H & M HENNES & MAURITZ AB FULL-YEAR REPORT

1 December 2011 – 30 November 2012
FULL-YEAR

  · The H&M Group’s sales including VAT increased in local currencies by 11
percent during the financial year. Sales in comparable units increased by 1
percent. Converted into SEK, sales excluding VAT amounted to SEK 120,799 m
(109,999), an increase of 10 percent.
  · Gross profit amounted to SEK 71,871 m (66,147), corresponding to a gross
margin of 59.5 percent (60.1).
  · Profit after financial items amounted to SEK 22,285 m (20,942). The Group’s
profit after tax increased by 7 percent to SEK 16,867 m (15,821), corresponding
to SEK 10.19 (9.56) per share. Profit after tax increased by 1 billion SEK
despite negative effects from the Group’s large long-term investments and
negative currency translation effects.
  · Strong expansion during the year. The Group opened 304 (266) new stores net
compared to originally planned 275. China and the US were the largest expansion
markets.

THE FOURTH QUARTER

  · The H&M Group’s sales including VAT increased by 9 percent in local
currencies in the fourth quarter. Sales in comparable units were unchanged.
Converted into SEK, sales excluding VAT amounted to SEK 32,502 m (30,952).
  · Gross profit amounted to SEK 20,017 m (19,150), corresponding to a gross
margin of 61.6 percent (61.9).
  · Profit after financial items amounted to SEK 6,636 m (6,802). Group profit
after tax amounted to
SEK 5,287 m (5,357), corresponding to SEK 3.19 (3.24) per share. Profits after
tax were affected by large long-term investments as well as negative currency
translation effects of approximately SEK 240 m.

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  · The Board of Directors proposes a dividend of SEK 9.50 (9.50) per share for
the financial year 2011/2012.
  · Sales in December 2012 increased by 8 percent in local currencies compared
to the corresponding month the previous year. Sales in comparable units
decreased by 2 percent. Sales in December were affected by a negative calendar
effect of approximately 3 percentage points.
  · Sales in January 2013 are expected to increase by 5 percent in local
currencies compared to the same month last year. From mid-January onwards, sales
were negatively affected by very cold weather in many of H&M’s markets in
Europe.
  ·  H&M plans a net addition of around 325 stores for the financial year
2012/2013.
  · Chile, Estonia, Lithuania, Serbia and, via franchise, Indonesia will become
new H&M markets in 2013.
  · The new fashion brand & Other Stories will open its first stores during
spring 2013 in Spain, Germany, Denmark, UK, Italy, France and Sweden. & Other
Stories will also be available via online sales in these countries as well as in
Belgium, the Netherlands and Finland at stories.com.
  · COS will expand to new countries in 2013 with stores in Oslo, Norway and in
Dubai, UAE.
  · The completely mobile-adapted H&M shop online was launched in H&M’s eight
existing online markets in January 2013.

Comments by Karl-Johan Persson, CEO
“H&M continues to stand strong in a challenging clothing market which in many
countries has been even more challenging in 2012 compared to 2011. The fact that
we increased sales by 11 percent in local currencies and 1 percent in comparable
units whilst continuing to gain market share proves once again that customers
appreciate our collections, which offer a wide range of inspiring fashion for
everyone.

We increased our profits by 1 billion SEK – i.e. an increase of 7 percent
compared to the previous year – despite negative effects from large long-term
investments and currency translation effects. Our long-term investments relate
to a number of areas such as online shopping, IT, a completely new brand & Other
Stories and future broadening of the product range. These long-term investments
have created cost increases and to a great extent have not yet generated any
revenue. However, we consider these investments to be both necessary and wise as
they aim to secure future expansion and profits and thereby further strengthen
H&M’s position.

We continued our strong expansion and opened 304 new stores net during 2012.
Five new markets were added and we created around 10,000 new jobs. Today we have
a strong global presence with over 2,800 stores in 48 markets and more than
104,000 employees.

Sustainability is becoming increasingly important and one element of our strong
offering is also that our increasingly aware customers see H&M as the more
sustainable option. Sustainability is therefore high on our agenda; it is an
integral part of our operations and has been so for some time.

The strong pace of expansion is continuing in 2013 with a planned 325 new stores
net. This means that we will effectively be opening a new store every day. In
2013 the highest rate of expansion will again be in China and the US. The new
H&M countries in 2013 will be Chile, Estonia, Lithuania, Serbia and Indonesia.
We are very much looking forward to the spring when we will be able to offer our
customers a completely new fashion brand with the opening of the first stores of
& Other Stories.

We are looking forward to an exciting 2013 full of opportunities. We have the
greatest respect for the macro-economic climate and how it may affect the
consumption in many of our markets, but we have a strong belief in our offering
and are convinced that H&M will continue to maintain its strong position.”

The information in this Full-year 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 30 January 2013.

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 OMX Stockholm. The company’s business concept is to offer fashion and
quality at the best price. In addition to H&M, the group includes the brands
COS, Monki, Weekday and Cheap Monday, & Other Stories as well as H&M Home. The
H&M Group has more than 2,800 stores in 48 markets including franchise markets.
In 2012, sales including VAT were SEK 140,948 million and the number of
employees was more than 104,000. For further information, visit www.hm.com.