1. SUSTAINABLE MANAGEMENT OF THE SUPPLY CHAIN

SUPPLIER CLUSTERS - TRACEABILITY

	2016	2015
SPAIN
Number of suppliers with purchase during the year	208	216
Number of garment factories associated with suppliers with purchase	167	172
Number of factories involved in other processes associated with suppliers with purchase ⁽¹⁾	299	212
Workers who make up the staff of manufacturers working for Inditex in Spain	10,298	8,362
PORTUGAL
Number of suppliers with purchase during the year	170	171
Number of garment factories associated with suppliers with purchase	868	887
Number of factories involved in other processes associated with suppliers with purchase ⁽¹⁾	489	449
Workers who make up the staff of manufacturers working for Inditex in Portugal	49,714	46,494
MOROCCO
Number of suppliers with purchase during the year	121	106
Number of garment factories associated with suppliers with purchase	207	211
Number of factories involved in other processes associated with suppliers with purchase ⁽¹⁾	76	42
Workers who make up the staff of manufacturers working for Inditex in Morocco	73,772	62,333
Turkey
Number of suppliers with purchase during the year	175	183
Number of garment factories associated with suppliers with purchase	732	748
Number of factories involved in other processes associated with suppliers with purchase ⁽¹⁾	695	640
Workers who make up the staff of manufacturers working for Inditex in Turkey	192,173	155,256
INDIA
Number of suppliers with purchase during the year	136	134
Number of garment factories associated with suppliers with purchase	224	219
Number of factories involved in other processes associated with suppliers with purchase ⁽¹⁾	170	110
Workers who make up the staff of manufacturers working for Inditex in India	200,139	131,435
BANGLADESH
Number of suppliers with purchase during the year	94	81
Number of garment factories associated with suppliers with purchase	151	139
Number of factories involved in other processes associated with suppliers with purchase ⁽¹⁾	111	87
Workers who make up the staff of manufacturers working for Inditex in Bangladesh	479,859	386,916
VIETNAM
Number of suppliers with purchase during the year	4	5
Number of garment factories associated with suppliers with purchase	132	130
Number of factories involved in other processes associated with suppliers with purchase ⁽¹⁾	2	7
Workers who make up the staff of manufacturers working for Inditex in Vietnam	152,101	143,206
CAMBODIA
Number of suppliers with purchase during the year	1	1
Number of garment factories associated with suppliers with purchase	99	68
Number of factories involved in other processes associated with suppliers with purchase ⁽¹⁾	26	33
Workers who make up the staff of manufacturers working for Inditex in Cambodia	126,843	104,695
CHINA
Number of suppliers with purchase during the year	393	340
Number of garment factories associated with suppliers with purchase	1,243	1,106
Number of factories involved in other processes associated with suppliers with purchase ⁽¹⁾	411	255
Workers who make up the staff of manufacturers working for Inditex in China	368,428	302,816
PAKISTAN ⁽²⁾
Number of suppliers with purchase during the year	42	not available
Number of garment factories associated with suppliers with purchase	68	not available
Number of factories involved in other processes associated with suppliers with purchase ⁽¹⁾	39	not available
Workers who make up the staff of manufacturers working for Inditex in Pakistan	125,316	not available
ARGENTINA ⁽³⁾
Number of suppliers with purchase during the year	45	64
Number of garment factories associated with suppliers with purchase	41	53
Number of factories involved in other processes associated with suppliers with purchase ⁽¹⁾	42	66
Workers who make up the staff of manufacturers working for Inditex in Argentina	5,099	5,505
BRAZIL ⁽³⁾
Number of suppliers with purchase during the year	15	37
Number of garment factories associated with suppliers with purchase	45	103
Number of factories involved in other processes associated with suppliers with purchase ⁽¹⁾	20	75
Workers who make up the staff of manufacturers working for Inditex in Brazil	10,712	18,930

(1) Includes fabric, cutting, dyeing and washing, printing and finishing.
(2) Due to the creation of the new Pakistan cluster, the data shown only comprises 2016.
(3) In order to make the data representative, all the active suppliers in the region have been taken into consideration.

SUPPLY CHAIN PROGRAMMES - FEATURED actions in 2016

Strategic Plan 2014 - 2018. 2016 Review

RATING and production volume of suppliers with purchase in 2016 (*)

	2016		2015		2016	2015
	Number of Suppliers	% Suppliers	NºSuppliers	% Suppliers	% production	% production
A	694	38%	724	42%	40%	41%
B	917	51%	794	46%	55%	54%
C	83	5%	116	7%	1%	3%
CAP	61	3%	35	2%	3%	1%
PR	50	3%	56	3%	1%	1%
General total	1,805	100%	1,725	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): breaches of the Code of Conduct that trigger the immediate implementation of a Corrective Action Plan.
PR supplier: Undergoing an auditing process.

RATING AND PRODUCTION VOLUME of suppliers with purchase in 2016 by region (*)

	2016		2015		2016	2015
Africa	Suppliers	% Suppliers	Suppliers	% Suppliers	% production	% production
A	63	45%	67	52%	45%	54%
B	59	42%	52	40%	42%	38%
C	6	4%	7	5%	4%	5%
CAP	10	7%	3	2%	8%	2%
PR	3	2%	1	1%	1%	1%
Total	141	100%	130	100%	100%	100%
America	Suppliers	% Suppliers	Suppliers	% Suppliers	% production	% production
A	44	68%	52	70%	40%	44%
B	17	26%	17	23%	58%	44%
C	1	1%	4	5%	1%	11%
CAP	3	5%	1	1%	1%	1%
PR	0	0%	0	0%	0%	0%
Total	65	100%	74	100%	100%	100%
Asia	Suppliers	% Suppliers	Suppliers	% Suppliers	% production	% production
A	253	27%	225	27%	28%	24%
B	598	64%	507	61%	67%	71%
C	57	6%	82	10%	2%	4%
CAP	21	2%	18	2%	3%	1%
PR	9	1%	4	0%	0%	0%
Total	938	100%	836	100%	100%	100%
Europe (non-EU)	Suppliers	% Suppliers	Suppliers	% Suppliers	% production	% production
A	84	47%	93	50%	57%	60%
B	70	39%	71	38%	38%	38%
C	5	3%	6	3%	1%	1%
CAP	15	8%	7	4%	3%	0%
PR	5	3%	8	4%	1%	1%
Total	179	100%	185	100%	100%	100%
European Union	Suppliers	% Suppliers	Suppliers	% Suppliers	% production	% production
A	250	52%	287	57%	54%	59%
B	173	36%	147	29%	43%	37%
C	14	3%	17	3%	0%	1%
CAP	12	2%	6	1%	1%	0%
PR	33	7%	43	9%	2%	3%
Total	482	100%	500	100%	100%	100%

(*) Supplier A: complies with the Code of Conduct Audited at most every two years.
Supplier B: breaches a non-material aspect of the Code of Conduct Audited at most every 18 months.
Supplier C: breaches a sensitive aspect of the Code of Conduct Audited at most every 12 months.
Supplier subject to Corrective Action Plan (CAP): breaches of the Code of Conduct that trigger the immediate implementation of a Corrective Action Plan.
Maximum duration of six months.
PR supplier: Undergoing an auditing process.

Evolution of supplier RATING OVER THE last three years

Total Audits by Region 2016

Geographic area	Pre-Assessment	Social	Special (^*)	Traceability	Total
Africa	71	191	127	388	777
America	19	288	26	1,313	1,646
Asia	1,510	2,022	1,418	617	5,567
Europe (non-EU)	350	685	141	418	1,594
European Union	352	825	82	40	1,299
TOTAL	2,302	4,011	1,794	2,776	10,883

Internal and external audits 2016

	Pre-Assessment	Social	Special (^*)	Traceability	Total
Internal	90	537	1,140	1,871	3,638
External	2,212	3,474	654	905	7,245
TOTAL	2,302	4,011	1,794	2,776	10,883

Evolution of audits in the last three years

Geographic area	Pre-Assessment			Social			Special (^*)			Traceability			Total
Geographic area	2016	2015	2014	2016	2015	2014	2016	2015	2014	2016	2015	2014	2016	2015	2014
Africa	71	79	74	191	178	145	127	375	462	388	542	163	777	1,174	844
America	19	113	154	288	460	404	26	57	2	1,313	1,642	1,751	1,646	2,272	2,311
Asia	1,510	1,420	1,199	2,022	1,876	1,723	1,418	1,069	1,030	617	609	488	5,567	4,974	4,440
Europe (non-EU)	350	594	441	685	508	736	141	20	24	418	40	57	1,594	1,162	1,258
European Union	352	497	499	825	802	885	82	63	33	40	33	4	1,299	1,395	1,421
GENERAL TOTAL	2,302	2,703	2,367	4,011	3,824	3,893	1,794	1,584	1,551	2,776	2,866	2,463	10,883	10,977	10,274

Corrective Action Plans 2016

Geographic area	Factories that initiated an improvement process	Factories that improved their compliance	Factories in the process of improvement	Percentage of CAPs completed successfully
Africa	40	12	26	86%
America	5	1	2	33%
Asia	161	43	97	67%
Europe (non-EU)	160	38	56	37%
European Union	87	30	36	59%
GENERAL TOTAL	453	124	217	53%

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