MIRA INFORM REPORT

Report Date :

03.03.2012

IDENTIFICATION DETAILS

Name :	ZARA HOME ESPANA SA
Registered Office :	Avd. Diputacion Edf Inditex, Arteixo, 15142
Country :	Spain
Financials (as on) :	31.12.2009
Year of Establishment :	1991
Com. Reg. No.:	A15340516
Legal Form :	Public Independent Company
Line of Business :	Retail sale of clothing in specialised stores
No. of Employees :	933

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Good
Payment Behaviour :	No Complaints
Litigation :	Clear

NOTES:

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – September 30^th, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
Spain	a2	a2

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Company name & address

Zara Home EspaNa Sa

Avd. Diputacion Edf Inditex

Arteixo, 15142

Spain

Tel: +(34) 981185400

Fax: +(34) 981185503

Synthesis

Employees: 933

Company Type: Public Independent

Incorporation Date: 1991

Auditor: Kpmg Auditores Sl

Financials in: USD (Millions)

Fiscal Year End: 20-Oct-2010

Reporting Currency: Euro

Annual Sales: 226.8 1

Net Income: 26.7

Total Assets: 220.8

Business Description

Retail sale of clothing in specialised stores

Industry

Industry Retail (Apparel)

ANZSIC 2006: 4251 - Clothing Retailing

NACE 2002: 5242 - Retail sale of clothing

NAICS 2002: 4481 - Clothing Stores

UK SIC 2003: 5242 - Retail sale of clothing

US SIC 1987: 5651 - Family Clothing Stores

Key Executives

Name	Title
Javier Monteoliva Diaz	Secretary
Antonio Gerardo Abril Abadin	Joint Attorney
Adolfo Costas Mendez	Joint Attorney
Vicente Cortizas Gonzalez-Criado	Member Of The Board
Ramon Reñon Tuñez	Member Of The Board

Registered No.(ESP): A15340516

1 - Profit & Loss Item Exchange Rate: USD 1 = EUR 0.7425482

2 - Balance Sheet Item Exchange Rate: USD 1 = EUR 0.7158965

Corporate Overview

Location

Avd. Diputacion Edf Inditex

Arteixo, 15142

Spain

Tel: +(34) 981185400

Fax: +(34) 981185503

Sales EUR(mil): 168.4

Assets EUR(mil): 158.1

Employees: 933

Fiscal Year End: 20-Oct-2010

Industry: Retail (Apparel)

Incorporation Date: 1991

Company Type: Public Independent

Quoted Status: Not Quoted

Registered No.(ESP): A15340516

Member Of The Board: Vicente Cortizas Gonzalez-Criado

· Contents

· Industry Codes

· Business Description

· Financial Data

· Branch Offices

· Key Corporate Relationships

Industry Codes

ANZSIC 2006 Codes:

4251 - Clothing Retailing

NACE 2002 Codes:

5242 - Retail sale of clothing

NAICS 2002 Codes:

4481 - Clothing Stores

US SIC 1987:

5651 - Family Clothing Stores

UK SIC 2003:

5242 - Retail sale of clothing

Business Description

Retail sale of clothing in specialised stores

Financial Data

Financials in:	EUR(mil)
Revenue:	168.4
Net Income:	19.8
Assets:	158.1
Current Assets:	33.4
Fixed Assets:	124.7
Long Term Debt:	4.7
Total Liabilities:	158.1
Issued Capital:	5.5
Net Worth:	45.5
Date of Financial Data:	20-Oct-2010

1 Year Growth

1.8%

NA

NA

Branch Offices
Location Calle Severo Ochoa 22 ( P Ind Las Saladas ) *Diseminado*, 03320 Tel: +(34) 965681542 Location Avda Denia S/N Alicante, 03002 Tel: +(34) 965220162 Location Calle Rio De Oro 3 Gijon, 33209 Tel: +(34) 985395933 Location Calle Melquiades Alvarez 24 Oviedo, 33003 Tel: +(34) 985203278		Location Rbla Catalunya 71 Barcelona, 08007 Tel: +(34) 934874972 Location Calle Poeta Emilio Prados S/N Cordoba, 14012 Tel: +(34) 957274479 Location Calle Madrid 30 Getafe, 28902 Tel: +(34) 916831713 Location Plaza Constitucion 10 Fuengirola, 29640 Tel: +(34) 952582550

Key Corporate Relationships

Auditor:	Kpmg Auditores Sl
Bank:	Banco Bilbao Vizcaya Argentaria, S.A.
Auditor:	Kpmg Auditores Sl

Executive report

Board of Directors

Name	Title	Function
Vicente Cortizas Gonzalez-Criado	Member Of The Board	Director/Board Member
Ramon Renon Tunez	Member Of The Board	Director/Board Member

Executives

Name	Title	Function
Javier Monteoliva Diaz	Secretary	Administration Executive
Antonio Gerardo Abril Abadin	Joint Attorney	Legal Executive
Adolfo Costas Mendez	Joint Attorney	Legal Executive
Susana Fernandez Martin	Joint Attorney	Legal Executive
Yara Ferrero Lagares	Joint Attorney	Legal Executive
Pablo Francesch Huidobro	Joint Attorney	Legal Executive
Aurora Inmaculada Garcia Fernandez	Joint Attorney	Legal Executive
Tania Garcia Miras	Joint Attorney	Legal Executive
Miguel Garcia Mosquera	Joint Attorney	Legal Executive
Marta Gonzalez Maroto	Joint Attorney	Legal Executive
Eva Lence Reija	Joint Attorney	Legal Executive
Abel Lopez Cernadas	Joint Attorney	Legal Executive
Begona Lopez-Cano Ibarreche	Joint Attorney	Legal Executive
Maria Cristina Luaces Rey	Joint Attorney	Legal Executive
Antonia Martinez Castano	Joint Attorney	Legal Executive
Luis Molina Lavandeira	Joint Attorney	Legal Executive
Isabel Maria Morugan Gomez	Joint Attorney	Legal Executive
Enrique Munoz Lagaron	Joint Attorney	Legal Executive
Maria Aranzazu Murciano Rios	Joint Attorney	Legal Executive
Jose Ignacio Nievas Andres	Joint Attorney	Legal Executive
Carlos Ortega Montero	Joint Attorney	Legal Executive
Paula Ortiz Borras	Joint Attorney	Legal Executive
Fernando Jose Pardo Ramallo	Joint Attorney	Legal Executive
Ana Puime Miguez	Joint Attorney	Legal Executive
Olga Reyes Ferreira	Joint Attorney	Legal Executive
Ruth Rodriguez Gonzalez	Joint Attorney	Legal Executive
Yolanda Seoane Bouzamayor	Joint Attorney	Legal Executive
Raul Sobrino Garfia	Joint Attorney	Legal Executive
Antonio Ulloa Ayora	Joint Attorney	Legal Executive
Raimundo Vazquez Bermudez	Joint Attorney	Legal Executive

Annual Profit & Loss

	31-Dec-2009	31-Dec-2008	31-Dec-2007
Period Length	12 Months	12 Months	12 Months
Filed Currency	EUR	EUR	EUR
Exchange Rate (Period Average)	0.719047	0.683679	0.730637
Consolidated	No	No	No
Charges	212.3	233.3	150.5
Supplies	119.5	127.9	80.6
Goods Consumption	113.8	119.5	73.8
Consumption of Raw Materials	5.5	8.2	6.7
Miscellaneous External Expenditures	0.2	0.2	0.1
Staff Costs	27.4	28.4	19.5
Wages and Salaries	21.3	21.5	15.5
Social Security Costs	6.1	6.9	4.0
Depreciation	9.6	8.7	6.7
Allowance for Trade Operations	0.2	-	-
Variation of Other Trade Provisions	0.2	-	-
Other Operating Charges	51.5	57.3	37.1
External Services	51.0	56.7	36.6
Taxes	0.5	0.5	0.5
Other Operating Expenses	-	0.1	0.0
Operating Benefits	28.4	21.2	21.6
Financials and Similar Charges	2.2	2.5	1.6
Due to Liabilities With Associated Companies	2.2	2.5	1.6
Due to Other Liabilities	0.0	0.0	0.0
Exchange Losses	0.1	1.2	0.7
Net Financial Income	1.0	-	-
Profit From Ordinary Activities	29.4	20.9	19.8
Changes in Provisions for Assets	-0.8	5.1	0.7
Losses From Assets and Securities Portfolio	0.4	0.0	0.1
Extraordinary Expenses	0.1	0.1	0.0
Expenses and Losses From Previous Years	-	0.4	0.0
Extraordinary Profit	0.4	-	-
Profit Before Taxes	29.8	15.5	19.0
Corporation Tax	2.2	1.7	3.4
Financial Year Result (Profit)	27.6	13.8	15.6
Income	239.9	247.1	166.1
Net Total Sales	234.2	242.1	164.9
Sales	234.2	242.0	164.7
Rendering of Services	-	0.1	0.3
Increase in Stocks	-	0.0	-
Miscellaneous Operating Income	2.3	1.4	0.6
Auxiliary Income From Current Management	2.3	1.4	0.6
Grants	0.1	-	-
Charges for Provisions	0.0	-	-
Income From Equity Investment	3.3	3.2	0.0
In Group Companies	3.3	3.2	0.0
Income From Other Securities and Receivables	-	0.0	0.0
From Group Companies	-	0.0	0.0
Income From Miscellaneous Interests	0.0	0.0	0.0
Miscellaneous Interests	0.0	0.0	0.0
Gains from Exchange Rate	-	0.2	0.4
Negative Financial Results	-	0.3	1.9
Extraordinary Income	-	0.1	0.0
Negative Extraordinary Results	-	5.4	0.7

Annual Balance Sheet

Financials in: USD (mil)

	31-Dec-2009	31-Dec-2008	31-Dec-2007
Filed Currency	EUR	EUR	EUR
Exchange Rate	0.696986	0.719399	0.683971
Consolidated	No	No	No
Formation Expenses	-	-	0.0
Concessions, Patents, Trademarks	1.2	1.2	0.3
Fees Paid for Premises	4.4	5.9	5.8
Software	0.0	0.0	0.0
Accumulated Depreciation	-	-1.4	-1.1
Total Intangible Fixed Assets	5.6	5.7	5.0
Land and Construction	5.6	4.4	-
Technical Installations and Machinery	44.8	66.7	65.4
Other Installations, Tools, and Furniture	1.6	2.4	-
Tangible Fixed Assets Under Construction	0.2	0.9	0.1
Other Tangible Assets	0.3	0.5	-
Provisions	-	-0.8	-0.6
Accumulated Depreciation	-	-21.7	-14.9
Total Tangible Fixed Assets	52.5	52.2	50.1
Investments in Group Companies	117.7	55.1	36.8
Long-Term Guarantees and Deposits	2.9	2.6	2.4
Provisions	-	-5.0	-1.4
Financial Investments	120.6	52.7	37.7
Long-Term Trade Receivables	0.1	-	-
Total Fixed Assets	178.9	110.6	92.9
Deferred Expenses	-	0.1	0.0
Goods for Resale	27.3	39.3	36.0
Total Stocks	27.3	39.3	36.0
Trade Debtors	0.2	9.4	5.3
Receivables, Group Companies	11.2	0.5	2.9
Other Debtors	0.2	0.5	0.0
Staff	0.0	0.0	0.0
Public Bodies	1.6	1.9	2.1
Total Debtors	13.3	12.3	10.2
Receivables from Group Companies	2.0	-	-
Other Receivables	0.0	1.7	1.1
Short-Term Guarantees and Deposits	2.9	-	-
Total Short-Term Investments	4.9	1.7	1.1
Cash	2.5	0.7	1.2
Prepayments and Accrued Income	-	-	0.2
Total Current Assets	47.9	54.1	48.8
Total Assets	226.8	164.8	141.6
Legal Reserve	1.6	1.5	0.9
Miscellaneous Reserves	40.1	-	-
Capital Adjustment to Euros	-	22.9	8.1
Total Reserves	41.7	24.4	9.0
Partners Contribution to Loss Compensation	1.5	-	-
Profit or Loss Brought Forward	1.5	-	-
Profit or Loss for the Financial Year	28.4	13.1	16.6
Interim Dividend Paid	-14.3	-	-
Total Equity	65.2	45.1	33.7
Capital Grants	-	3.4	3.5
Unrealised Exchange Gains	-	0.6	-
Total Deferred Income	-	4.0	3.5
Other Provisions	0.1	0.3	-
Reversion Fund	-	-	0.0
Total Provisions for Liabilities and Charges	0.1	0.3	0.0
Long-Term Payables to Public Bodies	6.7	-	-
Total Other Creditors	6.7	-	-
Total Long Term Liabilities	6.7	-	-
Amounts Owed to Group Companies	100.3	64.4	56.1
Total Short-Term Amounts Owed to Group and Associa	100.3	64.4	56.1
Advanced Payments from Customers	0.0	0.0	0.0
Amounts Owed for Purchases of Goods or Services	25.5	43.1	42.7
Total Trade Creditors	25.5	43.1	42.7
Public Bodies	3.1	3.4	3.6
Miscellaneous Debts	0.2	0.3	0.1
Wages and Salaries Payable	2.0	3.9	1.8
Total Other Creditors	5.3	7.5	5.6
Prepayments and Accrued Income	23.7	0.4	-
Total Short Term Creditors	154.7	115.4	104.4
Total Liabilities and Equity	226.8	164.8	141.6

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.49.35
UK Pound	1	Rs.78.68
Euro	1	Rs.65.63

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
----	NB	New Business	----

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.