Industria de Diseño Textil S A : Transcript English , PDF, 0.26MB

INDITEX

CONSOLIDATED RESULTS 2020

CONFERENCE CALL SCRIPT

10 March 2021

Important notice: Although we try to accurately reflect the speech delivered, the actual speech that was delivered may deviate from this transcript.

INDITEX PARTICIPANTS

Pablo Isla - Executive Chairman Carlos Crespo - CEO

Ignacio Fernández - CFO

Marcos López - Capital Markets Director

Conference Call Participants

Richard Chamberlain RBC - Analyst Rebeca Mcclellan Santander - Analyst Georgina Johanan JP Morgan - Analyst Olivia Townsend UBS - Analyst Aneesha Sherman Berstein - Analyst Anne Crithclow Societe General - Analyst Warwick Okines BNP Paribas - Analyst

Introduction: Marcos López

Good Morning Ladies and Gentlemen. A warm welcome to the presentation of Inditex's Results for 2020. I am Marcos López, Capital Markets Director.

The presentation will be chaired by Inditex's Executive Chairman Pablo Isla. Here today with us are also our CEO Carlos Crespo and CFO Ignacio Fernández.

As usual, the presentation will be followed by a Q&A session starting with the questions received on the telephone and then those received through the webcast platform. Before we start, we will take the disclaimer as read.

I'll now hand you over to Pablo.

Slide 3: 2020: A year marked by the pandemic and key in Inditex's strategic transformation

Good morning to everybody and welcome to Inditex's 2020 results presentation. I hope you are all well.

2020 has been very unique for Inditex in two aspects. Firstly, the year has been marked by the pandemic. This has affected every one of us in unprecedented ways.

It has also been a landmark period in Inditex's strategic transformation. The initiatives we have been implementing over a number of years now, have enabled us to meet the challenges of 2020 head on.

Slide 4: 2020: A year marked by the pandemic and key in Inditex's strategic transformation

First and foremost, our thoughts are with all those affected by the pandemic. Our number one priority is the health and safety of local communities and our employees. We would like to thank our teams, whose contribution in this difficult time has been inspiring.

Slide 5: Strong operating performance

Let me highlight some of the key aspects of our performance.

In 2020, Inditex executed remarkably, in what was a most challenging operational environment.

Over the year lockdowns and restrictions seriously disrupted the operation of stores. Outstanding growth in online sales continued throughout. The management of operating expenses in a highly disciplined way allowed us to partially offset the worst of the trading conditions.

In this context, we continued generating strong cash flow and we maintained a solid financial position.

We continue developing the main lines of our long-term strategy: to extend our fully integrated store and online platform; to complete the digitalisation of the group; and to push forward the goal of increasing our level of sustainability. Let me tell you that we have total confidence in our unique business model.

Slide 6: 2020: Strong operating performance

As mentioned a few moments ago, 2020 was a landmark year in the strategic transformation of Inditex.

The initiatives we have been implementing over quite a number of years, clearly showed their worth during this difficult time.

Let's cover a few of the key achievements: