Industria de Diseno Textil, S.A. · BME:ITX
Industria de Diseno Textil — Inditex — FY2011 Earnings Presentation
34 slides from Industria de Diseno Textil's earnings presentation, Mar 21, 2012
Slide 1: FY2011 Results Presentation
FY2011 Results Presentation 21 March 2012
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: Overview
INDITEX Overview
Slide 4: FY2011: Overview
FY2011: Overview Global growth opportunities Multi-concept / Multi-channel A year of strong expansion for Inditex Strong cash flow and reinvestment in the business Increased shareholder remuneration 4
Slide 5: FY2011: Overview
FY2011: Overview Sales growth 10% EBITDA growth 10% Net income growth 12%, EPS of 3.10€ RoCE 37% 12.5% increase in dividend proposal 5
Slide 6: Financial Summary
INDITEX Financial Summary
Slide 7: FY2011 Highlights
FY2011 Highlights million € FY2011 % 11/10 Net sales 13,793 10% Gross profit 8,180 10% EBITDA 3,258 10% Net income 1,932 12% 7
Slide 8: Sales growth breakdown
Sales growth breakdown FY2011 Space contribution 7% LFL 4% Currency (1%) Sales growth 10% 8
Slide 9: Selling area
Selling area sqm. FY2011 FY2010 % 11/10 Total space 2,838,980 2,587,648 9.7% 251,000 square metres added to the retail base 9
Slide 10: Global sales platform
Global sales platform Asia & Store sales (%) FY2011 FY2010 Americas RoW Europe ex-Spain 45% 45% Asia & Europe Europe Americas Spain 25% 28% Ex-Spain ex-Spain Spain Asia & RoW 18% 15% Spain Americas 12% 12% Store sales: Includes sales in OMS and franchises 10
Slide 11: Stable Gross margin
Stable Gross margin % on sales FY2011 FY2010 Gross margin 59.3% 59.3% Flexible business model Sustained commercial policies 11
Slide 12: Tight control of operating expenses
Tight control of operating expenses million € FY2011 % 11/10 Personnel expenses 2,234 11% Rental expenses 1,399 10% Other operating expenses 1,286 10% Total 4,919 10% 12
Slide 13: Flexible business model
Flexible business model million € FY2011 FY2010 Inventory 1,277 1,215 Receivables 531 482 Payables (2,679) (2,633) Operating working capital (871) (936) 13
Slide 14: Strong cash flow
Strong cash flow million € FY2011 Funds from operations 2,613 CAPEX Ordinary 864 Extraordinary* 485 Dividends 997 *666 Fifth Avenue New York, 11 Corso Vittorio Emanuele Milan, Zara franchises in Serbia and Montenegro, Massimo Dutti franchises in Belgium, Luxembourg and Portugal, and Uterqüe franchis
Slide 15: Inditex concepts
INDITEX Inditex concepts
Slide 16: Sales by concept
Sales by concept Concept FY2011 FY2010 Zara 64.8% 64.6% Non Zara 35.2% 35.4% Non Zara Pull and Bear 6.9% 6.8% Massimo Dutti 7.3% 7.2% Zara Bershka 9.5% 10.0% Stradivarius 6.3% 6.2% Oysho 2.3% 2.4% Zara Home 2.3% 2.3% Uterqüe 0.5% 0.5% 16
Slide 17: FY2011: Openings
FY2011: Openings Store openings Zara 107 Pull & Bear 65 Massimo Dutti 43 Bershka 91 Stradivarius 91 Oysho 51 Zara Home 26 Uterqüe 9 Total net openings 483 Global growth opportunities Openings in 49 markets 5,527 stores worldwide 17
Slide 18: Zara
Zara million € FY2011 % 11/10 Net Sales 8,938 10% EBIT 1,725 12% EBIT margin 19.0% Strong performance of Zara 18
Slide 19: Concepts
Concepts Continued growth for the concepts Strong performance of Massimo Dutti and Stradivarius 19
Slide 20: Outlook
INDITEX Outlook
Slide 21: Outlook
Outlook Global growth opportunities Outlook FY2012 21
Slide 22: Global growth opportunities
Global growth opportunities Global presence Flexible business model Latest fashions at the right time at affordable prices Multi-concept / Multi-channel Profitable expansion of the business remains a key priority 22
Slide 23: Global growth opportunities: Europe
Global growth opportunities Growth in Europe Significant growth opportunities in Western and Eastern Europe All concepts Online sales in 17 markets. Further expansion over 2012 23
Slide 24: Global growth opportunities: Asia
Global growth opportunities Growth in Asia: Leveraging on a strategic presence Strong growth opportunities. Multi-concept & online sales expansion Strong presence in China Japan online sales launched for Zara in October 2011 24
Slide 25: China: c. 425 stores
China: c. 425 stores Strong growth opportunity All concepts 2011: 275 stores in 42 cities 2012: c. 425 stores in more than 50 cities 25
Slide 26: Global growth opportunities: Americas
Global growth opportunities Growth in the Americas Attractive growth markets US online sales launched for Zara in September 2011 Multi-concept expansion: Massimo Dutti in US and Canada, Stradivarius in Mexico, Zara Home in Brazil 26
Slide 27: Global growth opportunities
Global growth opportunities Australia, South Africa and Taiwan launched in 2011 Ongoing expansion over 2012 27
Slide 28: Zara Fifth Avenue New York
Zara 666 Fifth Avenue New York Global flagship 28
Slide 29: FY2012: Outlook
FY2012: Outlook Store opening programme Range Zara 125 130 Pull & Bear 50 55 Massimo Dutti 55 60 Bershka 70 75 Stradivarius 90 95 Oysho 45 50 Zara Home 40 45 Uterqüe 5 10 Total net openings 480 520 Capital Expenditure c. 950 million € 29
Slide 30: Online sales roll-out
Online sales roll-out 29 Oct 2007 Zara Home Europe: Austria, Belgium, Denmark, France, Germany, Greece, Ireland, Italy, Luxembourg, Monaco, Netherlands, Portugal, Spain, Sweden, UK 2 Sept 2010 Zara Spain, Portugal, France, Germany, Italy, UK 4 Nov 2010 Zara Netherlands, Belgium, Luxembourg, Austria,
Slide 31: Online sales in China for Zara A/W
Online sales in China for Zara A/W 31
Slide 32: FY2012: Outlook
FY2012: Outlook FY 2011 Shareholder remuneration 12.5% increase over FY2010 FY2011 dividend proposal 1.80 € per share payable: • 2 May: 0.90 € ordinary • 2 November: 0.70 € ordinary + 0.20 € bonus 1.1 billion € to be distributed to shareholders 32
Slide 33: FY2012: Outlook
FY2012: Outlook Store sales in local currencies, adjusted for the calendar effect of an extra trading day in February due to the leap year, have increased 11% from 1 February to 14 March 2012 The Spring-Summer season is influenced by the performance over the Easter period due to its significant
Slide 34: FY2011 Results Presentation Q&A
FY2011 Results Presentation Q&A 21 March 2012