Slide 1: 2019 Results
2019 Results 18 March 2020 2019 Results 1
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
Slide 3: Overview
Overview 2019 Results 3
Slide 4: Covid-19 pandemic
Covid-19 pandemic We express our solidarity with the people affected Our number one priority is the health & safety of local communities and our employees We want to express enormous gratitude to our dedicated teams who have been an inspiration during this period 2019 Results 4
Slide 5: Inditex: Strong fundamentals
Inditex: Strong fundamentals 2019 was a year of very strong operating performance Start of 2020 influenced by Covid-19 pandemic Full confidence in strength and flexibility of business model Continue developing our long term strategy, fully integrated Store&Online Robust financial condition
Slide 6: 2019: Outstanding performance
2019: Outstanding performance Strong sales growth +8% LFL sales +6.5% Online sales + 23% to €3.9 billion (14% of sales) Gross profit reached €15.8 billion Provision of €287m to account for the impact that the Covid-19 pandemic might have in the net realisable value of the Spring/Summer inv
Slide 7: Strength of business model reflected in LFL consistency
Strength of business model reflected in LFL consistency +6.5% LFL on a demanding comparable Positive LFL in both stores and online Positive LFL across all geographical areas 2019 Results 7
Slide 8: Space optimisation a key competitive advantage
Space optimisation a key competitive advantage Store optimisation 2012-2019 Gross openings 3,671 Refurbishments 2,556 Enlargements 1,106 Absorptions (1,729) 2019 Results 8
Slide 9: New space in prime locations globally grew 5% (2.5% net)
New space in prime locations globally grew 5% (2.5% net) Vittorio Emanuele, Milan 2019 Results 9
Slide 10: Online globally
Online globally Sector leading online sales €3.9 billion Strong growth +23% 14% of sales Fully integrated Store & Online 2019 Results 10
Slide 11: Dividend
Dividend The Board of Directors of Inditex, following the proposal of the Audit & Compliance committee, in view of the current uncertain situation due to the Covid-19 pandemic, considers that it is not the right moment to take a decision on the dividend to be proposed relating to FY2019. Consequen
Slide 12: Start of FY2020
Start of FY2020 Main priority is the health and safety of local communities and employees Initial collections for Spring/Summer 2020 very well received by our customers Covid-19 is having a very significant impact. Online business continues to develop as normal in all markets Supply chain co
Slide 13: Financial Summary
Financial Summary 2019 Results 13
Slide 14: Strong operating performance in 2019
Strong operating performance in 2019 € million FY19 *FY19 FY18 19/18 *19/18 Net sales 28,286 28,286 26,145 8% 8% Gross profit 15,806 16,093 14,816 7% 9% Net income 3,639 3,855 3,444 6% 12% Strong sales performance Provision of €287m in the gross margin relating to the adjustment to Spring/Summer
Slide 15: Strong sales growth
Strong sales growth € million FY19 FY18 19/18 Net sales 28,286 26,145 8% Outstanding execution of fully integrated Store & Online model Strong LFL performance +6.5% 2019 Results 15
Slide 16: Global Store & Online sales in 2019
Global Store & Online sales in 2019 46% Europe ex-Spain 16% Spain 23% 16% Asia & Americas RoW 2019 Results 16
Slide 17: Strong execution shown in Gross margin
Strong execution shown in Gross margin € million FY19 *FY19 FY18 19/18 *19/18 Gross margin 55.9% 56.9% 56.7% -79 bps +22 bps Gross profit growth of +7% to €15.8bn €287m provision relating to the adjustment to Spring/Summer inventory at 31 January 2020 to net realisable value based on IAS 2 and I
Slide 18: Strong operating efficiency
Strong operating efficiency € million FY19 FY18 19/18 Op. expenses 8,176 9,329 -12% Efficiencies result in tight management of operating expenses Operating expenses growth without the impact of Leases under IFRS16 rules in 2019 would have been +7.5% 2019 Results 18
Slide 19: Financial results
Financial results € million FY19 FY18 19/18 Financial results (152) 17 -- Impact of Leases under IFRS16 rules in 2019 on Financial results -€146m 2019 Results 19
Slide 20: Business model
Business model 2019 Results 20
Slide 21: Flexible business model
Flexible business model € million FY19 19/18 Inventory 2,269 (16%) Receivables 780 (5%) Payables (5,585) 6% Operating working capital (2,536) 48% Net Cash & Equivalents 8,060 20% Lower inventory on sales and increased cash generation due to strong operating performance, Store & Online integration
Slide 22: Cash flow summary
Cash flow summary € million FY19** FY18 19/18 Funds from operations 6,695 4,378 Lease payments (1,836) -- Funds from Operations 4,859 4,378 11% Change in working capital 205 (349) Cash from Operations 5,064 4,029 26% CAPEX (net) 1,113 1,462 (24%) Free Cash Flow 3,951 2,567 54% Dividends 2,741 2,335
Slide 23: Outlook
Outlook 2019 Results 23
Slide 24: Inditex: Strong fundamentals
Inditex: Strong fundamentals The performance in 2019 highlights the strength of Inditex Start of 2020 influenced by Covid-19 pandemic Maintain 4%-6% underlying level of LFL sales growth Robust financial condition. Strong free cash flow generation, net cash position and lower capital intensit
Slide 25: Results
2019 Results 18 March 2020 2019 Results 25