Global Growth Opportunities
Interim Nine Months 2014 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 Global fully integrated Store & Online
East Nanjing Road
Inditex Group Profile 3 Highlights
Global Fashion Retailer 8 independent concepts
7,405 stores (1H17) / Online
Sales €23.3bn (FY16)
Cash flow €4.4 bn (FY16)
Market cap. €101bn
Unique business model
Inditex Group Profile 4 Global fully integrated Store & Online
Inditex Group Profile 5 Global fully integrated Store & Online
5 continents
94 markets
Northern and southern hemisphere
Inditex Group Profile 6 Differentiated business model
Central inventory position
Global fully integrated Store & Online
Distribution to all stores worldwide twice a week
Orders to stores and online customers in 2-48 hours
Inditex Group Profile 7 Global online sales
Central inventory position + Online stockrooms
Poland UK 2014 & 2016 Russian Fed Boston 2012 2013 Seoul 2011 France Tokyo Madrid 2014 2015 2011 Los Angeles Philadelphia 2010 Turkey Shanghai 2014 2016 2012 2015 Taiwan New Delhi Mexico Hong Kong 2017 2015 2014 2016
Inditex Group Profile 8 Business Model
Inditex Group Profile 9 Flexible, integrated business model
Stores Design & Online
Manufacturing Distribution & Sourcing & Logistics
Inditex Group Profile 10 Customer driven
Compelling mix of 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 11 Customer driven
Inditex Group Profile 12 Customer driven
Inditex Group Profile 13 Customer driven
Inditex Group Profile 14 Global fully integrated Store & Online
Latest fashion trends
Prominent stores in prime locations / Online
Fresh items twice a week
Direct communication
Inditex Group Profile 15 Strong growth
Inditex Group Profile 16 Global opportunity
Business model avoids the main fixed costs associated with international expansion
. Central inventory position. No local distribution centers
. No advertising
. Lean local head offices
. Fully integrated Store & Online
Inditex Group Profile 17 Global fully integrated Store & Online
Store & Online sales 1H2017
Europe ex-Spain 43%
Asia & RoW 25%
Spain 16%
Americas 16%
Total 100%
Inditex Group Profile 18 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 19 Global online sales Europe: Austria, Belgium, Denmark, France, Germany, Greece, Ireland, Italy, Luxembourg, Monaco, Netherlands, Portugal, Since 2007 All Concepts Spain, Sweden, UK, Switzerland, Norway, Finland, Poland, Romania, Croatia, Slovakia, Czech Republic, Bulgaria, Hungary, Lithuania, Latvia, Estonia, Slovenia, Malta and Turkey 2011 Zara United States, Japan Since 2012 All Concepts China Massimo Dutti, Zara 2012 United States Home Since 2013 All Concepts Russian Federation 2013 Zara Canada 2014 All Concepts Mexico 2014 Zara South Korea 2015 Zara Taiwan, Hong Kong, Macau 2015 Zara Home Australia 2016 Zara Home Dubai 2017 Zara Singapore, Malaysia, Thailand, Vietnam and India Progressive roll-out All Concepts Globally
Inditex Group Profile 20 Inditex Concepts
Inditex Group Profile 21 Multi-concept approach
Inditex Group Profile 22 Operating autonomy, central support
Arteixo (La Coruña) Tordera Inditex Massimo Dutti Zara Bershka Zara Home Oysho Uterqüe Narón (La Coruña) Pull&Bear Sallent Stradivarius
Inditex Group Profile 23 Multi-concept strategy
Age Target Sales
Zara Massimo Dutti Pull&Bear Non- Bershka Zara Stradivarius Zara Oysho Zara Home Uterqüe
0 10 20 30 40+
Inditex Group Profile 24 Zara
Latest fashions for women, men and children
Headquarters in Arteixo (La Coruña)
FY16 Sales: €15.4 bn
FY16 EBIT: €2.8 bn
1H17 Stores: 2,235
Inditex Group Profile 25 Zara
Inditex Group Profile 26 Zara
Inditex Group Profile 27 Massimo Dutti
Elegant design with excellent quality for men, women and children
Headquarters and distribution centre in Tordera
FY16 Sales: €1.6 bn
FY16 EBIT: €280 m
1H17 Stores: 772
Inditex Group Profile 28 Massimo Dutti
Costa Mesa
Inditex Group Profile 29 Massimo Dutti
Inditex Group Profile 30 Pull&Bear
Casual fashion and sport styles for young men and women (14 to 28)
Headquarters and distribution centre in Narón (Coruña)
FY16 Sales: €1.6 bn
FY16 EBIT: €231 m
1H17 Stores: 978
Inditex Group Profile 31 Pull&Bear
Inditex Group Profile 32 Pull&Bear
Inditex Group Profile 33 Bershka
Latest fashions for young women and men (13 to 23)
Headquarters and distribution centre in Tordera
FY16 Sales: €2.0 bn
FY16 EBIT: €333 m
1H17 Stores: 1,098
Inditex Group Profile 34 Bershka
Geneva, Turin
Inditex Group Profile 35 Bershka
Inditex Group Profile 36 Stradivarius
Urban fashion for young women and men (18 to 35)
Headquarters and distribution centre in Sallent
FY16 Sales: €1.3 bn
FY16 EBIT: €236 m
1H17 Stores: 1,015
Inditex Group Profile 37 Stradivarius
Inditex Group Profile 38 Stradivarius
Inditex Group Profile 39 Oysho
Latest trends in women’s loungewear, lingerie and undergarments
Headquarters and distribution centre in Tordera
FY16 Sales: €509 m
FY16 EBIT: €79 m
1H17 Stores: 655
Inditex Group Profile 40 Oysho
Inditex Group Profile 41 Oysho
Race for the Cure
Inditex Group Profile 42 Zara Home
Textiles for bed, bath and table complemented by decorative items
Headquarters in Arteixo (La Coruña)
FY16 Sales: €774 m
FY16 EBIT: €94 m
1H17 Stores: 569
Inditex Group Profile 43 Zara Home
Inditex Group Profile 44 Zara Home
Inditex Group Profile 45 Uterqüe
Premium accessories (bags, shoes, costume jewellery)
Headquarters and distribution centre in Tordera
FY16 Sales: €83 m
FY16 EBIT: €4 m
1H17 Stores: 83
Inditex Group Profile 46 Uterqüe
Inditex Group Profile 47 Uterqüe
Inditex Group Profile 48 Financial Summary
Inditex Group Profile 49 Full Year 2016
€ million FY16 FY15 16/15
Net sales 23,311 20,900 12%
Gross profit 13,279 12,089 10%
EBIT 4,021 3,677 9%
Net income 3,157 2,875 10%
Inditex Group Profile 50 Outlook
Inditex Group Profile 51 Global growth opportunities
Differentiated business model
Global fully integrated Store & Online
Strong growth opportunities
Inditex Group Profile 52 Growth in Europe
Important growth opportunities across the whole of Europe
2017 Inditex launch 7 concepts in Belarus
All concepts Store & Online
Inditex Group Profile 53 Growth in Asia
Strong growth opportunity. Store & Online in China, Japan, South Korea, Hong Kong, Macau and Taiwan
India, Singapore, Malaysia, Thailand and Vietnam online in 2017
Inditex Group Profile 54 Growth in the Americas
Attractive growth markets. Strong expansion opportunities
Fully integrated Store & Online
Inditex Group Profile 55 Global growth opportunities
Australia, New Zealand and South Africa
Ongoing expansion
Inditex Group Profile 56 Global online sales
Strong presence in Europe, Asia, Americas
Progressive rollout in all markets
Inditex Group Profile 57 Strong capital efficiency
Increased differentiation: Larger and more prominent stores in prime locations & global online
Lower capital expenditure required for expansion. Ordinary capital expenditure to grow below space growth
New space in prime locations in conjunction with increasing contribution from organic growth and online sales
Inditex Group Profile 58 FY2017: Outlook
2 c.320,000m of new space in prime locations
Global online sales rollout
Capital expenditure c.€1.5 billion
Inditex Group Profile 59 FY16 Dividend increase +13.3%
€2.1 billion to be distributed to shareholders over 2017
€ DPS
Inditex Group Profile 60 Madrid
Zara Serrano
Inditex Group Profile 61 London
Zara Oxford Street
Inditex Group Profile 62 Paris
Zara Champs Elysees
Inditex Group Profile 63 Brussels
Zara Toison D’Or
Inditex Group Profile 64 Milan
Zara Corso Vittorio Emanuele Zara Tverskaya
Inditex Group Profile 65 Roma
Zara Piazza Colonna
Inditex Group Profile 66 Cologne
Zara Mamilla Boulevard
Zara Schildergasse
Inditex Group Profile 67 Moscow
Zara Mall of Russia
Zara Mall of Russia
Inditex Group Profile 68 New York
Zara 666 Fifth Avenue
Inditex Group Profile 69 New York
Zara SoHo
Inditex Group Profile 70 Los Angeles
Zara 666Figueroa Fifth Avenue
Inditex Group Profile 71 Chicago
Zara 666Michigan Fifth AvenueAvenue
Inditex Group Profile 72 Miami
Zara Lincoln Road
Inditex Group Profile 73 Aruba
Zara Rynek Glowny Zara Oranjestad
Inditex Group Profile 74 Mexico
Zara Madero
Inditex Group Profile 75 Sao Paulo
Zara Avenida Daniel Touche
Zara 666 Fifth Avenue
Inditex Group Profile 76 Hong Kong
Zara Queen´s Road
Inditex Group Profile 77 Shanghai
Zara 592 East Nanjing Road
Inditex Group Profile 78 Beijing
Zara Xidan Joy City
Inditex Group Profile 79 Tokyo
Zara Ginza
Inditex Group Profile 80 Tokyo
Zara Shinjuku
East Nanjing Road
Inditex Group Profile 81 Seoul
ZaraZara MMurray Plaza Street
Inditex Group Profile 82 Mumbai
Zara Ismail Building at Flora Fountain
Zara Murray Street
Inditex Group Profile 83 Dubai
Zara Mall of Emirates
Inditex Group Profile 84 Sydney
ZaraZara PittMurray Street Street Zara Palladium Mall
Inditex Group Profile 85 Capetown
Zara Waterfront
Inditex Group Profile 86 Global Growth Opportunities
Inditex Group Profile 87