Industria De Diseno Textil, S.a. · BME:ITX

Industria De Diseno Textil — Inditex — FY2010 Earnings Presentation

36 slides from Industria De Diseno Textil's earnings presentation, Mar 23, 2011

1. Slide 1: FY2010 Results Presentation

   FY2010 Results Presentation 23 March 2011

2. 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

3. Slide 3: Overview

   INDITEX Overview

4. Slide 4: FY2010: Overview

   FY2010: Overview  A year of strong expansion for Inditex  Satisfactory sales growth and gross margin evolution  High operational efficiency and cost control  Strong cash flow and reinvestment in the business  Increased shareholder remuneration  Global growth opportunity 4

5. Slide 5: FY2010: Overview

   FY2010: Overview  Sales growth of 13%  LFL sales growth 3%  EBITDA growth 25%  Net income growth 32%, EPS of 2.78€  RoCE 39%  33% increase in dividend proposal 5

6. Slide 6: Financial Summary

   INDITEX Financial Summary

7. Slide 7: FY2010 Highlights

   FY2010 Highlights million € FY2010 % 10/09 Net sales 12,527 13% Gross profit 7,422 17% EBITDA 2,966 25% Net income 1,732 32% 7

8. Slide 8: Diversified sales platform

   Diversified sales platform Store sales (%) FY2010 FY2009 Americas Europe ex-Spain 45% 46% AsiaSpain & RoW Europe Europe Ex-Spain Spain 28% 32% ex-Spain Americas Spain Asia & RoW 15% 12% Asia & Americas 12% 10% RoW Store sales: Includes sales in OMS and franchises 8

9. Slide 9: Sales growth breakdown

   Sales growth breakdown FY2010 Space contribution 7% LFL 3% Currency 3% Sales growth 13% 9

10. Slide 10: Selling area

    Selling area sqm. FY2010 FY2009 % 10/09 Total space 2,587,648 2,348,709 10%  239,000 m2 added to the retail base 10

11. Slide 11: Satisfactory Gross margin

    Satisfactory Gross margin % on sales FY2010 FY2009 % 10/09 Gross margin 59.3% 57.1% 216 b.p.  Strong gross margin  Flexible business model  Sustained commercial policies 11

12. Slide 12: Tight control of operating expenses

    Tight control of operating expenses million € FY2010 % 10/09 Personnel expenses 2,009 12% Rental expenses 1,272 12% Other operating expenses 1,171 14% Total* 4,452 13% (*) Includes 12m€ for Zara e-commerce launch 12

13. Slide 13: Flexible business model

    Flexible business model million € FY2010 FY2009 Inventory 1,215 993 Receivables 482 422 Payables (2,672) (2,270) Operating working capital (976) (856) 13

14. Slide 14: Strong cash flow

    Strong cash flow million € FY2010 Funds from operations 2,540 CAPEX 754 Dividends 751 14

15. Slide 15: Inditex concepts

    INDITEX Inditex concepts

16. Slide 16: Sales by concept

    Sales by concept Concept FY2010 FY2009 Zara 64.6% 63.8% Non Zara 35.4% 36.2% Non Zara Pull and Bear 6.8% 7.0% Massimo Dutti 7.2% 7.1% Zara Bershka 10.0% 10.6% Stradivarius 6.2% 6.3% Oysho 2.4% 2.5% Zara Home 2.3% 2.2% Uterqüe 0.5% 0.4% 16

17. Slide 17: FY2010: Openings

    FY2010: Openings Store openings Zara 115 Pull and Bear 56 Massimo Dutti 33 Bershka 69 Stradivarius 78 Oysho 40 Zara Home 23 Uterqüe 23 Total net openings 437  Global growth opportunities  Openings in 45 countries in FY 2010  5,044 stores worldwide 17

18. Slide 18: Zara

    Zara million € FY2010 % 10/09 Net Sales 8,088 14% EBIT 1,534 39% EBIT margin 19.0%  Strong performance of Zara 18

19. Slide 19: Concepts

    Concepts  Continued growth for the concepts  Strong performance of Massimo Dutti and Zara Home  High comparable for Bershka  Solid recovery of Oysho  Uterqüe: 80 stores in 16 countries 19

20. Slide 20: Outlook

    INDITEX Outlook

21. Slide 21: Outlook

    Outlook  Global growth opportunities  Outlook FY2011 21

22. Slide 22: Global growth opportunities

    Global growth opportunities  Inditex: strong growth potential  flexible business model  latest fashions at the right time at affordable prices  multiconcept approach  business model avoids the main fixed costs associated with international expansion 22

23. Slide 23: Global growth opportunities

    Global growth opportunities  Profitable expansion of the business remains a key priority  Focus in Europe and Asia 23

24. Slide 24: Global growth opportunities

    Global growth opportunities  Growth in Europe  Significant growth opportunities  Balanced expansion between Western and Eastern Europe  Multiconcept growth 24

25. Slide 25: Global growth opportunities

    Global growth opportunities  Growth in Asia: Leveraging on a strategic presence  Markets in transformation  Multiconcept expansion  Strong growth opportunity 25

26. Slide 26: China

    China  2006: Main capitals (HK, Shanghai, Beijing, Macau)  2007 : Tier II cities (+5M)  2009 : Tier III cities (+2.5M)  2010:  Multi-concept launch  Tier IV cities (+1.5M)  143 stores at FYE  2011: 120 openings/8 concepts FYE 2010: 30 cities FYE11: 42 cities 26

27. Slide 27: India

    India  Launch of Zara in 2010  2011: Additional Zara openings in Delhi, Mumbai Bangalore and Pune 27

28. Slide 28: Global growth opportunities

    Global growth opportunities  Growth in the Americas:  Build on current platform through selective expansion  Brazil: attractive growth market 28

29. Slide 29: Global growth opportunities

    Global growth opportunities  Launch in Australia in April: Sidney and Melbourne  South Africa: Second half 2011 29

30. Slide 30: Zara e-commerce

    Zara e-commerce  Launched in 16 countries in Europe  2 Sept.10: France, Germany, Italy, Portugal, Spain and UK  4 Nov. 10: The Netherlands, Belgium, Luxembourg, Austria and Ireland  3 March 11: Switzerland, Monaco, Sweden, Denmark and Norway.  Satisfactory customer reception 30

31. Slide 31: Zara e-commerce US and Japan

    Zara e-commerce US and Japan  Launch of Zara online sales in second half 2011  US  Japan  Progressive rollout in all Zara markets 31

32. Slide 32: 2011: All concepts in e-commerce

    2011: All concepts in e-commerce  Second half 2011  Online sales launch in selected European markets for:  Massimo Dutti  Bershka  Pull&Bear  Stradivarius  Oysho  Uterqüe 32

33. Slide 33: FY2011: Outlook

    FY2011: Outlook Store opening programme Range Zara 125 130 Pull and Bear 45 50 Massimo Dutti 40 45 Bershka 70 75 Stradivarius 80 85 Oysho 40 45 Zara Home 35 40 Uterqüe 25 30 Total net openings 460 500  Capital Expenditure c.800 million €  Extraordinary investment of 230 million € for acquisition o

34. Slide 34: FY2011: Outlook

    FY2011: Outlook  Shareholder remuneration  33% increase over FY2009  FY2010 dividend proposal 1.60 € per share payable: • 2 May: 0.80 € ordinary • 2 November: 0.60 € ordinary + 0.20 € bonus  997 million € to be distributed to shareholders 34

35. Slide 35: FY2011: Outlook

    FY2011: Outlook  Store sales in local currencies have increased 10% from 1 February to 14 March 2011  The Spring-Summer season is influenced by the performance over the Easter period due to its significant sales volumes 35

36. Slide 36: FY2010 Results Presentation Q&A

    FY2010 Results Presentation Q&A 23 March 2011

Inditex — FY2010 Earnings Presentation on 6ix