Hennes & Mauritz : Presentation material Press and telephone conference Full-year report 2025 (Presentation Full year report 2025 260129)

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‌Results Q4 Results full-year

* Sales +2% in local currencies

• Sales +2% in local currencies

• 10.7% operating margin

• 15.5% inventory to sales R12M

• 8.1% (7.4%) operating margin

• Earnings per share +5% vs LY

• CO2emissions reduced by about 30%*

*Reduction for scope 3 emissions compared with the 2019 base year according to preliminary figures

‌Title

4

‌Consistent local currency growth in net sales

* Local currency growth of 2% in Q4 and local currency growth trend at 2% in 2025 vs 1% in 2024. Strong appreciation of SEK vs last year

SEK m 220,000

-3%

110,000

-5%

2024

228,285

234,478

2025

59,221

62,193

0

Q4 FULL-YEAR

‌Solid underlying trend countered by rising currency volatility

* FX volatility resulting in widened gap between positive local currency net sales growth and reported figures

Sales development, quarterly YoY

+4%

+2%

0%

-2%

Local currencies

SEK

-4%

Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
2023	2024	2024	2024	2024	2025	2025	2025	2025

-6%

6

‌Sourcing excellence driving gross margin improvement

* Strong development seen in Q3 continued into Q4. Gross margin strengthening with support from sourcing excellence and favourable external factors

SEK m 120,000

53.4%

121,821

53.4%

60,000

54.6%

55.9%

2024

2025

33,084

33,942

125,299

0

Q4 FULL-YEAR

‌Continued cost control resulting in lower SG&A levels

* 3% lower SG&A in local currencies in Q4 vs LY

SEK m

120,000

-4%

60,000

2024

103,292

2025

107,915

-9%

26,698

29,303

0

Q4 FULL-YEAR

8

‌Improved operating profit supported by operational efficiency

* Operating margin strengthened by 330 bps in Q4 to 10.7% (7.4%), and full year margin improved to 8.1% (7.4%)

SEK m 20,000

+6%

10,000

+38%

2024

18,395

2025

4,624

6,364

17,306

0

Q4 FULL-YEAR

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‌Focus on core business and cost driving increased profitability

8.0

6.0

Operating profit per quarter, billion SEK, % rolling 12 months

7.7% 8.1% 8.3%

6.6%

6.3

6.3

5.8%

4.9%

4.8%

6.2%

6.8%

7.7%

6.4

7.2% 7.4% 7.0% 6.5% 7.2%

7.1

8.1%

10.0%

4.9

6.0%

3.3% 3.3%

3.2%

4.0

-0.4%

2.0%

2.1

0.5

3.5

3.9

4.3

4.6

4.7

4.7

5.0

5.9

2.0 -2.0%

-1.1

0.7

0.8

0.9

1.2

0.0 -6.0%

Q1 2021

Q2 2021

Q3 2021

Q4 2021

Q1 2022

Q2 2022

Q3 2022

Q4 2022

Q1 2023

Q2 2023

Q3 2023

Q4 2023

Q1 2024

Q2 2024

Q3 2024

Q4 2024

Q1 2025

Q2 2025

Q3 2025

Q4 2025

-2.0

10

-10.0%

‌Further inventory productivity improvement

* Stock-in-trade reduced to 15.5% (17.2%) of rolling 12M sales, as a result of efficiency in demand planning

SEK m

50,000

-12%

40,348

35,427

25,000

2024

2025

0

30 Nov

‌Strengthened trend for gross margin and inventory productivity

21%

55%

GROSS MARGIN

STOCK-IN-TRADE/SALES

18%

50%

Q1 2020

Q2 2020

Q3 2020

Q4 2020

Q1 2021

Q2 2021

Q3 2021

Q4 2021

Q1 2022

Q2 2022

Q3 2022

Q4 2022

Q1 2023

Q2 2023

Q3 2023

Q4 2023

Q1 2024

Q2 2024

Q3 2024

Q4 2024

Q1 2025

Q2 2025

Q3 2025

Q4 2025

45%

GROSS MARGIN STOCK-IN-TRADE/SALES

15%

‌Strong balance sheet and liquidity situation maintained

Net debt / EBITDA¹

2.5

2.0

1.5

1.0

0.5

0.0

* Active working capital management and proactive long-term bond

Q1 2022

Q2 2022

Q3 2022

Q4 2022

Q1 2023

Q2 2023

Q3 2023

Q4 2023

Q1 2024

Q2 2024

Q3 2024

Q4 2024

Q1 2025

Q2 2025

Q3 2025

Q4 2025

1. Net debt / EBITDA measured as total debt minus cash, divided by EBITDA including IFRS 16

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‌Gör slide med produktbilder (kampanjbilder, modevisningsbilder och stills)

80% H&M, 20% övriga brands. 80% dam, ev något herr eller Home etc

Om någon bild är större så låt det gärna vara en från H&M's Londonvisning

Här vill vi gärna ha ett snyggt collage för att visa produktbredd och modehöjd

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‌Gör slide som handlar om shopping experience

Gärna med tre stående bildrutor (en från appen/digitala butiken, en från en fysisk butik och en fin från Brasilienöppningen)

WIP: Waiting for image of Brazil store

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‌Integrated sustainability delivering results

• When business and sustainability move together, we can reduce emissions at scale

  Key results

• 30% reduction in Scope 3 emissions vs. 2019 baseline

• On track to meet our climate target to reduce emissions 56% by 2030

  How we did it

• Smarter materials

  Lower-impact material choices

• Decarbonising our supply chain

  More renewable energy, higher efficiency, coal phased out

• Fewer, stronger supplier partnerships

  Long-term collaboration enables investment and scale

  
  
  
  
  

  ‌External recognition of our sustainability work

• Top rankings during 2025 by Fashion Revolution, Stand.earth, Remake and CDP for our work on climate, water and transparency

  
  
  
  
  

  ‌20

  
  
  

  ‌Financial Outlook

  Gross margin

• Sourcing initiatives targeting both tier 1 and tier 2 suppliers

• Improved inventory productivity but deal sensitive consumer

  Selling and administrative expenses

• Ambition to grow SG&A at low single digit level

• Somewhat increased cost pressure

• Further efficiency measures

  FX movements

• Large FX movements vs last year

• A stronger EUR vs USD contributes positively to the gross margin

• A stronger SEK result in negative currency remeasurement effects

  Inventory

• Demand planning improvements

• In-season buying

• Centralizing the inventory of the European warehousing structure

  CapEx

• Investment frame of 9-10 SEK billion

• Focus on store portfolio and tech infrastructure

• Period of high supply chain investments concluded

‌Last slide…

- Slide med bild på staff under en öppning, t ex som är glada och jublar alt när vi klipper band. Kan vi ta en ruta från t ex en Brasilienfilm eller liknande?

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