Industria De Diseno Textil, S.a. · BME:ITX
Industria De Diseno Textil — Inditex — Investor Presentation (October 2007)
35 slides from Industria De Diseno Textil's investor presentation, October 2007
Slide 1: Group Presentation
INDITEX aol om Group Presentation
Slide 2: Disclaimer
Disclaimer This document is of a purely informative nature and does not constitute an offer to sell, exchange or buy, or the solicitation of an offer to buy, securities issued by any of the companies mentioned herein. This document contains forward-looking statements. All statements other than state
Slide 3: Introduction
Introduction FY 2006 8 independent concepts f 3,131 stores f 64 countries f Sales €8.2 Bn f Net Income €1 Bn Unique business model 3
Slide 4: International presence
International presence FY2006 FY2005 Asia & RoW Europe ex-Spain 40.6% 38.7% Americas Spain Spain 39.6% 43.1% Europe ex- Spain Americas 11.0% 10.7% Asia & RoW 8.9% 7.5% (1) Store sales: Includes sales in OMS and franchises 4
Slide 5: Business Model
INDITEX Business Model
Slide 6: Customer driven
Customer driven X Compelling mix of latest fashions and quality at affordable prices X Unique product strategy 20,000 new designs per year delivery to stores 2-6 times per week X Customer interaction daily in-store feedback allows constant modification of collections X Attractive stores in pri
Slide 7: Flexible, integrated business model
Flexible, integrated business model Design Store Manufacturing Distribution & & Sourcing Logistics 7
Slide 8: Sourcing by area in FY 2006
Sourcing by area in FY 2006 Rest of World 2% Asia 34% Proximity 50% Rest of Europe 14% 8
Slide 9: Distribution and logistics
Distribution and logistics X Central distribution X Shipment to all stores twice a week X Orders to stores in 24-48 hours 9
Slide 10: Retail Experience
Retail Experience X Latest fashions X Fresh items twice a week X Prime locations X No traditional advertising 10
Slide 11: International retailer
International retailer Store sales 8.2 6.7 5.7 4.6 4.0 60% 3.3 57% 55% 2.6 54% 54% 2.0 54% 1.6 52% 48% 1.2 46% 1.0 42% 36% 64% 58% 54% 52% 48% 46% 46% 46% 45% 43% 40% 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 € billion International Spain 11
Slide 12: Multiconcept
Multiconcept f Distinctive and focused concepts with independent management teams Pull&Bear Zara Massimo Dutti Bershka Stradivarius Oysho Zara Home 1975 1991 1998 1999 2001 2003 12
Slide 13: Inditex Concepts
INDITEX Inditex Concepts
Slide 14: Multiconcept approach
Multiconcept approach INDITEX ZARA Mose Dutti Pull ano Sear Kiddys Doc) Bershka oysho ZARA HOME 14
Slide 15: Operating autonomy, central support
Operating autonomy, central support Arteixo (La Coruña) Tordera (Barcelona) Inditex Massimo Dutti Zara Bershka Kiddy’s Class Oysho Zara Home Sallent (Barcelona) Narón (La Coruña) Stradivarius Pull&Bear 15
Slide 16: Multiconcept strategy
Multiconcept strategy Age Target Breakdown of store sales Zara Kiddy’s Class Massimo Dutti Pull&Bear Non-Zara Zara 34.7% 65.3% Bershka Stradivarius Oysho Zara Home 0 10 20 30 40+ 16
Slide 17: Kiddy's Class
Kiddy’s Class X Newborns to 12 year olds X Stores located in areas with childrenswear demand X FY06 Sales: €182 MM X FY06 EBIT: €31 MM X Stores FYE06: 185 17
Slide 18: Pull&Bear
Pull&Bear X Casual fashion and sport styles for young men-women (14 to 28) X Headquarters and distribution centre in Narón (A Coruña) X FY06 Sales: €519 MM X FY06 EBIT: €78 MM X Stores FYE06: 467 18
Slide 19: Massimo Dutti
Massimo Dutti X Elegant design with excellent quality for men and women (25 to 45) X Headquarters and distribution centre in Tordera (Barcelona) X FY06 Sales: €614 MM X FY06 EBIT: €81 MM X Stores FYE06: 399 19
Slide 20: Bershka
Bershka X Latest fashions for young women and men (13 to 23) X Headquarters and distribution centre in Tordera (Barcelona) X FY06 Sales: €798MM X FY06 EBIT: €131 MM € X Stores FYE06: 433 20
Slide 21: Stradivarius
Stradivarius X Urban fashion at attractive prices for young women (15 to 25) X Headquarters and distribution centre in Sallent (Barcelona) X FY06 Sales: €428 MM X FY06 EBIT: €98 MM X Stores FYE06: 304 21
Slide 22: Oysho
Oysho X Latest trends in women’s loungewear, lingerie and undergarments X Headquarters and distribution centre in Tordera (Barcelona) X FY06 Sales: €165 MM X FY06 EBIT: €39 MM X Stores FYE06: 201 22
Slide 23: Zara Home
Zara Home X Textiles for bed, bath and table complemented by tableware and decorative items X FY06 Sales: €139 MM X FY06 EBIT: €18 MM X Stores FYE06: 152 23
Slide 24: EBIT margins and RoCE
EBIT margins and RoCE EBIT margin RoCE 40% 50% 43% 16.4% 16.8% 16.5% Zara Non-Zara INDITEX Zara Non-Zara INDITEX 24
Slide 25: Financial Summary
Financial Summary
Slide 26: Highlights
Highlights million € FY2006 FY2005 % 06/05 Net Sales 8,196 6,741 22% Gross profit 4,607 3,788 22% Gross margin 56.2% 56.2% EBIT 1,356 1,094 24% EBIT margin 16.5% 16.2% Net income 1,002 803 25% EPS (€) 1.61 1.29 26
Slide 27: Financial Data
Financial Data Sales 20% EBITDA EBIT PBT 20% 21% 23% Net Income Space Cashflow 26% 19% 21% C.A.G.R. (2004-2006) 27
Slide 28: ROE and ROCE
ROE and ROCE ROE RoCE 27% 30% 32% 40% 41% 43% 2004 2005 2006 2004 2005 2006 28
Slide 29: Outlook
INDITEX Outlook
Slide 30: Outlook
Outlook f Organic growth f Space to grow by 15% CAGR f International expansion f Efficient capital allocation 30
Slide 31: Outlook - Expansion
Outlook - Expansion f Europe: Inditex domestic market Strong growth markets Growth area for all the concepts f Significant potential to expand profitably in Europe 31
Slide 32: Outlook - Expansion
Outlook - Expansion f Asia 58 stores in 7 countries at FYE2006 Japan: Expansion to accelerate China: Presence in all three key areas: Shanghai, Beijing and Hong Kong. Leverage on the current base. f Increase in selling area in Asia at a rate that more than doubles the growth in selling area of
Slide 33: Priorities in use of capital
Priorities in use of capital f Profitable investment in the expansion of our business f Predictable attractive shareholder remuneration 33
Slide 34: FY2007: Outlook
FY2007: Outlook f Expected Capital Expenditure: 850 - 950 MM € f Acceleration in space growth: c260,000 sqm. 34
Slide 35: FY2007: Outlook
FY2007: Outlook Store opening programme Range % Int’l Zara 130 140 85% Kiddy’s Class 35 45 35% Pull and Bear 55 65 70% Massimo Dutti 25 35 65% Bershka 60 70 80% Stradivarius 55 65 45% Oysho 45 55 60% Zara Home 35 45 70% Total net openings 440 520 35