Global Growth Opportunities

Global Growth Opportunities Interim Nine Months 2014 1 Disclaimer This document and the information herein does not constitute an offer to sell, to...
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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 

6,700 stores / Online



Sales €18.1 bn (FY14)



Cash flow €3.3 bn (FY14)



Market cap. €92bn

8 independent concepts

Unique business model

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



Distribution to all stores worldwide twice a week



Orders to stores and online customers in 2-48 hours

Inditex Group Profile

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Global online sales 

Central inventory position + Online stockrooms

Russian Fed Aug 2013

UK Sep 2012 Boston Sep 2011

Los Angeles May 2014

Poland May 2014

Madrid Sep 2010

Mexico Sep 2014

Inditex Group Profile

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Tokyo Seoul Oct 2011 Sep 2014 Shanghai Sep 2012

Business Model

Inditex Group Profile

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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

Inditex Group Profile

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Customer driven

Inditex Group Profile

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Customer driven

Inditex Group Profile

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Global fully integrated Store & Online platform 

Latest fashion trends



Prominent stores in prime locations



Fresh items twice a week



Direct communication

Inditex Group Profile

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Global fully integrated Store & Online platform

Inditex Group Profile

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Global fully integrated Store & Online platform

Inditex Group Profile

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Strong growth

Inditex Group Profile

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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

Inditex Group Profile

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Global Sales Platform

Store & Online sales

Inditex Group Profile

FY2014

Europe ex-Spain

46%

Asia & RoW

21%

Spain

19%

Americas

14%

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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

Continued roll-out

All Concepts

Globally

Inditex Group Profile

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Inditex Concepts

Inditex Group Profile

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Multi-concept approach

Inditex Group Profile

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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)



FY14 Sales: €11.6 bn



FY14 EBIT: €2.1 bn



FY14 Stores: 2,085

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)



FY14 Sales: €1.4 bn



FY14 EBIT: €267 m



FY14 Stores: 706

Inditex Group Profile

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Massimo Dutti

Inditex Group Profile

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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)



FY14 Sales: €1.3 bn



FY14 EBIT: €188 m



FY14 Stores: 898

Inditex Group Profile

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Pull&Bear

Inditex Group Profile

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Pull&Bear

Inditex Group Profile

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Bershka 

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



Headquarters and distribution centre in Tordera (Barcelona)



FY14 Sales: €1.7 bn



FY14 EBIT: €245 m



FY14 Stores: 1006

Inditex Group Profile

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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)



FY14 Sales: €1.1 bn



FY14 EBIT: €227 m



FY14 Stores: 910

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)



FY14 Sales: €416 m



FY14 EBIT: €65 m



FY14 Stores: 575

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)



FY14 Sales: €548 m



FY14 EBIT: €81 m



FY14 Stores: 437

Inditex Group Profile

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Zara Home

Inditex Group Profile

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Zara Home

Inditex Group Profile

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Uterqüe 

Premium accessories (bags, shoes, costume jewellery)



Headquarters and distribution centre in Tordera (Barcelona)



FY14 Sales: €68 m



FY14 EBIT: €2 m



FY14 Stores: 66

Inditex Group Profile

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Uterqüe

Inditex Group Profile

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Uterqüe

Inditex Group Profile

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Financial Summary

Inditex Group Profile

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Full Year 2014

FY14

FY13

14/13

Net Sales

18,117

16,724

8%

Gross profit

10,569

9,923

7%

EBITDA

4,103

3,926

5%

EBIT

3,198

3,071

4%

Net income

2,501

2,377

5%

€ million

Inditex Group Profile

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Outlook

Inditex Group Profile

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Outlook 

Global growth opportunities



Global online sales



Outlook FY2015

Inditex Group Profile

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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

Inditex Group Profile

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Growth in Asia 

Leverage strategic presence



Strong growth opportunities



Online sales in China, Japan and South Korea

Inditex Group Profile

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China 500 Stores & Online: Strong Growth potential

Inditex Group Profile

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Growth in the Americas 

Attractive growth markets



Strong growth opportunities



Fully integrated Store & Online sales platform

Inditex Group Profile

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United States: Strong Growth Potential 

Global flagship at SoHo New York



Key openings at New York 500 Fifth Avenue and Financial District





Chicago, Los Angeles, San Diego, Las Vegas, Houston, Dallas, Boston, New Jersey and Seattle Strong Online growth

Inditex Group Profile

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Global Growth Opportunities 

Australia and South Africa



Ongoing expansion. Zara Home launch in Australia

Inditex Group Profile

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Global Online Sales 



Europe, US, China, Japan, Russian Federation, Mexico, South Korea Canada

Progressive rollout in all markets

Inditex Group Profile

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FY2015: Outlook  



Space growth in line with long-term targets 420-480 Gross Openings / Selective absorption of 80-100 small units Ordinary capital expenditure c. €1.35 billion

Inditex Group Profile

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FY2014 Dividend increase +7.5% 

€1.6 billion to be distributed to shareholders 0.6 0.52 0.48

0.5 0.44

0.4

0.36 0.32

0.3

€ DPS

0.24

0.2

0.1 0 2009

Inditex Group Profile

2010

2011

2012

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2013

2014

Madrid Zara Serrano

Inditex Group Profile

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London Zara Park House

Inditex Group Profile

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Paris Zara Champs Elysees

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 78

Sidney

Zara Pitt Murray Street 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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