Industria De Diseno Textil, S.a. · BME:ITX
Industria De Diseno Textil — Inditex — FY2023 Earnings Presentation
45 slides from Industria De Diseno Textil's earnings presentation, Mar 13, 2024
Slide 1: Inditex 2023 Results
INDITEX 2023 Results 13 Ma
Slide 2: Disclaimer
Disclaimer Neither this document nor the information contained herein constitute an offer to sell, exchange or buy, or the solicitation of an offer to buy, to sell or exchange, or any recommendation or advice regarding any securities issued by the Inditex Group. This document may contain statements
Slide 3: To the next level
To the next level {
Slide 4: 2023: Strong growth and execution continues
2023: Strong growth and execution continues / Strong operating performance continues due to the creativity of the teams and the execution of the fully integrated business model / Strong sales growth (+10.4%). Sales +14.1% in constant currency / Sales positive in all geographical areas, store&online
Slide 5: 2024-2026: Strong commitment to profitable growth
2024-2026: Strong commitment to profitable growth / Unique business model: Fully integrated Store&Online / Unique fashion proposition, optimised customer experience, sustainability and a focus on the talent and commitment of our people / Global growth opportunities / Operations in 213 markets with l
Slide 6: Financial summary
Financialsummary >
Slide 7: 2023: Very strong execution
2023: Very strong execution € million FY23 FY22* 23/22 Net sales 35,947 32,569 10.4% Gross profit 20,762 18,559 11.9% EBITDA 9,850 8,649 13.9% PBT 6,870 5,358 28.2% Net income 5,381 4,130 30.3% *In 2022 Inditex reported a provision for expected expenses for FY2022 in the Russian Federation and Ukrai
Slide 8: Sales
Sales € million FY23 FY22 23/22 / Sales €35.9 billion. CC sales +14.1% Net sales 35,947 32569 104% / Strong growth both in stores and online / Sales positive in all geographical areas and all concepts / At current exchange rates, currency impact on sales in 2024 around -1.5% INDITEX FY2023
Slide 9: Global Store&Online sales breakdown in 2023
Global Store&Online sales breakdown in 2023 48.7% Europe ex- Spain 14.8% Spain 19.6% 16.9% Asia & ROW Americas Operations in 213 markets Sales positive in all key geographic areas INDITEX FY2023
Slide 10: Gross profit
Gross profit FY23 FY22 23/22 / Very healthy execution Gross margin 57.8% 57.0% 77 bps / Gross profit +11.9% to €20.8bn / Based on continued strong execution, Inditex expects a stable (+/-50 bps) gross margin in 2024 INDITEX FY2023
Slide 11: Operating efficiencies
Operating efficiencies € million FY23 FY22 23/22 Op. Expenses 10,853 9,867 10.0% INDITEX / Rigorous control of operating expenses / Operating expenses grew below sales growth / Including all lease charges, operating expenses grew 125 basis points below sales growth FY2023
Slide 12: Working capital and net cash position
Working capital and net cash position € million FY23 FY22 / Robust operating performance nventory 2,966 3,191 / Normalisation in supply chain conditions. Receivables 1038 351 FYE2023 inventory -7% vs FYE2022 Payables (7,467) (6.561) / Inventory is considered of high quality Op. working capital (3,46
Slide 13: Funds from operations
Funds from operations € million FY23 FY22 Funds from Operations* 6,991 5,722 Change in working capital (56) (669) Cash from Operations 6,934 5,053 Capital expenditure (1,872) (1,415) Free Cash Flow 5,062 3,638 Funds from Operations* with cash lease payment added back INDITEX / Strong cash generation
Slide 14: Concepts
Slide 15: Concepts
Concepts / Focused expansion continues / Store openings in 41 different markets / Optimisation activities across all concepts / Zara very strong performance / Robust across the board / Continued geographical expansion INDITEX
Slide 16: Concepts
Concepts / Very strong performance INDITEX Emilion Sales 23/22 PBT/Sales ROCE Zara & Zara Home 26,050 0% 9% 36% Pull&Bear 2,359 0% 9% 52% Massimo Dutti 1,839 5% 8% 43% Bershka 2,621 0% 8% 42% Stradivarius 2,334 3% 21% 62% Oysho 744 9% 8% 52% Total 35,947 0% 9% 39% FY2023
Slide 17: Concepts
Concepts / Robust group performance / PBT on sales increases to 19% / Return on Capital Employed increases 580 bps to 39% INDITEX
Slide 18: Outlook
Slide 19: To the next level
To the next level a7 os ROSARY SSSA SEIS SISLSLLALLLLLL LE SAARARRREE EE Qa
Slide 20: Unique fashion proposition
Unique fashion proposition / Creativity, innovation, design and quality INDITEX
Slide 21: 21
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Slide 22: Zara Man Collection
Slide 23: Zara Kids True Neutrals
Slide 24: Zara Home Lines
ara Home Lineg
Slide 25: Pull&Bear The Summit
Pull&Bear The Summit
Slide 26: Massimo Dutti Venetian Veil
Slide 27: Bershka TB Tailoring
Bershka TBTailoring
Slide 28: Stradivarius Poplin Collection
Stradivarius Poplin Collection yj YY
Slide 29: Oysho Back to training
Oysho Backto training \ NA \
Slide 30: Zara Paris Hotel de Ville
Zara Paris Hotel de Ville
Slide 31: Zara Überseequartier
-Uberseequartier O) oN =) Q
Slide 32: Zara Los Angeles The Grove
Zara Los Angeles The Grove
Slide 33: Massimo Dutti Miami Aventura Mall
Slide 34: Start of weekly live streaming in US and UK
Slide 35: 2023: Zara Pre-owned in European markets
2023: Zara Pre-owned in 16 European markets INDITEX 38 FY2023
Slide 36: 2024: Zara Pre-owned to be launched in US
2024: Zara Pre-owned to be launched in US RESELL PLATFORM XOUSIVE OnE SERIE INDITEX 36 FY2023
Slide 37: Sustainability Innovation Hub
Sustainability Innovation Hub / Sustainability Innovation Hub is currently working with more than 350 start-ups / Projects are now contributing to our current collections, including LOOPAMID® x ZARA / Strengthened our commitment to Infinited Fiber with a direct investment in the capital of the compa
Slide 38: Inditex People
Inditex People / Zara Holal: Coaching programme available in 50 markets with 2,800 coaches / More than 12,700 internal promotions in 2023 INDITEX “8
Slide 39: Outlook: Strong commitment to profitable growth
Outlook: Strong commitment to profitable growth / To meet current strong demand / Increasing sales productivity in stores and online / Annual gross space growth c5% in 2024-2026 / Positive space contribution / Continued online expansion INDITEX se
Slide 40: Capex
Capex / 2024 Ordinary capital expenditure of around €1.8 billion / Mainly focused on stores, IT integration and online platforms INDITEX 40
Slide 41: Logistics expansion plan 2024-2025 to meet strong demand
Logistics expansion plan 2024-2025 to meet strong demand / Two-year extraordinary investment in logistics. €800m in each year / Zara new 286,000 m? DC Zaragoza II / Zara 123,000 m2 DC enlargement in Lelystad (Netherlands) / Bershka new 116,000 m? DC in Valencia region / Tempe new 141,000 m? DC in Va
Slide 42: 2024-2025 Logistics expansion plan
2024-2025 Logistics expansion plan :
Slide 43: Strong start to 2024
Strong start to 2024 / Start of 2024: Spring/Summer collections very well received / Store&Online sales in CC between 1 February and 11 March (adjusted for the calendar effect of an extra day in February due to the leap year) grew +11% INDITEX 4
Slide 44: 28% dividend increase
28% dividend increase / At ractive and predictable dividend policy / 60% ordinary payout and bonus dividends / Th e Board of Directors will propose to the AGM a dividend of €1.54 per share (+28%) for 20 23. It will be composed of an ordinary dividend of €1.04 and a bonus dividend of €0.50 per share.
Slide 45: Inditex 2023 Results March 2024
INDITEX 2023 Results 18 March 2024