Slide 1: Inditex 2022 Results
INDITEX 2022 Results 15 March 2023
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: To the next level
To the next level
Slide 4: 2022: A year of strong growth and execution
2022: A year of strong growth and execution / Unique fashion proposition, optimised customer experience, sustainability and a focus on the talent and commitment of our people / Fully integrated store&online model accelerates Inditex's differentiation / Very healthy execution in a challenging environ
Slide 5: Outstanding performance of the Store&Online integrated model
Outstanding performance of the Store&Online integrated model / / / / / INDITEX Remarkable operating performance Sales +18%, to €32.6 billion. Sales positive in (i) all geographical areas, (ii) store&online and iii) all concepts Traffic and store sales increased markedly. Store sales grew +23% ncreas
Slide 6: Strategic update: To the next level
Strategic update: To the next level / Global growth opportunities / Operations in 213 markets with low share in a highly fragmented sector INDITEX
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Slide 8: FY2022: Very strong execution
FY2022: Very strong execution € million FY22 FY21 22/21 Net sales 32,569 27,716 18% Gross profit 18,559 15,814 17% EBITDA 8,649 7,183 20% PBT 5,358 4,199 28% Net income 4,130 3,243 27% INDITEX / Very strong execution in a_ challenging environment / Strong sales performance / Healthy gross margin / D
Slide 9: Sales
Sales € million FY22 FY21 22/21 / Sales +17.5% to €32.6 billion. CC sales +18% Net sales 32,569 27,716 18% / Sales positive in (i) all geographical areas, (ii) store&online, (iii) all concepts / Traffic and store sales grew significantly / Satisfactory online sales over 2021 record / 514 stores in R
Slide 10: Global Store&Online sales breakdown in 2022
Global Store&Online sales breakdown in 2022 48% Europe ex-Spain 14% 20% Spain Americas Operations in 213 markets Sales positive in all key geographic areas INDITEX 18% Asia & RoW FY2022
Slide 11: Gross profit
Gross profit € million FY22 FY21 22/21 / Very healthy execution Gross profit 18,559 15,814 17% / Gross margin 57% INDITEX FY2022
Slide 12: Operating efficiencies
Operating efficiencies € million FY22 FY21 22/21 / Rigorous control of operating expenses Op. Expenses 9,867 8,596 15% / Operating expenses grew below sales growth / Including all lease charges, operating expenses grew 5 percentage points below sales growth INDITEX FY2022
Slide 13: Working capital and net cash position
Working capital and net cash position € million FY22 FY21 / \nditex temporarily accelerated inventory Inventory 3.191 3,042 inflows throughout most of 2022 in the face of possible supply chain tensions Receivables 851 842 / Inventory levels returned to normal due to Payables (6,561) (6,411) progress
Slide 14: Funds from operations reach historic highs
Funds from operations reach historic highs € million FY22 FY21 Funds from Operations* 5,722 4,862 Change in working capital (669) 223 Cash from Operations 5,053 5,085 Capital expenditure (1,415) (1,126) Free Cash Flow 3,638 3,959 Funds from Operations* with cash lease payment added back INDITEX “ /
Slide 15: Concepts
Concepts
Slide 16: Concepts
Concepts / Robust group performance in a challenging environment / PBT on sales increases 130 bps to 16.5% / Return on Capital Employed increases 473 bps to 33% INDITEX 6
Slide 17: Concepts
Concepts / Store openings in 33 different markets. / Optimisation activities across all concepts / Zara very strong performance / Concepts performance show differences in geographical exposure / Robust across the board INDITEX
Slide 18: Concepts
Concepts / Very strong performance in a challenging environment € million Sales 22/21 PBT/Sales ROCE Zara & Zara Home 23,761 21% 71% 31% Pull&Bear 2,152 5% 6% 46% Massimo Dutti 1,593 4%* 4% 27% Bershka 2,384 0% 4% 32% Stradivarius 2,056 3% 8% 51% Oysho 623 4% 3% 31% Total 32,569 8% 16.5% 33% *Growth
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Slide 21: Vacation look
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Slide 22: Zara Man Studio
Slide 23: Zara Kids Spring/Summer
Zara Kids Spring/Summer
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Slide 25: Pull&Bear Equals
Slide 26: Massimo Dutti Linen
Slide 27: Bershka Denim statement
Bershka Denim statement
Slide 28: Stradivarius Teen
Stradivarius Teen
Slide 29: Bandaloop x Oysho
Bandaloop x Oysho
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Slide 31: United States Inditex's largest market
United States Inditex’s 24 largest market / 30 projects 2023-2025 Planned openings Planned refurb/enlargements Baton Rouge Mall of Louisiana Dadeland Mall, Miami San Antonio North Star Mall Roosevelt Fiield Mall, Garden City NY Queen’s Center Westfield Old Orchard, Skokie LA The Groove Westfield Top
Slide 32: New security tag technology
New security tag technology / RFID chip sown into garment / Enhanced customer experience / Checkout time reduced by up to 50% / Increased client autonomy / Efficiency in online packing INDITEX
Slide 33: mE eee
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Slide 34: Zara pre-owned: progressive roll-out
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Slide 35: People
People / Preserving the talent and commitment of our people / Benchmark employer / Changemakers in every store / \|ncrease diverse and inclusive character with ILO 35 INDITEX
Slide 36: Workers at the centre
Workers at the centre / 15". anniversary of agreement with IndustriAll / Promoting worker participation and freedom of association in the supply chain / Launch of Workers at the Centre strategy 2023- 2025 / Increased scope and depth with aim to transform the industry INDITEX 36
Slide 37: Outlook 2023
Outlook 2023 / Strong sales productivity in stores and very healthy online sales growth going forward / Inditex expects positive space contribution in 2023 / Atcurrent exchange rates currency impact on sales around -1% / Stable gross margin (+/-50bps) / Ordinary capital expenditure of around €1.6 bi
Slide 38: 29% dividend increase
29% dividend increase / Attractive and predictable dividend policy / 60% ordinary payout and bonus dividends / The Board of Directors will propose to the AGM a dividend of €1.20 per share (+29%) for 2022. It will be composed of an ordinary dividend of €0.796 and a bonus dividend of €0.404 per share
Slide 39: Spring/Summer collections well received
2023 / Spring/Summer collections well received / Store&Online sales in CC between 1 February and 13 March grew +13.5% / Store&Online sales in CC between 1 February and 13 March adjusting for operations in Russian Federation and Ukraine over 2022 grew +17.5% INDITEX 8°
Slide 40: Inditex 2022 Results
INDITEX 2022 Results 15 March 2023