Store sta

2 13 June 2018

first-quarter 2018 results Group’s net sales climb 2% to €5.7 billion Sales growth of 7% in local currencies

. Revenue reached a new first-quarter record of €5.7 billion, during a period marked by significant exchange rate effects.

. Same-store sales growth was positive in all geographies.

. The chairman and CEO, Pablo Isla, highlighted that “the strength of the integrated store and online model, bolstered by continued innovation, is driving solid growth and notable job creation”

. The group launched online sales for in and New Zealand during the quarter.

. space kept growing, while the company continued differentiating, optimising and upgrading its store portfolio.

. In April, the company distributed €42 million among 88,000 employees under its extraordinary employee profit-sharing plan. In total, between commissions, incentives and bonuses, the Group has distributed €562 million over the past year.

. Sales increased by 9% in local currencies between 1 May and 11 June 2018.

3 KEY FIGURES (first-quarter 2018. € million)

1Q18 1Q17 YoY 2Y CAGR*

Net sales 5,654 5,569 2% 8%

Gross profit 3,328 3,240 3% 8% Gross margin 58.9% 58.2%

EBITDA 1,125 1,113 1% 9%

EBIT 851 834 2% 10%

Net profit 668 654 2% 10%

*CAGR: compound annual growth rate

Inditex registered net sales growth of 2% in the fi rst and refurbishing others, closing the period with three months of its new fi scal year (1 February – 7,448 stores. Refurbishments and investments are 30 April 2018) to €5.7 billion, marking a new fi rst- mainly connected to the introduction of the latest quarter record. The period was marked by signifi cant technologies related to the Group’s integrated store exchange rate movement with sales growth in local and online model. currencies of 7%. Framed by this strategy of reinvesting for future Growth was underpinned by solid business growth, Inditex fi nalised the expansion of its performance and same-store sales growth across head offi ces in Arteixo (A Coruña, ) in May. all geographies. Gross margin improved by 68 The complex will continue to house Zara and Zara basis points from the same quarter a year ago to Home’s design, product, technology, distribution, 58.9%. Net profit reached €668 million in first quarter logistics and sustainability teams as well as Inditex of fiscal 2018, up from €654 million in the same Group’s shared service professionals. period a year prior. Functionality and sustainability are the bedrocks of this 80,000m2 facility. It consists of two buildings that Inditex’s chairman and CEO, Pablo Isla, noted that are interconnected via passageways to the existing “the strength of the integrated store and online complex. The building’s exterior features climate model, bolstered by continued innovation, is driving solid growth and notable job creation”. sensitive vertical slats which move to ensure energy effi ciency. Indigenous plants requiring little water are in beds watered by rainwater and the building has adopted locally-sourced recycled materials. These I. HIGHLIGHTS effi ciency measures will reduce energy consumption During the fi rst quarter, the company continued to by 45% and water use by 30%. The facilities will expand its integrated store model, launching online qualify for LEED Gold certifi cation. sales in Australia and New Zealand and continuing A further new distribution centre in A Laracha (A with its strategy of diff erentiating and optimising its Coruña, Spain) spans 90,000m2 and is due to be store portfolio, with space continuing to grow from operational this summer, as scheduled. Located 15 a year prior. minutes from the Arteixo headquarters, this centre will During the fi rst three months of fi scal 2018, the complement the Group’s existing logistics platforms Group’s brands opened new stores in 36 markets, in Spain. In parallel, work continues on the new while continuing with the Group’s strategy of logistics hub in Lelystad (). Investment in absorbing smaller-sized units and expanding these new facilities exceeds €150 million.

4 New headquarter buildings in Arteixo, A Coruña

A Laracha distribution centre, A Coruña

5 II. EMPLOYEE PROFIT- Pull&Bear, meanwhile, opened a new four-storey flagship store on Madrid’s calle Preciados, one of SHARING PLAN the world’s busiest shopping streets, as well as a new store on Via XX Settembre in Genova (). In April, the company distributed €42 million among In addition, the brand expanded and upgraded its 88,000 employees with at least two years’ service in stores on Gran Vía (Madrid) and Portal de l’Àngel its stores, manufacturing facilities, logistics platforms, (Barcelona), and relocated its establishment in the brands and subsidiaries as part of phase one of the Westfield London, White City shopping centre, one Group’s 2017-2018 extraordinary employee profit- of the most important in London (UK). sharing plan. Continuing with this strategy of differentiation of stores, This plan commits to pay out 10% of the annual opened flagship stores in Zaragoza growth in net profit, which yielded a figure of €21 (Spain), on Amiraplatz in Munich (), in the million in 2017 which the Group then increased by a Solana shopping centre in Beijing () and the further €21 million. Istinye Park centre in Istanbul (). Both feature This €42 million is on top of the €520 million paid the latest technological innovations which the brand out in 2017 to the entire workforce in the form of is introducing in its new stores such as interactive performance-based bonuses and commission, to fitting rooms and the RFID mirror system. bring the total variable remuneration for the year to introduced its new Stage store image €562 million. With the inclusion of fixed wages the group in its newly relocated store on Portal de l’Àngel paid out a total of €3.27 billion in remuneration in 2017. (Barcelona) and in its refurbished establishment

in Puerto Madero (), while Stradivarius

deployed its new eco-store concept at its flagship

stores on Paseo de Gracia in Barcelona (Spain) III. GROWTH ACROSS ALL and Eindhoven (Netherlands) and in its refurbished and expanded stores in the White City (London) REGIONS and Dubai Mall () shopping All of the Group’s brands opened flagship stores in centres. This new image is articulated around the all of its geographic regions in the first quarter. In use of natural timber which contrasts with white and addition to the launch of online sales in Australia cement features. Plants and lighting are also vital and New Zealand, Zara opened its first stores in the components of this new store concept, injecting a cities of Buffalo (New York) and Murray (Utah) in the sense of freshness, clarity and dynamism. The LED US, and in Pune (India). It also expanded flagship lighting meets the Group’s eco-efficiency criteria. stores in San Francisco (US), Yokohama (), opened a new two-storey flagship store Warsaw () and Moscow (). In May, in Milan (Italy), in the Piazza San Babila with an Zara opened its iconic flagship in Bilbao (Spain) entrance and shop window onto Corso Venezia. and also its expanded Stratford store in London, the , meanwhile, opened a new flagship first with a dedicated online –in-store section. store in Palma de Mallorca, Spain, unveiling a new During the first quarter Zara also extended and store concept. Madrid’s emblematic Calle Serrano refurbished one of its most important flagship stores was home to the reopening of Uterqüe’s flagship in the world: that located in the Vittorio Emmanuele store during the quarter, similarly displaying the shopping arcade in Milan (Italy). As in Stratford brand’s new store image. and Roppongi (Tokyo), the brand opened a pop- up store for online orders during the refurbishment. This is a novel format where the brand has taken the opportunity to introduce the latest technology designed around the integrated shopping experience.

6 Zara Stratford, London

Zara Hangzhou, China

7 Bershka Puerto Madero, Mexico

Stradivarius Dubai Mall, Dubai

8

New Zara Home store concept, Mallorca

Oysho Piazza San Babila, Milan

9 IV. COMMERCIAL included the fashion show organised by Massimo Dutti in the Palais du Tokyo in Paris featuring ‘See INITIATIVES Now Buy Now’ capabilities, the commemoration by Zara continued to innovate during the first quarter Stradivarius of Keith Haring’s 60th birthday with a with its ZaraAR initiative, which brought augmented capsule unisex collection that arrived in the brand’s reality technology to 130 flagships globally in a stores at the same time as a collection inspired by world-first in the retail sector. The brand projected Mexico’s Frida Kahlo, to mark the 110th anniversary its launch tagline ‘Dear Australia’ in the middle of of her birth. Sydney Bay, opposite the iconic Opera building, Extending Oysho’s long-standing support for helping to draw media attention and prominent fashion professionals to the Australian city for the women’s sporting events, particularly the Women’s unveiling of its first online platform in the region. Race in Spain which it has been sponsoring since 2013, the brand sponsored the same event in Under Join Life, the label used by Inditex’s products Mexico City. Pull&Bear, meanwhile, launched its that adopt the latest sustainable production new Pacific Republic line targeted at its youngest techniques and fabrics, Zara, Oysho and Massimo followers, a range of sweatshirts and t-shirts whose Dutti expanded their collection, while Pull&Bear designs and prints are inspired by the worlds of joined the initiative for the first time. surfing and skate-boarding. Zara Home launched a All of the brands embarked on innovative commercial new Signature Collection, a new cosmetics concept initiatives during the initial months of the year. This within its product range.

ZaraAR augmented reality application

10 Uterqüe ‘for&from‘ , Madrid

V. GIVING BACK TO THE VI. SECOND-QUARTER COMMUNITY TRADING UPDATE On the social and environmental responsibility front, Sales in local-currency terms rose by 9% between the company’s ‘for&from’ programme attained a 1 May and 11 June 2018. new milestone with the opening of Uterqüe´s first Inditex has scheduled its Annual General Meeting for store in The Style Outlets centre in San Sebastián 17 July. The Board of Directors will ask the company’s de los Reyes (Madrid, Spain), which is managed by shareholders to approve the payment of an overall people with disabilities. dividend from 2017 profits of €0.75 per share, €0.375 With a floor area of 313m2, the store is being of which was already paid out on 2 May 2018; the managed as a franchise by the Prodis Foundation, balance would be paid on 2 November 2018. whose mission is to train and provide end-to-end In addition, the Board will propose Pilar López, support to people with disabilities and their relatives. General Manager of Microsoft Spain, as a new It will employ 16 people, 13 of whom have disabilities. independent board member. She will replace Carlos In the wake of this new addition, Inditex now has 14 Espinosa de los Monteros, whose mandate expires ‘for&from’ stores franchised under six of its brands on July 15th , 2018. Inditex would like to thank him (Pull&Bear, Massimo Dutti, Bershka, Stradivarius, for his significant contribution to the Board over the Oysho and Uterqüe), as well as Tempe (the company years. that designs and sells the Group’s footwear and accessories). Altogether they employ 167 people.

11 Zara Bilbao

12 APPENDIX I

13 GLOBAL ONLINE SALES PLATFORM (to 30st April 2018; in bold, online stores launched in the year 2018)

Australia Zara Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe Bulgaria Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe Zara, Massimo Dutti, Zara Home China Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home Hong Kong S.A.R. Zara Macao S.A.R. Zara Zara Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe Finland Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe Germany Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe India Zara Ireland Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe Italy Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe Japan Zara, Bershka, Zara Home Latvia Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe Malaysia Zara Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe Mexico Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home Monaco Zara, Pull&Bear, Masimo Dutti, Zara Home, Uterqüe Netherlands Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe New Zealand Zara Norway Zara, Massimo Dutti, Zara Home Poland Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe Russia Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe Singapore Zara Slovakia Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe Slovenia Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe Zara, Massimo Dutti, Bershka, Oysho, Zara Home Spain Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe

14 Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe Zara Turkey Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home United Arab Emirates Zara Home Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe United States Zara, Massimo Dutti, Bershka, Zara Home Vietnam Zara

For further information

Inditex Communication and Corporate Affairs Dept +34 981 185 400 [email protected] www.inditex.com

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