H&M ANNUAL GENERAL MEETING 2016 KARL-JOHAN PERSSON, CEO 2015 IN - PowerPoint PPT Presentation

H&M ANNUAL GENERAL MEETING 2016 KARL-JOHAN PERSSON, CEO

2015 IN BRIEF • Well-received collections for all Group brands • Continued strong expansion with stores and e-commerce • Sales SEK 210 billion including VAT – increase of 19% in SEK; +11% in local currencies – continued increase in market shares • Substantial long-term investments within IT and online, new brands and broadening of the product range • Good cost control maintained • Profit for the year SEK 20.9 billion; +5%

SALES SEK m incl VAT 250,000 + 19% 200,000 209,921 176,620 150,000 2014 100,000 2015 50,000 0 Full year

SALES PER MARKET TEN LARGEST MARKETS, FULL YEAR 2015 Number of stores Germany 449 USA 415 United Kingdom 264 France 222 China 353 Sweden 176 Italy 150 Spain 165 Netherlands 139 Switzerland 96 SEK m 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000

EXPANSION 2015 • 413 new stores net, all brands included – China and the US largest expansion markets – total of 3,924 stores in 61 markets 2015 • Five new H&M markets – Taiwan, Peru, Macau, India and South Africa • Rapid expansion of H&M’s e -commerce with ten new markets – Portugal, Poland, the Czech Republic, Romania, Slovakia, Hungary, Bulgaria, Belgium, Switzerland and Russia

H&M BEAUTY

PROFIT AFTER TAX SEK m 25,000 + 5% 20,000 20,898 19,976 15,000 2014 10,000 2015 5,000 0 Full year

OUR EMPLOYEES • H&M is guided by strong, shared values • Committed employees and the H&M spirit – key to H&M’s success • H&M Incentive Program (HIP) – for all H&M employees; regardless of salary, position, full-time or part-time – SEK 75 million allocated to HIP for 2015 • 16,000 new jobs created within H&M in 2015 – more than 148,000 employees in total globally

STORE EXPANSION Markets Stores IPO 1974 2,000 2,400 2,800 3,200 3,600 4,000 1,200 1,600 400 800 0 1974 3 1975 1976 4 1977 1978 5 1979 1980 6 1981 1982 1983 1984 1985 1986 1987 1988 1989 7 1990 1991 1992 8 1993 1994 9 1995 1996 10 1997 11 12 1998 1999 613 2000 682 14 2001 771 2002 844 2003 945 18 2004 1,068 20 22 24 2005 1,193 2006 1,345 2007 1,522 29 34 36 39 44 49 54 56 61 2008 1,738 2009 1,988 2010 2,206 2011 2,472 2012 2,776 2013 3,132 2014 3,511 2015 3,924

H&M, MALL OF INDIA

EXPANSION 2016 • Approx. 425 new stores net planned for 2016 – within target of 10-15% new stores net per year • Three new H&M markets in 2016 – New Zealand, Cyprus and Puerto Rico • Continued strong expansion of H&M’s e -commerce to a further 11 markets – Ireland, Croatia, Slovenia, Estonia, Latvia, Lithuania, Luxembourg, Japan, Greece, Canada and South Korea – e-commerce in 34 markets by end of 2016

OUR BRANDS • H&M, & Other Stories, COS, Monki, Weekday and Cheap Monday – several clearly defined fashion brands which complement each other well • Five new markets planned for COS in 2016 • & Other Stories, Weekday and Monki to expand in existing and new markets

COS

COS

& OTHER STORIES

WEEKDAY

SUSTAINABLE DEVELOPMENT • H&M works for fair living wages in the textile industry – continued roll-out of the Fair Wage method – global framework agreement with IndustriALL and IF Metall • Target of using 100% renewable electricity in own operations – 78% renewable electricity in 2015 (27% 2014) – 56% reduction of greenhouse gas emissions in 2015 • 31% cotton from sustainable sources in 2015 (21% 2014) – target of 100% by 2020 at the latest

SUSTAINABLE DEVELOPMENT • Long-term goal of closing the loop for textile fibres – cooperation with innovators developing new technologies for textile recycling • H&M stores globally collect used garments and textiles for re-wear, reuse and recycling – great commitment among customers • 12,341 tonnes of textiles handed in during 2015 – more than 28,000 tonnes of textiles collected since 2013

H & M Hennes & Mauritz AB