H&M ANNUAL GENERAL MEETING 2015 KARL-JOHAN PERSSON, CEO

• Strong sales and profit development

• Well-received collections for all Group brands

– continued increase in market shares

• 379 new stores net; in total 3,511 stores globally

– Australia and the Philippines new H&M markets

• Four new, large online markets

– France, Italy, Spain and China

• Substantial long-term investments within IT and online and broadening of the product range

• Good cost control maintained

2014 IN BRIEF

SALES

150,090

176,620

+ 18%

0

25,000

50,000

75,000

100,000

125,000

150,000

175,000

200,000

Full year

SEK m incl VAT

2013

2014

SALES PER MARKET TEN LARGEST MARKETS, FULL YEAR 2014

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

Switzerland

Spain

Italy

Netherlands

Sweden

China

France

UK

US

Germany

93

159

132

135

176

291

205

253

356

440

Number of stores

SEK m

PROFIT AFTER TAX

17,093

19,976

+ 17%

0

5,000

10,000

15,000

20,000

25,000

Full year

SEK m

2013

2014

• H&M is guided by strong, shared values

• Committed employees and the H&M spirit

– key to H&M’s success

• 132,000 employees globally

– over 16,000 new jobs created within H&M in 2014

• H&M Incentive Program (HIP)

– for all H&M employees; regardless of salary, position, full-time or part-time

– SEK 303 million allocated to HIP for 2014

OUR EMPLOYEES AND THE H&M SPIRIT

STORE EXPANSION

*IPO 1974

613

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

0

400

800

1,200

1,600

2,000

2,400

2,800

3,200

3,600

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

Markets 3 4 5 6 7 9 10 11 128 20 22 2414 18 28 33 35 38 43 48 53 55

Stores

• Approx. 400 new stores in total planned for 2015

– within target of 10-15% new stores net per year

• New H&M markets in 2015

– first H&M store in Taipei, Taiwan, very well received since opening in February

– Peru, Macau, South Africa and India to open during the year

• Largest expansion planned in China and the US

STORE EXPANSION 2015

• H&M’s expansion also includes & Other Stories, COS, Monki, Weekday and Cheap Monday

• Strong development for COS since launch in 2007

– 117 stores in 27 markets (February 2015)

– online in 19 markets

• & Other Stories very well received since launch in 2013

– 20 stores in 10 markets (February 2015)

– online in 13 markets

OUR FASHION BRANDS

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

• Nine new H&M online markets 2015

– Portugal, Poland, the Czech Republic, Romania, Slovakia, Hungary, Bulgaria and Belgium opened during spring

– 21 online markets in total (April 2015)

– Switzerland to open online in autumn

• COS, & Other Stories, Monki, Weekday and Cheap Monday

– all brands available online in several markets

H&M ONLINE

• H&M Home offers a wide range of home textiles

– collections complemented by decorative items in materials such as glass, metal and wood

– well received in stores and online

• Continued rapid expansion in 2015

– approx. 100 new H&M Home departments

– approx. 10 new markets

H&M HOME

• Product range broadened with H&M Sport and extended shoe range

• H&M Beauty to launch in autumn 2015

– new, broad concept for make-up, body care and hair care

– initially approx. 900 stores in approx. 40 markets

– online at hm.com

BROADENING H&M’S PRODUCT RANGE

SUSTAINABLE DEVELOPMENT

• Sustainability an investment in the customer offering

• Increased use of more sustainable cotton in the product range

– H&M world’s largest user of organic cotton

• Long-term goal to close the loop for textile fibres

– more than 14,000 tonnes of used clothing collected for re-use and recycling

• Aim to use energy from renewable sources only

– reduced greenhouse gas emissions in 2014

• Public supplier list extended

• Roadmap for fair living wages in the textile industry

SUSTAINABLE DEVELOPMENT

SUSTAINABLE DEVELOPMENT

H&M CONSCIOUS EXCLUSIVE

• Strong first quarter 2015

– well-received collections

– sales +25% in SEK; +15% in local currencies

• Substantial long-term investments within IT and online and the broadening of the product range

• Good cost control maintained

• Profit after financial items SEK 4,723 m; +35%

FIRST QUARTER 2015

H & M Hennes & Mauritz AB