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Page 1: Press conference 30 January 2020 - H&M Group · Press conference 30 January 2020 H & M Hennes & Mauritz AB Full-year report 2019 Karl-Johan Persson CEO Nils Vinge Investor Relations

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Press conference 30 January 2020H & M Hennes & Mauritz AB

Full-year report 2019

Karl-Johan PerssonCEO

Nils VingeInvestor Relations

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Page 2: Press conference 30 January 2020 - H&M Group · Press conference 30 January 2020 H & M Hennes & Mauritz AB Full-year report 2019 Karl-Johan Persson CEO Nils Vinge Investor Relations

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Fourth quarter 2019 • The H&M group transformation work

continues to bear fruit— well-received collections and

increased market share— increased full-price sales and

decreased markdowns

• Operating profit +25% in Q4

• Composition and level ofstock-in-trade continue to improve

2019 in brief• Well-received collections and increased

market share

• Net sales +11%, +6% in local currencies

• Online sales +24%, +18% in local currencies

• Profit after financial items +11%— increased full-price sales and decreased

markdowns

• SEK 86 million to H&M Incentive Program

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Page 3: Press conference 30 January 2020 - H&M Group · Press conference 30 January 2020 H & M Hennes & Mauritz AB Full-year report 2019 Karl-Johan Persson CEO Nils Vinge Investor Relations

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BILDEN FÖR TUNG!

SalesNet sales

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Page 4: Press conference 30 January 2020 - H&M Group · Press conference 30 January 2020 H & M Hennes & Mauritz AB Full-year report 2019 Karl-Johan Persson CEO Nils Vinge Investor Relations

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Gross profit and gross margin

Selling and administrative expenses

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Page 5: Press conference 30 January 2020 - H&M Group · Press conference 30 January 2020 H & M Hennes & Mauritz AB Full-year report 2019 Karl-Johan Persson CEO Nils Vinge Investor Relations

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Profit after financial items

Sales and profitsFourth quarter

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Page 6: Press conference 30 January 2020 - H&M Group · Press conference 30 January 2020 H & M Hennes & Mauritz AB Full-year report 2019 Karl-Johan Persson CEO Nils Vinge Investor Relations

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Sales and profitsFull year

Key data

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Page 7: Press conference 30 January 2020 - H&M Group · Press conference 30 January 2020 H & M Hennes & Mauritz AB Full-year report 2019 Karl-Johan Persson CEO Nils Vinge Investor Relations

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Long-term investments• Transformation of fashion retail

• Investments to secure the position of the H&M group— digitalisation— efficient supply chain— tech infrastructure— advanced analytics and AI

• Positive effects support continuedtransformation work

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Page 8: Press conference 30 January 2020 - H&M Group · Press conference 30 January 2020 H & M Hennes & Mauritz AB Full-year report 2019 Karl-Johan Persson CEO Nils Vinge Investor Relations

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Strategic focus areas• Best customer offering

• Fast, efficient and flexible product flow

• Tech foundation of stable and scalable infrastructure

• Adding new growth

Best customer offering

• Improved assortment— increased full-price sales— higher customer satisfaction— more recurring customers

• Investments in the customer offering— fashion and quality at the best

price in a sustainable way

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Page 9: Press conference 30 January 2020 - H&M Group · Press conference 30 January 2020 H & M Hennes & Mauritz AB Full-year report 2019 Karl-Johan Persson CEO Nils Vinge Investor Relations

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Improved customerexperience• Continued improvements in

physical stores and online

• Enhanced H&M store experience— inspiring and easy for

customers— ongoing tests get positive

response

Online store upgrade

• H&M’s mobile app and hm.com— improved navigation and

product presentation— more payment options— shorter delivery times

• Digital features

• Climate smart deliveries

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Page 10: Press conference 30 January 2020 - H&M Group · Press conference 30 January 2020 H & M Hennes & Mauritz AB Full-year report 2019 Karl-Johan Persson CEO Nils Vinge Investor Relations

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Integrated physical stores and online• Seamless shopping experience

— click & collect— online returns in store— scan & buy— in-store-mode— find-in-store

• Convenient and accessible

Product flow

• Supply chain investments— fast, efficient and flexible

product flow

• New logistics centre— Milton Keynes in the UK for

stores and online

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Page 11: Press conference 30 January 2020 - H&M Group · Press conference 30 January 2020 H & M Hennes & Mauritz AB Full-year report 2019 Karl-Johan Persson CEO Nils Vinge Investor Relations

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Tech foundation• Investments in tech infrastructure

• Robust, scalable platforms— enable faster development of

new customer apps and technologies

Business Tech

• Business Tech— replaces functions of IT,

Advanced Analytics & AI and Business Development

• Cross functional in agile teams— increased flexibility, speed and

efficiency

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Store portfolio optimisation• Accelerated adaption to customers’

changing shopping patterns— continued store portfolio

optimisation

• Approx. 200 new stores and 175 closures planned for 2020— net addition of approx. 25 stores

• Relevant presence in each market

Adding new growth• New franchise partner in

Central America— H&M to open in Panama late 2020

• Global online roll-out continues— H&M online in Australia in 2020

• Collaboration with external platforms— H&M to launch on SSG.COM in

South Korea in 2020

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Sustainable development• H&M Group on CDP’s A List for

leading environmental transparency and performance— mitigate climate risks and

contribute to the transition to a fossil-free economy

• H&M Group ranked among world’s 30 most sustainable companies in 2020 by Corporate Knights

H & M Hennes & Mauritz AB

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