8. Segment reporting
The principal activity of the Inditex Group comprises the retail distribution of clothing, footwear, accessories and household textile products through various commercial format stores aimed at different targeted sectors of the public.
The origin and predominant nature of the risks and rewards of the Inditex Group’s business units correspond to operating segments, as these risks and rewards are mainly influenced by the fact that each cash-generating unit belongs to a particular commercial format. The internal organization of the Inditex Group, the decision-making process and the system for communicating information to the board of directors and group management are organized by commercial format and geographical areas.
The following tables show the segment information of Inditex Group
FY 2012
|
|
Zara | Bershka | Resto | Totales |
|---|---|---|---|---|
| Sales to third parties | 10,541,032 | 1,485,454 | 3,919,657 | 15,946,143 |
| Segment EBITDA | 2,233,444 | 239,129 | 644,267 | 3,116,840 |
| Amortization and depreciation | 504,695 | 77,963 | 213,460 | 796,117 |
| Segment total assets | 8,284,111 | 1,005,768 | 3,600,437 | 12,890,316 |
| ROCE | 37% | 51% | 46% | 39% |
| Number of stores | 1,925 | 885 | 3,199 | 6,009 |
FY 2011
|
|
Zara | Bershka | Resto | Totales |
|---|---|---|---|---|
| Sales to third parties | 8,937,545 | 1,316,477 | 3,538,590 | 13,792,612 |
| Segment EBITDA | 1,725,303 | 158,801 | 637,902 | 2,522,006 |
| Amortization and depreciation | 469,691 | 80,326 | 185,649 | 735,666 |
| Segment total assets | 7,078,692 | 823,776 | 3,056,710 | 10,959,178 |
| ROCE | 32% | 38% | 56% | 37% |
| Number of stores | 1,830 | 811 | 2,886 | 5,527 |
Zara was the first chain created by the Inditex Group and its leading position is based on its fashion offering, with a wide range of products.
Bershka is aimed at the younger consumers and its aim is to offer the latest fashion at affordable prices.
The segment result refers to the operating result (EBIT) of the segment. Income and expenses which are considered corporate in nature or as belonging to the group of segments as a whole have been assigned to each segment in accordance with criteria considered reasonable by Group management.
Return on Capital Employed (ROCE) is defined as the ratio between the segment’s result for the year (EBIT) and the average capital employed (equity and, where applicable, net financial debt).
Geographical reporting
In the presentation of information by geographical segment, revenue is based on the geographical location of customers and segment assets are based on the geographical location of assets. Non-current segment assets do not include deferred tax assets.
Sales
|
|
2012 | 2011 |
|---|---|---|
| Spain | 3,549,885 | 3,754,572 |
| Other | 12,396,258 | 10,038,040 |
| Rest of Europe | 7,633,136 | 6,414,737 |
| Americas | 2,168,918 | 1,650,355 |
| Asia and rest of the world | 2,594,204 | 1,972,948 |
| Total | 15,946,143 | 13,792,612 |
Non-current assets
|
|
31/01/13 | 31/01/12 |
|---|---|---|
| Spain | 2,172,661 | 2,035,680 |
| Other | 3,642,951 | 3,129,836 |
| Rest of Europe | 2,344,091 | 1,987,675 |
| Americas | 584,429 | 521,101 |
| Asia and rest of the world | 714,431 | 621,060 |
| Total | 5,815,612 | 5,165,516 |
