TELEPHONE CONFERENCE 28 JANUARY 2016 - H&M Group · TELEPHONE CONFERENCE 28 JANUARY 2016 FULL-YEAR...
Transcript of TELEPHONE CONFERENCE 28 JANUARY 2016 - H&M Group · TELEPHONE CONFERENCE 28 JANUARY 2016 FULL-YEAR...
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H & M Hennes & Mauritz AB
TELEPHONE CONFERENCE 28 JANUARY 2016 FULL-YEAR REPORT 2015
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• NILS VINGE INVESTOR RELATIONS
• JYRKI TERVONEN CHIEF FINANCIAL OFFICER
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• Sales SEK 210 billion including VAT
– increase of 19% in SEK; +11% in local currencies
• Well-received collections for all brands and strong expansion contributed to higher market shares
• More than 16,000 new jobs in the H&M Group 2015
– 148,000 employees in total
• SEK 75 m to employee incentive programme HIP
• Substantial long-term investments within IT, online; and broadening of the product range
• Good cost control maintained
• Profit for the year SEK 20.9 billion; +4.6%
2015 IN BRIEF
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SALES
49,656
176,620
56,477
209,921
+ 14%
+ 19%
0
50,000
100,000
150,000
200,000
250,000
Q4 Full year
SEK m incl VAT
2014
2015
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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
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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
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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
2014
2015
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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
2014
2015
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SALES AND PROFITS FOURTH QUARTER
SEK m 2015 2014
Net sales 48,694 42,644
Gross profit 27,997 25,774
gross margin, % 57.5 60.4
Operating profit 7,084 7,731
operating margin, % 14.5 18.1
Net financial items 64 68
Profit after financial items 7,148 7,799
Tax -1,622 -1,577
Profit for the period 5,526 6,222
Earnings per share, SEK 3.34 3.76
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SALES AND PROFITS FULL YEAR
SEK m 2015 2014
Net sales 180,861 151,419
Gross profit 103,167 89,052
gross margin, % 57.0 58.8
Operating profit 26,942 25,583
operating margin, % 14.9 16.9
Net financial items 300 312
Profit after financial items 27,242 25,895
Tax -6,344 -5,919
Profit for the period 20,898 19,976
Earnings per share, SEK 12.63 12.07
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KEY DATA
SEK m 30 Nov 2015 30 Nov 2014
Stock-in-trade 24,833 19,403
Cash flow from current operations 24,067 24,156
Investments 12,059 9,391
Dividend (SEK) 9.75* 9.75
Cash and cash equivalents and short-
term investments12,950 16,693
Return on shareholders' equity, % 38.1 41.3
Average number of employees** 104,634 93,351
* proposed dividend
** converted to full-time positions
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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
2014
2015
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• Total of 3,924 stores in 61 markets 2015, all brands included
– 413 new stores net 2015, of which 249 in Q4
– China and the US largest expansion markets
• Five new H&M markets 2015
– Taiwan, Peru, Macau, India and South Africa
– very good reception in all markets
STORE EXPANSION 2015
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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
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• Approx. 425 new stores net planned for 2016
– largest expansion in existing markets
– China and the US largest expansion markets
• Three new H&M markets in 2016
– New Zealand, Cyprus and Puerto Rico
STORE EXPANSION 2016
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• Continued expansion for H&M’s other brands
– COS, & Other Stories, Monki, Weekday and Cheap Monday
• COS has total of 153 stores in 30 markets (Nov 2015)
– 39 new stores net in 2015
– several new markets in 2015 and 2016
OUR FASHION BRANDS
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• Rapid expansion of H&M’s online store, hm.com
• Ten new online markets in 2015
– Portugal, Poland, the Czech Republic, Romania, Slovakia, Hungary, Bulgaria, Belgium, Switzerland and 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
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• New broad concept for makeup, body care and hair styling
• High quality at the best price in beautiful design
– wide selection of colours and trends
• Very well received in 900 stores in 41 markets and online in 2015
– gradual launch since July 2015
• H&M Beauty to launch in further 300 stores in 2016
H&M BEAUTY
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H & M Hennes & Mauritz AB