Industria de Diseno Textil, S.A. · BME:ITX
Industria de Diseno Textil — Inditex — Investor Presentation (2011)
41 slides from Industria de Diseno Textil's investor presentation, Dec 25, 2011
Slide 1: Global Growth Opportunities
Global Growth Opportunities
Slide 2: Disclaimer
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 state
Slide 3: Highlights
Highlights 8 independent concepts Strong Growth 5,400 stores in 81 markets Multi-channel FY 2010 Sales €12.5 Bn Cash flow €2.5 Bn Net Income €1.7 Bn Unique business model 3
Slide 4: Business Model
INDITEX Business Model
Slide 5: Flexible, integrated business model
Flexible, integrated business model Design Store Manufacturing Distribution & & Sourcing Logistics 5
Slide 6: Customer driven
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 pri
Slide 7: Distribution and logistics
Distribution and logistics Central distribution Shipment to all stores worldwide twice a week Orders to stores in 24-48 hours 7
Slide 8: Retail experience
Retail experience Latest fashion trends Fresh items twice a week Prime locations No traditional advertising 8
Slide 9: Strong growth
Strong growth Net Sales (€ billion) 12.5 11.1 10.4 9.4 8.2 6.7 5.7 9 2004 2005 2006 2007 2008 2009 2010
Slide 10: Global opportunity
Global opportunity Business model avoids the main fixed costs associated with international expansion No local distribution centers per market No advertisement when entering a new market Lean head office per market servicing all formats Online sales 10
Slide 11: Diversified sales platform
Diversified sales platform Store sales (%) 1H2011 1H2010 Americas Europe ex-Spain 45% 45% Asia & Europe RoW ex Spain 26% 28% Spain Asia & RoW 17% 15% Spain Americas 12% 12% America s Store sales: Includes sales in OMS and franchises 11
Slide 12: Multi-concept strategy
Multi-concept strategy Market segmentation through distinctive concepts Independent management teams All share same business model A global presence Pull&Bear Zara Zara Massimo Dutti Bershka Stradivarius Oysho Home Uterqüe 1975 1991 1998 1999 2001 2003 2008 12
Slide 13: Online sales roll-out
Online sales roll-out 29 October 2007 Zara Home Europe: Austria, Belgium, Denmark, France, Germany, Greece, Ireland, Italy, Luxembourg, Monaco, Netherlands, Portugal, Spain, Sweden and UK. 2 September 2010 Zara Spain, Portugal, France, Germany, Italy, UK 4 November 2010 Zara Netherlands, Belgium, Lu
Slide 14: Inditex Concepts
INDITEX Inditex Concepts
Slide 15: Multi-concept approach
Multi-concept approach INDITEX Meseimno Dutti PULL&BEAR nN Bershka [ Géracivaniay | —— ~~ ZARA HOME oyusho UTERQUE
Slide 16: Operating autonomy, central support
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 16
Slide 17: Multi-concept strategy
Multi-concept strategy Age Target Sales Breakdown Zara Massimo Dutti Pull&Bear Non- Bershka Zara Stradivarius Zara Oysho Zara Home Uterqüe 0 10 20 30 40+ 17
Slide 18: Zara
Zara Latest fashions for women, men and children Headquarters in Arteixo (A Coruña) FY10 Sales: €8.1bn FY10 EBIT: €1.5 bn 1H11 Stores: 1,759 18
Slide 19: Massimo Dutti
Massimo Dutti Elegant design with excellent quality for men, women and children Headquarters and distribution centre in Tordera (Barcelona) FY10 Sales: €897m FY10 EBIT: €172m 1H11 Stores: 545 19
Slide 20: Pull&Bear
Pull&Bear Casual fashion and sport styles for young men and women (14 to 28) Headquarters and distribution centre in Narón (A Coruña) FY10 Sales: €771m FY10 EBIT: €139m 1H11 Stores: 704 20
Slide 21: Bershka
Bershka Latest fashions for young women and men (13 to 23) Headquarters and distribution centre in Tordera (Barcelona) FY10 Sales: €1,247m FY10 EBIT: €197m 1H11 Stores: 751 21
Slide 22: Stradivarius
Stradivarius Urban fashion at attractive prices for young women (18 to 35) Headquarters and distribution centre in Sallent (Barcelona) FY10 Sales: €780m FY10 EBIT: €176m 1H11 Stores: 633 22
Slide 23: Oysho
Oysho Latest trends in women’s loungewear, lingerie and undergarments Headquarters and distribution centre in Tordera (Barcelona) FY10 Sales: €304m FY10 EBIT: €45m 1H11 Stores: 449 23
Slide 24: Zara Home
Zara Home Textiles for bed, bath and table complemented by decorative items Headquarters in Arteixo (A Coruña) FY10 Sales: €294m FY10 EBIT: €39m 1H11 Stores: 293 24
Slide 25: Uterqüe
Uterqüe Premium accessories (bags, shoes, costume jewellery) Headquarters and distribution centre in Tordera (Barcelona) FY10 Sales: €59m 1H11 Stores: 87 25
Slide 26: Financial Summary
Financial Summary
Slide 27: Highlights
Highlights Million € FY2010 % 10/09 Net sales 12,527 13% Gross profit 7,422 17% EBITDA 2,966 25% Net income 1,741 32% Funds from operations 2,540 23% 27
Slide 28: Outlook
INDITEX Outlook
Slide 29: Outlook
Outlook Global growth opportunities Outlook FY2011 29
Slide 30: Global growth opportunities
Global growth opportunities Inditex: strong growth potential Flexible business model Latest fashion trends at the right time at affordable prices Multi-concept Online sales Business model avoids the main fixed costs associated with international expansion 30
Slide 31: Global growth opportunities
Global growth opportunities Profitable expansion of the business remains a key priority Focus in Europe and Asia 31
Slide 32: Global growth opportunities: Growth in Europe
Global growth opportunities Growth in Europe Significant growth opportunities Balanced expansion between Western and Eastern Europe Multiconcept growth 32
Slide 33: Global growth opportunities: Growth in Asia
Global growth opportunities Growth in Asia: Leveraging on a strategic presence Markets in transformation Multiconcept expansion Strong growth opportunity 33
Slide 34: China
China 2006: Main capitals (HK, Shanghai, Beijing, Macau) 2007 : Cities +5m inhabitants 2009 : Cities +2.5m inhabitants 2010: Multi-concept launch Cities +1.5m inhabitants 143 stores at FYE 2011: c.130 openings/7 concepts FYE 2011: 40 cities FYE12: 50 cities 34
Slide 35: Global growth opportunities: Growth in the Americas
Global growth opportunities Growth in the Americas Build on current platform through selective expansion 35
Slide 36: Global growth opportunities
Global growth opportunities Australia April 2011 Taiwan November 2011 South Africa November 2011 36
Slide 37: Zara online sales
Zara online sales Europe, US and Japan Progressive rollout in all markets 37
Slide 38: Online sales for all concepts
Online sales for all concepts Europe Massimo Dutti Bershka Pull&Bear Stradivarius Oysho Zara Home Uterqüe Progressive rollout in all markets 38
Slide 39: FY2011: Outlook
FY2011: Outlook Store opening programme Range Zara 125 130 Pull and Bear 45 50 Massimo Dutti 40 45 Bershka 70 75 Stradivarius 80 85 Oysho 40 45 Zara Home 35 40 Uterqüe 25 30 Total net openings 460 500 Capital expenditure c.800 million € Extraordinary investment of €333m in unique retail premises
Slide 40: FY2011: Outlook
FY2011: Outlook Shareholder remuneration FY2010 33% increase FY2010 dividend proposal 1.60 € per share payable: 2 May: 0.80 € ordinary 2 November: 0.60 € ordinary + 0.20 € bonus 997 million € distributed to shareholders 40
Slide 41: Global Growth Opportunities
Global Growth Opportunities