Global Growth Opportunities Interim Nine Months 2014

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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.

Inditex Group Profile

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Highlights Global Fashion Retailer 

7,013 stores / Online



Sales €20.9 bn



Cash flow €3.9 bn



Market cap. €93bn

8 independent concepts

Unique business model

Inditex Group Profile

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Global fully integrated Store & Online sales platform

East Nanjing Road

Inditex Group Profile

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Global fully integrated Store & Online sales platform 

5 continents



88 markets



Northern and southern hemisphere

Inditex Group Profile

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Differentiated Business Model 

Central inventory position

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Distribution to all stores worldwide twice a week

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Orders to stores and online customers in 2-48 hours

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Global Online Sales 

Central inventory position + Online stockrooms

Boston Sep 2011 Los Angeles May 2014

Philadelphia Sep 2015

UK Sep 2012 Madrid Sep 2010

Poland May 2014 France Oct 2015

Mexico Sep 2014

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Russian Fed Aug 2013

Seoul Tokyo Sep 2014 Oct 2011 Shanghai Sep 2012 Taiwan Aug 2015

Business Model

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Flexible, integrated business model

Stores & Online

Design

Manufacturing & Sourcing

Inditex Group Profile

Distribution & Logistics

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Customer driven 

Compelling mix of latest fashions and quality at affordable prices



Unique product strategy





36,000 new designs per year



delivery to stores at least twice per week

Customer interaction 

daily feedback allows constant modification of collections



Prominent stores in prime locations



Global online sales

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Customer driven

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Customer driven

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Global fully integrated Store & Online platform 

Latest fashion trends



Prominent stores in prime locations

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Fresh items twice a week



Direct communication

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Strong growth

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Global opportunity 

Business model avoids the main fixed costs associated with international expansion 

Central inventory position. No local distribution centers



No advertising



Lean local head offices



Fully integrated Store & Online sales platform

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Global Sales Platform

Store & Online sales

Inditex Group Profile

FY2015

Europe ex-Spain

44.0%

Asia & RoW

23.5%

Spain

17.7%

Americas

14.7%

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Multi-concept strategy 

Market segmentation through distinctive concepts



Independent management teams



Same business model across all concepts



Global presence

Zara 1975

Pull&Bear Massimo Dutti 1991

Inditex Group Profile

Bershka 1998

Stradivarius 1999

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Oysho 2001

Zara Home 2003

Uterqüe 2008

Global online sales Oct 2007

Zara Home

Europe

From Sep 2010

Zara

Europe

From Sep 2011

Massimo Dutti, Bershka, Pull&Bear, Stradivarius, Oysho, Uterqüe

Europe

Sep 2011

Zara

United States

Oct 2011

Zara

Japan

Sep 2012

Zara

China

Oct 2012

Massimo Dutti, Zara Home

United States

Mar 2013

Zara

Canada

From Aug 2013

Zara, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home

Russian Federation

Sep 2014

Zara

South Korea, Mexico

From 2014

Zara, Massimo Dutti, Bershka, Pull&Bear, Stradivarius

Tmall - China

Sep 2015

Zara

Hong Kong, Macau, Taiwan

Dec 2015

Zara Home

Australia

Continued roll-out

All Concepts

Globally

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Inditex Concepts

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Multi-concept approach

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Operating autonomy, central support

Arteixo (La Coruña)

Tordera (Barcelona)

Inditex

Massimo Dutti

Zara

Bershka

Zara Home

Oysho Uterqüe

Narón (La Coruña) Sallent (Barcelona)

Pull&Bear

Stradivarius

Inditex Group Profile

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Multi-concept strategy Age Target

Sales

Zara Massimo Dutti Pull&Bear NonZara

Bershka Stradivarius

Zara

Oysho Zara Home Uterqüe 0

Inditex Group Profile

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20

30

40+

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Zara 

Latest fashions for women, men and children



Headquarters in Arteixo (La Coruña)



FY15 Sales: €13.6 bn



FY15 EBIT: €2.5 bn



FY15 Stores: 2,162

Inditex Group Profile

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Zara

Inditex Group Profile

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Massimo Dutti 

Elegant design with excellent quality for men, women and children



Headquarters and distribution centre in Tordera (Barcelona)

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FY15 Sales: €1.5 bn



FY15 EBIT: €273 m

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FY15 Stores: 740

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Massimo Dutti

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Massimo Dutti

Inditex Group Profile

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Pull&Bear 

Casual fashion and sport styles for young men and women (14 to 28)



Headquarters and distribution centre in Narón (Coruña)

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FY15 Sales: €1.4 bn

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FY15 EBIT: €206 m

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FY15 Stores: 936

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Pull&Bear

Inditex Group Profile

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Pull&Bear

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Bershka 

Latest fashions for young women and men (13 to 23)



Headquarters and distribution centre in Tordera (Barcelona)

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FY15 Sales: €1.9 bn



FY15 EBIT: €299 m



FY15 Stores: 1,044

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Bershka

Inditex Group Profile

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Bershka

Inditex Group Profile

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Stradivarius 

Urban fashion for young women (18 to 35)



Headquarters and distribution centre in Sallent (Barcelona)

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FY15 Sales: €1.3 bn



FY15 EBIT: €274 m



FY15 Stores: 950

Inditex Group Profile

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Stradivarius

Inditex Group Profile

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Stradivarius

Inditex Group Profile

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Oysho 

Latest trends in women’s loungewear, lingerie and undergarments



Headquarters and distribution centre in Tordera (Barcelona)

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FY15 Sales: €452 m

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FY15 EBIT: €70 m

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FY15 Stores: 607

Inditex Group Profile

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Oysho

Inditex Group Profile

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Oysho

Inditex Group Profile

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Zara Home 

Textiles for bed, bath and table complemented by decorative items



Headquarters in Arteixo (La Coruña)

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FY15 Sales: €666 m



FY15 EBIT: €100 m

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FY15 Stores: 502

Inditex Group Profile

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Zara Home

Inditex Group Profile

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Zara Home

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Uterqüe 

Premium accessories (bags, shoes, costume jewellery)



Headquarters and distribution centre in Tordera (Barcelona)

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FY15 Sales: €75 m

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FY15 EBIT: €4 m

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FY15 Stores: 72

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Uterqüe

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Uterqüe

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Financial Summary

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Full Year 2015

FY15

FY14

15/14

Net Sales

20,900

18,117

15%

Gross profit

12,089

10,569

14%

EBITDA

4,699

4,103

15%

EBIT

3,677

3,198

15%

Net income

2,875

2,501

15%

€ million

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Outlook

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Outlook 

Global growth opportunities



Global online sales



Outlook FY2016

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Global Growth Opportunities 

Global fully integrated Store & Online sales platform



Strong growth opportunities

Inditex Group Profile

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Growth in Europe 

Important growth opportunities in Western and Eastern Europe



All concepts store and online

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Growth in Asia 



Strong growth opportunities. Leverage strategic presence. Zara launch in Vietnam. Massimo Dutti in India Store & Online sales platform in China, Japan, South Korea, Hong Kong, Macau and Taiwan

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Growth in the Americas 

Attractive growth markets



Strong growth opportunities



Fully integrated Store & Online sales platform

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Global Growth Opportunities 



Australia and South Africa. Zara Home online launch in Australia last December Ongoing expansion. Zara launch in New Zealand. Zara Home in South Africa

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Global Online Sales 



Europe, US, China, Japan, Russian Federation, Mexico, South Korea, Canada Global online rollout

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Outlook 





Increased differentiation of retail base. Larger and more prominent stores in prime locations Lower capital expenditure required for expansion. Ordinary capital expenditure to grow below space growth 6%-8% new space in prime locations annually in conjunction with increasing contribution from organic growth and online sales

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FY2016: Outlook 

400-460 Gross Openings / Selective absorption of 100-120 small units



c280,000m2 of new space in prime locations



Global online sales rollout



Capital Expenditure c. €1.5 billion

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Dividend increase +15.4% 

€1.9 billion to be distributed to shareholders

€ DPS

Inditex Group Profile

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Madrid Zara Serrano

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London

Zara Oxford Street London Inditex Group Profile

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Paris Zara Champs Elysees

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Brussels

Zara Toison D’Or Brussels Inditex Group Profile

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Milan Zara Corso Vittorio Emanuele

Inditex Group Profile

Zara Tverskaya

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Munich Zara Via del Corso (Palazzo Bocconi)

Zara Neuhauser Strasse Inditex Group Profile

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Moscow Zara Mall of Russia

Zara Mall of Russia Inditex Group Profile

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New York

Zara 666 Fifth Avenue Inditex Group Profile

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Chicago

Zara Michigan Avenue 666 Fifth Avenue Inditex Group Profile

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Miami

Zara Lincoln Road Inditex Group Profile

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Los Angeles

Zara Figueroa 666 Fifth Avenue Inditex Group Profile

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Mexico Zara Madero

Inditex Group Profile

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Sao Paulo Zara Avenida Daniel Touche

Zara 666 Fifth Avenue Inditex Group Profile

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Hong Kong Zara Queen´s Road

Inditex Group Profile

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Shanghai

Zara 592 East Nanjing Road Inditex Group Profile

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Beijing

Zara Xidan Joy City Inditex Group Profile

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Tokyo Zara Ginza

Inditex Group Profile

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Seoul

Zara Plaza Street Zara M Murray Inditex Group Profile

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Mumbai

Zara Murray Street Inditex Group Profile

Zara Palladium Mall 77

Brisbane

Queen Zara Pitt Murray Street Street Mall Brisbane Zara Street Inditex Group Profile

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Capetown Zara Waterfront

Inditex Group Profile

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Global Growth Opportunities Inditex Group Profile

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