Industria De Diseno Textil, S.a. · BME:ITX
Industria De Diseno Textil — Inditex — Investor Presentation (2005)
32 slides from Industria De Diseno Textil's investor presentation, Oct 30, 2005
Slide 1: Inditex Group Presentation
INDITEX INDITEX 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 8 independent concepts • 2,244 stores • 56 countries • Sales (FY04) 5.7 Bn • Net income (FY04) 628 MM • Market Cap. (31/01/05) 13.5 Bn Unique business model 3
Slide 4: Inditex in FY2004
Inditex in FY2004 International presence in 2004 (% store sales) Asia & RoW Americas 6.7% 10.5% Spain 45.5% Rest of Europe 37.3% 4
Slide 5: Business Model
INDITEX Business Model
Slide 6: Customer driven
Customer driven Compelling mix of fashion, price and quality Unique merchandising strategy – 20,000 new designs per year – delivery to stores 2-6 times per week Customer interaction – daily in-store feedback allows constant modification of collections Attractive stores in prime locations 6
Slide 7: Multiconcept strategy
Multiconcept strategy 2004 store sales by concept Target age groups FY2004 STRADIVARIUS OYSHO ZARA HOME 4% 1% 1% BERSHKA 9% MASSIMO DUTTI 8% PULL & BEAR 7% KIDDY'S CLASS 2% ZARA 68% 0 10 20 30 40 7
Slide 8: EBIT margins by concept
EBIT(1) margins by concept 21.8% 18.0% 17.0% 16.5% 16.0% 16.1% 15.6% 14.8% 0.8% Zara KC P&B MD BSK STV OYS ZH Inditex (1) Before goodwill amortisation 8
Slide 9: ROCE by concept
ROCE by concept 61% 52% 52% 50% 44% 43% 40% 38% 2% (1) (1) ZARA KC P&B MD BSK STV OYS ZH Inditex (1) Before goodwill amortisation Group9
Slide 10: Flexible, integrated business model
Flexible, integrated business model 10
Slide 11: Design - a fully integrated process
Design - a fully integrated process Standard process Design Sourcing Stores Integrated process: Zara commercial department Design Product / stores Sourcing 11
Slide 12: Sourcing by area FY2004
Sourcing by area FY2004 Rest of World 4% Asia 27% Proximity (Spain, Port, Mor, EU) 52% Rest of Europe 18% 12
Slide 13: Distribution and logistics
Distribution and logistics Central distribution: 500,000 m2 DC in Arteixo (Spain) 127,000 m2 DC in Zaragoza (Spain) Shipment to all stores, twice a week Orders to stores in 24-48 hours 13
Slide 14: Retail proposition
Retail proposition Latest fashions New models twice a week Prime locations No traditional advertising 14
Slide 15: Supply chain: speed to market
Supply chain: speed to market Commitment % Sales 6-month Start of not at full Pre-season season In-season price Traditional industry 45-60% 80-100% + 0-20% 30-40% model Advertising Advertising + Markdowns 15-25% 50-60% + 40-50% 15-20% Fresh items 15
Slide 16: Multiconcept approach
Multiconcept approach INDITEX /ARA Maseime Dutti Pull ano Bear Kiddys ri Ww Bershka ousho IN o> za m> 16
Slide 17: Operating autonomy with central support
Operating autonomy with central support Tordera (Barcelona) Narón (A Coruña) Arteixo (A Coruña) Sallent (Barcelona) 17
Slide 18: Sales breakdown per concept
Sales breakdown per concept FY2003 FY2004 STRADIVARIUS OYSHO 4% 1% ZARA HOME 0% BERSHKA 9% STRADIVARIUS OYSHO ZARA HOME MASSIMO 4% 1% 1% DUTTI BERSHKA 8% 9% PULL & BEAR 6% MASSIMO DUTTI KIDDY'S CLASS 8% 2% ZARA 70% PULL & BEAR 7% KIDDY'S CLASS 2% ZARA 68% 18
Slide 19: Kiddy's Class
Kiddy’s Class • Newborns to 12 year olds. • Stores located in areas with potential market in the children’s sector • FY04 Sales: 121 MM (+35%) • FY04 EBIT: 22 MM (+21%) • FY04 ROCE: 61% • Stores 4/05: 135 19
Slide 20: Pull&Bear
Pull&Bear • Created by Inditex in 1991 • Casual fashion and sport styles with a strong value proposition for young men- women (14 to 28) • Headquarters and distribution centre in Narón (A Coruña) • FY04 Sales: 379 MM (+32%) • FY04 EBIT: 56 MM (+198%) • FY04 ROCE: 44% • Stores 4/05: 377 20
Slide 21: Massimo Dutti
Massimo Dutti • Initial stake acquired in 1991 • Excellent quality with mid- priced elegant design for men and women aged 25 to 45 • Headquarters and distribution centre in Tordera (Barcelona) • FY04 Sales: 481 MM (+24%) • FY04 EBIT: 75 MM (+25%) • FY04 ROCE: 50% • Stores 4/05: 336 21
Slide 22: Bershka
Bershka • Created by Inditex in 1998 • Offers stylish and low-price collections for young women and men aged 13 to 23 • Headquarters and distribution centre in Tordera (Barcelona) • FY04 Sales: 516 MM (+31%) • FY04 EBIT: 83 MM (+44%) • FY04 ROCE: 52% • Stores 4/05: 315 22
Slide 23: Stradivarius
Stradivarius • Created 1983. 90% acquired in 1999 • Urban fashion at attractive prices for young women aged 15 to 25. • Headquarters and distribution centre in Sallent (Barcelona) • FY04 Sales: 242 MM (+49%) • FY04 EBIT (1) : 39 MM (+784%) • FY04 ROCE: 43% • Stores 4/05: 232 23 (1) Before goodwill a
Slide 24: Oysho
Oysho • Created by Inditex September 2001 • Intimate wear and casual outerwear; informal clothes to wear around the house • Headquarters and distribution centre in Tordera (Barcelona) • FY04 Sales: 72 MM (+59%) • FY04 EBIT: 16 MM (+633%) • FY04 ROCE: 52% • Stores 4/05: 111 24
Slide 25: Zara Home
Zara Home • Created by Inditex August 2003 • Bed, table and bathroom textiles, complemented by tableware and decorative items. • FY04 Sales: 40 MM (+279%) • FY04 EBIT: 0.3 MM (n.a.) • FY04 ROCE: 2% • Stores 4/05: 67 25
Slide 26: Financial Summary
INDITEX Financial Summary
Slide 27: Highlights
Highlights 2004 2003 % 04/03 million NET SALES 5,670 4,599 23% GROSS MARGIN 3,034 2,306 32% % margin 53.5% 50.1% 1,240 874 EBITDA 19.0% 19.0% 42% EBITDA margin EBIT 925 627 48% EBIT margin 16.3% 13.6% NET INCOME 628 447 41% EPS ( cents) 101 72 27
Slide 28: ROE and ROCE
ROE and ROCE ROE ROCE 41% 40% 39% 34% 32% 25% 26% 27% 23% 27% 000 001 002 003 004 000 001 002 003 004 2 2 2 2 2 2 2 2 2 2 28
Slide 29: Financial data C.A.G.R. (1999-2004)
Financial data Ventas 23% EBITDA EBIT Beneficio bruto 25% 26% 25% Beneficio neto Tiendas Cashflow 25% 20% 25% C.A.G.R. (1999-2004) 29
Slide 30: Outlook
INDITEX Outlook
Slide 31: International expansion focused in Europe
International expansion focused in Europe Sales Breakdown % 2004 2009 (e) Other 21 24 France, Italy, UK and Germany 17 23 16 Portugal, Greece, Mexico 14 Spain 46 39 80% Europe 80% Europe 31
Slide 32: Priorities by concept 2005-2009
Priorities by concept 2005-2009 “Core” markets R. of Europe Rest of the World 32