H & M Hennes & Mauritz AB Nine-month report

Nine months (1 December 2014 — 31 August 2015)

  · Well-received collections for all brands in the H&M group resulted in good
sales and increased market share. The H&M group’s sales excluding VAT increased
by 22 percent to SEK 132,167 m (108,775) during the first nine months of the
financial year. In local currencies the increase was 12 percent.
  · Profit after financial items amounted to SEK 20,094 m (18,096), an increase
of 11 percent. The group’s profit after tax increased to SEK 15,372 m (13,754),
corresponding to SEK 9.29 (8.31) per share, an increase of 12 percent.

Third quarter (1 June 2015 — 31 August 2015)

  · The H&M group’s sales in SEK excluding VAT increased by 19 percent to SEK
46,024 m (38,805) during the third quarter. In local currencies the increase was
11 percent.
  · Gross profit amounted to SEK 25,712 m (22,627), an increase of 14 percent.
This corresponds to a gross margin of 55.9 percent (58.3).
  · Profit after financial items was at the same level as last year and amounted
to SEK 6,936 m (6,967). The group’s profit after tax amounted to SEK 5,306 m
(5,296), corresponding to SEK 3.21 (3.20) per share.
  · H&M’s first stores in Macau were very well received on its openings in the
quarter.
  · A very good start for H&M Beauty since its launch in July. H&M Beauty can
today be found in around 700 stores in 28 markets and also at hm.com.

  · Sales including VAT in the period 1 September – 22 September 2015 increased
by 12 percent in local currencies compared to the same period last year.
  · Continued strong expansion: approximately 400 new stores net are planned to
open in 2015. India and South Africa will be new H&M markets in October 2015.
Eight new H&M online markets have opened so far in 2015, all of which have had a
very good reception. Switzerland and Russia will become new online markets
during autumn 2015.
  · In the 2015/2016 financial year, H&M plans to offer e-commerce in a further
nine existing H&M markets and also to open stores in three new markets: New
Zealand, Cyprus and Puerto Rico.

Comments by Karl-Johan Persson, CEO
“So far this year our sales have exceeded SEK 153 billion including VAT, an
increase of more than 20 percent – an acknowledgement that our collections are
well appreciated worldwide. Sales were also good in the third quarter even
though sales in August were negatively affected by the unseasonably warm weather
in many of our large European markets. When the weather became more normal in
September, sales took off again and we are looking forward to an exciting
fashion autumn.

Profits have developed well during the first nine months of the year, although
profits in the third quarter were negatively affected by increased purchasing
costs due to the strong US dollar. As always, we are reviewing our customer
offering in each market and we are monitoring the market closely to ensure that
we offer the best combination of fashion, quality, price and sustainability.

We are also strengthening our offering by continuously developing and improving
our range even further. For example, our new concept H&M Beauty was launched
during the summer. H&M Beauty has enjoyed a very good start in around 700 stores
in 28 markets as well as online. We are now continuing the roll-out to a further
14 markets during the autumn. We are also looking into launching other new
concepts and brands; we will come back to this at a later date.

Our online roll-out to new countries is continuing according to plan. We will
open our H&M online store in both Switzerland and Russia during this autumn,
giving us 23 H&M online markets at the end of the financial year. In 2016 we
plan to offer e-commerce in a further nine existing H&M markets. These countries
will be Ireland, Japan, Greece, Croatia, Slovenia, Estonia, Latvia, Lithuania
and Luxembourg.

In parallel with our rapid online expansion we are also opening stores at a fast
pace.
In the fourth quarter we will open approximately 240 new stores net – which is
almost three new stores per day. India and South Africa will become two new and
exciting H&M countries this autumn, when we open our first store in New Delhi
next week and in Cape Town later on in October. Next year, we plan to open
stores in three new markets: New Zealand, Cyprus and Puerto Rico.

Our other brands are performing well and are continuing to reach out to more and
more customers. For example, COS now has around 130 stores across 27 markets,
Monki more than 90 stores in 13 markets, & Other Stories 25 stores in 10 markets
and Weekday 20 stores in five markets.

There is also much going on within our sustainability work. Our strategy for
Fair Living Wages, which we are working on together with other big buyers in our
purchasing countries, is showing good progress and now more and more of our
suppliers will start using the Fair Wage method to achieve fairer wage setting
for their employees. In addition, thanks to the commitment of our customers we
have now collected almost 20,000 tonnes of garments for re-use and recycling
since 2013. Some of these have been turned into brand new clothing, most
recently into some great denim pieces currently in our stores. Through the H&M
Conscious Foundation, which works on issues of concern, we contribute
humanitarian support in countries where H&M operates. Alongside this the
foundation has established a new prize, the Global Change Award, which
encourages innovation in the textile industry. The aim is to develop new
processes that enable used garments to be recycled on a larger scale, which we
hope will lead our industry towards a more circular economy.”

The information in this interim report is that which H & M Hennes & Mauritz AB
(publ) is required to disclose under Sweden’s Securities Market Act. It will be
released for publication at 8.00 (CET) on 24 September 2015. This interim
report, and other information about H&M, is available at www.hm.com

Contact persons

Nils Vinge, IR                  +46-8-796 52 50
Karl-Johan Persson, CEO         +46-8-796 55 00 (switchboard)
Jyrki Tervonen, CFO             +46-8-796 55 00 (switchboard)

H & M Hennes & Mauritz AB (publ)
SE-106 38 Stockholm
Phone: +46-8-796 55 00, Fax: +46-8-24 80 78, E-mail: info@hm.com
Registered office: Stockholm, Reg. No. 556042-7220

H & M Hennes & Mauritz AB (publ) was founded in Sweden in 1947 and is quoted on
Nasdaq Stockholm. H&M’s business idea is to offer fashion and quality at the
best price in a sustainable way. In addition to H&M, the group includes the
brands COS, Monki, Weekday, Cheap Monday, & Other Stories as well as H&M Home.
The H&M group has more than 3,600 stores in 59 markets including franchise
markets. In 2014, sales including VAT amounted to SEK 177 billion and the number
of employees was more than 132,000. For further information, visit www.hm.com.