1Q21 Results 9Th June 2021

1Q21 results 9th June 2021

1Q21 results Inditex sales grow 50% in 1Q21, with May sales above 2019 levels

Inditex’s executive chairman, Pablo Isla, stressed how “our differentiation and strategic transformation towards a fully integrated, digital and sustainable model continues to bear results, supported by the commitment displayed by all the people who work at Inditex”

Sales grew 50% in the first quarter of 2021 to €4.9 billion. Online sales in local currencies grew by 67%.

Net cash reached €7.2 billion by the end of the Quarter.

Gross margin expanded to a robust 59.9%, thanks to the implementation of the business model and the efficiencies unlocked by the digital transformation strategy.

Store and online sales in local currencies between 1 May and 6 June 2021 registered year-on-year growth of 102% compared to the same period of 2020, and of 5% compared to 2019. During this trading period, 10% of trading hours were unavailable due to store closures and business restrictions. Inditex´s Headquarters in Arteixo (A Coruña)

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Zara SoHo, New York I. Key figures

Inditex Group reported sales growth of 50% in the The integration of the business model has allowed the illin 1Q 2021 1Q 2020 ar. 2120 By the start of the second quarter, as of 7 June, 98% first quarter of 2021 (1 February to 30 April) (56% in effects of the store absorption programme announced Net Sales 4,942 ,0 0 of the Group’s stores were open. Store and online local currencies) to €4.9 billion. Online sales in local in June 2020 to have already been fully recovered in sales in local currencies between 1 May and 6 June Gross Margin 2,962 1,90 are tracking 102% above the same period of 2020 and currencies grew by 67%. store and online sales in May 2021. The integrated 59.9% . 5% above that of 2019 helped by the popularity of the stock management system (SINT), which allows EBITDA 1,235 1 Spring collections. Throughout that trading period, 10% Sales were higher across all geographies and every an online order to be fulfilled from any store, has EBIT 569 0 of trading hours were unavailable due to store closures brand despite the fact that 24% of trading hours were been pivotal. Net income 421 09 and restrictions. unavailable due to lockdowns and restrictions (16% of the Group’s stores remained closed at the end of One of the highlights of the reporting period was the Inditex is holding its Annual General Meeting in Arteixo the quarter), in addition to other capacity restrictions. trend in gross profit, which amounted to €2.96 billion, Net profit reached €421 million in the quarter, (A Coruña, Spain) on 13 July. The Board of Directors In local currencies, revenue was just 11.5% below the lifting gross margin to 59.9%, 152 basis points above compared with a loss of €409 million in the first quarter will ask the company’s shareholders to approve the level of the first quarter of 2019. the 58.4% recorded in 1Q20 and 47 basis points above of 2020. payment of a total dividend from 2020 profits of€0.70 that of 1Q19. per share, €0.35 of which was already paid out on 3 In light of this figures, Inditex’s executive chairman, Thanks to the solid earnings performance, the May; the balance would be paid on 2 November 2021. Pablo Isla, highlighted how “our differentiation and The first quarter stands out for its solid operating Group’s net cash reached €7.2 billion at the strategic transformation towards a fully integrated, performance, with growth in operating expenses at reporting period, up 25% from a year earlier, and the digital and sustainable model continues to bear fruit only 19%, significantly below sales growth. EBITDA highest in a first quarter. It is also worth highlighting supported by the commitment displayed by all the amounted to €1.2 billion (€484 million in 1Q20), while the control over inventories, which increased by people who work at Inditex”, attributes which are EBIT totalled €569 million (compared to a loss of €508 less than sales compared to the first quarter of crucial as restrictions ease. million in 1Q20). 2020 and is even lower than at the close of 1Q19.

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II. The sustainability commitment

In terms of energy sustainability during this quarter, For example, the Manuel Olivencia Prize for Good the Group announced a significant wind power Corporate Governance awarded by the Cuatrecasas generation project in the outer port of Punta Foundation, the Clean List 200 Corporate Knights Langosteira (A Coruña, Spain), that will generate (#47 out of 200) and acknowledgement by the enough electricity to enable self-sufficiency at Financial Times as one of the companies to have Inditex’s headquarters in Arteixo, which spans nearly reduced its emissions intensity relative to revenue one million square metres, with enough excess to most significantly between 2014 and 2019. completely power the neighbouring port. Technology is proving integral to the Group’s integrated, That green power capacity joins the 554 photovoltaic digital and sustainability strategy. Chiefly, the Inditex panels installed on the roof of the new zara.com Open Platform (IOP) is enabling, for example, greater building, with another 2,826 panels installed in the efficiency and agility in inventory management by outdoor car park – complete with electric charging helping to be more efficient with lower inventory, thus points – to account for half of the building’s electricity reinforcing Sustainability in a production model based requirement. With these solar and wind sources from its origins on not having surpluses. combined, all of the building’s energy consumption comes directly from renewable sources. In parallel, the company continues to invest in

The Group is working towards delivering its target communities. In India it rolled out an emergency relief to have 90% of the energy consumed at all of its plan to mitigate the effect of the COVID-19 pandemic, facilities worldwide (offices, logistics platforms including the donation of €500,000 to the Red Cross. and stores) to come from renewable sources by The Group also increased the scope of its programme the end of this year. By the end of 2020, 80% of the with UNHCR, to which it donated 1.9 million garments Group’s worldwide energy consumption came for refugee camps in Rwanda, Burkina-Faso, Ethiopia, from renewable sources, which was ahead of its Uganda and Belarus. In Spain, we collaborated with target, with that figure rising to 100% in Spain. the NGO COGAMI, a Galician association for disabled people, in the Alentae project, a special not for profit The continued progress in sustainability was job centre to make facemasks in facilites equiped by evidenced by external rankings during the quarter. Inditex in Bergondo (A Coruña) Photovoltaic panels at Inditex´s Headquarters in Arteixo (A Coruña)

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pendiente foto nueva edificio zara.com

Premier sustainable building

During the quarter the Group opened a new eco-efficient and technologically advanced building within its Arteixo complex (A Coruña, Spain) to house the new Zara.com studios and the Zara Man central design department. Surrounded by a natural ecosystem of trees and plants, the building features next-generation sustainability and technology developments. The project entailed an overall investment of €110 million. Spanning 67,000 square metres, the building stands out for the 720 high-energy-efficiency glass modules that clad the façade – flooding the interior with natural light.

8 9 1Q21 results III. A digital and integrated Company

As a fully digital company, it continues to develop currently available in 17 markets, including Spain its universe of applications and microservices which (in-store and online), Portugal, Germany, UK, France, are being layered over the Inditex Open Platform Netherlands, Poland, Italy, Sweden, Denmark, Austria (IOP). The versatility of this digital architecture and the Czech Republic, with others in the pipeline. makes it easy to create and integrate new services for users and professionals in each of the steps This allows customers to group returns of items of the Company’s activity, besides improving our bought at different times to boost efficiency and customers’ experience. The process is enriched convenience. The app keeps organized a list of the constantly by incorporating new functionalities and items customers can still return in a specific period developments adapted in-house to each need, to using the electronic receipt, so they can group the permanently improve the performance and scope of return along the returning period whenever they like. the IOP platform. In the same vein, Zara also continues to rollout Elsewhere, the integrated stock management in-store Customer Experience areas, with new system, underpinned by the full deployment of radio convenience services and spaces such as fitting frequency identification (RFID) technology providing room waiting areas and showroom areas. Dedicated real-time data on inventory, is enabling the company exchange and returns areas, online order pick up and to operate with even tighter inventory levels, while clothes collection points, and recycling points have improving the customer shopping experience. also been implemented.

In Spain, Japan and the UK, Zara has completed the In a bid to continually improve the shopping experience, rollout of its Store Mode app feature, which allows during the first quarter, Inditex inaugurated the new customers to browse items in the store of their choice zara.com building at its head offices in Arteixo through their mobile app to know which items are in (A Coruña, Spain), which houses the audiovisual store before they arrive. It also enables customers to production studios and the teams tasked with purchase these items in advance for collection in half coordinating the brand’s online presence. The building, an hour, in-store fitting room booking, and location which boasts 67,000 square metres of floor space and of items they’ve seen online in store. ‘Store Mode’ next-generation sustainability credentials, entailed an functionality is also operational in 30 stores each in investment of over €110 million. Germany and Italy, in 10 stores in France and is being gradually introduced in markets such as Russia, The company is also forging ahead with its €1 billion Poland or the US. digitalisation investment plan, with another €1.7 billion of capex to be set aside for platform integration Sales and IT teams continue partnering with between 2020 and 2022. At the quarter close, the distribution and operations to develop services that company had 6,758 stores in 96 markets, having improve customer experience, while making a more opened 53 new stores in 21 markets during the period. efficient and sustainable use of resources. These are bigger and higher-tech stores that are fully ready to adapt for business model evolution. One example is how Zara continues to roll out its returns consolidation service organised through The high-profile openings last quarter include the electronic receipt function of the app which is the Zara stores in Clermont-Jaude (France), Lize New Zara.com studios building in Arteixo, A Coruña

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Pull&Bear Edimburgo

Paradise in Beijing (China), the Waterfront shopping areas, the three brands will occupy 9,000 square centre in Belgrade (Serbia), and a new flagship in metres between two stores which will become Nashville (US) and the expansion of the flagship benchmarks for the Group’s focus on large stores in store on Paseo de Gracia in Barcelona (Spain) and premium locations. Puerto Banús (Marbella, Spain). Other important Stradivarius Rotterdam openings for Zara in the second quarter include In line with that same model, during the second quarter in Cairo (Egypt), Cardiff (UK), which have already Bershka has opened one of the most important opened, and Edinburgh (UK). stores on the calendar for the year, a store spanning sensory interaction with the store, articulated across the most popular shopping streets and centres almost 2,000 square metres in Forum des Halles in around a minimalist design with traditional and in cities such as Ankara (Turkey), Puebla (Mexico), In addition, Zara, together with Stradivarius and Zara Paris which showcases the brand’s impressive image. natural design, all of which compatible with the Hong Kong SAR (China), Algiers (Algeria), Pamplona Home, has just announced an agreement to open latest technology features, including ‘Store Mode’. (Spain) and Jerusalem (Israel), among others. stores in one of the biggest real estate developments Similarly, Zara Home unveiled its new store image in Europe, in Madrid’s Plaza de España (Spain). in A Coruña (Spain) during 1Q. The new space is Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Located in one of the city’s most vibrant shopping open-plan and diaphanous to boost the customer’s Oysho and Zara Home also opened new stores

12 13 Appendix I Stores

14 15 Appendix I - Stores

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Zara Beauty

The search for differentiated spaces has been fully utilised through the experience-rich Zara Beauty section which launched during the quarter. The open plan in-store dedicated sections meld the floor, walls and ceiling together, supported by natural light above which highlights the new product lines developed in collaboration with Diane Kendal. Each product is displayed on stainless steel trays to give it prominence.

16 17 Appendix I - Stores

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Zara Home

Another new and unique direction unveiled in the first quarter was the new Zara Home concept. Framed by a store layout that echoes the traditional layout of a house, the cosmetics collection is located in a spacious hall from which the customer then moves to the sitting room and kitchen. The various spaces seek to boost sensory interaction with the store. An experience based on minimalism with traditional and artisan roots. In that manner the brand fuses the new and the old to connect with its customers via the senses, helped by a range of materials featuring warm textures and high ceilings designed to leave the original structure on view. Music, light and scent round out the sense of welcome felt upon arrival at the store.

18 19 Appendix I - Stores

Zara Pelayo street, Barcelona

Zara Shopping Center Waterfront, Belgrade

20 21 Appendix I - Stores

Bershka Forum des Halles, Paris

22 23 Appendix I - Stores

Oysho Villaggio Shopping Mall, Doha

24 25 Appendix I - Stores

Uterqüe Place Vendôme, Qatar

Massimo Dutti Place Vendôme, Qatar

26 27 Appendix II Commercial initiatives

28 29 Appendix II - Commercial initiatives

Zara Woman Into the Light. SS21 Campaign Commercial initiatives by Steven Meisel

The new collections arriving throughout the first They have launched new collections filled with colour inspiration from military clothing, which has become a balms, oils, bronzing powers, long-lasting nail polish quarter and beginning of the second transmit the that transmit joy; striped and tie-dye prints; floral global dress code, on this occasion made using more and make-up brushes, all formulated from high-quality sense of renewal ushered in by the spring. After prints in intense, vibrant colours; light and breezy sophisticated fabrics and techniques. compounds designed by British make-up artist Diane a challenging year, all of the Group’s brands have natural fabrics such as cotton and linen; these are Kendal. The products come in a range of more than once again demonstrated their ability to adapt and the common threads running through all the brands’ Zara also launched its Alphabet Collection, silver 130 colours, a mix of matt, satin and pearl finishes and react, to move forward by providing customers with collections. They have also launched new products: jewellery and silk scarves featuring the letters of the are apt for a wide spectrum of skin tones. what they are looking for, introducing not only new pet ranges, stationary, home scents and bodycare alphabet. Pet Collection, the first dedicated design products but also innovating in terms of the product products in delicate aromas. range, also made its début in the Group’s stores: coats In-store, the new Zara Beauty collection has been engagement experience. for rainy days, a brush set, toys and other exclusive introduced as a new section alongside the Women’s, Into the Light is the theme of Zara’s spring collections. products such as a roll-away bed made from materials Men’s and Kids sections and can be purchased online The brands’ proposals attempt to accompany Images that evoke the desert, mystery and the power designed with pet comfort in mind. in all the European markets, the US, Canada, China, customers in what makes them feel best: healthy of dreams. The brand once again allied with Steven South Korea, Japan, Mexico, Australia and New habits such as exercise and good food, their Meisel on photography and Fabien Baron on the video During the second quarter, Zara launched Zara Zealand. The plan is to gradually introduce it around relationship with nature and their surroundings, time shoots this season. Beauty, one of the most important new additions to the rest of the world. Customers can also discover enjoyed at home, hobbies, new situations that have the Group’s product range. Framed by the slogan, the entire collection by means of an exclusive arrived to stay, in short, products that help them do all The most recent - and sixth - edition of Zara SRPLS ‘There is no beauty, only beauties’, the idea is to cater immersion experience receiving personalised these things with greater intensity and optimism. strikes a more elegant and renewed cord, taking its to everyone’s needs. To that end it includes lipsticks, beauty tips, a service on offer in 22 stores across

30 31 Appendix II - Commercial initiatives

Bershka Join Life collection, in collaboration with OCA, Organic Cotton Acelerator

Massimo Dutti Limited Edition Collection

the world’s most important shopping capitals. values, a line whose philosophy is underpinned by the The rest of the Group’s brands were similarly active. values of personal care and exclusivity. Body Care Collection encompasses four fragrances created from Pull&Bear launched (Un)catalogued, a limited-edition an exclusive collection of natural ingredients presented capsule collection that combines iconic denim pieces in eau de parfum format. Bershka was particularly with minimalist garments with trendy finishes and active this quarter, with a capsule collection designed also presented its summer collection with Pol Granch. together with French rapper Hatik, the Paloma Mami The collection includes exclusive Havaianas flip- x Bershka collection and the brand’s initial foray into flop designs and the brand also launched Pull&You, Anime with Evangelion. On the sustainability front it Pull&Bear’s bag and wallet personalisation initiative. is worth highlighting the Hack Denim and the Join The brand’s commercial initiatives also included Life capsule collection in collaboration with Organic Pacific Game, which was developed on the Spark AR Cotton Accelerator (OCA). During the second quarter, platform and inspired by its collection. the brand launched a new laser-printed Denim Lab personalisation experience together with Jeanología. With the launch of its Body Care Collection, Massimo Dutti started to redefine the bases of its creative code, Stradivarius made its mark with Varius, a pro- developing a personal care product range that joins an diversity label-free social movement. To be Varius is offering that is increasingly aligned with the brand’s to be different while remaining true to one’s essence. A

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Pull&Bear Denim Collection SS21

Stradivarius #LoveAllYourVarius

manifesto featuring seven international ambassadors Vinyasa Yoga sessions broadcast from the world’s who raise the movement’s visibility through the main capitals. A digital tour featuring seven #LoveAllYourVarius hashtag. Actresses Beatrice international yogis: Riva G (US), Alessandra Oram Vendramin of Italy, Julia Wieniawa of Poland and (Spain), Elvin Levinler (Turkey), Claudia Casanova Renata Notni of Mexico, Spanish singer Nía Correia (Italy), Brenda Medina (Mexico), Kino MacGregor (US) and Spanish model Lorena Durán, Russian artist and Caroline Perrineau (France). Sasha Spilberg and Dutch influencer @queenofjetlags are the voices of Varius, between them reaching a Oysho also launched New Talents, a search for trainers community of over 17 million people worldwide. for its online programme, Train With Us. Professionals from different disciplines, including yoga, functional Stradivarius also introduced Sport, Living Movement, training and Pilates, among others. The main aim of a new product line targeted at young women who love the initiative is to give emerging trainers visibility at the sport and healthy living. The core Living Movement international level by giving live classes from Oysho’s message aims to transmit a lifestyle with which all social platforms. kinds of girls can identify as they share a common characteristic: they live life in movement, practising a Zara Home’s ever-expanding product range extended range of disciplines, such as dance, cycling, running to new initiatives such as Bakery Kids and bikes – and fitness. Paris by Bike (in collaboration with Veloretti). It also launched its Outdoor Collection during the second Oysho, meanwhile, continued to organise its quarter and is working on a range centred around film- International Yoga Tour and a digital event with making and a collaboration with Cedric Grolet.

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Oysho Yoga Collection SS21

Uterqüe A La Fresca, Collection SS21

Uterqüe’s spring-summer collection is designed Lastly, Uterqüe, which made its début on TikTok, for adventurous and free-spirited women and is launched Dear jasmine, Warm oud, Silent rose and an explosion of joy and colour designed to inspire Breath neroli, four fragrances that denote floral and summer dreaming. The brand’s proposals this botanic scents presented in 50-ml bottles. Each season are a mix and match of fabrics, colours perfume is accompanied by a solid stick version, and prints. Bright colours such as royal blue which can be applied directly to the skin, a simple and lemon yellow are juxtaposed with pastel and practical solution that is ideal for a handbag pinks and greens, working together to perfection. or suitcase.

36 37 Appendix II - Commercial initiatives

Zara Home Into nature, Outdoor Collection

Zara Home Paris by Bike Collection

38 39 Appendix II - Commercial initiatives

Massimo Dutti Limited Edition Collection

40 41 Appendix II - Commercial initiatives

Zara Kids SRPLS CLLCTN 06

42 43 Appendix II - Commercial initiatives

Zara New Beauty Collection

44 45 INDITEX

Communication and Institutional Relations

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