15/09/2021 - INDITEX - Industria de Diseño Textil SA: Presentation English , PDF, 7.46MB

Disclaimer

This document and the information contained herein does not constitute an offer to sell, exchange or buy, or the solicitation of an offer to buy, or any recommendation or advice regarding, any securities issued by the Inditex Group.

This document may contain statements regarding intentions, expectations or forecasts. All statements other than statements of historical facts included herein, including, without limitation, those regarding our financial position, business strategy, management plans and objectives for future operations, are forward-looking statements. These statements represent the Company's best estimate on the basis of the information available as at the date hereof, but do not constitute a guarantee of future performance. Any such forward- looking statements may be subject to risks, uncertainties and other relevant factors which could cause them to differ materially from actual results. Accordingly, readers are cautioned not to place undue reliance on such forward-looking statements.

Some of these risks include, amongst others, ongoing competitive pressure in the sector, consumer tastes and spending trends, macro-economic, political, regulatory and trade conditions, foreign exchange risks, the surge of infectious diseases such as COVID-19, technological risks, restrictions to free trade and political volatility 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. Except where the prevailing regulations require otherwise, 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.

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 filed by the company with the Comisión Nacional del Mercado de Valores (the Spanish Securities Market Commission). Readers are invited to review the contents of any such documents.

This presentation contains, in addition to the financial information prepared in accordance with International Financial Reporting Standards as adopted by the European Union ("IFRS") and derived from our financial statements, alternative performance measures ("APMs") as defined in the Commission Delegated Regulation (EU) 2019/979 of March 14, 2019 and in the Guidelines on Alternative Performance Measures issued by the European Securities and Markets Authority (ESMA) on 5 October 2015 (ESMA/2015/1415en) and other non-IFRS measures ("Non-IFRS Measures"). These financial measures that qualify as APMs and non-IFRS measures have been calculated with information from Inditex Group; however those financial measures are not defined or detailed in the applicable financial reporting framework nor have been audited or reviewed by our auditors. These APMs and non- IFRS measures should be considered supplemental information to, and are not meant to substitute IFRS measures. Please refer to the audited consolidated financial statements of the Inditex Group for fiscal year 2020 for the definition of APMs and Non-IFRS Measures included herein.

Inditex differentiation and strategic transformation accelerates

• Transformation to fully-integrated, digital, sustainable business model accelerates
• People first: Strong individual commitment, unique customer-centric corporate culture
• 2Q21 sales, EBITDA and net income at historic highs. CC sales growth accelerates to +7% vs 2Q19
• 99% of stores open. Online grows strongly
• Strong cash flow generation: cash position reaches €8bn
• Increased sustainability commitments: New targets approved at AGM
• The Inditex Open Platform migration is close to 95% complete
• Strong start to A/W: Store&Online sales in constant currency between 1 August and 9 September 2021 increased +22% over 2020 (+9% over 2019). Based on current information Inditex expects gross margins of around 57.5% (+/- 50 bps) for FY2021

Strength of integration: 99% of stores open, online grows strongly

 Competitive differentiation bigger than ever

 Sales of absorbed stores recovered already

 Strong advantage of business model and single inventory position

 Online continues to grow strongly: +36% over 1H20 and +137% over 1H19

 Online to reach above 25% of sales in FY21  Sector leading growth rates and profitability