Investment in social programmes 2015*

Inputs: What’s contributed? 35.1 85% 49 1.09 in millions of eurosin investment in socialprogrammes whichrepresents 36% morethan the previous year of contributionssupport strategiclong-terminvestment project and 60% of theinvestment is conductedthrough Inditex clusters thousand of hoursdedicated to socialinitiatives by employeesduring working hours million of garmentsdonated tosocial causes
Outputs: What happens? 1.01 361 456 milliondirect beneficiaries charitable organizationssupported social projectscarried out
Impacts(**): What changes? 36% 53% 85% Depth of impact: 38% of beneficiaries connected with, 26% achieved an improvement and 36% obtained a transformation Type of impact: 46% of beneficiaries experienced a positive change in their conduct, 9% acquired new skills and 53% experienced an improvement in their living standards Impact on organizations: 85% of the organizations supported improved their services, 79% increased their capability to employ more people 81% were able to raise their profile

(*) Figures calculated in accordance with the LBG methodology based on voluntary contributions made by Inditex to social programmes during 2015. To convert the contributions into euros we have applied the exchange rate as 31 January 2016.
(**) Out of the 1,008,545 total direct beneficiaries, impact assessment has been carried out of 636,449 of them. The remaining direct beneficiaries profit from one-off initiatives, mainly of in kind donations, where impact measurement is not applicable. Impact assessment performed on 139 non-profit organizations supported by Inditex in 52 long-term strategic projects.

Evolution of investment in social programmes 2013-2015

Total investment in social programmes 2013-2015
(millions of euros)

2013 2014 2015 23.5 25.8 35.1

How we contributed?
(millions of euros)

19.0 24.2 19.6 cash 3.4 4.6 8.9 in kind 0.7 1.1 1.5 time 0.4 0.5 0.5 managementcosts 2013 2014 2015 2013 2014 2015 2013 2014 2015 2013 2014 2015

Why we contributed?(***)
(millions of euros)

Community investment: A long-term strategic commitment in collaboration with the community to support specific social activities.

Charitable gifts: ad hoc or one-off contributions to the general goals of charitable organizations.

Commercial initiatives in the community: business-related activities that involve a contribution from the company to a charitable cause delivering community benefit.

13.4 25.9 15.4 communityinvestment 8.1 7.1 5.2 charitablegifts 1.6 2.8 3.5 commercial initiativesin the community 2013 2014 2015 2013 2014 2015 2013 2014 2015

Breakdown of community investment 2015

How we contributed?

35%In kind 4%Time 69%Cash 2%Management costs

Where we contributed? (***)

27%Europe(excluding Spain) 3%Africa 22%Asia 20%America 28%Spain

What we supported? (***)

27%Europe(excluding Spain) 3%Africa 22%Asia 20%America 28%Spain

(***) Management costs are not included.

Inditex has chosen LBG measurement –London Benchmarking Group-(*) to weigh and evaluate its community contributions. This choice was based on the worldwide acknowledgement of LBG’s measurement framework. This model classifies and measures community investments and weighs their impact on society, taking into account the depth and type of impact.

In terms of the depth of impact, the effects of our projects on their beneficiaries are broken down into the three following categories. The numbers recorded under each of the impact headings are mutually exclusive:

  • Connection: The number of people reached by an activity who can report some limited change as a result of an activity.
  • Improvement: The number of people who can report some substantive improvement in their lives as a result of the activity.
  • Transformation: The number of people who can report an enduring change in their circumstances, or for whom a change can be observed, as a result of the improvements made.

In relation to type of impact, the changes experienced by beneficiaries are broken down into the following three categories. In this case, someone can experience more than one type of impact so it is possible for a person to be recorded under more than one heading:

  • Behavior or attitude change: Has the activity helped people make behavioral changes that can improve the person’s life or life chances or has it challenged negative attitudes or preconceptions, enabling them to make wider, different or more informed choices?
  • Skills or personal effectiveness: Has the activity helped people to develop new, or improve existing, skills to enable them to develop academically, in the work place and socially?
  • Quality of life or well-being: Quality of life or well-being:

(*) A detailed description of the LBG model can be found at www.lbg.es