Industria De Diseno Textil, S.a. · BME:ITX
Industria De Diseno Textil — Inditex — FY2002 Earnings Presentation
33 slides from Industria De Diseno Textil's earnings presentation, Mar 20, 2003
Slide 1: FY2002 Results Presentation
FY2002 Results Presentation 20 March 2003
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 • 1,567 1,567 stores stores 7 independent concepts • 46 46 countries countries • Sales (FY2002) 4 Sales (FY2002) 4 Bn Bn €€ • Net Net Income (FY2002) 438 Income (FY2002) 438 MM MM €€ • Market Market Cap. (17/3/03) 14 Cap. (17/3/03) 14 Bn Bn €€ Unique business model
Slide 4: FY2002: Overview (I)
FY2002: Overview (I) •• Significant Significant growth growth despite despite aa difficult difficult economic economic environment environment in in some some countries countries •• Sales Sales growth growth +22% +22% to to 44 bn bn €€ •• LFL LFL Sales Sales +11% +11% •• Net Net Income Income growth
Slide 5: FY2002: Overview (II)
FY2002: Overview (II) •• Improved Improved operating operating margins margins despite… despite… ••40% 40% average average depreciation depreciation of of Latin Latin American American currencies currencies ••Slowdown Slowdown in in sales sales 22 weeks weeks pre-Christmas. pre-Christmas. Strong Str
Slide 6: FY2002: Overview (III)
FY2002: Overview (III) •• EBIT EBIT on on Sales Sales 16.6% 16.6% (vs.15.9%). (vs.15.9%). •• Net Net Income Income on on Sales Sales 11.0% 11.0% (vs. (vs. 10.5%) 10.5%) •• ROCE ROCE 41% 41% (vs. (vs. 39% 39% in in F2001). F2001). •• Proposed Proposed dividend dividend 14 14 cents cents per per share
Slide 7: Consistent growth across all indicators
Consistent growth across all indicators Sales 27% EBITDA EBIT Gross profit 28% 28% 28% Net income Stores Cashflow 30% 20% 30% 5 year CAGR (1997-2002) growth
Slide 8: Financial summary
INDITEX Financial summary
Slide 9: Highlights
Highlights 2002 2001 % 02/01 million € NET SALES 3,974 3,250 22% GROSS MARGIN 2,048 1,687 21% % margin 51.5% 51.9% EBITDA 868 705 23% EBITDA margin 21.8% 21.7% EBIT 660 518 27% EBIT margin 16.6% 15.9% NET INCOME 438 340 29% Net income margin 11.0% 10.5%
Slide 10: Store openings
Store openings 2002 2001 total net total net stores openings stores openings ZARA 531 58 466 60 KIDDY’S CLASS 59 18 41 (2) PULL & BEAR 296 47 249 20 MASSIMO DUTTI 250 27 223 25 BERSHKA 197 46 151 47 STRADIVARIUS 153 33 120 20 OYSHO 72 38 34 34 total net openings 1,558 274 1,284 204
Slide 11: Like-for-like growth
Like-for-like growth 11% 11% 9% 9% 7% 5% 4% 1996 1997 1998 1999 2000 2001 2002
Slide 12: Geographic breakdown of store sales
Geographic breakdown of store sales (1) 2002 2001 REST OF REST OF WORLD 7.3% WORLD 6.8% AMERICAS 15.9% SPAIN 46.0% AMERICAS REST OF 13.2% EUROPE 30.8% SPAIN 46.0% REST OF EUROPE 34.1% (1) Store sales: Includes sales in OMS and franchises
Slide 13: International store sales by concept
International store sales by concept (1) 15% 19% 30% 32% 41% 47% 63% 54% international 85% domestic 81% 70% 68% 53% 59% 46% 37% A O P B SK D D C R U H P& ST M K ZA O B YS R O G (1) Store sales: Includes sales in CMS and franchises
Slide 14: Cost Flexibility
Cost Flexibility Manage your gross margin z Flexibility of in-house manufacturing vs. external commitment 53% 18% 51,90% 51,43% 51,53% 51,16% 50,46% 16,60% 15,92% 50% 16% 14,53% 14,96% 14,55% 47% 14% 1998 1999 2000 2001 2002 Gross Margin EBIT Margin
Slide 15: EBIT by concept
EBIT by concept 2002 EBIT by concept Kiddy’s Class 2% Pull and Bear Stradivarius 5% 1% Massimo Dutti 6% Bershka 7% Zara 81% EBIT (pre Goodwill): € 669 MM
Slide 16: Financial expenses
Financial expenses € MM 2002 2001 Net financial expenses 6.2 12.2 Foreign exchange losses 23.7 7.3 Results in co’s carried by equity method 0.1 1.8 Total 30.0 21.3
Slide 17: Consolidated balance sheet
Consolidated balance sheet € MM Cash 516 274 Total debt Goodwill 63 Current assets 979 Other liabilities 644 Fixed assets 1,791 1,761 Shareholders’ equity Total 3,014 3,014
Slide 18: ROE and ROCE
ROE and ROCE ROE ROCE 41% 39% 37% 34% 33% 27% 25% 26% 25% 26% 1998 1999 2000 2001 2002 1998 1999 2000 2001 2002
Slide 19: Inditex concepts
INDITEX Inditex concepts
Slide 20: Zara
Zara million € 2002 2001 % Var Sales 2,913.4 2,435.1 20% EBIT 540.4 440.6 23% EBIT margin 18.5% 18.1% Stores 531 466 ROCE 43% 42%
Slide 21: Kiddy's Class
Kiddy’s Class million € 2002 2001 % Var Sales 60.4 47.6 27% EBIT 14.1 10.8 31% EBIT margin 23.4% 22.7% Stores 59 41 ROCE 131% 166%
Slide 22: Pull & Bear
Pull & Bear million € 2002 2001 % Var Sales 266.2 225.7 18% EBIT 34.9 32.8 6% EBIT margin 13.1% 14.5% Stores 296 249 ROCE 39% 51%
Slide 23: Massimo Dutti
Massimo Dutti million € 2002 2001 % Var Sales 287.3 241.4 19% EBIT 37.5 25.3 48% EBIT margin 13.1% 10.5% Stores 250 223 ROCE 49% 46%
Slide 24: Bershka
Bershka million € 2002 2001 % Var Sales 299.3 202.0 48% EBIT 48.1 25.2 91% EBIT margin 16.1% 12.5% Stores 197 151 ROCE 49% 30%
Slide 25: Stradivarius
Stradivarius million € 2002 2001 % Var Sales 124.1 93.5 33% EBIT (1) 8.7 6.2 42% EBIT margin 7.0% 6.6% Stores 153 120 ROCE 12% 12% (1) Before goodwill amortisation
Slide 26: Oysho
Oysho million € 2002 2001 % Var Sales 23.4 4.5 420% EBIT (14.9) (6.3) n.a. EBIT margin -- -- Stores 72 34 ROCE -- --
Slide 27: Store sales breakdown by concept
Store sales breakdown by concept 2002 2001 OYS 0% BSK MD 6% STD STD 7% 3% 3% OYS PB BSK 1% 7% KC 1% 8% MD ZARA 8% 75% PB 7% KC ZARA 2% 72%
Slide 28: EBIT margins by concept
EBIT margins by concept 2002 23.4% 18.5% 16.6% 16.1% 13.1% 13.1% 7.0% Zara KC P&B MD BSK STV Inditex
Slide 29: ROCE by concept (2002)
ROCE by concept (2002) 131% 49% 49% 43% 39% 41% 12% (1) ZARA KC P&B MD BSK STV Inditex (1) Before goodwill amortisation Group
Slide 30: Growth prospects
INDITEX Growth prospects
Slide 31: Growth with profitability
Outlook Significant growth potential z Increase depth in international markets where already present z Enter selected new international markets z Increase depth of Spanish coverage z Further development of non-Zara concepts. Zara Home Growth with profitability
Slide 32: Outlook 2003
Outlook 2003 z Expected CAPEX 500-550 MM € z Store openings program: % Intnal Range openings ZARA 75 90 80% KIDDY’S CLASS 35 40 10% PULL & BEAR 40 50 30% MASSIMO DUTTI 25 30 50% BERSHKA 45 50 40% STRADIVARIUS 20 25 15% OYSHO 10 15 20% ZARA HOME 10 15 0% total net openings 260 315
Slide 33: FY2002 Results Presentation
FY2002 Results Presentation 20 March 2003