Global fully integrated Store & Online
2019
Inditex Group Profile 1 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-looking statements. All statements other than statements of historical fact included herein, including, without limitation, those regarding our financial position, business strategy, management plans and objectives for future operations are forward-looking statements. Any such forward-looking statements are subject to risk and uncertainty and thus could differ materially from actual results.
Some of these risks include, amongst others, ongoing competitive pressure in the sector, consumer tastes and spending trends, economic, political, regulatory and trade conditions in the markets where the Inditex Group is present or in the countries where the Group’s products are manufactured or distributed.
The risks and uncertainties that could affect the forward-looking statements are difficult to predict. The company assumes no obligation to publicly revise or update its forward-looking statements in the case of unexpected changes, events or circumstances that could affect them. Given the uncertainties of forward-looking statements, we caution readers not to place undue reliance on these statements.
For a discussion of these and other factors that may affect forward looking statements and the Inditex Group’s business, financial conditions and results of operations, see the documents and information communicated by the company to the Comisión Nacional del Mercado de Valores (the Spanish Securities Commission).
The contents of this disclaimer should be taken into account by all persons or entities.
Inditex Group Profile 2 Highlights
Global fully integrated Store&Online 8 independent concepts
Sales €26.1bn
Online sales € 3.2bn
Cash flow €4.4 bn
Market cap. €84bn
Inditex Group Profile 3 Unique business model: Global fully integrated Store & Online
Inditex Group Profile 4 Flexible, integrated business model
Stores Design & Online
Manufacturing Distribution & Sourcing & Logistics
Inditex Group Profile 5 Customer driven
Latest fashions and quality at affordable prices
Unique product strategy
. 65,000 new designs per year
. delivery to stores at least twice per week
Customer interaction
. Constant feedback allows modification of collections
Prominent stores in prime locations
Global online sales
Inditex Group Profile 6 Customer driven
Inditex Group Profile 7 Customer driven
Inditex Group Profile 8 Customer driven
Inditex Group Profile 9 Customer driven
Inditex Group Profile 10 Seamless Store & Online integration
Click & Collect, ZaraStratford, Corso LondonVittorio Emanuele Milano
Inditex Group Profile 11 Global Store & Online sales in 1H2019
44% Europe ex-Spain
16% Spain 24% 16% Asia & Americas RoW
Inditex Group Profile 12 Strong sales growth
30
26.1 25.3 25 23.3
20.9 20 18.1 16.7 15.9 € bn 15 13.8 12.5 11.1 10.4 10 9.4
05 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Inditex Group Profile 13 Global growth opportunity
Business model avoids the main fixed costs associated with international expansion
. Single inventory position. No local distribution centres
. Direct communication
. Lean local head offices
. Fully integrated Store & Online
Inditex Group Profile 14 Sustainability & Circular Economy
Inditex Group Profile 15 Strategic initiatives
Global fully integrated Store & Online
2012 2018 2020e
Store optimisation plan Global Online +27% Strong growth opportunity *Larger more prominent stores €3.2 bn 12% of sales *Enlargements/Absorptions *All key global flagships/New Images Global online Zara online globally Global Online Global RFID RFID complete in Zara RFID launch Massimo Dutti and Uterqüe Global stock integration
Upgrade HQs/Logistics Zara one global integrated stock Upgrade HQs/Logistics
Increased organic growth Upgrade HQs/Logistics Increased organic growth
Lower capital intensity Lower capital intensity Lower capital intensity
Inditex Group Profile 16 Multi-concept strategy
Market segmentation through distinctive concepts
Independent management teams
Same business model across all concepts
Global presence
Pull&Bear Zara Zara Massimo Dutti Bershka Stradivarius Oysho Home Uterqüe 1975 1991 1998 1999 2001 2003 2008
Inditex Group Profile 17 Concepts
Inditex Group Profile 18 Multi-concept strategy
Inditex Group Profile 19 Operating autonomy, central support
Arteixo (La Coruña) Tordera Inditex Massimo Dutti Zara Bershka Zara Home Oysho Uterqüe Narón (La Coruña) Pull&Bear Cerdanyola Stradivarius
Inditex Group Profile 20 Multi-concept strategy
Age Target Sales
Zara Pull&Bear
Massimo Dutti Massimo Dutti Pull&Bear Bershka Bershka Stradivarius Zara Stradivarius Oysho Zara Zara Home & Oysho Uterque Uterqüe Zara Home
0 10 20 30 40+
Inditex Group Profile 21 Zara + Zara Home
FY18 Sales: €18.0 bn
FY18 EBIT: €3.1 bn
Inditex Group Profile 22 Zara
Latest fashions for women, men and children
Headquarters in Arteixo (La Coruña)
Inditex Group Profile 23 Zara
Inditex Group Profile 24 Zara
Inditex Group Profile 25 Zara
Inditex Group Profile 26 Zara
Inditex Group Profile 27 Zara Home
Textiles for bed, bath and table complemented by decorative items
Headquarters in Arteixo (La Coruña)
Inditex Group Profile 28 Zara Home
Inditex Group Profile 29 Zara Home
Inditex Group Profile 30 Zara Home
Inditex Group Profile 31 Massimo Dutti
Elegant design with excellent quality for men, women and children
Headquarters in Tordera
FY18 Sales: €1.8 bn
FY18 EBIT: €258 m
Inditex Group Profile 32 Massimo Dutti
Inditex Group Profile 33 Massimo Dutti
Inditex Group Profile 34 Massimo Dutti
Inditex Group Profile 35 Pull&Bear
Casual fashion and sport styles for young men and women (14 to 28)
Headquarters in Narón
FY18 Sales: €1.9 bn
FY18 EBIT: €300 m
Inditex Group Profile 36 Pull&Bear
Inditex Group Profile 37 Pull&Bear
Inditex Group Profile 38 Pull&Bear
Inditex Group Profile 39 Bershka
Latest fashions for young women and men (13 to 23)
Headquarters in Tordera
FY18 Sales: €2.2 bn
FY18 EBIT: €327 m
Inditex Group Profile 40 Bershka
Inditex Group Profile 41 Bershka
Inditex Group Profile 42 Bershka
Inditex Group Profile 43 Stradivarius
Urban fashion for young women (18 to 35)
Headquarters in Cerdanyola
FY18 Sales: €1.5 bn
FY18 EBIT: €259 m
Inditex Group Profile 44 Stradivarius
Inditex Group Profile 45 Stradivarius
Inditex Group Profile 46 Stradivarius
Inditex Group Profile 47 Oysho
Latest trends in women’s lingerie, loungewear and sport styles
Headquarters in Tordera
FY18 Sales: €585 m
FY18 EBIT: €86 m
Inditex Group Profile 48 Oysho
Inditex Group Profile 49 Oysho
Inditex Group Profile 50 Oysho
Inditex Group Profile 51 Uterqüe
Premium accessories (bags, shoes, costume jewelry)
Headquarters in Tordera
FY18 Sales: €101 m
FY18 EBIT: €5 m
Inditex Group Profile 52 Uterqüe
Inditex Group Profile 53 Uterqüe
Inditex Group Profile 54 Uterqüe
Inditex Group Profile 55 Financial Summary
Inditex Group Profile 56 Full Year 2018
€ million FY18 FY17 18/17 LC
Net sales 26,145 25,336 3% 7%
Gross profit 14,816 14,260 4% 8%
EBITDA 5,457 5,277 3% 11%
EBIT 4,357 4,314 1% 9%
Net income 3,444 3,368 2% 12%
Good operating performance
Inditex Group Profile 57 Outlook
Inditex Group Profile 58 Global growth opportunities
Highly differentiated business model
Global fully integrated Store & Online
Unique customer experience
Strong cash flow generation and lower capital intensity
Strong growth opportunities
Inditex Group Profile 59 Global online
All key markets same day/next day
Inditex Group Profile 60 Fully integrated Store & Online
Inditex Group Profile 61 New Dividend Policy
Predictable attractive shareholder remuneration
Increase of ordinary payout to 60% from 50%
A total bonus dividend of €1 per share to be paid in relation to FY2018, FY2019 and FY2020
Inditex Group Profile 62 +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 to be paid on 2 May and on 4 November 2019
Inditex Group Profile 63 +17% Dividend increase for FY18
2001-2018: 24% CAGR
Accumulated dividends of ~€20bn paid out 88
75 68 60 52 € 48
44 DPS cents € 36 32 24 21 21 16.8 13.4 7 9.6 2.2 2.8
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Inditex Group Profile 64 FY2019 Outlook
Global fully integrated Store & Online
Strong organic growth. Increased differentiation of the model
LFL sales are expected to increase 4%-6%
Lower capital intensity required. Ordinary Capex c.€1.4 bn
5%-6% gross new space in prime locations
Strong free cash flow generation
Inditex Group Profile 65 Stores
Inditex Group Profile 66 Madrid
Zara Serrano
Inditex Group Profile 67 Madrid
Zara Paseo de la Castellana
Inditex Group Profile 68 London
Zara Oxford Street
Inditex Group Profile 69 London
Zara Stratford
Inditex Group Profile 70 London
Zara White City
Inditex Group Profile 71 Paris
Zara Champs Elysees
Inditex Group Profile 72 Paris
Zara Boulevard Haussmann
Inditex Group Profile 73 Brussels
Zara Toison D’Or
Inditex Group Profile 74 Milan
Zara Corso Vittorio Emanuele
Inditex Group Profile 75 Rome
Zara Piazza Colonna
Inditex Group Profile 76 Venice
Zara Fondamenta Oresolo
Inditex Group Profile 77 Cologne
Zara Mamilla Boulevard
Zara Schildergasse
Inditex Group Profile 78 Oslo
Zara Karl Johans gate
Inditex Group Profile 79 Moscow
Zara Mall of Russia
Zara Mall of Russia
Inditex Group Profile 80 New York
Zara 666 Fifth Avenue
Inditex Group Profile 81 New York
Zara SoHo
Inditex Group Profile 82 New York
Zara Hudson Yards Vittorio Emanuele, Milan
Inditex Group Profile 83 Los Angeles
Zara Figueroa Zara 666 Fifth Avenue
Inditex Group Profile 84 Chicago
Zara Michigan AvenueZara 666 Fifth Avenue
Inditex Group Profile 85 Miami
Zara Lincoln Road
Inditex Group Profile 86 Aruba
Zara Rynek Glowny Zara Oranjestad
Inditex Group Profile 87 Mexico
Zara Madero
Inditex Group Profile 88 Sao Paulo
Zara Avenida Daniel Touche
Zara 666 Fifth Avenue
Inditex Group Profile 89 Shanghai
Zara 592 East Nanjing Road
Inditex Group Profile 90 Beijing
Zara Xidan Joy City
Inditex Group Profile 91 Tokyo
Zara Shinjuku
East Nanjing Road
Inditex Group Profile 92 Tokyo
Zara Ginza
Inditex Group Profile 93 Seoul
Zara Gang Nam
Inditex Group Profile 94 Mumbai
Zara Ismail Building at Flora Fountain
Zara Murray Street
Inditex Group Profile 95 Dubai
Zara Mall of Emirates
Inditex Group Profile 96 Sydney
Zara Pitt Street Zara Murray Street
Inditex Group Profile 97 Cape Town
Zara Waterfront
Inditex Group Profile 98 Global fully integrated Store&Online
2019
Inditex Group Profile 99