40
Interim Three Months 2018 13 June 2018
Interim Three Months 2018
Interim Three Months 2018 13 June 2018
1
Interim Three Months 2018
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.
2
Interim Three Months 2018 3
Overview
Interim Three Months 2018
Global fully integrated Store & Online
4
Interim Three Months 2018
Differentiated business model
Central inventory
Distribution to all stores worldwide twice a week
Global online same day/next day
5
Interim Three Months 2018
Interim Three Months 2018: Overview
Strong execution of the business model
Global growth opportunities
Strong activity
6
Interim Three Months 2018
Extension of Inditex HQ
7
Stratford
Interim Three Months 2018
Zara: London Flagship
8
Stratford
Interim Three Months 2018
Zara: London Flagship
9
Stratford
Interim Three Months 2018
Zara: London Flagship
10
Stratford
Interim Three Months 2018
Bershka: Mexico City Flagship
11
Madero
Interim Three Months 2018
Massimo Dutti: New image
12
Zaragoza Paseo de la Independencia
Interim Three Months 2018
Pull&Bear: Madrid Flagship
13
Preciados
Interim Three Months 2018 14
Cerdanyola
Stradivarius: New Headquarters
Interim Three Months 2018
Oysho: Milan Flagship
15
Piazza San Babila
Interim Three Months 2018
Zara Home: Palma de Mallorca Flagship
16
Paseo del Borne
Interim Three Months 2018
Uterqüe: Madrid Flagship
17
Claudio Coello
Interim Three Months 2018
Financial Summary
18
Interim Three Months 2018
Interim Three Months 2018
19
€ million 1Q18 1Q17 18/17 2 year CAGR
Net sales 5,654 5,569 2% 8%
Gross profit 3,328 3,240 3% 8%
EBITDA 1,125 1,113 1% 9%
EBIT 851 834 2% 10%
Net income 668 654 2% 10%
Strong operating performance
Interim Three Months 2018
Strong Sales Growth
20
€ million 1Q18 1Q17 18/17 2 year CAGR
Net sales 5,654 5,569 2% 8%
Sales in local currencies +7%
Interim Three Months 2018
Gross Profit
21
€ million 1Q18 1Q17 18/17 %
Gross profit 3,328 3,240 3% 58.9%
Gross profit growth of +3% to €3.3 bn to 58.9% (+68 bps)
Sustained commercial policies
Interim Three Months 2018
Tight control of operating expenses
22
€ million 1Q18 1Q17 18/17
Op. expenses 2,194 2,126 3%
Interim Three Months 2018
Current Accounts
23
€ million 1Q18 1Q17
Inventory 2,900 2,774
Receivables 884 992
Payables (5,937) (5,921)
Operating working capital (2,153) (2,155)
Interim Three Months 2018
Concepts
24
Interim Three Months 2018
Performance per concept
25
% Store & Online Sales
Interim Three Months 2018
Performance per concept
26
Group average Massimo
Dutti Bershka
Oysho
Zara Home
Uterque Stradivarius
Pull&Bear
Interim Three Months 2018
Outlook
27
Interim Three Months 2018
FY2018: Outlook
Ordinary capital expenditure c. €1.5 billion Store & Online sales in local currencies have increased +9%
from 1 May to 11 June 2018
28
Interim Three Months 2018
Global Store & Online: Strong growth opportunities
29
Interim Three Months 2018
Global online
Central inventory + Online stockrooms + Global store platform
Same day delivery metropolitan areas/Next day global standard
30
Toronto 2017
Los Angeles 2014
UK 2012 Russian Fed
2013 Tokyo 2011
Shanghai 2012
Madrid 2010
Poland 2014 & 2016
Mexico 2014
Seoul 2014
Philadelphia 2015 Taiwan
2015
France 2015 Turkey
2016
Hong Kong 2016
New Delhi 2017
Sydney 2018
Interim Three Months 2018
Online launch of Zara in Australia and New Zealand
31
East Nanjing Road
Interim Three Months 2018
Store & Online: Studio Collection
32
Interim Three Months 2018
Store & Online: Behind the Desert
33
Interim Three Months 2018
Store & Online: Atlantic Beach
34
Interim Three Months 2018
Store & Online: Colour Canyon
35
Interim Three Months 2018
Zara: Tokyo pop-up
36
Paris Opera Roppongi Hills
Interim Three Months 2018
Zara: Shenzhen
37
Upper Hills mall
Upper Hills
Interim Three Months 2018
Zara: Los Angeles
38
Beverly Center
Interim Three Months 2018
Zara: Bilbao
39
Gran Vía
Interim Three Months 2018
Interim Three Months 2018 13 June 2018
40
