ANNUAL REPORT

2017

Top
€19.99
 T H E H& M SH A R E

The H&M share

KEY RATIOS PER SHARE 2017 2016 2015 2014 2013

Shareholders’ equity per share, SEK ɡɤɞɦ ɡɥɞɞ ɡɣɞɥ ɡɟɟɣ ɠɥɡ+
Earnings per share, SEK ɧɥɦ ɟɟɠɤ ɟɠɤɡ ɟɠɞɥ ɟɞɡɤ
Change from previous year, % ɟɡ ɟɟ ²ɣ ²ɟɥ ²ɠ
Dividend per share, SEK ɧɥɣP ɧɥɣ ɧɥɣ ɧɥɣ ɧɣɞ
#2+</:<3-/98ɡɞ9@/7,/<# ɟɧɥɟɞ ɠɤɥɧɞ ɡɠɡɣɞ ɡɟɧ+ɞ ɠɥɦɞɞ
P/E Ratio ɠɞ ɠ+ ɠɤ ɠɤ ɠɥ
P <9:9=/.,C>2/,9+<.

',675,%87,212)6+$5(6ɷ$129(0%(5ɼ$ɫɯ

SHAREHOLDING NO. OF SHAREHOLDERS % NO. OF SHARES % AVERAGE SHARES PER SHAREHOLDER

ɟ»ɣɞɞ ɠɟɣɠɞɥ ɦɞɞ ɠɦɟɡɟɠ+ɦ ɟɥ ɟɡɟ

ɣɞɟ»ɟɞɞɞ ɠɣɟɠɡ ɧɡ ɟɧɦɧɠɦ++ ɟɠ ɥɧɠ
ɟɞɞɟ»ɣɞɞɞ ɠɠɥɥɤ ɦɣ ɣɞɡ+ɡ+ɡɧ ɡɞ ɠɠɟɞ
ɣɞɞɟ»ɟɞɞɞɞ ɠɦɣɞ ɟɟ ɠɞɥɧɞ+ɥɡ ɟɡ ɥɠɧɣ
ɟɞɞɞɟ»ɟɣɞɞɞ ɦɥɤ ɞɡ ɟɞɧɧɥɠɟɠ ɞɥ ɟɠɣɣ+
ɟɣɞɞɟ»ɠɞɞɞɞ +ɦɞ ɞɠ ɦɣɞɦɟɞɠ ɞɣ ɟɥɥɠɣ
ɠɞɞɞɟ» ɟɥɡɡ ɞɤ ɟɣɟɤ+ɞɦɤɦɠ ɧɟɤ ɦɥɣɞɟɧ
Total ɠɤɧɞ&ɣ ɟɞɞɞ ɟɤɣɣɞɥɠɞɞɞ ɟɞɞɞ ɤɟɣɠ

0$-256+$5(+2/'(56129(0%(5 NO. OF SHARES % OF VOTING RIGHTS % OF TOTAL SHARES

The Stefan Persson family and related companies ɤɥɞɥɠɡɥɡɦ ɥɟɟ +ɞɣ
The Lottie Tham family and related companies ɦɦɦɦɞ+ɞɞ ɠɤ ɣ+
Alecta Pensionsförsäkring +ɣɦɞɦɞɞɞ ɟ+ ɠɦ
State Street Bank and Trust +ɠ+ɡɧɥɞɦ ɟɠ ɠɤ
#A/.,+85"9,?<98./< ɡɟɠɠɥɣɧɦ ɞɧ ɟɧ
»Ə<=ǘ5<3819-298./< ɠɦɟɟɟ+ɤɟ ɞɦ ɟɥ
6/+<=></+7+85381# ɠɡɠɥɧɡɣɣ ɞɥ ɟ+
/6698783,?=ɟɣ± ɠɞ+ɦɤɠ+ɠ ɞɤ ɟɠ
Nordea Investment Funds ɟɦ+ɦɡɠɟɞ ɞɣ ɟɟ
Didner & Gerge Fonder Aktiebolag ɟɤɦɡɞɦɞɟ ɞɣ ɟɞ

Development of the H&M share price in SEK over the past 10 years.
400

300

200

100

SOURCE CISION/MILLISTREAM
0
Jan 1, 2008 2010 2012 2014 2016 Jan 1, 2018

9<79</3809<7+>398=//>2/38@/=>9<</6+>398==/->398+>+,9?>27-97

49
 A D M I N I S T R AT I O N R E P O RT

Administration report

$2/,9+<.90.3</->9<=+8.>2/-23/0/B/-?>3@/9"-/<90F/88/= »+8.1/8/<+66C0<97+79,36/$97//>>23==230>>2/F1<9?:2+=
F+?<3>DK:?,6L
  .973-36/.38#>9-52967#A/./8 been making digital investments for a number of years, developing
hereby submit their annual report and consolidated accounts for the +79819>2/<>2381=/-977/<-/8/A:6+>09<7=+79<//"-3/8>=?::6C
ɲ8+8-3+6C/+</-/7,/< 
>9
9@/7,/< 2/</38+0>/< -2+38+8.+.@+8-/..+>++8+6C>3-=8/90>2/+37=90>23=38@/=>7/8>
</0/<</.>9+=>2/ ɲ8+8-3+6C/+< 2+=,//8>938-</+=3816C38>/1<+>/>2/:2C=3-+6=>9</=A3>2/-977/<-/
=9+=>9,/+,6/>99Ɔ/<-?=>97/<=>2//+=3/=>+8.79=>38>/1<+>/.
BUSINESS =29::381/B:/<3/8-/:9==3,6/
The H&M group is a design-driven, creative and responsible fashion The group sells its products from leased store premises and digitally,
company guided right from its beginnings in 1947 by strong values 3/98638/>>2//8.90>2/ɲ8+8-3+6C/+<>2/1<9?:2+.
=+6/=7+<-
based on a fundamental respect for the individual and a belief in people’s 5/>=90A23-2
+</F98638/7+<5/>=+8.
+</=>9</7+<5/>=
+,363>C>9?=/>2/3<383>3+>3@/$2/,?=38/==-98=3=>=7+386C90=+6/=90 9:/<+>/.,C0<+8-23=/:+<>8/<=#+8.98532+@/ +8.98638/
-69>2381+--/==9<3/=099>A/+<-9=7/>3-=297/>/B>36/=+8.297/- 7+<5/>=</=:/->3@/6C'//5.+C2/+:98.+C+8."$2+@/
A+</>9-98=?7/<=$2/1<9?:2+=/312>,<+8.=»F+8.F97/
#F7>2/<#>9<3/=9853'//5.+C2/+:98.+C+8."$
»7/+-290A23-22+=3>=9A8?83;?/:<9ɲ6/+8.3./8>3>C$2/1<9?:V=
,<+8.=-97:6/7/8>/+-29>2/<A/66+8.>91/>2/<>2/C9Ɔ/<-?=>97/<=
»38-6?.381 F=>9</=

+A3./@+<3/>C90></8.=+8.=>C6/=+>@+<39?=:<3-/:938>=A3>2380+=2-
F>2/<#>9<3/==>9</=
'//5.+C
398,/+?>C+--/==9<3/=+8.297/A+</+=A/66+=/B:/<3/8-/==?-2+=
98638/7+<5/>=A236/F>2/<#>9<3/=3=:</=/8>3898638/7+<5/>=
In 2017 a total of 479 (497) stores opened and 91 (70) stores
A/</7-69=/.$2/>9>+68?7,/<90:2C=3-+6=>9</=+>>2//8.90>2/
7ɲ8+8-3+6C/+<A+=
#7=>9</=9853=>9</=
=>9</=
2/+:98.+C=>9</=+8."$=>9</=0>2/1<9?:V=
+-+0J9Ɔ/<38179./<82/+6>2C099.66>2/,<+8.==2+</>2/=+7/
passion for fashion, quality and best price and all aim to dress custom-
F=>9</=38
7+<5/>=+8.3=+6=9+@+36+,6/
/<=38+=?=>+38+,6/A+CA236/>2/,<9+.-?=>97/<9Ɔ/<381+669A=
F98638/7+<5/>=
:/9:6/+<9?8.>2/A9<6.>9.</==38>2/3<9A8:/<=98+6=>C6/
9</+-2,<+8.>2/</3=+./=318+8.,?C3810?8->39838A23-2>/+7=
90:/9:6/0<97.3Ɔ/<381,+-51<9?8.=+8.A3>2+66538.=90/B:/<3/8-/
8/A=>9</=
+8.=5366=A9<5>91/>2/<>9:<9.?-/+</6/@+8>+8.38=:3<381:<9.?->
<+81/09<>2/3<:+<>3-?6+<-?=>97/<1<9?:/A>/-289691C+8.+.@+8-/.
.+>++8+6C>3-=:<9@3./38-</+=3816C37:9<>+8>=?::9<>09<>23=A9<5
3/+66>2/A+C0<97:<9.?->./@/69:7/8>+8../@/69:381>2/:<9.?->
<+81/>929A>2/1<9?:38>/<+->=A3>2-?=>97/<=FV=./=318+8.
,?C3810?8->398-</+>/=3>=-966/->398=-/8><+66C38#>9-52967A236/
>9>+68?7,/<90=>9</= A/</9:/<+>/.,C0<+8-23=/:+<>8/<=
F797/3=38
98638/38
B:+8=398
8 >2/F1<9?::6+8=>99:/8+::<9B37+>/6C
A3>2+:<37+<C09-?=98/7/<13817+<5/>=::<9B37+>/6C=>9</
-69=?</=+</:6+88/.A23-23=:+<>90>2/38>/8=3ɲ/.=>9</9:>373=+-
tion being carried out that also includes renegotiations, rebuilds and
adjustment of store space to ensure that the store portfolio is the best
ɲ>09</+-27+<5/>$2/8/>+..3>398908/A=>9</=A366+79?8>>9+::<9B-
37+>/6C 9=>90>2/8/A=>9</=38 A366,/F=>9</=90
#»09</B+7:6/»2+=3>=./=318+8.,?C3810?8->3983898.98 A23-2A3662+@/F97/=29:38=29:=A236/+::<9B37+>/6C
7=>9</=A366-98=3=>90>2/,<+8.=#F>2/<#>9<3/=9853
+<8381=+8.ɲ8+8-3+6:9=3>398 '//5.+C"$+8.09?8.8 =/@/8=>+8.+698/F97/
$2/:<9ɲ>09<>2/C/+<+8.ɲ8+8-3+6:9=3>398+</-977/8>/.9838-98- =>9</=+</:6+88/.>99:/8/AF=>9</7+<5/>=38 A366,/
8/->398A3>2>2/38-97/=>+>/7/8>+8.,+6+8-/=2//>98:+1/=»
8-</+=/..313>+63=+>398+8.9:>373=+>39890>2/=>9</:9<>09639
8-</+=/..313>+63=+>39838=9-3/>C3=-</+>3818/A-?=>97/<,/2+@39?<
+8.-2+81381-?=>97/</B:/->+>398=$23==230>38>2/38.?=><CA+=
+--/8>?+>/.38 A3>279</+8.79</=29::381>+5381:6+-/98638/
%<?1?+C+8.%5<+38/09?8.V=7+<5/>:6+-/A366,/6+?8-2/..?<381
98638/38#A/./8+8.A3>2:2C=3-+6=>9</==>+<>38138#A/./8
The online expansion is planned to continue, including into
8.3+7+8.»@3+0<+8-23=/:+<>8/<=»38>9#+?.3<+,3++8.>2/%83>/.
<+,73<+>/=$2/F1<9?:2+=+23126C./@/69:/.98638/,?=3-
8/==79./6A23-23=,/381./@/69:/.0?<>2/<+8.>2/1<9?:V=98638/

),9(<($56800$5<

FINANCIAL YEAR 2017 2016 2015 2014 2013

Sales excluding VAT, SEK m ɠɞɞɞɞB ɟɧɠɠɤɥ ɟɦɞɦɤɟ ɟɣɟBɟɧ ɟɠɦɣɤɠ

:/<+>381:<9ɲ>#7 ɠɞɣɤɧ ɠɡɦɠɡ ɠɤɧBɠ ɠɣɣɦɡ ɠɠɞɧɞ
Operating margin, % ɟɞɡ ɟɠB ɟBɧ ɟɤɧ ɟɥɠ
+=2J9A0<97-?<</8>9:/<+>398=:/<=2+</#P ɟɡɞB ɟBɡɤ ɟBɣB ɟBɤɞ ɟBBɞ
Return on equity, % ɠɤɦ ɡɟɠ ɡɦɟ Bɟɡ ɡɦB
Equity/assets ratio, % ɣɤɞ ɤɠɟ ɤɥɤ ɤɦɠ ɤɦɧ
Average number of employees ɟɠɡɟɥɦ ɟɟBɣɦɤ ɟɞBɤɡB ɧɡɡɣɟ ɦɟɞɧɧ

9<./ɲ83>398905/Cɲ1?</==//:+1/ɧɧ

65
F I N A N C I A L R E P O RT S

Group income statement

6(.ň0
1 DECEMBER – 30 NOVEMBER 2017 2016

Sales including VAT ɠɡɟɥɥɟ ɠɠɠɦɤɣ

#+6/=/B-6?.381&$89>/ɡ+ ɠɞɞɞɞ+ ɟɧɠɠɤɥ
9=>90199.==96.89>/ɤɦ ɧɟɧɟ+ ɦɤɞɧɞ
*5266352),7 ɟɞɦɞɧɞ ɟɞɤɟɥɥ

#/66381/B:/8=/=89>/ɤɦ ɦɞ+ɠɥ ɥɣɥɠɧ

.7383=><+>3@//B:/8=/=89>/ɤɦɧ ɥɞɧ+ ɤɤɠɣ
23(5$7,1*352),7 ɠɞɣɤɧ ɠɡɦɠɡ

Interest income and similar items ɠɦɟ ɠɠ+

Interest expense and similar items +ɟ ɦ
352),7$)7(5),1$1&,$/,7(06 ɠɞɦɞɧ ɠ,ɞɡɧ

$+B89>/ɟɞ +ɤɠɣ ɣ+ɞɡ

PROFIT FOR THE YEAR ɟɤɟɦ, ɟɦɤɡɤ
66:<9ɲ>09<>2/C/+<3=+>><3,?>+,6/>9>2/=2+</296./<=90>2/:+</8>-97:+8CF/88/=F+?<3>D

Earnings per share, SEK* ɧɥɦ ɟɟɠɤ

Number of shares, thousands* ɟɤɣɣɞɥɠ ɟɤɣɣɞɥɠ

P/09</+8.+0>/<.36?>398

Consolidated statement of comprehensive income

6(.ň0
1 DECEMBER – 30 NOVEMBER 2017 2016

PROFIT FOR THE YEAR ɟɤɟɦ, ɟɦɤɡɤ

>2/<-97:</2/8=3@/38-97/
>07=>3,>,<09<7,C-0<0.6,==#ɕ0/>9:<9ɕ>9<69==
$<+8=6+>398.3Ɔ/</8-/= ɟ+ɧɤ ɟɟɦɤ
2+81/382/.1381</=/<@/=89>/ɟɧ ɟɥɧ ɣɥɦ
Tax attributable to change in hedging reserves ɡɧ ɟɡɧ

>07=>3,>3,@089>-008,8/A#6689>-0<0.6,==#ɕ0/>9:<9ɕ>9<69==
"/7/+=?</7/8>90./ɲ8/.,/8/ɲ>:/8=398:6+8=89>/ɟɦ ɥɦ ɥɦ
Tax related to the above remeasurement ɟɧ ɟɧ
27+(5&2035(+(16,9(,1&20( ɟɣɥɥ ɤɦɦ
727$/&2035(+(16,9(,1&20()257+(<($5 ɟ,ɤɞɥ ɟɧɡɠ,
66-97:</2/8=3@/38-97/3=+>><3,?>+,6/>9>2/=2+</296./<=90>2/:+</8>-97:+8CF/88/=F+?<3>D

74
F I N A N C I A L R E P O RT S

Group balance sheet

6(.ň0 6(.ň0
30 NOVEMBER 2017 2016 30 NOVEMBER 2017 2016

ASSETS (48,7<$1'/,$%,/,7,(6

),;('$66(76 (48,7<

8>+813,6/ɲB/.+==/>= #2+</-+:3>+689>/ɟɥ ɠɞɥ ɠɞɥ

<+8.=89>/ɟɟ ɟɦ ɤɤ Reserves ɟɞɟɣ ɠɤɣɟ
?=>97/<</6+>398=89>/ɟɟ ɦ ɠɞ Retained earnings ɣɦ*ɧɟ ɣɦɡɥɦ
/+=/296.+8.=3736+<<312>=89>/ɟɟ ɣɧɠ ɤɡɞ 727$/(48,7< ɣɧɥɟɡ ɤɟɠɡɤ
Capitalised development
/B:/8.3>?</89>/ɟɟ ɤɡɤɟ *ɣɤɥ /,$%,/,7,(6

99.A36689>/ɟɟ ɤ* ɤ* 981>/<763+,363>3/=

ɥɞ.ɡ ɣɡ.ɥ <9@3=398=09<:/8=398=89>/ɟɦ **ɣ ɣɠɥ

<9:/<>C:6+8>+8./;?3:7/8> /0/<</.>+B63+,363>3/=89>/ɟɞ ɣɡɡɟ *ɦɧɦ

?36.381=+8.6+8.89>/ɟɠ ɦɠ* ɦɣɞ Other interest-bearing liabilities,

89>/ɟɡɠɠ ɡɣɞ ɠɟɡ
;?3:7/8>>996=ɲB>?</
+8.ɲ>>381=89>/ɟɠ ɡɦɧɧ* ɡɥɦ*ɡ ɤɟɠɤ ɣɤɡɦ

ɡɧɦɟɦ ɡɦɤɧɡ
?<</8>63+,363>3/=
>2/<ɲB/.+==/>=
Accounts payable ɥɠɟɣ ɥɠɤɠ
Long-term receivables ɟɞɡɧ ɟɞɟ*
Tax liabilities ɧɟɦ *ɡ*
/0/<</.>+B</-/3@+,6/=89>/ɟɞ ɠɧɟɤ ɠɦɤɠ
Liabilities to credit institutions,
ɡɧɣɣ ɡɦɥɤ
89>/ɠɠ ɧɥ*ɣ ɠɞɤɦ
Other interest-bearing liabilities,
727$/),;('$66(76 ɣɞɦɟɤ .ɥɧɟɤ
89>/ɟɡɠɠ ɟɠɣ ɣɧ
Other liabilities ɡɤɥɠ ɣɞɡɤ
&855(17$66(76
Accrued expenses and prepaid
#>9-538><+./89>/ɟ. ɡɡɥɟɠ ɡɟɥɡɠ 38-97/89>/ɠɞ ɟɧɞ*ɦ ɟɤɦ*ɤ
.ɞɥɠɡ ɡɟɥɞɣ
?<</8></-/3@+,6/=
--9?8>=</-/3@+,6/89>/ɟɧ ɣɠɧɥ *ɦɦɟ 727$//,$%,/,7,(6 .ɤɦ.ɧ ɡɥɡ.ɡ
Tax receivables ɠɡɥɣ »
Other receivables ɟɦɥ* ɠɣɡɡ 727$/(48,7<$1'/,$%,/,7,(6 ɟɞɤɣɤɠ ɧɦɣɥɧ
</:+3./B:/8=/=89>/ɟɣ ɠɥɥɞ ɠɞɥɟ
ɟɠɡɟɤ ɧ.ɦɣ

+=2+8.-+=2/;?3@+6/8>=89>/ɟɤ ɧɥɟɦ ɧ..ɤ

727$/&855(17$66(76 ɣɣɥ.ɤ ɣɞɤɤɡ

727$/$66(76 ɟɞɤɣɤɠ ɧɦɣɥɧ

76