H&m Hennes & Mauritz Ab Class B · OMXSTO:HM_B
H&m Hennes & Mauritz Ab Class B — Q1 2018 Earnings Presentation
12 slides from H&m Hennes & Mauritz Ab Class B's earnings presentation, Mar 27, 2018
Slide 1: Telephone Conference 27 March 2018 - Three-Month Report 2018
H & M Hennes & Mauritz AB TELEPHONE CONFERENCE 27 MARCH 2018 THREE-MONTH REPORT 2018
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 • Digitalisation driving rapid change – challenges and opportunities • Changing customer behaviour – online shopping growing fast, mobile is central – reduced traffic to physical stores • Customer expectations increasing fast • 2018 – a year of transformation for the H&M gr
Slide 4: Sales and Profits - First Quarter
SALES AND PROFITS FIRST QUARTER SEK m 2018 2017 Net sales 46,181 46,985 Gross profit 23,040 24,466 gross margin, % 49.9 52.1 Operating profit 1,208 3,159 operating margin, % 2.6 6.7 Net financial items 55 53 Profit after financial items 1,263 3,212 Tax 109 -755 Profit for the period 1,372 2,457 Earn
Slide 5: Key Data
KEY DATA SEK m 28 Feb 2018 28 Feb 2017 Stock-in-trade 34,959 32,692 Cash flow from current operations 1,307 2,361 Investments 2,108 2,418 Cash and cash equivalents and short- 10,003 8,437 term investments Return on shareholders' equity, % * 24.1 30.2 * rolling twelve months
Slide 6: Priority Action Areas
PRIORITY ACTION AREAS • Accelerating our transformation in a rapidly changing industry • Our priority action areas – restlessly develop our brands, focusing on H&M – accelerate our key enablers – new growth – good cost control and efficiencies
Slide 7: Restlessly Develop Our Brands
RESTLESSLY DEVELOP OUR BRANDS • Restlessly develop our brands, focusing on H&M • Assortment – best combination of fashion, quality, price and sustainability • Physical stores – develop new store concepts and optimise existing store portfolio • Online store – further enhanced through additional testi
Slide 8: Accelerate Our Key Enablers
ACCELERATE OUR KEY ENABLERS • Make our supply chain faster, more flexible and efficient – for example new highly automated logistic centres • Expanding our initiatives relating to advanced analytics and AI • Continued investments in our tech foundation – robust and scalable platforms – faster develo
Slide 9: New Growth
NEW GROWTH • Digital expansion of existing brands – new markets, external partners and social platforms; widen the product assortment • H&M online in 45 markets with successful launch in India 15 March – Saudi Arabia and UAE to open online 2018 • H&M, H&M Home very well-received on Tmall in mainland
Slide 10: New Brands
NEW BRANDS • H&M, COS, Monki, Weekday, & Other Stories, Cheap Monday, ARKET and H&M Home – our eight unique brands • Development of new brands – for new customer needs and segments • In 2018 our ninth brand will open, Afound – Afound, a new marketplace for off price – well-known fashion and life sty
Slide 11: Good Cost Control and Efficiencies
GOOD COST CONTROL AND EFFICIENCIES • With good cost control, operating costs are expected to continue increase at a slow rate • Ongoing efficiencies, with several promising initiatives within buying and production – in addition, the weaker USD is currently having a favourable impact on purchasing co
Slide 12: H & M Hennes & Mauritz AB
oO a & H & MHennes & Mauritz AB WEEKDAY @@ -MONKL aM Rotw Herrin, ARKET
H & M Hennes & Mauritz — Q1 2018 Earnings Presentation on 6ix