Industria De Diseno Textil, S.a. · BME:ITX
Industria De Diseno Textil — Inditex — H1 2021 Earnings Presentation
43 slides from Industria De Diseno Textil's earnings presentation, Sep 15, 2021
Slide 1: Inditex Interim Half Year 2021
Collections INDITEX Collections Interim Half Year 2021 15 September 2021 INDITEX INTERIM HALF YEAR 2021 1
Slide 2: Disclaimer
Disclaimer This document and the information contained herein does not constitute an offer to sell, exchange or buy, or the solicitation of an offer to buy, or any recommendation or advice regarding, any securities issued by the Inditex Group. This document may contain statements regarding intention
Slide 3: Differentiation and strategic transformation accelerates
Differentiation and strategic transformation accelerates INDITEX INTERIM HALF YEAR 2021 3
Slide 4: Inditex differentiation and strategic transformation accelerates
Inditex differentiation and strategic transformation accelerates Transformation to fully-integrated, digital, sustainable business model accelerates People first: Strong individual commitment, unique customer-centric corporate culture 2Q21 sales, EBITDA and net income at historic highs. CC sal
Slide 5: Strength of integration: 99% of stores open, online grows strongly
Strength of integration: 99% of stores open, online grows strongly Competitive differentiation bigger than ever Sales of absorbed stores recovered already Strong advantage of business model and single inventory position Online continues to grow strongly: +36% over 1H20 and +137% over 1H19
Slide 6: Financial summary
Financial summary INDITEX INTERIM HALF YEAR 2021 6
Slide 7: 1H2021: Strong recovery in operations
1H2021: Strong recovery in operations Strong recovery € million 1H21 1H20 21/20 Active management of supply chain Net sales 11,936 8,033 49% Healthy gross margin evolution Gross profit 6,907 4,512 53% Tight control of operating expenses EBITDA 3,101 1,486 109% Net income 1,272 (195) - INDITE
Slide 8: 2Q21 Sales, EBITDA and net income at historic highs
2Q21 Sales, EBITDA and net income at historic highs 2Q21 Sales, EBIT and net income at € million 2Q21 2Q19 21/19 historic highs despite restrictions and store Net sales 6,993 6,893 1% absorptions Gross profit 3,945 3,759 5% Active management of supply chain EBITDA 1,866 1,772 5% Healthy gross
Slide 9: 1H21 Sales
1H21 Sales Strong recovery in sales € million 1H21 1H20 % Sales in CC grew +53% Net sales 11,936 8,033 49% 1H21 sales trends improve as stores reopen and online sustains outstanding progress 1H21 online sales +36% CC over 1H20 and +137% over 1H19 INDITEX INTERIM HALF YEAR 2021 9
Slide 10: 2Q21 Sales
2Q21 Sales 8.000 Acceleration in sales growth to +51% 7.000 in CC over 2Q20 6.000 2Q21 sales above historic high 2Q19 5.000 2Q21 sales in CC were +7% above 4.000 2Q19 6.893 6.993 3.000 4.730 2.000 1.000 0 2Q2019 2Q2020 2Q2021 INDITEX INTERIM HALF YEAR 2021 10
Slide 11: Currency impact on sales
Currency impact on sales -4.5% currency impact on sales in 1H21 vs 1H20 At current exchange rates, the currency impact on sales is expected to be +0.5% in 2H21 vs 2H20, and -5.5% vs 2H19 1% -1% -3% -5% -7% 1Q21 2Q21 3Q21E 4Q21E 1Q2019E vs 2020 vs 2019 INDITEX INTERIM HALF YEAR 2021 11
Slide 12: Gross margin
Gross margin Healthy execution 1H21 1H20 21/20 Flexibility of supply chain key Gross margin 57.9% 56.2% +170bps Based on current information we expect gross margin of around 57.5% (+/- 50 bps) for FY21 INDITEX INTERIM HALF YEAR 2021 12
Slide 13: Operating efficiencies
Operating efficiencies Efficient cost management across all € million 1H21 1H20 1H19 departments and business areas Op. expenses 3,786 3,020 3,823 Demonstrates our ability to react and adapt continuously to the changing trading environment The main components of operating expenses have shown a
Slide 14: Depreciation
Depreciation Depreciation & Amortisation in 1H20 € million 1H21 1H20 21/20 includes completion of space optimisation Depreciation 1,416 1,684 (16%) 2020-2021 booked in 1Q20 INDITEX INTERIM HALF YEAR 2021 14
Slide 15: Flexibility of business model key to performance
Flexibility of business model key to performance Flexibility of supply chain € million 1H21 1H20 1H19 Single inventory Inventory 2,563 2,158 2,664 High quality closing inventory Receivables 840 667 841 Improved working capital dynamics Payables (6,583) (4,978) (6,632) Op. working capital (3,
Slide 16: Strong cash flow and financial condition
Strong cash flow and financial condition Strong cash generation € million 1H21 1H20 1H19 Net cash grew €1.5bn in 1H21 vs 1H20 Net Cash Position 8,023 6,486 6,730 closing balance, +24%, and +19% vs 1H19 Cash generation at historic highs INDITEX INTERIM HALF YEAR 2021 16
Slide 17: Concepts
Concepts INDITEX INTERIM HALF YEAR 2021 17
Slide 18: Store & Online sales by concept
Store & Online sales by concept Sales Pull&Bear Massimo Dutti Bershka Zara Stradivarius & Zara Home Oysho Uterqüe INDITEX INTERIM HALF YEAR 2021 18
Slide 19: Concepts
Concepts Remarkable online growth across all concepts Strong performance of Stradivarius and Oysho Optimisation activity in all concepts INDITEX INTERIM HALF YEAR 2021 19
Slide 20: Integration of Uterqüe into Massimo Dutti
Integration of Uterqüe into Massimo Dutti As part of Inditex’s strategy, Uterque will be fully integrated into Massimo Dutti over the next year. Uterque’s entire product range will be available only on Massimo Dutti’s website and selected stores INDITEX INTERIM HALF YEAR 2021 20
Slide 21: Sustainability
Sustainability INDITEX INTERIM HALF YEAR 2021 21
Slide 22: Sustainability 2020 targets
Sustainability 2020 targets Objectives 2020 100% eco-efficient stores ✓ 100% stores with used garment containers ✓ More than 25% of Join Life garments 35% 100% certified forest friendly fibres ✓ Removal of plastic bags in all concepts ✓ Zero discharge commitment ✓ 65% renewable energy in own facilit
Slide 23: New sustainability targets
New sustainability targets New Objectives >50% of garments will be Join Life in 2022 (new) 100% renewable energy in own operations by 2022 (prev. 80% by 2025) 100% more sustainable cotton by 2023 (prev. 2025) Cut water usage in supply chain 25% by 2025 (new) Net Zero emissions by 2040 (prev. 2050) I
Slide 24: Sustainability targets
Sustainability targets Objectives for 2023 (still in place) 100% sustainable cellulosic fibres 100% free of single-use plastic 100% of all packaging materials collected for reuse/recycle in our supply chain (Green to pack) Other objectives (still in place) 100% sustainable or recycled linen and poly
Slide 25: Use of renewable energy
Use of renewable energy INDITEX INTERIM HALF YEAR 2021 25
Slide 26: Outlook
Outlook INDITEX INTERIM HALF YEAR 2021 26
Slide 27: Zara Woman 2021 Fall/Winter
Zara Woman 2021 Fall/Winter INDITEX INTERIM HALF YEAR 2021 27
Slide 28: Zara Woman 2021 Après-vacances
Zara Woman 2021 Après-vacances INDITEX INTERIM HALF YEAR 2021 28
Slide 29: Zara Man Athleticz
Zara Man Athleticz INDITEX INTERIM HALF YEAR 2021 29
Slide 30: Zara Kids Back to school
Zara Kids Back to school INDITEX INTERIM HALF YEAR 2021 30
Slide 31: Zara Home Portraits of a home
Zara Home Portraits of a home INDITEX INTERIM HALF YEAR 2021 31
Slide 32: Massimo Dutti Relaxed city
Massimo Dutti Relaxed city INDITEX INTERIM HALF YEAR 2021 32
Slide 33: Bershka Natural tones
Bershka Natural tones INDITEX INTERIM HALF YEAR 2021 33
Slide 34: Pull&Bear Pacific republic
Pull&Bear Pacific republic INDITEX INTERIM HALF YEAR 2021 34
Slide 35: Stradivarius A/W
Stradivarius A/W INDITEX INTERIM HALF YEAR 2021 35
Slide 36: Oysho Working leisure
Oysho Working leisure INDITEX INTERIM HALF YEAR 2021 36
Slide 37: Uterqüe Fall/Winter
Uterqüe Fall/Winter INDITEX INTERIM HALF YEAR 2021 37
Slide 38: Zara Paris La Defense
Zara Paris La Defense INDITEX INTERIM HALF YEAR 2021 38
Slide 39: Zara Chengdu Taikoo Li
Zara Chengdu Taikoo Li INDITEX INTERIM HALF YEAR 2021 39
Slide 40: Bershka Madrid Preciados
Bershka Madrid Preciados INDITEX INTERIM HALF YEAR 2021 40
Slide 41: Outlook
Outlook Global fully integrated Store & Online Strong organic growth. Increased differentiation of the model Strong online sales growth to continue Capital expenditure c€900m annually (2020-22). Digital capex €1 billion for 2020-2022 Sustainability is central to the strategy Increased pr
Slide 42: Dividend
Dividend Inditex’s Dividend Policy of 60% ordinary payout and bonus dividends remains in place Inditex’s Annual General Meeting, in July, approved a dividend of 70 cents for FY2020. This is composed of an ordinary dividend of 22 cents and a bonus dividend of 48 cents per share The dividend is
Slide 43: Inditex Interim Half Year 2021
Collections INDITEX Collections Interim Half Year 2021 15 September 2021 INDITEX INTERIM HALF YEAR 2021 43