telephone conference presentation q4 2015_en

8/18/2019 Telephone Conference Presentation Q4 2015_en

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H & M Hennes & Mauritz AB

TELEPHONE CONFERENCE 28 JANUARY

FULL-YEAR REPORT 2015



• NILS VINGEINVESTOR RELATIONS

• JYRKI TERVONENCHIEF FINANCIAL OFFICER



• Sales SEK 210 billion including VAT

– increase of 19% in SEK; +11% in local curre

• Well-received collections for all brands and strexpansion contributed to higher market shares

• More than 16,000 new jobs in the H&M Group

– 148,000 employees in total

• SEK 75 m to employee incentive programme H

• Substantial long-term investments within IT, onand broadening of the product range

• Good cost control maintained

• Profit for the year SEK 20.9 billion; +4.6%

2015 IN BRIEF



SALES PER MARKET TEN LARGEST MARKETS, FULL YEAR 2015

0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,00

Switzerland

Netherlands

Spain

Italy

Sweden

China

France

United Kingdom

USA

Germany

9

13

16

15

17

35

22

26

4

44

Number of store

SEK m



GROSS PROFIT AND GROSS MARGIN

2014

2015

25,774 27,997

89,052

103,167

60.4% 57.5%

58.8%

57.0%

0

20,000

40,000

60,000

80,000

100,000

120,000

Gross profit SEK m

Q4 Full year



SELLING AND ADMINISTRATION

EXPENSES

18,043

63,469

20,913

76,225

+ 16%

+ 20%

0

20,000

40,000

60,000

80,000

100,000

Q4 Full year

SEK m

201

201



PROFIT AFTER FINANCIAL ITEMS

7,799

25,895

7,148

27,242

- 8%

+ 5%

0

5,000

10,000

15,000

20,000

25,000

30,000

Q4 Full year

SEK m

201

201



SALES AND PROFITSFOURTH QUARTER

SEK m 2015 20Net sales 48,694 42,6

Gross profit 27,997 25,7

gross margin, % 57.5 6

Operating profit 7,084 7,

operating margin, % 14.5 1

Net financial items 64

Profit after financial items 7,148 7,7

Tax -1,622 -1,5

Profit for the period 5,526 6,2

Earnings per share, SEK 3.34 3



SALES AND PROFITSFULL YEAR

SEK m 2015 20Net sales 180,861 151,4

Gross profit 103,167 89,0

gross margin, % 57.0 58

Operating profit 26,942 25,5

operating margin, % 14.9 16

Net financial items 300 3

Profit after financial items 27,242 25,8

Tax -6,344 -5,9

Profit for the period 20,898 19,9

Earnings per share, SEK 12.63 12



KEY DATA

SEK m 30 Nov 2015 30 Nov 20Stock-in-trade 24,833 19,4

Cash flow from current operations 24,067 24,1

Investments 12,059 9,3

Dividend (SEK) 9.75* 9

Cash and cash equivalents and short-term investments

12,950 16,6

Return on shareholders' equity, % 38.1 4

Average number of employees** 104,634 93,3

* proposed dividend

** converted to full-time positions



STOCK-IN-TRADE

19,403

24,833

+ 28%

0

5,000

10,000

15,000

20,000

25,000

30,000

30 November

SEK m

201

201



• Total of 3,924 stores in 61 markets 2015, all braincluded

– 413 new stores net 2015, of which 249 in

– China and the US largest expansion marke

• Five new H&M markets 2015

– Taiwan, Peru, Macau, India and South Afric– very good reception in all markets

STORE EXPANSION 2



STORE EXPANSION

IPO 1974

6 1 3

6 8 2

7 7 1

8 4 4

9 4 5

1 , 0

6 8

1 , 1 9 3

1 , 3

4 5

1 , 5

2 2

1 , 7

3 8

1 , 9

8 8

2 , 2

0 6

2 , 4

7 2

2 , 7

7 6 3

, 1 3 2 3

, 5 1 1 3

, 9 2 4

0

400

800

1,200

1,600

2,000

2,400

2,800

3,200

3,600

4,000

1 9 7 4

1 9 7 5

1 9 7 6

1 9 7 7

1 9 7 8

1 9 7 9

1 9 8 0

1 9 8 1

1 9 8 2

1 9 8 3

1 9 8 4

1 9 8 5

1 9 8 6

1 9 8 7

1 9 8 8

1 9 8 9

1 9 9 0

1 9 9 1

1 9 9 2

1 9 9 3

1 9 9 4

1 9 9 5

1 9 9 6

1 9 9 7

1 9 9 8

1 9 9 9

2 0 0 0

2 0 0 1

2 0 0 2

2 0 0 3

2 0 0 4

2 0 0 5

2 0 0 6

2 0 0 7

2 0 0 8

2 0 0 9

2 0 1 0

2 0 1 1

2 0 1 2

2 0 1 3

2 0 1 4

2 0 1 5

Markets 3 4 5 6 7 9 10 11 128 20 22 2414 18 29 34 36 39 44 49 54 56 61

Stores



• Approx. 425 new stores net planned for 2016

– largest expansion in existing markets

– China and the US largest expansion marke

• Three new H&M markets in 2016

– New Zealand, Cyprus and Puerto Rico

STORE EXPANSION 2



• Continued expansion for H&M’s other brands

– COS, & Other Stories, Monki, Weekday anCheap Monday

• COS has total of 153 stores in 30 markets (Nov

– 39 new stores net in 2015

– several new markets in 2015 and 2016

OUR FASHION BRAND



• Rapid expansion of H&M’s online store, hm.com

• Ten new online markets in 2015

– Portugal, Poland, the Czech Republic, RomSlovakia, Hungary, Bulgaria, Belgium, Switzand Russia

• H&M online in 23 markets in total (Nov 2015)• Online in nine further H&M markets 2016

– Ireland, Japan, Greece, Croatia, Slovenia,Estonia, Latvia, Lithuania and Luxembourg

H&M ONLINE



• New broad concept for makeup, body care anhair styling

• High quality at the best price in beautiful desig

– wide selection of colours and trends

• Very well received in 900 stores in 41 marketsonline in 2015

– gradual launch since July 2015

• H&M Beauty to launch in further 300 stores in

H&M BEAUTY



H & M Hennes & Mauritz AB

telephone conference presentation q4 2015_en

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