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

Industria De Diseno Textil — Inditex — Investor Presentation (November 2010)

38 slides from Industria De Diseno Textil's investor presentation, November 2010

1. Slide 1: Global Growth Opportunities

   Global Growth Opportunities

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: Highlights

   Highlights 8 independent concepts Strong Growth  4,780 stores in 77 countries  FY 2009  Sales €11.1 Bn  Cash flow €2.1 Bn  Net Income €1.3 Bn Unique business model 3

4. Slide 4: Business Model

   INDITEX Business Model

5. Slide 5: Flexible, integrated business model

   Flexible, integrated business model Design Store Manufacturing Distribution & & Sourcing Logistics 5

6. Slide 6: Customer driven

   Customer driven  Compelling mix of latest fashions and quality at affordable prices  Unique product strategy  30,000 new designs per year  delivery to stores 2-6 times per week  Customer interaction  daily in-store feedback allows constant modification of collections  Attractive stores in pri

7. Slide 7: Distribution and logistics

   Distribution and logistics  Central distribution  Shipment to all stores twice a week  Orders to stores in 24-48 hours 7

8. Slide 8: Retail experience

   Retail experience  Latest fashion trends  Fresh items twice a week  Prime locations  No traditional advertising 8

9. Slide 9: Strong growth

   Strong growth Net Sales (€ billion) 11.1 10.4 9.4 8.2 6.7 5.7 2004 2005 2006 2007 2008 2009 9

10. Slide 10: Global opportunity

    Global opportunity  Business model avoids the main fixed costs associated with international expansion  No distribution centres per country  No advertisement when entering a new market  Lean head office per country servicing all formats 10

11. Slide 11: Diversified sales platform

    Diversified sales platform Store sales (%) 1H2010 1H2009 Americas Europe ex-Spain 45% 44% Asia & RoW Europe Spain 28% 32% Ex-Spain Asia & RoW 15% 12% Spain Americas 12% 12% Store sales: Includes sales in OMS and franchises 11

12. Slide 12: Multi-concept strategy

    Multi-concept strategy  Market segmentation through distinctive concepts  Independent management teams  All share same business model  All have international potential Pull&Bear Zara Zara Massimo Dutti Bershka Stradivarius Oysho Home Uterqüe 1975 1991 1998 1999 2001 2003 2008 12

13. Slide 13: Inditex Concepts

    INDITEX Inditex Concepts

14. Slide 14: Multi-concept approach

    Multi-concept approach INDITEX Meseimno Dautti PULL&BEAR Bershka D3) ZARA HOME oyusho UTERQUE 14

15. Slide 15: Operating autonomy, central support

    Operating autonomy, central support Arteixo (La Coruña) Tordera (Barcelona) Inditex Massimo Dutti Zara Bershka Zara Home Oysho Uterqüe Sallent (Barcelona) Narón (La Coruña) Stradivarius Pull&Bear 15

16. Slide 16: Multi-concept strategy

    Multi-concept strategy Age Target Sales Breakdown Zara Massimo Dutti Pull&Bear Bershka Non-Zara Zara 36% 64% Stradivarius Oysho Zara Home Uterqüe 0 10 20 30 40+ 16

17. Slide 17: Massimo Dutti

    Massimo Dutti  Elegant design with excellent quality for men, women and children  Headquarters and distribution centre in Tordera (Barcelona)  FY09 Sales: €790 M  FY09 EBIT: €117 M  FY09 Stores: 497 17

18. Slide 18: Pull&Bear

    Pull&Bear  Casual fashion and sport styles for young men and women (14 to 28)  Headquarters and distribution centre in Narón (A Coruña)  FY09 Sales: €771 M  FY09 EBIT: €101 M  FY09 Stores: 626 18

19. Slide 19: Bershka

    Bershka  Latest fashions for young women and men (13 to 23)  Headquarters and distribution centre in Tordera (Barcelona)  FY09 Sales: €1,177 M  FY09 EBIT: €196M  FY09 Stores: 651 19

20. Slide 20: Stradivarius

    Stradivarius  Urban fashion at attractive prices for young women (15 to 25)  Headquarters and distribution centre in Sallent (Barcelona)  FY09 Sales: €702 M  FY09 EBIT: €149 M  FY09 Stores: 515 20

21. Slide 21: Oysho

    Oysho  Latest trends in women’s loungewear, lingerie and undergarments  Headquarters and distribution centre in Tordera (Barcelona)  FY09 Sales: €280 M  FY09 EBIT: €38 M  FY09 Stores: 392 21

22. Slide 22: Zara Home

    Zara Home  Textiles for bed, bath and table complemented by tableware and decorative items  FY09 Sales: €243 M  FY09 EBIT: €25 M  FY09 Stores: 261 22

23. Slide 23: Uterqüe

    Uterqüe  Accessories concept launched in July 2008  FY09 Sales: €44 M  FY09 Stores: 57  Strong expansion potential in a highly fragmented market 23

24. Slide 24: Financial Summary

    Financial Summary

25. Slide 25: Highlights

    Highlights million € FY2009 % 09/08 Net sales 11,084 7% Gross profit 6,328 7% EBITDA 2,374 9% Net income 1,314 5% Funds from operations 2,060 11% 25

26. Slide 26: Outlook

    INDITEX Outlook

27. Slide 27: Outlook

    Outlook  Global growth opportunities  Growth profile 2010-2012  Outlook FY2010 27

28. Slide 28: Global growth opportunities

    Global growth opportunities  Inditex: strong growth potential  flexible business model  latest fashion trends at the right time at affordable prices  multiconcept approach  business model avoids the main fixed costs associated with international expansion 28

29. Slide 29: Global growth opportunities

    Global growth opportunities  Profitable expansion of the business remains a key priority  Focus in Europe and Asia 29

30. Slide 30: Global growth opportunities: Europe

    Global growth opportunities  Growth in Europe: Inditex domestic market  Expansion area for all the concepts  Market share below 1% in most countries  Strong growth markets • Italy, France, Germany, UK • Eastern Europe and Russian Federation 30

31. Slide 31: Global growth opportunities: Asia

    Global growth opportunities  Growth in Asia: Leveraging on a strategic presence  Markets in transformation  Multiconcept expansion  Main growth markets: China, Japan, South Korea and India 31

32. Slide 32: Global growth opportunities: Americas

    Global growth opportunities  Growth in the Americas:  Build on current platform through selective expansion 32

33. Slide 33: FY2010: Outlook

    FY2010: Outlook Store opening programme Range % Int’l Zara 110 120 98% Pull and Bear 40 50 95% Massimo Dutti 25 35 98% Bershka 45 50 98% Stradivarius 65 75 95% Oysho 30 35 80% Zara Home 25 30 65% Uterqüe 25 30 65% Total net openings 365 425  c95% new space in International markets  Capital Expendi

34. Slide 34: FY2010: Outlook

    FY2010: Outlook  Shareholder remuneration  FY2009 dividend 1.20 € per share: • 3 May: 0.60 € ordinary • 2 November: 0.50 € ordinary + 0.10 € bonus  748 million € distributed to shareholders  14% increase over FY2008 34

35. Slide 35: 2011: Australia and South Africa

    2011: Australia and South Africa  First store openings 35

36. Slide 36: Zara online sales

    Zara online sales  2 Sept. 2010 : France, UK, Italy, Germany, Portugal and Spain  4 Nov: Austria, Ireland, Belgium, the Netherlands and Luxembourg  Strong commercial proposition  Satisfactory customer reception  2011: US, Japan, South Korea and Canada  Progressive rollout in all Zara markets 3

37. Slide 37: Growth profile 2010-2012

    Growth profile 2010-2012 International Multiconcept Americas c10% Asia & Non-Zara RoW Europe ex- c40% Zara c20% Spain c50% c60% Spain c20%  Profitable investment in the expansion of our business in markets with attractive long term returns  Highly diversified sales platform: stores in more than 80

38. Slide 38: Global Growth Opportunities

    Global Growth Opportunities

Inditex — Investor Presentation (November 2010) on 6ix