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— THIS IS H&M —

Fashion and quality at the best price

Passion for fashion, belief in people and the desire to always exceed customers’ expectations.

3,132 stores

53 markets

More than 116,000 employees

Sales including VAT

SEK 150 billion

Profit after tax

SEK 17.2 billion* Highlights

from 2013

A clear business concept – fashion and quality at the best price – and strong shared values have taken us from a single store to being a leading global fashion company.

The H&M Group makes affordable, good quality fashion accessible to people all over the world.

This is possible because we design our own products, have no middlemen, buy the right product from the right market in large volumes, have efficient logistics and are cost-conscious in every part of the business.

H&M continues to grow at a rapid pace and our attractive offer is reaching more and more customers, both in stores and online.

We are guided by strong values based on a fundamental respect for the individual and a belief in people’s ability to use their own initiative. Our values are summed up in the H&M spirit, which makes H&M a unique workplace for employees around the world.

H&M aims to be the more sustainable choice for today’s increasingly aware customers, and sustainability work is an integral part of our business.

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— THIS IS H&M —

Our brandsA wide and varied range

of inspiring fashion.

H&M always offers a wide and varied range of inspiring fashion, from the latest trends to sustainable classics to wear season after season. This is complemented by various independent brands with their own identities.

The collections are designed in-house with the focus on quality, best price and capturing the feel of a trend. Flexible planning of the product range and efficient logistics mean that products can be continually adapted and updated according to customers’ preferences.

H&M carries a wide and varied range of clothing for women, men, teenagers, children and babies. To complement the apparel collections, H&M offers shoes, accessories and cosmetics, as well as an extended sports concept. The product range also includes home furnishings from H&M Home. hm.com

& Other Stories offers a wide range of shoes, bags, accessories, cosmetics and ready to wear. The diverse collections are designed in ateliers in Paris and Stockholm, with great emphasis on details and quality – always at a good price. stories.com

Cheap Monday is a jeans and fashion brand for women and men that often draws inspiration from alternative music and trends, such as the 1990s club scene and grunge. cheapmonday.com

COS is timeless fashion that outlasts the seasons. Classic and modern items for women and men who are looking for exclusive design and good quality at affordable prices. cosstores.com

Monki is a personal, playful brand that is also a unique shopping experience with a store concept characterised by storytelling, creativity and colourful graphic design. Monki clothes and accessories are inspired by current trends with a twist of Nordic and Asian street style. monki.com

Weekday is a jeans-focused fashion destination offering urban design for women and men, always at great prices. Here, in-house brands mix with vintage and external labels. weekday.com

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— THIS IS H&M —

The conscious choice

Our aim is to make more sustainable fashion choices available, affordable and attractive to as many people as possible.

For us, sustainability work is an investment in our customer offer and exerts a positive influence on the company’s long-term development. Therefore sustainability work is not a separate activity – it is included in every aspect of our business.

Our sustainability commitment covers aspects including the environment, ethics and human rights. It extends throughout the product life cycle, from how the cotton is grown to how our customers wash their garments.

SUSTAINABLE DEVELOPMENTWe have doubled the percentage of more sustainable cotton in the product range over the past two years to 15.8 percent in 2013. The goal is that by 2020, all the cotton used will be more sustainable cotton.

Since 2013, our global “Garment Collecting” initiative allows customers to drop off used clothing – of any brand and in any condition – in H&M stores for re-use and recycling. In 2013 our customers contributed 3,047 tonnes of used clothing to the initiative.

H&M does not own any factories; instead, the products are manufactured by around 900 independent suppliers. Wages are an important issue for the textile industry and in 2013 we launched a new plan to help improve wage structures at the supplier stage.

We have entered a global partnership with WWF – the first of its kind – that sets a new standard in the fashion industry. Through the partnership H&M commits to contributing to the responsible use of water resources throughout the entire life cycle of a garment.

In 2013, the Stefan Persson family donated SEK 500 million to the H&M Conscious Foundation. The mission of the foundation is to reach beyond H&M’s value chain and contribute to positive long-term change for people and communities where H&M operates.

Read more at hm.com/sustainability

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— THIS IS H&M —

A dynamic workplace

H&M believes in people’s ability to use their own initiative. For employees, this means great opportunities for personal growth.

H&M is guided by shared values that help generate energy and commitment, resulting in an open and dynamic workplace where everyone works together to achieve shared goals – and where every employee makes a difference. Together with H&M’s strong global presence, this means great opportunities for employees to develop.

Today more than 116,000 people work at H&M and numbers are growing rapidly. In 2013 alone, more than 12,000 people net joined the Group.

Our shared values are based on fundamental respect for the individual and a belief in people’s ability to use their own initiative. Teamwork, entrepreneurial spirit, being straightforward and open-minded, as well as striving for constant improvement, keeping it simple and being cost conscious, are also part of our values.

Together, our values form the H&M spirit, which serves as guidance for every aspect of work within the Group. The H&M spirit has existed since the very first store opened in 1947.

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— THIS IS H&M —

Global expansionH&M is growing in existing markets and in new countries,

with all brands and through new concepts.

Expansion is long-term and includes both new stores and online sales.

RAPID GROWTH H&M is growing globally and in 2013, our pace of growth was stepped up even further.

A net total of 356 stores was added within the H&M Group.

H&M opened stores in five new countries: Chile, Lithuania, Serbia, Estonia and, via franchise, Indonesia. H&M’s online store expanded to the US.

The country with the largest number of new stores was China, followed by the US.

The H&M Group also expanded through its newer brands, including COS, which was launched in 2007 and has developed into an internationally well- established fashion brand. In 2013, an entirely new fashion brand, & Other Stories, was launched that has enjoyed a fantastic reception.

LOOKING AHEADThere is great potential for continued expansion for many years to come. The target is to increase the number of stores by 10–15 percent each year. For 2014 a net total of 375 new stores is planned.

Australia, The Philippines and India will become new H&M markets in 2014. France became a new online market in March 2014, and Spain and Italy will follow in early autumn. There are also plans for China to become a new online market by the end of 2014.

In 2014, COS opened in Switzerland, and will also open its first stores in Australia and South Korea, as well as the first stores and online sales in the US.

& Other Stories will open stores in three new countries in 2014 – Belgium, the Netherlands and the US, as well as online in: Ireland, Austria and the US.

In 2015, H&M will expand to South Africa and Peru.

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— THIS IS H&M —

GROUP TOTAL

New stores net during the year 308 8 21 20 - -1 356

Number of stores 30 Nov 2013 2,936 8 85 79 21 3 * 3,132 **

STORE OVERVIEW 2013

EXPANSION 1974 *– 2013

* Cheap Monday is offered mainly via 2,000 retailers in more than 35 countries.** 110 of the Group’s stores were franchise stores.

NUMBER OF STORES NUMBER OF MARKETS

3,200

3,000

2,800

2,600

2,400

2,200

2,000

1,800

1,600

1,400

1,200

1,000

800

600

400

200

074 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13

3 4 5 6 7 8 9 10 12 18 22 28 33 35 38 43 48 53

YEAR* Since IPO 1974.

H&M Hennes & Mauritz AB is listed on NASDAQ OMX Stockholm. You will find all the latest information about the H&M Group on hm.com/about

H&M in figures