Interim Three Months June 2018

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Lorena Weaver
6 years ago
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1 13 June

2 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

3 Overview 3

4 Global fully integrated Store & Online 4

5 Differentiated business model Central inventory Distribution to all stores worldwide twice a week Global online same day/next day 5

6 : Overview Strong execution of the business model Global growth opportunities Strong activity 6

7 Extension of Inditex HQ Stratford 7

8 Zara: London Flagship Stratford 8

9 Zara: London Flagship Stratford 9

10 Zara: London Flagship Stratford 10

11 Bershka: Mexico City Flagship Madero 11

12 Massimo Dutti: New image Zaragoza Paseo de la Independencia 12

13 Pull&Bear: Madrid Flagship Preciados 13

14 Stradivarius: New Headquarters Cerdanyola 14

15 Oysho: Milan Flagship Piazza San Babila 15

16 Zara Home: Palma de Mallorca Flagship Paseo del Borne 16

17 Uterqüe: Madrid Flagship Claudio Coello 17

18 Financial Summary 18

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 % 10% Net income % 10% Strong operating performance 19

20 Strong Sales Growth million 1Q18 1Q17 18/17 2 year CAGR Net sales 5,654 5,569 2% 8% Sales in local currencies +7% 20

21 Gross Profit 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 21

22 Tight control of operating expenses million 1Q18 1Q17 18/17 Op. expenses 2,194 2,126 3% 22

23 Current Accounts million 1Q18 1Q17 Inventory 2,900 2,774 Receivables Payables (5,937) (5,921) Operating working capital (2,153) (2,155) 23

24 Concepts 24

25 Performance per concept % Store & Online Sales 25

26 Performance per concept Oysho Pull&Bear Group average Zara Home Uterque Massimo Dutti Bershka Stradivarius 26

27 Outlook 27

28 FY2018: Outlook Ordinary capital expenditure c. 1.5 billion Store & Online sales in local currencies have increased +9% from 1 May to 11 June

29 Global Store & Online: Strong growth opportunities 29

30 Global online Central inventory + Online stockrooms + Global store platform Same day delivery metropolitan areas/next day global standard Los Angeles 2014 Toronto 2017 Mexico 2014 Philadelphia 2015 UK 2012 Madrid 2010 Poland 2014 & 2016 France 2015 Turkey 2016 Russian Fed 2013 New Delhi 2017 Shanghai 2012 Seoul 2014 Hong Kong 2016 Taiwan 2015 Tokyo 2011 Sydney

31 Online launch of Zara in Australia and New Zealand East Nanjing Road 31

32 Store & Online: Studio Collection 32

33 Store & Online: Behind the Desert 33

34 Store & Online: Atlantic Beach 34

35 Store & Online: Colour Canyon 35

36 Zara: Tokyo pop-up Paris Opera Roppongi Hills 36

37 Zara: Shenzhen Upper Hills Upper Hills mall 37

38 Zara: Los Angeles Beverly Center 38

39 Zara: Bilbao Gran Vía 39

40 13 June

Interim Nine Months December 2015

Interim Nine Months December 2015 10 December 2015 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