Slide 1: Interim Three Months 2019
Interim Three Months 2019 12 June 2019 Interim Three Months 2019 1
Slide 2: Disclaimer
Disclaimer This document and the information herein does not constitute an offer to sell, to buy or to exchange, nor an invitation to make an offer to buy, to sell or to exchange, nor a recommendation or advice, regarding any security issued by the Inditex Group. This document contains forward-looki
Slide 3: Overview
Overview Interim Three Months 2019 3
Slide 4: Unique business model: Global fully integrated Store & Online
Unique business model: Global fully integrated Store & Online Interim Three Months 2019 4
Slide 5: Unique business model: Global fully integrated Store & Online
Unique business model: Global fully integrated Store & Online Unique customer experience Central inventory Highly differentiated stores: 90% of store portfolio optimised 2012-18 All stores fully digital and sustainable by 2020 Global online same day/next day Interim Three Months 2019 5
Slide 6: Interim Three Months 2019: Continue developing our LT strategy
Interim Three Months 2019: Continue developing our LT strategy Strong execution of business model Highly differentiated model at the forefront of fashion Global fully integrated Store & Online Tight inventory management and strong cash generation Global growth opportunities Interim Three M
Slide 7: Zara
Zara Rue Jean de Riouffe, Cannes Interim Three Months 2019 7
Slide 8: Zara
Zara Hudson Yards, New York Interim Three Months 2019 8
Slide 9: Zara
Zara Time World mall, Daejeon - South Korea Interim Three Months 2019 9
Slide 10: Online launch of Zara in Brazil on 20 March
Online launch of Zara in Brazil on 20 March Interim Three Months 2019 10
Slide 11: Museo del Prado 200 years: Zara Man
Museo del Prado 200 years: Zara Man Interim Three Months 2019 11
Slide 12: Zara Home
Zara Home Interim Three Months 2019 12
Slide 13: Bershka: Festivalism collection
Bershka: Festivalism collection Interim Three Months 2019 13
Slide 14: Massimo Dutti: Campaign
Massimo Dutti: Campaign Interim Three Months 2019 14
Slide 15: Pull&Bear: Partnership with Primavera Sound Festival
Pull&Bear: Partnership with Primavera Sound Festival Interim Three Months 2019 15
Slide 16: Stradivarius enters Belgium
Stradivarius enters Belgium Veldstraat, Ghent Interim Three Months 2019 16
Slide 17: Oysho: Watersports collection
Oysho: Watersports collection Interim Three Months 2019 17
Slide 18: Uterqüe: The Ünseen collection
Uterqüe: The Ünseen collection Interim Three Months 2019 18
Slide 19: Financial Summary
Financial Summary Interim Three Months 2019 19
Slide 20: IFRS 16
IFRS 16 Starting FY19 Changes in presentation no impact on cashflow or business IFRS 16 will result in an estimated increase of 2-4% in FY19 net income vs former IAS 17 Interim Three Months 2019 20
Slide 21: Interim Three Months 2019
Interim Three Months 2019 € million 1Q19 1Q18 19/18 Net sales 5,927 5,654 5% Gross profit 3,524 3,328 6% PBT 952 866 10% Net income 734 668 10% Impact of Leases under IFRS16 rules in 1Q19 PBT +€28m and Net Income +€21m Interim Three Months 2019 21
Slide 22: Satisfactory sales growth
Satisfactory sales growth € million 1Q19 1Q18 19/18 Net sales 5,927 5,654 5% Sales in local currency grew 5% in 1Q19 Sales in the second half of the quarter were affected by adverse weather patterns. Upon the return to normal trading conditions sales recovered accordingly. Store & Online sales i
Slide 23: Disciplined execution shown in gross margin
Disciplined execution shown in gross margin 1Q19 1Q18 19/18 Gross margin 59.5% 58.9% +61 bps Good execution of the model Gross profit growth of +6% to €3.5 bn Sustained commercial policies Interim Three Months 2019 23
Slide 24: Tight control of operating expenses
Tight control of operating expenses € million 1Q19 1Q18 19/18 Op. expenses 1,842 2,194 -16% Operating expense growth without the impact of Leases under IFRS16 rules in 1Q19 would have been +5% Interim Three Months 2019 24
Slide 25: Financial results
Financial results € million 1Q19 1Q18 19/18 Financial results (36) 7 -- Impact of Leases under IFRS16 rules in 1Q19 on Financial results -€39m Interim Three Months 2019 25
Slide 26: Flexible business model
Flexible business model € million 1Q19 19/18 Inventory 2,923 1% Receivables 846 (4%) Payables (6,306) 6% Operating working capital (2,536) 18% Net Cash & Equivalents 6,669 9% Interim Three Months 2019 26
Slide 27: +17% Dividend increase for FY18
+17% Dividend increase for FY18 100 Total 88 Total 80 75 22 21 60 Bonus 40 Ordinary 66 54 € cents 20 0 2017 2018 € 44 cents was paid on 2 May and € 44 cents is due on 4 November 2019 Interim Three Months 2019 27
Slide 28: Concepts
Concepts Interim Three Months 2019 28
Slide 29: Store & Online sales by concept
Store & Online sales by concept Sales Pull&Bear Massimo Dutti Bershka Stradivarius Zara Oysho Uterque Interim Three Months 2019 29
Slide 30: Performance per concept
Performance per concept Massimo Uterque Pull&Bear Dutti Stradivarius Oysho Bershka Group average Interim Three Months 2019 30
Slide 31: Outlook
Outlook Interim Three Months 2019 31
Slide 32: FY2019 Outlook
FY2019 Outlook Global fully integrated Store & Online Strong organic growth. Increased differentiation of the model Strong free cash flow generation Store & Online sales in local currencies from 1 May to 7 June grew 9.5% Store & Online sales in local currencies from 1 February to 7 June gr
Slide 33: CEO appointment
CEO appointment Carlos Crespo proposed CEO to lead digital transformation and sustainability To report directly to Pablo Isla (Executive Chairman) Responsibility: Technology, IT security, Logistics & Transportation, Construction & Works, Legal, Procurement and Sustainability To take effect p
Slide 34: Seamless Store & Online integration
Seamless Store & Online integration Stratford, Click & Collect, Zara Corso London Vittorio Emanuele Milano Interim Three Months 2019 34
Slide 35: Global online
Global online All key markets same day/next day Full inventory integration by 2020 Interim Three Months 2019 35
Slide 36: May: Online launches of Zara in Saudi Arabia, UAE, Lebanon…
May: Online launches of Zara in Saudi Arabia, UAE, Lebanon… East Nanjing Road Interim Three Months 2019 36
Slide 37: …Egypt, Morocco, Indonesia, Serbia and Israel
…Egypt, Morocco, Indonesia, Serbia and Israel East Nanjing Road Interim Three Months 2019 37
Slide 38: A/W: S. Africa, Kuwait, Qatar, Colombia, Philippines, Ukraine
A/W: S. Africa, Kuwait, Qatar, Colombia, Philippines, Ukraine East Nanjing Road Interim Three Months 2019 38
Slide 39: Store & Online: Getting ready
Store & Online: Getting ready Interim Three Months 2019 39
Slide 40: Store & Online: Campaign 19
Store & Online: Campaign 19 Photography Gregory Harris. Featuring Tim Schuhmacher Interim Three Months 2019 40
Slide 41: Store & Online: Tie dye
Store & Online: Tie dye Photography Gregory Harris. Featuring Tim Schuhmacher Interim Three Months 2019 41
Slide 42: Store & Online: #Essentials
Store & Online: #Essentials East Nanjing Road Photography Mario Sorrenti Interim Three Months 2019 42
Slide 43: Store & Online: Join Life collection
Store & Online: Join Life collection East Nanjing Road Interim Three Months 2019 43
Slide 44: Zara
Zara Rue de la Bourse, Lille - France Interim Three Months 2019 44
Slide 45: Zara
Zara Gran Roma Mall, Rome Interim Three Months 2019 45
Slide 46: Zara
Zara Istinye Park, Istanbul Interim Three Months 2019 46
Slide 47: Zara
Zara One Mall, Nanjing Interim Three Months 2019 47
Slide 48: Zara
Zara Jewel City, Singapore Interim Three Months 2019 48
Slide 49: Interim Three Months
Interim Three Months 2019 12 June 2019 Interim Three Months 2019 49