Slide 1: INDITEX 2021 Results
INDITEX 2021 Results 16 March 2022 INDITEX 2021 RESULTS 1
Slide 2: Disclaimer
Disclaimer This document and the information contained herein does not constitute an offer to sell, exchange or buy, or the solicitation of an offer to buy, or any recommendation or advice regarding, any securities issued by the Inditex Group. This document may contain statements regarding intention
Slide 3: Transformation accelerates
Transformation accelerates INDITEX 2021 RESULTS 3
Slide 4: Inditex transformation accelerates
Inditex transformation accelerates People first Transformation to fully-integrated, digital, sustainable business model accelerates, reinforcing our confidence in the strength and flexibility of business model A year of very strong operating performance Store sales recovering, online sales k
Slide 5: 2021: Outstanding performance
2021: Outstanding performance Impacted by Covid-19 Strong CC sales growth +3% vs pre-covid 2019 historic highs Online sales +14% vs 2020 to €7.5 billion (25.5% of Group sales) Highest gross margin in 6 years Net income reached €3.2 billion, up 193% vs 2020 Cash flow reaches historic high
Slide 6: Online continues to be a major growth driver
Online continues to be a major growth driver Confirms strength of business model and fashion proposition €7.5bn +113% increase in CC online sales vs 2019 SINT €1.2 billion 6.2 billion online visits, a +13% increase 146 million active apps 228 million followers on social media Sector le
Slide 7: Financial summary
Financial summary INDITEX 2021 RESULTS 7
Slide 8: 2021: Strong operating performance
2021: Strong operating performance Strong sales progression € million FY21 FY20 21/20 Active management of supply chain Net sales 27,716 20,402 36% Healthy gross margin evolution Gross profit 15,814 11,390 39% Tight control of operating expenses PBT 4,199 1,401 200% Strong cash flow genera
Slide 9: 2021 Strong sales
2021 Strong sales Strong sales performance € million FY21 FY20 21/20 Store optimisation resounding success Net sales 27,716 20,402 36% FY21 sales trends improved as stores reopen and online continued growing INDITEX 2021 RESULTS 9
Slide 10: Sales in constant currency
Sales in constant currency Sales in CC grew +37% vs FY2020 CC FY2021 1H2021 2H2021 Despite store closures, restrictions and 2021/20 37% 53% 26% store optimisation programme, FY2021 constant currency sales were above FY2019 2021/19 3% (2%) 7.5% INDITEX 2021 RESULTS 10
Slide 11: 2021 constant currency sales growth vs 2019
2021 constant currency sales growth vs 2019 140 Series 1 +21% vs 130 2019* Q4 strong Further start 120 acceleration Back to 110 normal 100 % 90 80 2Q&3Q 2021 Historic highs in Omicron 70 24% of sales, PBT and net trading hours 60 unavaliable income 50 1Q2021 2Q2021 3Q2021 4Q2021 S/S22:Trading update
Slide 12: Omicron impact on 4Q2021 results
Omicron impact on 4Q2021 results The final part of the year was impacted significantly by the decrease in store traffic due to the spread of the Omicron variant, restrictions in most markets and lockdowns in Austria, The Netherlands, Germany, Japan, China and the Philippines The sudden drop in s
Slide 13: Global Store & Online sales in 2021
Global Store & Online sales in 2021 48% Europe ex-Spain 14% Spain 20% Asia & 18% RoW Americas In 2021 the USA became the largest market for Inditex after Spain INDITEX 2021 RESULTS 13
Slide 14: Gross margin shows very strong execution
Gross margin shows very strong execution 57,5% 2021 gross margin reached 57.1% (+123 bps) 57,0% Flexibility of supply chain and proximity Gross margin 2017 -2021 sourcing key 56,5% Highest gross margin in 6 years 56,0% 57,1% 56,7% 56,3% 55,5% 55,9% 55,8% 55,0% 2017 2018 2019 2020 2021 INDITEX
Slide 15: Operating efficiencies
Operating efficiencies All expense lines have shown a € million FY21 FY20 FY19 favourable evolution Op. expenses 8,596 6,807 8,176 Operating expenses increased 26% over FY20, below sales growth of 36% INDITEX 2021 RESULTS 15
Slide 16: Depreciation
Depreciation Depreciation & Amortisation in FY20 includes € million FY21 FY20 21/20 completion of space optimisation 2020-2021 Depreciation 2,901 3,045 (5%) booked in 1Q20 INDITEX 2021 RESULTS 16
Slide 17: Flexibility of business model key to performance
Flexibility of business model key to performance Flexibility of supply chain € million FY21 FY20 Closing inventory is of high quality Inventory 3,042 2,321 Unusually low inventory levels at FY20 Receivables 842 715 end due to Covid-19 Payables (6,411) (4,747) Increased product availability i
Slide 18: Strong cash flow and financial condition
Strong cash flow and financial condition Cash generation at historic highs € million FY21 FY20 FY19 Net cash grew +24% vs FY20 (+16% vs Net Cash Position 9,359 7,560 8,060 FY19) Healthy balance sheet INDITEX 2021 RESULTS 18
Slide 19: Cash flow reaches historic highs
Cash flow reaches historic highs € million FY21 FY20 FY19 Funds from operations (1) 6,530 3,864 6,695 Lease payments (2) (1,668) (1,673) (1,836) Funds from Operations (1+2) 4,862 2,191 4,859 Change in working capital 223 (847) 205 Cash from Operations 5,085 1,344 5,064 Capital Expenditure (1,126) (7
Slide 20: Concepts
Concepts INDITEX 2021 RESULTS 20
Slide 21: Store & Online sales by concept
Store & Online sales by concept Sales Pull&Bear Massimo Dutti Bershka Stradivarius Zara & Oysho Zara Home INDITEX 2021 RESULTS 21
Slide 22: Performance per concept
Performance per concept Stradivarius Bershka Oysho Group average Massimo Pull&Bear Dutti INDITEX 2021 RESULTS 22
Slide 23: Concepts
Concepts Remarkable online growth across all concepts Strong performance of Stradivarius, Pull&Bear and Oysho Profit before tax to sales >15% in all concepts INDITEX 2021 RESULTS 23
Slide 24: Sustainability
Sustainability INDITEX 2021 RESULTS 24
Slide 25: Delivering on Sustainability Roadmap Goals
Delivering on Sustainability Roadmap Goals 2021 achievements 2022 objectives 47% of garments >50% of garments were Join Life in will be Join Life in 2021 2022 91% renewable 100% renewable energy in own energy in own facilities in 2021 facilities by 2022 42% of use of more sustainable fibres INDITEX
Slide 26: On track for all sustainability goals
On track for all sustainability goals Objectives for 2023 100% sustainable cellulosic fibres 100% free of single-use plastic 100% of all packaging materials collected for reuse/recycle in our supply chain (Green to pack) 100% more sustainable cotton by 2023 Objectives for 2025 100% sustainable or re
Slide 27: Delivering on Innovation
Delivering on Innovation Sustainability Innovation Hub as a way to help drive and scale sustainability initiatives Working with more than 145 startups 30 pilot projects running Lanzatech x Zara, first pilot project launched. This specialises in generating polyester fibres derived from the ca
Slide 28: Sustainability always in focus
Sustainability always in focus Consistently top rated in retail DOW JONES FT SUSTAINABILITY SUSTAINABILITY INDEX FOR GOOD since 2002 FTSE4Good member since 2002 Only 2 fashion retailers in the top 100 firms globally GLOBAL 100 MOST SUSTAINABLE CORPORATIONS TERRA CARTA SEAL Inditex awarded with the T
Slide 29: Outlook
Outlook INDITEX 2021 RESULTS 29
Slide 30: Zara Embroidery
Zara Embroidery INDITEX 2021 RESULTS 30
Slide 31: Zara Man Spring bright tones
Zara Man Spring bright tones INDITEX 2021 RESULTS 31
Slide 32: Zara Kids Spring/Summer
Zara Kids Spring/Summer INDITEX 2021 RESULTS 32
Slide 33: Zara Home The art of living
Zara Home The art of living INDITEX 2021 RESULTS 33
Slide 34: Massimo Dutti Start over
Massimo Dutti Start over INDITEX 2021 RESULTS 34
Slide 35: Bershka Abstract
Bershka Abstract INDITEX 2021 RESULTS 35
Slide 36: Pull&Bear 19.91 Colours
Pull&Bear 19.91 Colours INDITEX 2021 RESULTS 36
Slide 37: Stradivarius Hello old land
Stradivarius Hello old land INDITEX 2021 RESULTS 37
Slide 38: Oysho Outdoor training
Oysho Outdoor training INDITEX 2021 RESULTS 38
Slide 39: Zara Tokyo Ginza
Zara Tokyo Ginza INDITEX 2021 RESULTS 39
Slide 40: Zara Dubai Hills
Zara Dubai Hills 40 INDITEX 2021 RESULTS
Slide 41: Zara Abu Dhabi Al Yas
Zara Abu Dhabi Al Yas INDITEX 2021 RESULTS 41
Slide 42: Zara Madrid Plaza de España
Zara Madrid Plaza de España INDITEX 2021 RESULTS 42
Slide 43: Zara HQ
Zara HQ INDITEX 2021 RESULTS 43
Slide 44: Continuity in key strategic pillars
Continuity in key strategic pillars Unique business model Full integration of Stores & Online Deep talent pool and strong individual commitment Customer-centric and entrepreneurial corporate culture Sustainability and digitalisation Investment in the future growth of the business Predi
Slide 45: Outlook
Outlook Global fully integrated Store & Online Strong organic growth. Increased differentiation Online sales growth to continue Stable gross margin. Mid-single digit price increase, without impacting volumes Sustainability is central to the strategy Increased profitability. Lower capital
Slide 46: Online sales to exceed 30% of total sales by 2024
Online sales to exceed 30% of total sales by 2024 8 bn Online sales € 7 bn 6 bn 5 bn 4 bn 3 bn 2 bn 1 bn bn 2017 2018 2019 2020 2021 INDITEX 2021 RESULTS 46
Slide 47: FY2021 Dividend
FY2021 Dividend The Board of Directors will propose to the AGM a dividend of €0.93 per share (+33%) for 2021. It will be composed of an ordinary dividend of €0.63 and a bonus dividend of €0.30 per share The dividend will be made up of two equal payments 2 May 2022: €0.465 per share ordinary
Slide 48: Predictable attractive shareholder remuneration
Predictable attractive shareholder remuneration Inditex dividend policy of 60% ordinary payout and bonus dividends remains in place The board of Directors is proposing a total bonus dividend of €0.40 per share to be paid in relation to FY22 results INDITEX 2021 RESULTS 48
Slide 49: Outlook
Outlook Strong start to the Spring/Summer season Store and online sales in constant currency from 1 February to 13 March were 33% above 2021 and 21% above the historic pre-Covid highs of 2019. In this period, sales in the Russian Federation and Ukraine represented approximately 5 percentage poin
Slide 50: INDITEX 2021 Results
INDITEX 2021 Results 16 March 2022 INDITEX 2021 RESULTS 50