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

Industria De Diseno Textil — Inditex — Q1 2021 Earnings Presentation

38 slides from Industria De Diseno Textil's earnings presentation, Jun 9, 2021

  1. Slide 1: Interim Three Months 2021

    Interim Three Months 2021 9 June 2021 INDITEX INTERIM THREE MONTHS 2021 1

  2. 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

  3. Slide 3: Differentiation and strategic transformation continues to deliver

    2021 Differentiation and strategic transformation continues to deliver INDITEX INTERIM THREE MONTHS 2021 3

  4. Slide 4: 2021: Differentiation and strategic transformation

    2021: Differentiation and strategic transformation  Inditex’s differentiation and strategic transformation towards a fully integrated, digital and sustainable business model continues to deliver  Over 1Q2021 store sales have steadily improved. Online sales continue to grow strongly: +67% in 1Q2021

  5. Slide 5: Most stores have opened but some restrictions persist

    Most stores have opened but some restrictions persist INDITEX INTERIM THREE MONTHS 2021 5

  6. Slide 6: Healthy sales productivity

    Healthy sales productivity 1Q2021 Trading hours (24.1%) Store & online sales growth (11.5%) *in constant currency vs same period 2019 INDITEX INTERIM THREE MONTHS 2021 6

  7. Slide 7: Online continues to grow strongly

    Online continues to grow strongly +67% Online sales growth in CC 1Q2021  Strong advantage from the business model and fashion proposition  Sector leading growth rates and profitability with lower capital intensity  Online business grow in all concepts and markets INDITEX INTERIM THREE MONTHS 2021

  8. Slide 8: Zara S/S 2021

    Zara S/S 2021 INDITEX INTERIM THREE MONTHS 2021 8

  9. Slide 9: Launch of Zara Beauty

    Launch of Zara Beauty INDITEX INTERIM THREE MONTHS 2021 9

  10. Slide 10: Zara Beauty

    Zara Beauty  Launched in selected stores and online 12 May  Full range of beauty products for eyes, lips, face and nails in over 130 shades  Made using top-quality compounds. Strong sustainability credentials. No animal testing  The packaging is designed for refilling to foster reuse and makes e

  11. Slide 11: Zara Beauty

    Zara Beauty INDITEX INTERIM THREE MONTHS 2021 11

  12. Slide 12: Zara, Zara Home and Stradivarius in Madrid Plaza de España

    Zara, Zara Home and Stradivarius in Madrid Plaza de España INDITEX INTERIM THREE MONTHS 2021 12

  13. Slide 13: Zara Home launches new image

    Zara Home launches new image INDITEX INTERIM THREE MONTHS 2021 13

  14. Slide 14: Zara Home launches new image

    Zara Home launches new image INDITEX INTERIM THREE MONTHS 2021 14

  15. Slide 15: Massimo Dutti Cahier de Voyage editorial

    Massimo Dutti Cahier de Voyage editorial INDITEX INTERIM THREE MONTHS 2021 15

  16. Slide 16: Bershka launches new image

    Bershka launches new image INDITEX INTERIM THREE MONTHS 2021 16

  17. Slide 17: Pull&Bear On my way to Summer

    Pull&Bear On my way to Summer INDITEX INTERIM THREE MONTHS 2021 17

  18. Slide 18: Stradivarius Summer collection

    Stradivarius Summer collection INDITEX INTERIM THREE MONTHS 2021 18

  19. Slide 19: Oysho weekend vibes collection

    Oysho weekend vibes collection INDITEX INTERIM THREE MONTHS 2021 19

  20. Slide 20: Uterqüe Summer collection

    Uterqüe Summer collection INDITEX INTERIM THREE MONTHS 2021 20

  21. Slide 21: Sustainability at stores

    Sustainability at stores  Leading in sustainability. Eco- efficient stores  LEED certificate on new flagship stores  Inergy platform: centralised control and optimisation of energy consumption.  Bigger, better, more beautiful stores, in best locations globally INDITEX INTERIM THREE MONTHS 2021 2

  22. Slide 22: Sustainability at HQ

    Sustainability at HQ  New Zara online studios represent the best visual example of Inditex’s strategic transformation  Store&Online integration, technology and advanced sustainability  100% renewable power use  3,380 solar panels supply 50% of energy needs  Rainwater collected and reused  Ultr

  23. Slide 23: Financial Summary

    Financial Summary INDITEX INTERIM THREE MONTHS 2021 23

  24. Slide 24: 1Q2021: Strong recovery in operations

    1Q2021: Strong recovery in operations € million 1Q21 1Q20 21/20  Strong recovery in challenging environment Net sales 4,942 3,303 50%  Active management of supply chain Gross profit 2,962 1,930 54%  Healthy gross margin evolution EBITDA 1,235 484 155%  Very efficient cost management across Net i

  25. Slide 25: Sales

    Sales € million 1Q21 1Q20 21/20  Strong recovery in sales Net sales 4,942 3,303 50%  Online sales +67% CC in 1Q2021  1Q2021 sales trends improve as stores reopen and online sustains outstanding progress INDITEX INTERIM THREE MONTHS 2021 25

  26. Slide 26: Gross margin

    Gross margin € million 1Q2021 1Q2020 21/20  Flexibility of supply chain key to gross margin performance Gross margin 59.9% 58.4% +152bps  1Q21 gross margin +47 bps vs 1Q19 INDITEX INTERIM THREE MONTHS 2021 26

  27. Slide 27: Operating efficiencies

    Operating efficiencies € million 1Q21 1Q20 21/20  Very efficient cost management across all departments and business areas Op. expenses 1,716 1,448 19%  Demonstrates our ability to react and adapt continuously to the changing trading environment  The main components of operating expenses have sho

  28. Slide 28: Depreciation

    Depreciation € million 1Q21 1Q20 21/20  1Q2020: Depreciation & Amortisation includes completion of space Depreciation 666 992 (33%) optimisation 2020-2021  1Q2021 underlying depreciation and amortisation fell 3% vs 1Q2020 INDITEX INTERIM THREE MONTHS 2021 28

  29. Slide 29: Flexibility of business model key to performance

    Flexibility of business model key to performance € million 1Q21 1Q20 1Q19  Flexibility of supply chain Inventory 2,769 2,629 2,923  Single inventory Receivables 893 644 846  High quality inventory at period end Payables (5,781) (3,877) (6,306)  Improved working capital dynamics Op. working capit

  30. Slide 30: Strong cash flow and financial condition

    Strong cash flow and financial condition € million 1Q21 1Q20 21/20  Strong cash generation Net Cash Position 7,176 5,752 25%  Net cash position up +8% vs 2019 INDITEX INTERIM THREE MONTHS 2021 30

  31. Slide 31: Concepts

    Concepts INDITEX INTERIM THREE MONTHS 2021 31

  32. Slide 32: Store & Online sales by concept

    Store & Online sales by concept Sales Pull&Bear Massimo Dutti Bershka Stradivarius Oysho Zara & Uterqüe Zara Home INDITEX INTERIM THREE MONTHS 2021 32

  33. Slide 33: Performance per concept

    Performance per concept Oysho Uterqüe Stradivarius Group average Massimo Pull&Bear Bershka Dutti INDITEX INTERIM THREE MONTHS 2021 33

  34. Slide 34: Concepts

    Concepts  Remarkable online growth across all concepts  Strong performance of Oysho and Stradivarius  Optimisation activity in all concepts INDITEX INTERIM THREE MONTHS 2021 34

  35. Slide 35: Outlook

    Outlook INDITEX INTERIM THREE MONTHS 2021 35

  36. Slide 36: Outlook

    Outlook  Global fully integrated Store & Online  Strong organic growth. Increased differentiation of the model  Strong online sales growth to continue  Capital expenditure c€900m annually (2020-22). Digital capex €1 billion for 2020-2022  Sustainability central to the strategy  Lower capital i

  37. Slide 37: Dividend

    Dividend  As announced in March Inditex’s Board of Directors will propose to the Annual General Meeting a dividend of 70 cents per share for fiscal 2020  The dividend will be made up of two equal payments of 35 cents: the first was paid as interim on 3 May 2021 and the final will be made on 2 Nove

  38. Slide 38: Interim Three Months 2021

    Interim Three Months 2021 9 June 2021 INDITEX INTERIM THREE MONTHS 2021 38

Inditex — Q1 2021 Earnings Presentation on 6ix