Global Growth Opportunities

Global Growth Opportunities
Disclaimer
This document is of a purely informative nature and does not constitute an offer to sell, exchange or buy, or the
solicitation of an offer to buy, securities issued by any of the companies mentioned herein.
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
Highlights
Global fashion retailer

6,300 stores / Online / Mobile

Sales €15.9 bn (FY12)

Cash flow €3.3 bn (FY12)

Market cap. €72bn
8 independent concepts
Unique business model
3
Global fashion retailer

5 continents

86 markets

Northern and southern hemisphere
4
Business Model
Flexible, integrated business model
Design
Manufacturing
&
Sourcing
Store
Distribution
&
Logistics
6
Customer driven

Compelling mix of latest fashions
and quality at affordable prices

Unique product strategy
 36,000 new designs per year
 delivery to stores 2-6 times per week

Customer interaction
 daily in-store feedback allows
constant modification of collections

Attractive stores in prime locations
7
Distribution and logistics

Central distribution

Shipment to all stores worldwide twice a week

Orders to stores in 24-48 hours
8
Retail experience

Latest fashion trends

Fresh items twice a week

Prime locations

Direct communication
No traditional advertising
9
Strong growth
Net Sales
(€ billion)
15.9
13.8
12.5
11.1
10.4
9.4
8.2
2006
2007
2008
2009
2010
2011
2012
10
Global opportunity

Business model avoids the main fixed costs associated
with international expansion
 Central inventory position
 No local distribution centers per market
 No advertisement when entering a new market
 Lean head office per market servicing all formats
 Online sales
11
Global sales platform
Store sales (%)
Americas
Europe
ex-Spain
Spain
Asia &
RoW
1H13
1H12
Europe ex-Spain
45%
44%
Asia & RoW
22%
20%
Spain
19%
22%
Americas
14%
14%
Store sales: Includes sales in OMS and franchises
12
Multi-concept strategy

Market segmentation through distinctive concepts

Independent management teams

All share same business model

A global presence
Zara
1975
Pull&Bear
Massimo Dutti
1991
Bershka
1998
Stradivarius
1999
Oysho
2001
Zara
Home
2003
Uterqüe
2008
13
Global online sales
From 29 Oct 2007
Zara Home
Europe: Austria, Belgium, Denmark, France,
Germany, Greece, Ireland, Italy, Luxembourg,
Monaco, Netherlands, Portugal, Spain, Sweden,
UK, Switzerland, Norway, Finland, Poland
2 Sept 2010
Zara
Spain, Portugal, France, Germany, Italy, UK
4 Nov 2010
Zara
Netherlands, Belgium, Luxembourg, Austria, Ireland
3 March 2011
Zara
Switzerland, Monaco, Sweden, Denmark, Norway
From 6 Sept 2011
Massimo Dutti, Bershka, Pull&Bear,
Stradivarius, Oysho, Uterqüe
Europe
7 Sept 2011
Zara
United States
20 Oct 2011
Zara
Japan
7 March 2012
Zara
Poland
5 Sep 2012
Zara
China
Oct. 2012
Massimo Dutti, Zara Home
United States
6 March 2013
Zara
Canada
28 Aug 2013
Zara
Russian Federation
1 October 2013
Massimo Dutti, Bershka,
Stradivarius, Oysho
Russian Federation
Progressive roll-out
All Concepts
Globally
Inditex Concepts
Multi-concept approach
16
Operating autonomy, central support
Arteixo (La Coruña)
Tordera (Barcelona)
Inditex
Massimo Dutti
Zara
Bershka
Zara Home
Oysho
Uterqüe
Narón (La Coruña)
Pull&Bear
Sallent (Barcelona)
Stradivarius
17
Multi-concept strategy
Age Target
Sales Breakdown
Zara
Massimo Dutti
Pull&Bear
NonZara
Bershka
Zara
Stradivarius
Oysho
Zara Home
Uterqüe
0
10
20
30
40+
18
Zara

Latest fashions for women, men
and children

Headquarters in Arteixo (A Coruña)

FY12 Sales: €10.5 bn

FY12 EBIT: €2.2 bn

1H13 Stores: 1,936
19
Massimo Dutti

Elegant design with excellent
quality for men, women and
children

Headquarters and distribution
centre in Tordera (Barcelona)

FY12 Sales: €1.1 bn

FY12 EBIT: €197 m

1H13 Stores: 634
20
Pull&Bear

Casual fashion and sport styles
for young men and women (14
to 28)

Headquarters and distribution
centre in Narón (A Coruña)

FY12 Sales: €1.1 bn

FY12 EBIT: €182 m

1H13 Stores: 825
21
Bershka

Latest fashions for young
women and men (13 to 23)

Headquarters and distribution
centre in Tordera (Barcelona)

FY12 Sales: €1.5 bn

FY12 EBIT: €240 m

1H13 Stores: 910
22
Stradivarius

Urban fashion at attractive prices
for young women (18 to 35)

Headquarters and distribution
centre in Sallent (Barcelona)

FY12 Sales: €961 m

FY12 EBIT: €208 m

1H13 Stores: 816
23
Oysho

Latest trends in women’s
loungewear, lingerie and
undergarments

Headquarters and distribution
centre in Tordera (Barcelona)

FY12 Sales: €314 m

FY12 EBIT: €26 m

1H13 Stores: 533
24
Zara Home

Textiles for bed, bath and table
complemented by decorative items

Headquarters in Arteixo (A Coruña)

FY12 Sales: €350 m

FY12 EBIT: €41 m

1H13 Stores: 363
25
Uterqüe

Premium accessories (bags,
shoes, costume jewellery)

Headquarters and distribution
centre in Tordera (Barcelona)

FY12 Sales: €74 m

1H13 Stores: 87
26
Financial Summary
Highlights
Billion €
FY2012
% 12/11
Net sales
15.9
16%
Gross profit
9.5
16%
EBITDA
3.9
20%
Net income
2.4
22%
28
Outlook
Outlook

Global growth opportunities

Continued optimisation of retail base

Global online sales

Outlook FY2013
30
Global growth opportunities

Global presence

Flexible business model

Latest fashions at the right time at affordable prices

Multi-concept / Multi-channel

Profitable expansion of the business remains a key priority
31
Global growth opportunities

Growth in Europe
 Significant growth opportunities in Western and Eastern Europe
 All concepts
 Online sales in 20 markets.
32
Global growth opportunities

Growth in Asia: Leverage strategic presence
 Strong growth opportunities
 Presence in all key markets
 Multi-concept & online sales expansion. Zara online in China and Japan.
33
Global growth opportunities

Growth in the Americas
 Attractive growth markets
 Multi-concept expansion: Massimo Dutti in US and Canada, Stradivarius in
Mexico, Zara Home in Brazil
 Online sales: US and Canada for Zara, Massimo Dutti and Zara Home
34
Global growth opportunities

Australia and South Africa

Ongoing expansion
35
Continued optimisation of retail base

Enlargement of flagships

Rollout of new store image

Larger new stores
36
Enlargement of flagships 2012-2014

New York Fifth Avenue

Beijing The Place

London Brompton Road

Moscow Europeinski

Paris Opera

Milan Via Torino

Madrid Serrano

Amsterdam Kalverstraat

Barcelona Paseo de Gracia

Paris Champs Elysees
37
Rollout of new store image 2012-2014

London Parkhouse

Shanghai W. Nanjing Road

Paris Faubourg St. Honoré

Tokyo Ginza

Zurich Bahnhofstrasse

Hong Kong Queen’s Road

Munich Neuhauser Strasse

Taipei Q Square

Vienna Haas Haus

London Regent Street
38
Larger new stores

Continued optimisation of retail base

Increased product visibility

Stronger visual merchandising

Enhanced in-store experience

Larger new stores
39
FY2013: Outlook

Space growth in line with LT targets

Capital Expenditure c. 1.25 billion €
Store opening programme
Zara
Range
110
115
Pull & Bear
40
45
Massimo Dutti
45
50
Bershka
75
80
Stradivarius
95
100
Oysho
35
40
Zara Home
35
40
5
10
440
480
Uterqüe
Total openings
40
Global online sales expansion

Zara: Europe, Asia, Americas

Concepts: Europe, US

Progressive rollout in all markets
41
Zara: Russian Federation online sales

28th August 2013
42
Dividend increase 22%

FY2012 dividend proposal 2.20 € per share payable:
 2 May: 1.10 € ordinary
 4 November: 0.80 € ordinary + 0.30 € bonus

1.4 billion € to be distributed to shareholders
43
Global Growth Opportunities
Corporate social responsibility
Ranked among the top in the most significant global sustainablity indices
DJ Sustainability Index, FTSE4Good, Newsweek Green Rankings
Supply Chain
Code of Conduct
for External
Manufacturers and
Suppliers
Internal & External
audit teams

Clear to Wear

Safe to Wear
Community
Investment
Environmental
Strategic Plan
Product
Health & Safety

2011-2015
Energy & Water
Management
Programmes

Chemical &
Toxin Control

Community
Development

Natural
Resources &
Biodiversity

Emergencies

Universities
Network

For&From

Sponsorship &
Patronage

Waste
management
Cluster Model
45