grupo inditex pres anual 12
TRANSCRIPT
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FY2012 Results Presentation
13 March 2013
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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.
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Overview
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FY2012: Overview
Global growth opportunities
Multi-concept / Multi-channel
A year of strong expansion for Inditex
Strong cash flow and reinvestment in the business
Increased shareholder remuneration
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FY2012: Overview
Sales growth 16%
LFL sales growth 6%
EBIT growth 24%
Net income growth 22%, EPS of 3.79 €
RoCE 39%
22% increase in dividend proposal
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Financial Summary
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FY2012 Highlights
million € FY2012 % 12/11
Net sales 15,946 16%
Gross profit 9,529 16%
EBITDA 3,913 20%
EBIT 3,117 24%
Net income 2,361 22%
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Sales growth breakdown
FY2012
Space contribution 8%
LFL 6%
Currency 2%
Sales growth 16%
7%
1H12 2H12
6%
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Selling area
sqm. FY2012 FY2011 % 12/11
Total space 3,161,448 2,838,980 11.4%
322,000 square metres added to the retail base
10.6% time weighted space growth
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FY2012 Store sales (%)
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12% 14%
18% 20%
45% 45% Europe ex-Spain
25% 21%
Global sales platform
Store sales: Includes sales in OMS and franchises
Americas
Asia & RoW
Spain Europe
Ex-Spain
Spain
Asia &
Americas
Europe ex-Spain
Spain
Americas
Asia & RoW
FY2011
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Gross margin
% on sales FY2012 FY2011 %12/11
Gross margin 59.8% 59.3% 45 bps
Flexible business model
Sustained commercial policies
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Tight control of operating expenses
million € FY2012 %12/11
Personnel expenses 2,548 14%
Rental expenses 1,530 9%
Other operating expenses 1,527 19%
Total 5,605 14%
Strong growth in sales and space addition
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Flexible business model
million € FY2012 FY2011
Inventory 1,581 1,277
Receivables 848 531
Payables (3,409) (2,679)
Operating working capital (980) (871)
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Strong cash flow
million € FY2012
Funds from operations 3,256
CAPEX Ordinary 1,094
Extraordinary* 245
Dividends 1,130
*Acquisition of 333 Oxford St./89 Bond St London & selected investments
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Inditex concepts
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Sales by concept
Concept FY2012 FY2011
Zara 66.1% 64.8%
Non Zara 33.9% 35.2%
Pull and Bear 6.8% 6.9%
Massimo Dutti 7.1% 7.3%
Bershka 9.3% 9.5%
Stradivarius 6.0% 6.3%
Oysho 2.0% 2.3%
Zara Home 2.2% 2.3%
Uterqüe 0.5% 0.5%
Zara
Non Zara
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million € FY2012 % 12/11
Net Sales 10,541 18%
EBIT 2,233 29%
Zara
Strong performance of Zara
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Concepts
Continued growth for the concepts
Strong performance of Pull&Bear, Bershka and Stradivarius
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Outlook
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Outlook
Global growth opportunities
Continued optimisation of retail base
Outlook FY2013
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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
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Global growth opportunities
Growth in Europe
Significant growth opportunities in Western and Eastern Europe
All concepts
Online sales in 18 markets. Further expansion over 2013
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Global growth opportunities
Growth in Asia: Leverage strategic presence
Strong growth opportunities
Presence in all key markets
Multi-concept & online sales expansion
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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 for Zara, Massimo Dutti and Zara Home / Canada for Zara
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Global growth opportunities
Australia and South Africa
Ongoing expansion
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Continued optimisation of retail base
Enlargement of flagships
Rollout of new store image
Larger new stores
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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
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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
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Larger new stores
Continued optimisation of retail base
Increased product visibility
Stronger visual merchandising
Enhanced in-store experience
Larger new stores
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FY2013: Outlook
Space growth in line with LT targets
Capital Expenditure c. 1.25 billion €
Store opening programme Range
Zara 110 115
Pull & Bear 40 45
Massimo Dutti 45 50
Bershka 75 80
Stradivarius 95 100
Oysho 35 40
Zara Home 35 40
Uterqüe 5 10
Total openings 440 480
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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
Progressive roll-out All Concepts Globally
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Zara: Russian Federation online sales
Autumn/Winter 2013
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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
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FY2013: Outlook
Store sales in local currencies, adjusted for the calendar effect
of an extra trading day in February 2012 due to the leap year,
have increased 12% from 1 February to 11 March 2013
The Spring/Summer season is influenced by the performance
over the Easter period due to its significant sales volumes
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FY2012 Results Presentation
Q&A
13 March 2013