Industria De Diseno Textil, S.a. · BME:ITX

Industria De Diseno Textil — Inditex — H1 2018 Earnings Presentation

36 slides from Industria De Diseno Textil's earnings presentation, Sep 12, 2018

1. Slide 1: Interim Half Year 2018

   Interim Half Year 2018 12 September 2018 Interim Half Year 2018 1

2. 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

3. Slide 3: Overview

   Overview Interim Half Year 2018 3

4. Slide 4: Strong operating performance in first half 2018

   Strong operating performance in first half 2018 East Nanjing Road Interim Half Year 2018 4

5. Slide 5: Global fully integrated Store & Online sales platform

   Global fully integrated Store & Online sales platform Interim Half Year 2018 5

6. Slide 6: Interim half year 2018: Overview

   Interim half year 2018: Overview  Strong operating performance  Satisfactory sales growth +8% in local currencies  LFL +4% on a demanding comparable  Positive LFL sales growth in all geographic areas  Execution reflected in gross margin performance  Global growth opportunities Interim Half Yea

7. Slide 7: Global fully integrated Store & Online sales platform

   Global fully integrated Store & Online sales platform Store & Online sales 1H2018 Americas Europe ex-Spain 44% Europe ex-Spain Spain Asia & RoW 25% Spain 16% Asia & RoW Americas 15% Total 100% Interim Half Year 2018 7

8. Slide 8: Zara new image

   Zara new image Interim Half Year 2018 8

9. Slide 9: Zara new image

   Zara new image Interim Half Year 2018 9

10. Slide 10: Click&Collect

    Click&Collect Sánchez Bregua Interim Half Year 2018 10

11. Slide 11: Roll-out of self check-out

    Roll-out of self check-out Sánchez Bregua Interim Half Year 2018 11

12. Slide 12: Financial Summary

    Financial Summary Interim Half Year 2018 12

13. Slide 13: Interim half year 2018

    Interim half year 2018 € million 1H18 1H17 18/17 LC Net sales 12,025 11,671 3% 8% Gross profit 6,817 6,582 4% 10% EBIT 1,784 1,744 2% 17% Net income 1,409 1,366 3% --  Strong operating performance Interim Half Year 2018 13

14. Slide 14: Satisfactory sales growth

    Satisfactory sales growth € million 1H18 1H17 18/17 Net sales 12,025 11,671 3%  +8% sales growth in local currencies  Euro strength vs. all key currencies  LFL +4% on +6% last year Interim Half Year 2018 14

15. Slide 15: Gross margin

    Gross margin % on Sales 1H18 1H17 18/17 Gross margin 56.7% 56.4% +30 bps  Gross profit growth of +4% to €6.8 bn  Sustained commercial policies  2H18 gross margin estimated c.+50 bps Interim Half Year 2018 15

16. Slide 16: Tight control of operating expenses

    Tight control of operating expenses € million 1H18 1H17 18/17 Op. expenses 4,459 4,274 4% Interim Half Year 2018 16

17. Slide 17: Flexible business model

    Flexible business model € million 1H18 1H17 Inventory 2,803 2,745 Receivables 871 825 Payables (6,386) (6,058) Operating working capital (2,713) (2,488) Net Cash (Debt) 5,944 5,465 Interim Half Year 2018 17

18. Slide 18: Concepts

    Concepts Interim Half Year 2018 18

19. Slide 19: Sales by Concept

    Sales by Concept Bershka Massimo Dutti Pull&Bear Stradivarius Zara Zara Home Oysho Uterque % Store & Online Sales Interim Half Year 2018 19

20. Slide 20: Sales by Concept

    Sales by Concept € million 1H18 1H17 Zara 7,910 7,737 Pull&Bear 851 765 Massimo Dutti 811 791 Bershka 1,045 1,016 Stradivarius 690 664 Oysho 290 271 Zara Home 383 383 Uterqüe 46 45 Total 12,025 11,671 Interim Half Year 2018 20

21. Slide 21: Concepts

    Concepts  Continued growth for the concepts  Strong performance of Pull&Bear and Oysho Interim Half Year 2018 21

22. Slide 22: Outlook

    Outlook Interim Half Year 2018 22

23. Slide 23: Global fully integrated Store & Online sales platform

    Global fully integrated Store & Online sales platform Interim Half Year 2018 23

24. Slide 24: Global growth opportunities

    Global growth opportunities  Differentiated business model  Global fully integrated Store & Online  Strong growth opportunities Interim Half Year 2018 24

25. Slide 25: Zara Corso Vittorio Emanuele Milano

    Zara Corso Vittorio Emanuele Milano Interim Half Year 2018 25

26. Slide 26: Zara Corso Vittorio Emanuele Milano

    Zara Corso Vittorio Emanuele Milano Interim Half Year 2018 26

27. Slide 27: Zara Oslo Karl Johans gate

    Zara Oslo Karl Johans gate Interim Half Year 2018 27

28. Slide 28: Global Online Sales

    Global Online Sales  All key markets same day/next day Interim Half Year 2018 28

29. Slide 29: Online launch of Zara in Australia & New Zealand

    Online launch of Zara in Australia & New Zealand East Nanjing Road Interim Half Year 2018 29

30. Slide 30: All concepts to offer online sales globally by 2020

    All concepts to offer online sales globally by 2020 East Nanjing Road Interim Half Year 2018 30

31. Slide 31: Store & Online: Retro aesthetics

    Store & Online: Retro aesthetics Sánchez Bregua Interim Half Year 2018 31

32. Slide 32: Store & Online: The Knits

    Store & Online: The Knits East Nanjing Road Interim Half Year 2018 32

33. Slide 33: Store & Online: Studio Collection

    Store & Online: Studio Collection East Nanjing Road Interim Half Year 2018 33

34. Slide 34: Store & Online: Limited Edition

    Store & Online: Limited Edition East Nanjing Road Interim Half Year 2018 34

35. Slide 35: FY2018: Outlook

    FY2018: Outlook  Autumn/Winter initial collections have been well received. Management estimates like-for-like sales growth of 4-6% in 2H2018.  Ordinary capital expenditure c. €1.5 billion  Dividend payment of €0.375 per share on 2 November Interim Half Year 2018 35

36. Slide 36: Interim Half Year 2018

    Interim Half Year 2018 12 September 2018 Interim Half Year 2018 36

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