Industria de Diseño Textil, S.A.

Buenos dias, good morning to everybody. We'd like to thank you all for attending Inditex's full year 2025 results presentation. I'm James O'Shaughnessy, Investor Relations. The presentation today will be chaired by our CEO, Oscar García-Materas. We also have Andrés Sánchez, CFO, and Gorka García-Tapia, our Director of Investor Relations. Following the presentation this morning, we will hold a question and answer session, starting with the questions received on the phone. followed by those received on the webcast platform. Let's take the disclaimer as read. Oscar.

Good morning and welcome to our full year 2025 presentation. It's great to see so many people joining us today. At the outset, we would like to acknowledge the current situation in the Middle East and express our thoughts with those affected. Ensuring the well-being and safety of our colleagues and the local communities we serve continues to be our highest priority. The numbers we are providing this morning reflect the ability of our teams to honor the trust that millions of customers place in our eight commercial formats every day. connecting with them, understanding their desires, and delivering the best product and a differentiated experience, and that being our long-term growth opportunities. We have seen a very solid performance in 2025, both in terms of the top line and also in terms of profitability. Despite the complex market environment, we have all seen throughout the year. The execution of our unique model has been very disciplined and coupled with the levels of diversification we enjoy. This adds to the resilience of our business. From the very start of the new fashion season at the beginning of last year, we all saw a picture of continual improvement in sales. What's worth highlighting was the high level of consistency in the P&L throughout the four quarters that make up the year. This brings out the point I wanted to make. The highly flexible business model we have here at Inditex permits us to react to very dynamic and changing market conditions in a way that is unique to us. Clearly, collections across the year have been well received by our customers. The sales growth of 3.2% has been robust. Sales were positive across each of the concepts, and in constant currency they were positive across all geographical areas. Sales were also positive in both stores and online. The strong execution of the business model has been key not only to the excellent gross margin performance, but also the very disciplined control of operating costs, which has been evident across the year. At the profitability level, net income increased 6% to 6.2 billion euros. Our financial strength allows us to fund sustainable long-term growth while continuing to deliver attractive returns to shareholders. We will propose a dividend for financial year 2025 of 1.75 euros per share. Our spring summer collections have been very well received by customers. Store and online sales in constant currency between the 1st of February and the 8th of March grew 9% versus the same period in the previous year. We continue to enjoy significant global growth opportunities. Our presence across 214 markets in conjunction with low market penetration affords us strong diversification benefits. These factors combined with the fragmented nature of the sector gives us confidence in our ability to further differentiate ourselves and drive sustainable long-term growth. Our ongoing aspiration to offer customers around the world the very best retail experience, whether online or in-store, is encompassed in the strategy we call retail optimization. As a function of this strategy, which has been in place for a long period of time now, the quality of our store base has been continuously increasing over many years. In view of this, sales have grown 22% on a reported basis over the last three years, while the number of stores has reduced by 6% and net space has grown by 6%. This, I think, illustrates very well what we are trying to achieve, which is to continually reinforce the consistency of our long-term growth profile. Gross space growth for 2026 is expected to be about 5% in line with the last few years, with a positive net space contribution to sales and strong online performance. Ordinary capital expenditure in 2026 is expected to be around 2.3 billion euros. After the two-year extraordinary investment program to increase logistics capacity, the we continue to focus capital expenditure on our global store base, the online platform, and the rollout of technology programs aimed at enhancing the level of integration, thereby underpinning the long-term growth of Inditex. And now, let's pass it over to Andres, who will cover the financials.

Thank you, Oscar. As we can see from the results published today, Inditex has performed superbly over 2025. Sales, EBITDA and net income all reached new highs. The sales performance has been strong at plus 3.2%. The combination of good execution and an actively managed supply chain resulted in a solid gross margin performance. Operating expenses have been well managed and this has resulted in a satisfactory level of operating leverage. Consequently, EBITDA grew 5% to 11.3 billion euros. This has flowed through to the bottom line, with net income increasing 6% to 6.2 billion euros. The group continues to generate significant funds from operations adjusted for leases, with growth in the period of plus 7%. Our net cash position was 11 billion euros at year end. Let me highlight that the evolution of sales in the year has been very satisfactory at plus 3.2%, reaching 39.9 billion euros. In constant currency, that translates to plus 7%. This strong growth was very much across the board in stores and online, across each of the concepts, and in constant currency across all geographical areas. Looking at the year ahead, at exchange rates today, we expect a minus 1% top-line FX impact in 2026, albeit with a notable first half waiting. As already mentioned, sales were positive in all concepts. We do, of course, enjoy a global presence and it is our aim to continue building upon this. In 2025, gross profit increased 3.9% to 23.2 billion euros, with a gross margin of 58.3%. This gross margin performance is best explained by the consistent execution of the business model we have seen across the year. Driven by the strength of our commercial teams in 2025, the company enjoyed the strongest gross margin performance in many years, particularly in the second half of the year. For 2026, a stable gross margin of plus or minus 50 basis points would be a reasonable expectation. Over the year, we have been able to closely control operating expenses across all areas of the business. The financial accounts show 39 basis points of operating leverage for the year. Taking into account all these charges, operating expenses grew 51 basis points below sales growth. The PVT margin reached 20.1% in the year. From what we have been talking about already, I am very comfortable with the operating performance of the business over 2025. Inventory for the group at year end, on the 31st of January, was down 2% compared to the closing position the year before. It is noteworthy that closing inventory quality was high. The net cash position was 11 billion euros at the year end. As you can see on your screens, list adjusted funds from operations after fixed list cash payments increased 7% to reach 8.2 billion euros. And free cash flow reached 4.7 billion euros. Gorka, over to you now.