Slide 1: Interim Nine Months 2020
Interim Nine Months 2020 15 December 2020 Interim Nine Months 2020 1
Slide 2: Disclaimer
Disclaimer This document and the information herein does not constitute an offer to sell, to buy or to exchange, nor an invitation to make an offer to buy, to sell or to exchange, nor a recommendation or advice, regarding any security issued by the Inditex Group. This document contains forward-looki
Slide 3: Overview
Overview Interim Nine Months 2020 3
Slide 4: 3Q2020: Very strong operating recovery
3Q2020: Very strong operating recovery Remarkable execution in a challenging operational environment Initial collections for Autumn/Winter 2020 very well received by our customers Practically all stores reopened in 3Q2020 but still with restrictions. Store sales recovering progressively Outs
Slide 5: 3Q2020: Very strong operating recovery
3Q2020: Very strong operating recovery Store sales recovering progressively despite restrictions in 88% of stores. 5% of stores remained closed in 3Q Online sales continue growing at an outstanding pace Store & Online sales 1-18 October already at high historic level of 2019 New phase of clo
Slide 6: 3Q2020: Stores in operation
3Q2020: Stores in operation Interim Nine Months 2020 6
Slide 7: 3Q2020: Increasing store traffic
3Q2020: Increasing store traffic Increasing store traffic and conversion Premium very balanced store base ▪ Broad geographical presence with small share per market ▪ Balanced split between street/shopping centre ▪ City centre stores in capital cities account for less than 8% of sales 95% of st
Slide 8: 3Q2020: Online sales +76%
3Q2020: Online sales +76% 7 bn 9M20: Strong online progression 6 bn +75% increase in online sales in Online sales € constant currency. +44% increase in 5 bn online visits to 3.4 bn 4 bn 97% of online growth organic Strong growth continues into 4Q2020 3 bn Confirms strength of business mode
Slide 9: 3Q2020: Outstanding operating performance
3Q2020: Outstanding operating performance Efficiencies from single inventory position Technology enabled by RFID & SINT. Fully rolled out by 2020 In-store inventory to fulfill online orders Store optimisation improves inventory allocation Higher product availability and full price sales
Slide 10: Unique business model: Global fully integrated Store & Online
Unique business model: Global fully integrated Store & Online Interim Nine Months 2020 10
Slide 11: Zara Woman A/W collection
Zara Woman A/W collection Interim Nine Months 2020 11
Slide 12: Zara Man Monochrome Layers
Zara Man Monochrome Layers Interim Nine Months 2020 12
Slide 13: Zara Kids The Wanderers
Zara Kids The Wanderers Interim Nine Months 2020 13
Slide 14: Zara Home Interiors with a soul
Zara Home Interiors with a soul Interim Nine Months 2020 14
Slide 15: Massimo Dutti Interlude editorial
Massimo Dutti Interlude editorial Interim Nine Months 2020 15
Slide 16: Bershka Winter Calls
Bershka Winter Calls Interim Nine Months 2020 16
Slide 17: Pull&Bear: Art for everyone
Pull&Bear: Art for everyone Interim Nine Months 2020 17
Slide 18: Stradivarius Magical Allure editorial
Stradivarius Magical Allure editorial Interim Nine Months 2020 18
Slide 19: Oysho Join Life Yoga & Meditation
Oysho Join Life Yoga & Meditation Interim Nine Months 2020 19
Slide 20: Uterqüe A/W collection
Uterqüe A/W collection Interim Nine Months 2020 20
Slide 21: Financial Summary
Financial Summary Interim Nine Months 2020 21
Slide 22: 3Q2020: Strong recovery in operations
3Q2020: Strong recovery in operations Remarkable execution of store, online and supply chain Store sales recovering progressively Online sales continue growing at an outstanding pace Sales 1-18 October already at high historical level of 2019 New temporary restrictions in some markets from
Slide 23: 3Q2020: Strong recovery in operations
3Q2020: Strong recovery in operations Strong recovery in challenging € million 3Q20 3Q19 20/19 CC environment Net sales 6,052 7,000 (14%) (10%) Active management of supply chain Gross profit 3,661 4,254 (14%) (8%) Healthy gross margin evolution EBITDA 1,848 2,255 (18%) (10%) Strong reduction
Slide 24: Sales
Sales € million 9M20 9M19 Strong recovery in sales Net sales 14,085 19,820 Online sales +75% CC in 9M2020 9M2020 sales trends improve as stores reopen and online sustains outstanding progress Interim Nine Months 2020 24
Slide 25: Gross margin
Gross margin € million 9M20 9M19 Flexibility of supply chain key to gross margin performance Gross margin 58.0% 58.2% CC gross margin +110 bps to 59.3% Closing inventory down 11% Interim Nine Months 2020 25
Slide 26: Operating efficiencies
Operating efficiencies € million 9M20 9M19 20/19 Very efficient cost management across all departments and business areas Op. expenses 4,812 5,811 (17%) Demonstrates our ability to react and adapt continuously to the changing trading environment The main components of operating expenses have s
Slide 27: Depreciation
Depreciation € million 9M20 9M19 20/19 Depreciation & Amortisation includes completion of space optimisation Depreciation (2,388) (2,154) 11% 2020-2021 booked in 1Q2020 Interim Nine Months 2020 27
Slide 28: Financial results
Financial results € million 9M20 9M19 20/19 Interest on lease liability amounted to €94m Financial results (107) (111) (4%) Interim Nine Months 2020 28
Slide 29: Flexibility of business model key to performance
Flexibility of business model key to performance € million 9M20 9M19 20/19 Flexibility of supply chain Inventory 3,067 3,434 (11%) Single inventory Receivables 787 843 (7%) High quality inventory at period end Payables (6,842) (7,517) (9%) Improved working capital dynamics Op. working capita
Slide 30: Outstanding operating performance
Outstanding operating performance Efficiencies from single inventory position Technology enabled by RFID & SINT. Fully rolled out by 2020 Store optimisation improves inventory allocation In-store inventory to fulfill online orders Higher product availability and full price sales Strong c
Slide 31: Strong cash flow and financial condition
Strong cash flow and financial condition € million 9M20 9M19 20/19 Strong cash generation Net Cash Position 8,265 7,734 7% Net cash grew €1.8bn in 3Q vs 2Q20 closing balance Net cash reached historic highs Interim Nine Months 2020 31
Slide 32: Concepts
Concepts Interim Nine Months 2020 32
Slide 33: Store & Online sales by concept
Store & Online sales by concept Sales Pull&Bear Massimo Dutti Bershka Stradivarius Zara & Oysho Zara Home Uterqüe Interim Nine Months 2020 33
Slide 34: Performance per concept
Performance per concept Oysho Uterqüe Stradivarius Pull&Bear Bershka Group average Massimo Dutti Interim Nine Months 2020 34
Slide 35: Performance per concept
Performance per concept Remarkable online growth across all concepts Strong performance at Oysho and Zara Home ranges Optimisation activity in all concepts Interim Nine Months 2020 35
Slide 36: Outlook
Outlook Interim Nine Months 2020 36
Slide 37: Sustainability & Circular economy a key part of the strategy
Sustainability & Circular economy a key part of the strategy Sustainability in supply chain Renewable energies Sustainable fabrics Eco-efficient stores Zero-waste / recycling Interim Nine Months 2020 37
Slide 38: Sustainability & Circular economy 2020 targets
Sustainability & Circular economy 2020 targets Objective 2020 100% eco-efficient stores ✓ 100% stores w. containers for used garments ✓ More than 25% of Join Life garments >30% 100% certified forest friendly fibers ✓ Removal of plastic bags in all concepts ✓ Zero discharge commitment ✓ Interim Nine
Slide 39: Online launch in Costa Rica, Guatemala, Honduras & Nicaragua
Online launch in Costa Rica, Guatemala, Honduras & Nicaragua East Nanjing Road Interim Nine Months 2020 39
Slide 40: Global online developments
Global online developments 2007 2010 2011-2014 2019 2020 2021e 2022e Zara Home Zara launch Zara launch in USA, Global presence Zara new Inditex Online >25% launch all over all over China, Japan, Russia studios Open of group sales Europe Europe 14% of group 64,000 m2 Platform All concepts in Europe s
Slide 41: Integrated digital eco-efficient stores
Integrated digital eco-efficient stores Beijing Wangfujing Interim Nine Months 2020 41
Slide 42: Integrated digital eco-efficient stores
Integrated digital eco-efficient stores London Bluewater Interim Nine Months 2020 42
Slide 43: 4Q2020: Stores in operation
4Q2020: Stores in operation Interim Nine Months 2020 43
Slide 44: FY2020 outlook
FY2020 outlook November sales affected by new phase of closures and restrictions in various markets Most markets reopened over the 1st week of December. Improvement in store sales Currently 8% of stores are closed with an additional 10% closed on weekends Significant number of stores with re
Slide 45: Dividend
Dividend FY2019 dividend of 35 cents per share paid on 2 November 2020 Inditex’s dividend policy of 60% ordinary payout and bonus dividends remains in place The remainder of the bonus dividend (78 cents per share) will be paid between FY2021 and FY2022 Dividend payments to be made biannually
Slide 46: FY2020 Results
FY2020 Results Results for FY2020 to be released on 10 March 2021 Interim Nine Months 2020 46
Slide 47: Interim Nine Months
Interim Nine Months 2020 15 December 2020 Interim Nine Months 2020 47