Industria de Diseño Textil, S.A.

Good morning to everyone today. A warm welcome to all those taking part in our half-year 2025 results presentation. My name is James O'Shaughnessy, Investor Relations. The presentation today will be led by Inditex's CEO, Oscar García-Materas, our CFO, Andrés Sánchez, and Gorka García-Tapia, Director of Investor Relations. Following the presentation, we will have a Q&A session, commencing with the questions received over the phone. followed by questions received on the webcast platform. Let's take the disclaimer as read. Over to you, Oscar.

Good morning. Welcome to our sales presentation. It's good to be with you all today. In the first half of 2025, we have again achieved a solid performance with satisfactory sales in a complex market environment and keeping strong levels of profitability. The phishing execution accomplished by our teams demonstrates the strength of Inditex's business model. This business model continues to be driven by our unique fashion proposition, an increasingly optimized customer experience, our focus on sustainability, and the quality and commitment of our teams. These factors continue to enhance our competitive differentiation. Our Spring-Summer collections have been well received by customers. We had a satisfactory sales growth of 1.6%. Sales in custom currency increased by 5.1%. It's evident from the figures we are providing this morning that the execution of the business model has also been strong, reflected in the good gross margin performance and by discipline cost control. The bottom line, net income increased 0.8% to 2.8 billion euros. This satisfactory performance has continued going into the second half of the year. Store and online sales in constant currency between the 1st of August and the 8th of September grew 9%. Our diversified presence across 214 markets in conjunction with a relatively low market penetration in most of these markets underpins our belief in the significant global growth opportunities we have ahead of us. This confidence comes from the fact that we have a unique model that permits us to build upon the increasing levels of differentiation we have seen in recent years. And now, let's move to Andrés to go over the numbers.

Thanks, Oscar. As you have seen in the report released early this morning, Inditex executed in a very consistent manner in the first semester of 2025. Sales performed well at plus 1.6%. Furthermore, by actively managing our supply chain, we have been able to generate a very good gross margin performance. In line with what we saw in the first quarter results, operating expenses in the first half have been closely monitored. EBITDA in turn increased 1.5% to reach 5.1 billion euros. And net income grew by 0.8% to 2.8 billion euros. On the top line, I'll point out that sales reached 1.6% to reach 18.4 billion euros. In constant currency, that translates to 5.1%. We saw consistent growth in sales in our integrated model across both channels. At current exchange rates, we expect a minus 4% top line currency impact for the full year 2025. We enjoy a presence in 214 markets, as well as a low market share in the vast majority of these markets. It should also be pointed out that the sector as a whole continues to be very fragmented. It is due to these factors that we see continued growth for Inditex over the medium to long term. In constant currency, all geographical areas had a positive sales evolution. In the first half of 2025, gross profit increased 1.5% to reach 10.7 billion euros. The gross margin reached 58.3%. This gross margin performance serves as a demonstration of the good execution of the business model over the period, despite a challenging market environment. Based on the data we have at our disposal right now, for the full year 2025, we expect a stable gross margin of plus minus 50 basis points. As you can see throughout the half year, we have been able to maintain firm control over operating expenses across the business. Operating expenses increased 2.2% in the first six months of 2025. It is worth highlighting that the PVT margin came in at 19.6%. Operating working capital remains negative as a result of the business model. the development of operating working capital is very much aligned with the performance of the business over the period as you would expect. In conjunction with the satisfactory operating performance, we have seen in the first semester in the Texas inventory as of the 31st of July was 3% higher. It is important to note that the closing inventory at the end of the trading period was of high quality. As you can see from this slide, we continue to generate very strong levels of cash flow. Funds from operations increased 5% to 3.7 billion euros. Capital expenditure reached 1.3 billion euros, reflecting the ordinary and extraordinary investments in 2025, focused on ensuring future growth. Cash flow in the period was impacted by the calendar of payments coming from the normalization of supply chain conditions over the last year relating to the Red Sea. And now, over to you, Gorka.