Industria de Diseño Textil, S.A.

Good morning to everybody. A warm welcome to all of those attending the presentation of Inditex's results for the entering nine months of 2024. I am Marcos López, Capital Markets Director. The presentation will be chaired by Inditex's CEO, Oscar García Maceiras. Also with us today is our CFO, Fignacio Fernández. 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'll take the disclaimer as read.

Over to you, Oscar. Good morning and welcome to our first presentation. It's my pleasure to join you today. In the entering nine months of 2024, Inditex saw a 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 pillars of the strategy we have been presenting throughout the year. our unique fashion proposition, an optimized customer experience, our focus on sustainability, and the talent and commitment of our people. These are the principal factors driving our differentiation. The autumn-winter collections have been very well received by our customers. In the nine months 2024, sales in custom currency grew 10.5%, showing very satisfactory development both in stores and online. Sales were positive, in all concepts. In that same period, net sales grew 7.1% to reach 27.4 billion euros. We continue to operate with very healthy margins on sales across the different lines of the income statement. The secretion of the business model has also been very robust, with controlled cost management. Profit before taxes increased 9.9% to 5.8 billion euros. On the bottom line, net income increased 8.5% to 4.4 billion euros. The operating performance of the group further underpins our sound financial position. We have generated significant free cash flow over the period. You will note this strong performance has continued into the fourth quarter. Store and online sales in custom currency between the 1st of November and the 9th of December grew 9%. Our diversified presence in 214 markets with low market penetration. Sorry. across the board offers us significant global growth opportunities. We have complete confidence in our ability to grow this business, mainly because the model we operate is entirely unique. This in turn drives the increasing differentiation we have all been seeing. I will hand you over to Ignacio to go into some of the headline numbers.

Thanks, Oscar. As you have seen, our financial release in the test performed strongly in the first nine months of 2024. It has progressed well, up last 7.1%. We have actively managed the supply chain, and it has given a very healthy gross margin performance. Operating expenses have, of course, been tightly managed, and this has generated operating leverage. Consequently, EBITDA grew 7.2% to 8 billion euros and profit before tax increased 9.9% to 5.8 billion euros. We have also seen very strong progress on the net income line with increase of 8.5% to 4.4 billion euros. The group continues to generate significant free cash flow and they have taken our net cap position to 11.8 billion euros. I would like to reiterate that sales have progressed very well at plus 7.1% and have reached 27.4 billion euros. That's 10.5% in constant currency. You will know that the third quarter saw the strongest sales growth for the year in constant currency, aside by a particularly negative currency impact. Sales growth was strong, both in stores and online. Additionally, sales have been positive across all concepts. The current exchange rates indicate rate rates each expectation of around minus 3% currency impact on sales in 2024. In the interim 9 months of 2024, the gross profit increased 7.2% to 16.3 billion euros and clearly illustrates a healthy execution of the business model. The gross margin reached 59.4%. Based on current information, we are reiterating our vision of stable gross margin in financial year 2024 of plus minus 50 basis points versus fiscal year 2023. There have been very tight control of operating expenses across all departments and business areas. Operating expenses increased below sales growth over the nine months of 2024. Including all recharges, operating expenses grew 73 basis points below sales growth. Over the period, we have experienced a robust operating performance. Inventory rating details as of the 31st of October 2024 were 3% lower than the same date in 2023. Let me highlight that the end of the period inventory is considered to be of high quality. We continue to generate a strong cash flow and reinvest back into the business. The net cash position grew 3% to 11.8 billion.