Industria de Diseño Textil, S.A.

Buenos dias a todos. Good morning to everybody. A warm welcome to all of those attending the presentation of Inditex's results for the interim three months 2024. I am Marcos Lopez, Capital Markets Director. The presentation will be chaired by Inditex's CEO, Oscar Garcia-Maceiras. Also with us is our CFO, Ignacio Fernandez. 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. Please, Oscar.

Good morning and welcome to our results presentation. It's our pleasure to join you today. In the first three months of 2024, Inditex has continued its very robust operating performance, driven very much by the creativity of our teams and the strong execution of our fully integrated business model. This performance relies on the four key strategic pillars you are all familiar with. our unique fashion proposition, an optimized customer experience, our focus on sustainability, and the talent and commitment of our people. These factors have propelled our competitive differentiation. Our Spring Summer collections have been very well received by our customers. We have had a very satisfactory sales growth of 7.1%. Sales in custom currency increased by 10.6%. The execution of the business model has also been very robust, with a healthy gross margin and disciplined cost management. On the bottom line, net income increased 10.8% to 1.3 billion euros. This performance has continued going into the second quarter. Store and online sales in custom currency between the 1st of May and the 3rd of June grew 12%. Our diversified presence in 214 markets with low market penetration allows us to enjoy significant global growth opportunities. We have complete confidence in our ability to grow this business, mainly because the unique model we operate continues to drive an ever increasing level of differentiation. I'm going to hand you over to Ignacio now to go into the headline numbers.

Thank you, Oscar. As you have seen in our release in the test executed shortly in the entry three months of 2024. Sales have progressed well at plus 7.1%. We have managed the supply chain actively and this has driven a very healthy gross margin. Operating expenses have of course been well managed resulting in operating leverage. As a result EBITDA grew 8% to 2.4 billion euros. In any case, we have also seen very strong progress in the net income line with increase of 10.8% to 1.3 billion euros versus 1.2 billion euros in the first quarter 2023. Let me reiterate that sales have progressed very nicely at plus 7.1%. reaching 8.2 billion euros. That's 10.6% in constant currency. Based on current exchange rates, we expect a minus 2% currency impact on sales for the full year 2024. In the first quarter of 2024, gross profit increased 7.3% to reach 4.9 billion euros and clearly illustrates a healthy execution of the business model. The gross margin reached 60.6%. Based on current information, we expect a stable gross margin of plus minus 50 basis points this financial year. There has been very tight control of operating expenses across all departments and business areas. Operating expenses increased below sales growth over the first quarter of 2024. including early charges, operating expenses grew 110 basis points below sales growth. Over the first quarter of the year, we experienced a robust operating performance. Due to these factors, in the Texas inventory, as of the 30th of April, was 3% lower. As a side note, the end of the period inventory is considered to be of high quality. And now, over to you, Marcos.