1. Social indicators

Identification

Supplier clusters

2015 2014
SPAIN
Number of suppliers with purchase during the year 216 229
Number of sewing factories linked to suppliers with purchase 172 208
Other processes associated with factories with purchase 212 118
Workers who form the staff of manufacturers working for Inditex in Spain 8,362 6,473
PORTUGAL
Number of suppliers with purchase during the year 171 156
Number of sewing factories linked to suppliers with purchase 887 856
Other processes associated with factories with purchase 449 394
Workers who form the staff of manufacturers working for Inditex in Portugal 46,494 42,437
MOROCCO
Number of suppliers with purchase during the year 106 116
Number of sewing factories linked to suppliers with purchase 211 219
Other processes associated with factories with purchase 42 30
Workers who form the staff of manufacturers working for Inditex in Morocco 62,333 64,501
TURKEY
Number of suppliers with purchase during the year 183 158
Number of sewing factories linked to suppliers with purchase 748 610
Other processes associated with factories with purchase 640 416
Workers who form the staff of manufacturers working for Inditex in Turkey 155,256 100,029
INDIA
Number of suppliers with purchase during the year 134 129
Number of sewing factories linked to suppliers with purchase 219 151
Other processes associated with factories with purchase 110 100
Workers who form the staff of manufacturers working for Inditex in India 131,435 79,102
BANGLADESH
Number of suppliers with purchase during the year 81 83
Number of sewing factories linked to suppliers with purchase 139 92
Other processes associated with factories with purchase 87 108
Workers who form the staff of manufacturers working for Inditex in Bangladesh 386,916 346,311
VIETNAM*
Number of suppliers with purchase during the year 5 NA
Number of sewing factories linked to suppliers with purchase 130 NA
Other processes associated with factories with purchase 7 NA
Workers who form the staff of manufacturers working for Inditex in Vietnam 143,206 NA
CAMBODIA*
Number of suppliers with purchase during the year 1 NA
Number of sewing factories linked to suppliers with purchase 68 NA
Other processes associated with factories with purchase 33 NA
Workers who form the staff of manufacturers working for Inditex in Cambodia 104,695 NA
CHINA
Number of suppliers with purchase during the year 340 300
Number of sewing factories linked to suppliers with purchase 1,106 849
Other processes associated with factories with purchase 255 257
Workers who form the staff of manufacturers working for Inditex in China 302,816 258,126
ARGENTINA**
Number of suppliers with purchase during the year 64 60
Number of sewing factories linked to suppliers with purchase 53 65
Other processes associated with factories with purchase 66 68
Workers who form the staff of manufacturers working for Inditex in Argentina 5,505 4,383
BRAZIL**
Number of suppliers with purchase during the year 37 49
Number of sewing factories linked to suppliers with purchase 103 117
Other processes associated with factories with purchase 75 85
Workers who form the staff of manufacturers working for Inditex in Brazil 18,930 12,418

* Due to the creation of the new Cambodia cluster, the data shown for the Southeast Asia cluster in 2014 is not comparable with the current distribution. N. A.: No applicable.
** In order to make the data representative, all the active suppliers in the region have been taken into consideration.

Uterqüe pattern designers at the brand’s head office in Tordera (Barcelona).

Evolution of suppliers in the last five years

1,625 1,725 1,434 1,490 418 -474 483 -325 402 416 -369 -316 1,592 Total New Not used 2011 Diff 2012-2011 2012 Diff 2013-2012 2013 Diff 2014-2013 2014 Diff 2015-2014 2015

Assessment

Rating and production volume of suppliers with purchase in 2015 (*)

2015 2014 2015 2014
Suppliers % Suppliers Suppliers % Suppliers % production % production
A 724 42% 678 41.72% 41% 31.41%
31.41% 794 46% 699 43.02% 54% 61.32%
C 116 7% 133 8.18% 3% 3.50%
CAP 35 2% 54 3,32% 1% 2.22%
PR 56 3% 61 3.75% 1% 1.55%
Total 1,725 100% 1,625 100% 100% 100%

Rating and production volume of suppliers with purchase in 2015 by region (*)

2015 2014 2015 2014
Africa Suppliers % Suppliers Suppliers % Suppliers % production % production
A 67 52% 69 51.11% 54% 58.95%
B 52 40% 46 34.07% 38% 33.21%
C 7 5% 8 5.93% 5% 4.77%
CAP 3 2% 10 7.41% 2% 2.70%
PR 1 1% 2 1.48% 1% 0.37%
Total 130 100% 135 100% 100% 100%
America Suppliers % Suppliers Suppliers % Suppliers % production % production
A 52 70% 66 82.50% 44% 60.52%
B 17 23% 10 12.50% 44% 37.67%
C 4 5% 1 1.25% 11% 0.26%
CAP 1 1% 1 1.25% 1% 0.23%
PR - 0% 2 2.50% 0% 1.32%
Total 74 100% 80 100% 100% 100%
Asia Suppliers % Suppliers Suppliers % Suppliers % production % production
A 225 27% 192 25.30% 24% 18.29%
B 507 61% 441 58.10% 71% 73.67%
C 82 10% 89 11.73% 4% 4.76%
CAP 18 2% 27 3.56% 1% 3.08%
PR 4 0% 10 1.32% 0% 0.20%
Total 836 100% 759 100% 100% 100%
Europe (non-EU) Suppliers % Suppliers Suppliers % Suppliers % production % production
A 93 50% 67 41.88% 60% 38.19%
B 71 38% 68 42.50% 38% 51.04%
C 6 3% 14 8.75% 1% 5.39%
CAP 7 4% 6 3.75% 0% 3.70%
PR 8 4% 5 3.13% 1% 1.68%
Total 185 100% 160 100% 100% 100%
European Union Suppliers % Suppliers Suppliers % Suppliers % production % production
A 287 57% 284 57.84% 59% 41.76%
B 147 29% 134 27.29% 37% 53.31%
C 17 3% 21 4.28% 1% 0.85%
CAP 6 1% 10 2.04% 0% 0.41%
PR 43 9% 42 8.55% 3% 3.67%
Total 500 100% 491 100% 100% 100%

(*) Supplier A: complies with the Code of Conduct
Supplier B: breaches a non-material aspect of the Code of Conduct
Supplier C: breaches a sensitive aspect of the Code of Conduct
Supplier subject to Corrective Action Plan (CAP): supplier that breaches critical aspects of the Code of Conduct, requiring the immediate implementation of a Corrective Action Plan
PR supplier: undergoing an auditing process.

Evolution of supplier ratings over the last five years

111 122 183 501 573 72 63 157 617 525 71 82 128 614 697 61 56 54 35 133 116 699 794 678 724 2011 2012 2014 2015 2013 A B C PAC PR

Total audits per region in 2015

Social
Geographic area Pre-assessment Initial Follow-up Special * Traceability Total
Africa 79 105 73 375 542 1,174
America 113 64 396 57 1,642 2,272
Asia 1,420 918 958 1,069 609 4,974
Europe 497 237 271 20 40 1,065
European Union 594 471 331 63 33 1,492
Total 2,703 1,795 2,029 1,584 2,866 10,977

(*) Special audits include, among other aspects: health and safety verification and competence visits to evaluate the degree of compliance with the Corrective Action Plans.

Internal and external audits in 2015

Pre-assessment Social Special Traceability Total
Internal 81 459 1,075 1,184 2,799
External 2,622 3365 509 1,682 8,178
Total 2,703 3,824 1,584 2,866 10,977

Optimization

Supplier classification according to years of commercial links with Inditex (%)

Rating A Rating B Rating C Subject to CAP PR Total
One year 35% 44% 10% 4% 7% 100%
One to three years 39% 51% 8% 1% 1% 100%
Three years or more 46% 46% 5% 1% 2% 100%
Total 42% 46% 7% 2% 3% 100%

Distribution of investment in social programmes 2015

2015 2014 Y/Y growth
Investment in social programmes (in euros) 35,126,133 25,835,851 36%
Investment in social programmes / Net profit 1.22% 1.03% 18%
Type of contribution (in euros) 2015 of Total 2015 2014 of Total 2014 Y/Y growth
Cash 24,150,184 69% 19,545,730 76% 24% % management costs included
Time 1,499,008 4% 1,132,486 4% 32%
In kind 8,949,348 25% 4,620,670 18% 94%
Management costs 528,083 2% 536,965 2% -2%
Total 35,126,623 100% 25,835,851 100% 36%
By category (in euros) 2015 of Total 2015 2014 of Total 2014 Y/Y growth
Charity gifts 5,166,313 15% 7,090,942 28% -27% % management costs excluded
Community investment 25,889,487 75% 15,364,799 61% 68%
Commercial initiatives in the community 3,542,739 10% 2,843,145 11% 25%
Total 34,598,539 100% 25,298,886 100% 37%
Area of activity (in euros) 2015 of Total 2015 2014 of Total 2014 Y/Y growth
Education and youth 6,352,871 18% 5,858,185 23% 8% % management costs excluded
Health 2,831,178 8% 2,159,776 9% 31%
Economic development 1,880,525 5% 1,156,591 5% 63%
Environment 1,254,919 4% 787,881 3% 59%
Art and culture 806,356 2% 819,446 3% -2%
Social welfare 12,082,333 35% 8,208,916 32% 47%
Humanitarian aid 9,390,357 27% 6,262,171 25% 50%
Other 0 0% 45,920 0% -100%
Total 34,598,539 100% 25,298,886 100% 37%
Geographical area (in euros) 2015 of Total 2015 2014 of Total 2014 Y/Y growth
Spain 9,587,037 28% 8,681,879 34% 10% % management costs excluded
Europe (excluding Spain) 9,358,195 27% 2,797,135 11% 235%
America 6,739,970 19% 5,966,813 24% 13%
Africa 1,166,747 3% 2,177,124 9% -46%
Asia 7,746,590 22% 5,675,935 22% 36%
TOTAL 34,598,539 100% 25,298,886 100% 37%
2015 2014 Y/Y growth
Number of hours dedicated to social initiatives by employees during working hours 49,967 37,760 32%
Number of social initiatives 456 460 -1%
Number of garments donated to social causes 1,098,708 612,743 79%
Number of direct beneficiaries 1,008,545 (*) 2,768,885 -64%
Number of non-profit organizations benefiting 361 351 3%
Number of children in education 89,129 44,532 100%
Number of people receiving occupational training 25,790 4,441 481%
Number of migrants, refugees and displaced persons assisted 208,844 110,556 89%
Number of people receiving healthcare 206,695 2,093,453 -90%
Number of jobs generated as beneficiaries of social initiatives 4,417 3,080 43%

(*) This decrease in the number of direct beneficiaries can be explained by the implementation of a one-off programme in 2014 to tackle the consequences of the Ebola outbreak in Sierra Leone. This programme had a scope of 1.4 million people.

Social cash flow

(millions of euros) 2015 2014
Net cash received for sale of products and services 20,900 18,117
Cash flow received from financial investments 23 26
Cash received for sales of assets 0 0
Total value-added cash flow 20,924 18,143
Distribution of value-added cash flow
Employee wages 3,335 2,932
Tax payments 977 707
Financial debt return -5 -6
Dividends paid out to shareholders 1,626 1,510
Investment in social programmes 35 26
Cash withheld for future growth 460 -129
Payments made outside the Group for the purchase of goods, raw materials and services 12,943 11,254
Payments for investments in new productive assets 1,552 1,849
Total distribution of value-added cash flow 20,924 18,143