Industria De Diseno Textil, S.a. · BME:ITX
Industria De Diseno Textil — Inditex — FY2008 Earnings Presentation
25 slides from Industria De Diseno Textil's earnings presentation, Mar 25, 2009
Slide 1: FY2008 Results Presentation
FY2008 Results Presentation 25 March 2009
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: FY2008: Overview
FY2008: Overview Satisfactory sales growth of 12% in local currencies Sales growth in all geographical areas A year of strong expansion: 15% space growth Strong cash flow and reinvestment in the business Increased shareholder remuneration In a challenging year for the sector 3
Slide 4: 2008 Highlights
2008 Highlights million € FY2008 % 08/07(1) Net sales 10,407 10% Gross profit 5,914 11% EBITDA 2,187 4% Net income 1,253 3% Funds from operations 1,850 5% 4 (1) Excluding non-recurrent items
Slide 5: Sales growth in all geographical areas
Sales growth in all geographical areas Store sales (%) FY2008 FY2007 Americas Europe ex-Spain 45% 42% Asia & Europe RoW Ex-Spain Spain 34% 37% Asia 10% 9% Spain Americas 11% 11% Store sales: Includes sales in OMS and franchises 5
Slide 6: Satisfactory sales growth in 2008
Satisfactory sales growth in 2008 +12% growth in local currencies 10,407 9,435 0% +12% (2%) FY2007 LFL Space Currency & FY2008 perimeter impact 6
Slide 7: Satisfactory gross margin evolution
Satisfactory gross margin evolution % on sales FY2008 FY2007 % 08/07 Gross margin 56.8% 56.7% 14 b.p. Flexible business model Sustained commercial policies 7
Slide 8: Tight control of operating expenses
Tight control of operating expenses million € FY2008 % 08/07 Personnel expenses 1,703 16% Rental expenses 1,028 20% Other operating expenses 976 9% Total 3,708 15% Space growth (w. av.) 15% 8
Slide 9: EBIT evolution
EBIT evolution million € FY2008 FY2007 EBIT 1,609 1,652 Other net operating income (losses) (19) 27 Recurrent EBIT 1,628 1,626 FY2008: launch of Uterqüe FY2007: franchise of Venezuelan operations 9
Slide 10: Flexible business model
Flexible business model million € FY2008 FY2007 % 08/07 Inventory 1,055 1,007 5% Receivables 585 464 26% Payables (2,157) (2,087) 3% Operating working capital (517) (616) (16%) 10
Slide 11: Strong cash flow and financial position
Strong cash flow and financial position million € FY2008 FY2007 % 08/07 Funds from operations 1,850 1,757 5% CAPEX 937 942 - Dividends 662 522 27% Net cash position 1,219 1,052 16% 11
Slide 12: Inditex concepts
INDITEX Inditex concepts
Slide 13: Sales by concept
Sales by concept Concept FY2008 FY2007 Zara 65.6% 66.4% Non Zara 34.4% 33.6% Non- Zara Pull and Bear 6.9% 6.5% Zara Massimo Dutti 6.9% 7.4% Bershka 9.9% 9.8% Stradivarius 6.1% 5.5% Oysho 2.3% 2.3% Zara Home 2.1% 2.1% Uterqüe n.a. n.a. 13
Slide 14: Zara
Zara million € FY2008 % 08/07 Net Sales 6,824 9% EBIT(1) 1,067 (2%) EBIT margin 15.6% Sales growth in local currency and constant perimeter +11% 14 (1) Excluding non-recurrent items
Slide 15: Concepts
Concepts Strong performance of Stradivarius and Pull & Bear ZaraHome and Oysho affected by strong expansion and current retailing environment 15
Slide 16: Uterqüe
Uterqüe Initial performance above expectations 31 stores in European capitals at FYE New international markets to be opened in FY2009 16
Slide 17: Outlook
INDITEX Outlook
Slide 18: Maintained long term vision
Maintained long term vision Maintained long term strategic vision Strong long term potential to expand profitably International multi-concept growth 18
Slide 19: Long term growth opportunities
Long term growth opportunities Fashion retailing is a highly fragmented industry (Independents + Dept. Stores c.60% market share) Inditex Flexible business model Strong fashion proposition Attractive pricing: average selling price 15-20 € Presence in 73 markets Market share below 1% in most countrie
Slide 20: FY2009: Outlook
FY2009: Outlook A challenging year for the sector Inditex to continue outperforming the industry Profitable expansion of the business remains a key priority Capitalise on the opportunities arising from the current environment 20
Slide 21: FY2009: Outlook
FY2009: Outlook Stronger focus on capital efficiency: Strict quality requirements for store openings: addition of c230,000 sqm. Capital Expenditure: c600 million € OPEX: 75 million € of efficiencies Focus on maximizing free cash flow Commitment to shareholder remuneration 21
Slide 22: Proposed dividend for FY2008
Proposed dividend for FY2008 Dividend proposal: 1.05 € per share Interim dividend: 0.55 € per share payable on 4 May 2009 Final dividend: 0.50 € per share payable on 2 November 2009 654 MM € to be distributed to shareholders 22
Slide 23: FY2009: Outlook
FY2009: Outlook Store opening programme Range % Int’l Zara 125 135 98% Pull and Bear 45 55 95% Massimo Dutti 30 40 98% Bershka 55 65 90% Stradivarius 65 75 80% Oysho 20 30 70% Zara Home 15 25 75% Uterqüe 15 25 50% Total net openings 370 450 c95% new space in International markets FY2009 openings bia
Slide 24: FY2009: Outlook
FY2009: Outlook February monthly store sales in local currencies excluding calendar effects have increased by 9% The Spring-Summer season is influenced by the performance over the Easter period due to its significant sales volumes 24
Slide 25: FY2008 Results Presentation Q&A
FY2008 Results Presentation Q&A 25 March 2009