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

• 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%

2015 IN BRIEF

SALES

176,620

209,921

+ 19%

0

50,000

100,000

150,000

200,000

250,000

Full year

SEK m incl VAT

2014

2015

SALES PER MARKET TEN LARGEST MARKETS, FULL YEAR 2015

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

Switzerland

Netherlands

Spain

Italy

Sweden

China

France

United Kingdom

USA

Germany

96

139

165

150

176

353

222

264

415

449

Number of stores

SEK m

• 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

EXPANSION 2015

H&M BEAUTY

PROFIT AFTER TAX

19,97620,898

+ 5%

0

5,000

10,000

15,000

20,000

25,000

Full year

SEK m

2014

2015

• 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

OUR EMPLOYEES

STORE EXPANSION

IPO 1974 6

13 68

2 77

1

84

4

94

5

1,0

68

1,19

3

1,3

45

1,5

22

1,7

38

1,9

88

2,2

06

2,4

72 2,7

76 3

,13

2 3,5

11 3,9

24

0

400

800

1,200

1,600

2,000

2,400

2,800

3,200

3,600

4,000

197

4

197

5

197

6

197

7

197

8

197

9

198

0

198

1

198

2

198

3

198

4

198

5

198

6

198

7

198

8

198

9

199

0

199

1

199

2

199

3

199

4

199

5

199

6

199

7

199

8

199

9

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

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

Stores

H&M, MALL OF INDIA

• 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

EXPANSION 2016

• 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

OUR BRANDS

COS

COS

& OTHER STORIES

WEEKDAY

• 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

SUSTAINABLE DEVELOPMENT

H & M Hennes & Mauritz AB