Financial Statements 2011

Here, we present some of the main indicators taken from the Financial Statements of 2011.

The strategy of multi-channel global growth has been supported by the results obtained during the 2011 financial year, which are at the same time a demonstration of the strength of the business model. In this period, the sales have increased significantly by 10% reaching 13,793 million euros. The increase in the turnover and the improvement in operating efficiency have made it possible to raise EBITDA by 10%, up to 3,258 million euros. Thus, the profitability of the Group continued to improve: the net profit rose by 12% and reached 1,946 million euros.

These satisfactory results, together with the opportunities for global growth, have made  possible to re-invest the funds generated in the expansion of the Group, thus reinforcing the strategy of organic growth. During the 2011 financial year, expansion has been centred on the opening of new stores located in the best commercial areas of countries with a great potential. In this regard, the entry into five new markets is particularly important: Taiwan, Azerbaijan, Australia, South Africa and Peru, with which the commercial presence of Inditex is extended to all five continents. The last three are a reinforcement of the differentiated commercial strategy which Inditex has been applying to markets located in the southern hemisphere.

During the 2011 financial year, the growth in Inditex's commercial area has continued with 483 new stores, which brings the total at the end of the year to 5,527 stores in 82 markets. This means that the commercial area has increased by 250,000 square metres. Zara continued to lead this growth: it had over a hundred net openings and contributed two thirds of the Group turnover.

The remaining chains also significantly increased their commercial presence during the financial year as they entered new markets. During 2011, Inditex opened stores in 49 different markets which served as an example of the capacity of the Group to take advantage of global opportunities. Europe and Asia remain the priority axes of the expansion of the Group.

SUMMARY:

In the 2012 financial year, rewards for the shareholders will undergo a considerable increase, with the support of the Group's solid financial position. At the General Meeting of Shareholders which will be held in July, the Inditex Board of Directors will propose a payment of a dividend of 1.8 euros per share, 12.5% greater than last year. By means of the combination of attractive rewards for the shareholder and re-investment in the business, Inditex guarantees, at one and the same time, its capacity to continue to grow in a profitable manner in the future, thus creating value for its shareholders, and to generate employment and wealth in its surroundings.

To conclude, 2011 has for Inditex involved the consolidation of its strategy of global expansion, with commercial operations on the five continents and a turning point in its commitment to a multichannel presence, with the launch of online sales in all its formats.