritz AB TELEPHONE CONFERENCE 28 JUNE 2018 SIX-MONTH REPORT 2018
Slide 2: Presenters: Karl-Johan Persson, Jyrki Tervonen, Nils Vinge
• KARL-JOHAN PERSSON CEO • JYRKI TERVONEN CFO • NILS VINGE INVESTOR RELATIONS
Slide 3: Second Quarter 2018 in Brief
SECOND QUARTER 2018 IN BRIEF • Rapidly changing industry • H&M group continues fast-paced transformation work – to become more customer driven, efficient and flexible • Transitions to new logistics systems – caused temporary interruptions in important markets • Positive signals from ongoing improvem
Slide 4: Sales
SALES SEK m incl VAT 125,000 + 0% 113,907 114,017 100,000 75,000 + 2% 2017 50,000 59,538 60,463 2018 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% 53.2% 50,000 53,811 52,204 40,000 57.1% 56.1% 30,000 2017 29,345 29,164 20,000 2018 10,000 0 Q2 Six months
Slide 6: Selling and Administrative Expenses
SELLING AND ADMINISTRATIVE EXPENSES SEK m 50,000 + 5% 44,989 40,000 43,002 30,000 + 7% 2017 20,000 23,157 2018 21,695 10,000 0 Q2 Six months
Slide 7: Profit After Financial Items
PROFIT AFTER FINANCIAL ITEMS SEK m 12,000 - 33% 10,000 10,920 - 22% 8,000 7,708 7,275 6,000 2017 6,012 2018 4,000 2,000 0 Q2 Six months
Slide 8: Sales and Profits
SALES AND PROFITS SECOND QUARTER SEK m 2018 2017 Net sales 51,984 51,383 Gross profit 29,164 29,345 gross margin, % 56.1 57.1 Operating profit 6,007 7,650 operating margin, % 11.6 14.9 Net financial items 5 58 Profit after financial items 6,012 7,708 Tax -1,374 -1,811 Profit for the period 4,638 5,8
Slide 9: Key Data
KEY DATA SEK m 31 May 2018 31 May 2017 Stock-in-trade 36,333 32,148 Cash flow from current operations 9,133 10,942 Investments 5,703 5,528 Cash and cash equivalents and short- 11,107 10,655 term investments Return on shareholders' equity, % * 26.5 37.7 * rolling twelve months
Slide 10: Stock-in-Trade
STOCK-IN-TRADE SEK m 40,000 + 13% 36,333 30,000 32,148 2017 20,000 2018 10,000 0 31 May
Slide 11: Priority Action Areas
PRIORITY ACTION AREAS • Restlessly develop our brands – focusing on H&M • Accelerate our key enablers • New growth • Good cost control and efficiencies
Slide 12: Restlessly Develop Our Brands – Focusing on H&M
RESTLESSLY DEVELOP OUR BRANDS – FOCUSING ON H&M • Improving the assortment • Ongoing tests of new store concepts for H&M • Convenient and inspiring experience online • Continued integration of physical and digital stores – click-and-collect – online returns in store – online shopping in store
Slide 13: Accelerate Our Key Enablers
ACCELERATE OUR KEY ENABLERS • Investments in supply chain, tech, advanced analytics and AI • Promising indications from tests in several areas – personalisation – quantification and allocation – price management – trend forecasting
Slide 14: New Growth
NEW GROWTH • Develop and optimise the H&M group store portfolio – 240 new stores net planned for 2018 – Bosnia-Herzegovina new H&M market 2019 • Broaden the assortment online • Global online expansion continues – online today in 47 markets – H&M to open online in Mexico 2019 • External partners and
Slide 15: Afound
AFOUND • Afound – new marketplace for off price • Carefully selected, broad and varied range of products at bargain prices – hundreds of well-known fashion and life-style brands – external as well as H&M group brands • Very successful launch in Sweden in June 2018 – afound.com – stores in Stockholm
Slide 16: Meet H&M Home Stylist
Slide 17: H & M Hennes & Mauritz AB
& H & MHennes & Mauritz AB AM COS WEEKDAY G36) MONK #HHOME ctiSeeris ~=ARKET FOUND
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