Slide 1: Interim Half Year 2020
Interim Half Year 2020 16 September 2020 Interim Half Year 2020 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 Interim Half Year 2020 3
Slide 4: FY2020 to date
FY2020 to date Fully confident in our unique business model and strategy: Store & Online integration, digitalisation and sustainability Rapid recovery in operations Collections for Autumn/Winter 2020 very well received by our customers. 98% of stores now open. Store sales have been recovering
Slide 5: 2Q2020: Turning point
2Q2020: Turning point Spring/Summer season: Covid-19 has had a material impact due to temporary store closures. In parallel we have seen an outstanding progression of online sales Supply chain continued to operate normally due to the uniqueness of our business model. Inventory integration has be
Slide 6: 2Q2020: Turning point
2Q2020: Turning point Interim Half Year 2020 6
Slide 7: 2Q2020: Turning point
2Q2020: Turning point Store sales have been recovering progressively Online sales continue growing at a remarkable pace Interim Half Year 2020 7
Slide 8: Online sales +74% in 1H2020
Online sales +74% in 1H2020 Outstanding progression of online sales Strong advantage of business model and single inventory position Inditex enjoys sector leading growth rates and profitability Strong growth continues at start of Autumn/Winter season Interim Half Year 2020 8
Slide 9: Global Store & Online sales in 1H2020
Global Store & Online sales in 1H2020 49% Europe ex-Spain 15% Spain 24% 12% Asia & Americas RoW Interim Half Year 2020 9
Slide 10: Financial Summary
Financial Summary Interim Half Year 2020 10
Slide 11: Interim Half Year 2020
Interim Half Year 2020 € million 1H20 1H19 Material impact of Covid-19 pandemic in Net sales 8,033 12,820 1H2020 operations Gross profit 4,512 7,284 Very active management of supply chain EBITDA 1,486 3,447 Strong adjustment to operating expenses PBT* (263) 1,987 Completion of store optimisa
Slide 12: Second Quarter 2020
Second Quarter 2020 € million 2Q20 2Q2020 recovery turning point Net sales 4,730 Very active management of supply chain Gross profit 2,582 Positive gross margin evolution EBITDA 1,002 Strong adjustment to operating expenses PBT 276 Net income 214 Interim Half Year 2020 12
Slide 13: Sales
Sales € million 1H20 1H19 Sales performance marked by timing of temporary store closures and Net sales 8,033 12,820 restrictions Online sales +74% in 1H2020 2H2020 sales trends improve as stores reopen and online sustains outstanding progress Interim Half Year 2020 13
Slide 14: Gross margin
Gross margin € million 1H20 1H19 Flexibility of supply chain key to gross margin performance Gross margin 56.2% 56.8% Closing inventory down 19% Interim Half Year 2020 14
Slide 15: Operating efficiencies
Operating efficiencies € million 1H20 1H19 20/19 Implementation of initiatives to adjust operating expenses in 1H2020 Op. expenses 3,020 3,823 (21%) All main components of operating expenses have shown a good performance Interim Half Year 2020 15
Slide 16: Depreciation
Depreciation € million 1H20 1H19 20/19 Depreciation & Amortisation includes completion of space optimisation Depreciation (1,684) (1,407) 20% 2020-2021 booked in 1Q2020 Interim Half Year 2020 16
Slide 17: Financial results
Financial results € million 1H20 1H19 20/19 Interest on lease liability amounted to €65m Financial results (76) (77) (2%) Interim Half Year 2020 17
Slide 18: Flexibility of business model key to performance
Flexibility of business model key to performance € million 1H20 1H19 20/19 Flexibility of supply chain Inventory 2,158 2,664 (19%) High quality inventory at period end Receivables 667 841 (21%) Sustained working capital dynamics Payables (4,978) (6,632) (25%) Strong financial condition Op. w
Slide 19: Concepts
Concepts Interim Half Year 2020 19
Slide 20: Store & Online sales by concept
Store & Online sales by concept Sales Pull&Bear Massimo Dutti Bershka Stradivarius Zara & Oysho Zara Home Uterqüe Interim Half Year 2020 20
Slide 21: Sales by Concept
Sales by Concept € million 1H20 Progressive recovery across all Zara & Zara Home 5,532 concepts going into the Pull&Bear 578 Autumn/Winter season Massimo Dutti 490 Differences relate to each individual Bershka 692 concept’s geographic presence, Stradivarius 502 location of stores and fashion pro
Slide 22: Outlook
Outlook Interim Half Year 2020 22
Slide 23: Global online developments
Global online developments 2007 2010 2011-2014 2019 2020 2021e 2022e Zara Home Zara launch Zara launch in USA, Global presence Zara new Inditex Online >25% launch all over all over China, Japan, Russia studios Open of group sales Europe Europe 14% of group 64,000 m2 Platform All concepts in Europe s
Slide 24: Online launch in Chile, Montenegro and North Macedonia
Online launch in Chile, Montenegro and North Macedonia East Nanjing Road Interim Half Year 2020 24
Slide 25: Sustainability & Circular economy a key part of the strategy
Sustainability & Circular economy a key part of the strategy Sustainability in supply chain Renewable energy Sustainable fabrics Eco-efficient stores Zero-waste / recycling Interim Half Year 2020 25
Slide 26: Highly prominent and differentiated stores
Highly prominent and differentiated stores Paris Pont Neuf Interim Half Year 2020 26
Slide 27: Highly prominent and differentiated stores
Highly prominent and differentiated stores Paris Pont Neuf Interim Half Year 2020 27
Slide 28: Highly prominent and differentiated stores
Highly prominent and differentiated stores Berlin Tauentzienstrasse Interim Half Year 2020 28
Slide 29: Highly prominent and differentiated stores
Highly prominent and differentiated stores Berlin Tauentzienstrasse Interim Half Year 2020 29
Slide 30: Highly prominent and differentiated stores
Highly prominent and differentiated stores Moscow Kusnetsky Most Interim Half Year 2020 30
Slide 31: Highly prominent and differentiated stores
Highly prominent and differentiated stores Moscow Kusnetsky Most Interim Half Year 2020 31
Slide 32: Highly prominent and differentiated stores
Highly prominent and differentiated stores Beijing Wangfujing Interim Half Year 2020 32
Slide 33: Unique business model: Global fully integrated Store & Online
Unique business model: Global fully integrated Store & Online Interim Half Year 2020 33
Slide 34: Zara Woman A/W collection
Zara Woman A/W collection Interim Half Year 2020 34
Slide 35: Zara Man's Bauhaus collection
Zara Man's Bauhaus collection Interim Half Year 2020 35
Slide 36: Zara Kids Naturales collection
Zara Kids Naturales collection Interim Half Year 2020 36
Slide 37: Zara Emotions by Jo Loves
Zara Emotions by Jo Loves East Nanjing Road Interim Half Year 2020 37
Slide 38: Zara Home timeless interiors
Zara Home timeless interiors Interim Half Year 2020 38
Slide 39: Massimo Dutti Limited edition
Massimo Dutti Limited edition Interim Half Year 2020 39
Slide 40: Bershka + NBA
Bershka + NBA Interim Half Year 2020 40
Slide 41: Pull&Bear Teen collection
Pull&Bear Teen collection Interim Half Year 2020 41
Slide 42: Stradivarius STR collection
Stradivarius STR collection Interim Half Year 2020 42
Slide 43: Oysho Comfortlux
Oysho Comfortlux Interim Half Year 2020 43
Slide 44: Uterqüe official
Uterqüe official Interim Half Year 2020 44
Slide 45: Dividend
Dividend FY2019 ordinary dividend of 35 cents per share to be paid on 2 November 2020 Inditex’s dividend policy of 60% ordinary payout and bonus dividends remains in place The remainder of the bonus dividend (78 cents per share) will be paid in calendar 2021 and 2022 Interim Half Year 2020 45
Slide 46: Interim Half Year
Interim Half Year 2020 16 September 2020 Interim Half Year 2020 46