Hennes

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Hennes Mauritz AB
Welcome
SIBEL OKAN
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Our Business Concept
To give the customer unbeatable value by offering
fashion and quality at the best price...
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Concepts
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Always the best location
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Expansion development 1974 2006
Number of stores
Number ofmarkets
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9
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14
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Expansion since the stock-exchange quotation 1974
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Turnover development 1974 2006
Turnover incl. VAT (MSEK)
Turnover since the stock-exchange quotation 1974
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Sales markets New markets 2007/2008 Production
offices
No factories of our own Around 700
suppliers Around 20 production offices
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Hennes Mauritz AB

• Few middlemen
• Buying in large volumes from the right market
• Long experience of the textile industry
• Effective distribution
• Cost efficiency in all areas and stages of our
  business

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Tests and chemical restrictions Around half a
million tests
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Hennes Mauritz AB
Code of Conduct
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Global Responsibility
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Global responsibilities
UN Global Compact The UNs Millennium
Development Goals Amnesty Business
Group Water Aid
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Joint Initiatives
The challenges faced in the production countries
are complex and their causes can be found at many
levels. HM join forces with other parties in
order to counter the difficulties facing the
garment industry. Better Factories Cambodia
(BFC) MFA Forum Bangladesh
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Towards sustainable improvements
Training for factory workers With the
Bangladeshs organisation Karmojibi Nari (KN).
Development seminar for suppliers Considerable
improvements in both working conditions and
productivity are required if the producers are to
be successful and competitive in the longer term.
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Cooperation with Unicef

• HM has been in partnership with UNICEF since
  2004.

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Environmental issues

• Focus on cotton                                   
                    
• Promoting organic cotton growing by contributing
  to increased demand,
• In 2004 we used 5 ton of organic cotton fiber.
• In 2007 the increase raised all the way up to
  1300 ton organic cotton fiber.
• Improving conventional cotton growing
• Working to improve conventional cotton growing
  through the Better Cotton Initiative (BCI).

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Environmental issues
Cleaner fabric production Bleaching, dyeing and
washing fabrics require large quantities of
water, energy and chemicals. Fabric production
is one of the textile processes with the greatest
impact on the environment. To contribute to
cleaner fabric production we instead try to
encourage the fabric dye houses to take
environmental considerations into account in
their activities. We do this by pointing out the
environmental gains and the cost savings brought
about by more efficient use of resources.
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Environmental issues
Expansion of eco-labeling Since 2005 HM has
been licensed to use the Flower, the European
Unions official eco-label. In 2005 75,000
garments sold In 2006 about 190,000 garments
were sold in our stores
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Recognition
HM Improver of the Year During the year HM
was named Improver of the Year in a recently
introduced award from the Swedish newspaper
Svenska Dagbladet. The award is given to a
company that has clearly improved its social and
environmental actions.
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HM Türkiye 2 Liaison Offices

• Established in 1992
• Today 170 people Istanbul Izmir
• Jersey, woven, heavy knit, underwear, swimwear,
  socks, accessories

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HM Suppliers

• To become an HM supplier you have to sign
• Code of Conduct
• Code of Ethics
• Chemical Restrictions
• Standard Purchase Conditions
• Children Safety

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Code of conduct
45 Code of Conduct auditors Some 1,032 Full
Audits and 442 follow ups a year Annual CSR report

• Compliance with local legislation
• Ban on child labour and forced labour
• Working environment and safety
• Minimum wages and working hours
• Freedom of association and collective barganing
• Concern for the environment

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Hennes Mauritz AB

• All HM-suppliers have to sign an agreement
  documenting their intention to comply with HM
  Code of Conduct.
• The supplier is responsible for its own factories
  and any subcontractor used for production of
  goods for HM.
• HMs requirements are based on the legal
  requirements where the factory is located.
• HMs requirements may however not be limited to
  the requirements of the national law.

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Hennes Mauritz AB

• There are certain minimum requirements e.g.
• - No worker younger than 15 years.
• - No worker paid less than legal minimum salary.
• - SSK
• - Basic safety is provided for the workers.
• - The presented documentation reflects the
  reality.

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Hennes Mauritz AB

• We expect our suppliers and its factories to work
  actively to solve any identified issues of
  non-compliance and to make continues
  improvements.
• Each audit is followed by a follow-up process
  where we monitor the supplier/factorys
  improvements.
• No or limited improvements will have consequences
  on order placements.

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• We believe that
• Code Of Conduct
• Better working condition
• Less staff turnover
• Increased efficiency
  quality

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Hennes Mauritz AB
Thank you
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