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 entering first half 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 resource presentation. It's our pleasure to join you today. In the first half of 2024, Inditex has continued its 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 very 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 7.2%. Sales in custom currency increased by 10.2%. 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 10.1% to 2.8 billion euros. Given the robust execution over the period, cash flow generation remains strong. This performance has continued going into the second half. Store and online sales in custom currency between the 1st of August and the 8th of September grew 11%. 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, our release in the test executed very well in the first half of 2024. Sales progressed well at plus 7.2%. They have managed the supply chain actively and they have driven a very healthy growth margin. Operating expenses have, of course, been well managed resulting in operating leverage. As a result, EBITDA grew 8.1% to 5 billion euros. In any case, we have also seen very strong progress in the net income line, with an increase of 10.1% to 2.8 billion euros versus 2.5 billion euros in the first half of 2023. Let me reiterate that sales have progressed very nicely, a plus 7.2%, reaching 18.1 billion euros, that's 10.2% in custom currency. Sales growth was strong, both in stores and online. Furthermore, sales have been positive across all concepts. Based on current exchange rates, we expect a minus 3% currency impact on sales for the full year 2024. We enjoy global presence. With operations in 214 markets, and with a low market share with him by remains and highly fragmented sectors. Growth has been strong across the board. We have previously mentioned that the United States is our second largest market. In the first half of 2024, gross profit increased 7.5% to reach 10.5 billion euros. and clearly illustrates a healthy execution of the business model. The gross margin reached 58.3%. Based on current information, we expect a stable gross margin of plus-minus 50 basic 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 half of 2024. Including early charges, operating expenses grew 102 basis points below sales growth. Operating working capital remains negative as a result of the business model. The operating working capital is in line with the performance of the business. Over the first half of the year, we experienced a robust operating performance. Due to these factors, in the Texas inventory, as of the 31st of July, was 2% lower. As I know, the end of the period inventory is considered to be of high quality. As you can see from this slide, we continue to generate very strong levels of cash flows. Funds from operations before corporate income tax increased 9% to €4.4 billion. Capital expenditure reached €1.3 billion, reflecting the ordinary and extraordinary investments in 2024, focused on ensuring future growth. And now over to you, Marcos.