MIRA INFORM REPORT

Report Date :

25.10.2012

IDENTIFICATION DETAILS

Name :	INDITEX SA
Registered Office :	Edificio Inditex Avda. de la DiputaciOn, s/n Arteixo, 15142
Country :	Spain
Financials (as on) :	31.01.2012
Date of Incorporation :	12.06.1985
Legal Form :	Public Parent
Line of Business :	Subject engaged in the textile industry
No. of Employees :	111,033

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

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 – June 30^th, 2012

Country Name	Previous Rating (31.03.2011)	Current Rating (30.06.2012)
Spain	A2	A2

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

SPAIN - ECONOMIC OVERVIEW

spain's mixed capitalist economy is the 13th largest in the world, and its per capita income roughly matches that of Germany and France. However, after almost 15 years of above average GDP growth, the Spanish economy began to slow in late 2007 and entered into a recession in the second quarter of 2008. GDP contracted by 3.7% in 2009, ending a 16-year growth trend, and by another 0.1% in 2010, before turning positive in 2011, making Spain the last major economy to emerge from the global recession. The reversal in Spain''s economic growth reflected a significant decline in construction amid an oversupply of housing and falling consumer spending, while exports actually have begun to grow. Government efforts to boost the economy through stimulus spending, extended unemployment benefits, and loan guarantees did not prevent a sharp rise in the unemployment rate, which rose from a low of about 8% in 2007 to over 20% in 2011. The government budget deficit worsened from 3.8% of GDP in 2008 to 9.2% of GDP in 2010, more than three times the euro-zone limit. Madrid cut the deficit to 8.5% of GDP in 2011, a larger deficit than the 6% target negotiated between Spain and the EU. Spain''s large budget deficit and poor economic growth prospects have made it vulnerable to financial contagion from other highly-indebted euro zone members despite the government''s efforts to cut spending, privatize industries, and boost competitiveness through labor market reforms. Spanish banks'' high exposure to the collapsed domestic construction and real estate market also poses a continued risk for the sector. The government oversaw a restructuring of the savings bank sector in 2010, and provided some $15 billion in capital to various institutions. Investors remain concerned that Madrid may need to bail out more troubled banks. The Bank of Spain, however, is seeking to boost confidence in the financial sector by pressuring banks to come clean about their losses and consolidate into stronger groups.

Source : CIA

COMPANY NAME AND ADDRESS

INDITEX SA

Edificio Inditex

Avda. de la DiputaciOn, s/n

Arteixo, 15142

Spain

Tel: 34-981-185400

Fax: 34-981-185544

Email: www.inditex.com

Employees: 111,033

Company Type: Public Parent

Corporate Family: 177 Companies

Traded: Mercado Continuo Espana: ITX

Incorporation Date: 12-Jun-1985

Auditor: KPMG Auditores, SL

Financials in: USD (Millions)

Fiscal Year End: 31-Jan-2012

Reporting Currency: Euro

Annual Sales: 19,117.4 ¹

Net Income: 2,678.3

Total Assets: 14,374.3 ²

Market Value: 78,468.1

(12-Oct-2012)

Business Description

Industria de Diseno Textil SA (Inditex SA) is a Spain-based company primarily engaged in the textile industry. The Company’s activities include the design, confection, manufacturing, distribution and retail of men, women and children apparel, footwear and fashion accessories; as well as home furnishings and household textile products. The Company’s products retail distribution is conducted through a chain of more than 5,000 commercial stores, which are structured in eight brands: Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterque. The Company is a parent of Grupo Inditex, a group which comprises a number of controlled entities that, as of January 31, 2012, had operations established in over than 80 countries located worldwide. For the six months ended 31 July 2012, Inditex SA revenues increased 17% to EUR7.24B. Net income increased 32% to EUR943.6M. Revenues reflect Zara segment increase of 20% to EUR4.83B, Not Assigned segment increase of 11% to EUR1.74B, Bershka segment increase of 12% to EUR666.4M, Other Foreign segment increase of 38% to EUR1.9B, Other European Union Countries segment increase of 15% to EUR2.67B.

Industry

Industry	Retail (Apparel)
ANZSIC 2006:	4251 - Clothing Retailing
NACE 2002:	5242 - Retail sale of clothing
NAICS 2002:	44812 - Women's Clothing Stores
UK SIC 2003:	52423 - Retail sale of other women's clothing
UK SIC 2007:	4771 - Retail sale of clothing in specialised stores
US SIC 1987:	5621 - Women's Clothing Stores

Key Executives

Name	Title
Pablo Isla Alvarez de Tejera	Chief Executive Officer, Chairman of the Board, Executive Director
Ignacio Fernandez Fernandez	Chief Financial Officer
Antonio Abril Abadin	General Secretary, Non-Member Secretary of the Board, General Counsel
Gabriel Moneo Marina	Information Technology General Manager
Juan Jose Lopez Romero	Director of Purchasing and Contracting

Significant Developments

Topic	#*	Most Recent Headline	Date
Mergers & Acquisitions	1	Inditex SA Acquires Property To Open New Zara Store In London-Reuters	18-Jun-2012
Divestitures	1	India's Government Rejects Inditex Group's Application To Sell Massimo Dutti Brand Via Joint Venture With Trent Ltd-Reuters	25-Jul-2012
New Business / Unit / Subsidiary	4	Inditex SA Plans over 16 New Zara Stores in Romania by End of 2013-SeeNews - The Corporate Wire	9-Oct-2012
Dividends	2	Inditex SA Announces FY 2011 Dividend Payment; Appoints External Auditor	17-Jul-2012

* number of significant developments within the last 12 months

News

Title	Date
Sweden's H&M said to hold talks with 3 Indian firms for market foray Xinhua News Agency (506 Words)	22-Oct-2012
OVER 25 INTERNATIONAL BRANDS REPRESENTED IN DALMA GARDEN MALL IN YEREVAN ARKA News (393 Words)	22-Oct-2012
Antonio Banderas, Fernando Alonso named envoys for "Brand Spain" EFE Ingles (270 Words)	17-Oct-2012
IndustriALL committed to trade union networks and Global Framework Agreements PressWIRE (724 Words)	17-Oct-2012
Inditex to book EUR 500m revenues online in 2013 - report ADP Spain News (155 Words)	15-Oct-2012

Financial Summary

As of 31-Jul-2012

Key Ratios	Company	Industry
Current Ratio (MRQ)	1.56	2.53
Quick Ratio (MRQ)	1.18	1.32
Debt to Equity (MRQ)	0.0003	0.33
Sales 5 Year Growth	10.97	8.49
Net Profit Margin (TTM) %	14.64	9.11
Return on Assets (TTM) %	19.54	14.81
Return on Equity (TTM) %	32.19	28.29

Stock Snapshot

Traded: Mercado Continuo Espana: ITX

As of 12-Oct-2012

   Financials in: EUR

Recent Price	97.29	EPS	3.14
52 Week High	101.00	Price/Sales	4.40
52 Week Low	59.50	Dividend Rate	1.80
Avg. Volume (mil)	0.95	Price/Earnings	24.20
Market Value (mil)	60,643.82	Price/Book	8.18
		Beta	0.63

	Price % Change	Rel S&P 500%
4 Week	8.72%	15.86%
13 Week	20.42%	4.88%
52 Week	44.56%	68.96%
Year to Date	53.75%	72.11%

Corporate Overview

Location
Edificio Inditex
Avda. de la DiputaciOn, s/n
Arteixo, 15142
Spain

Tel:34-981-185400

Fax:34-981-185544

Website: www.inditex.com

Quote Symbol - Exchange

ITX - Mercado Continuo Espana

Sales EUR(mil): 13,792.6

Assets EUR(mil): 10,959.2

Employees: 111,033

Fiscal Year End: 31-Jan-2012

Industry: Retail (Apparel)

Incorporation Date: 12-Jun-1985

Company Type: Public Parent

Quoted Status: Quoted

Chief Executive Officer, Chairman of the Board, Executive Director: Pablo Isla Alvarez de Tejera

Industry Codes

ANZSIC 2006 Codes:
4251	-	Clothing Retailing
1333	-	Cut and Sewn Textile Product Manufacturing
1351	-	Clothing Manufacturing
6240	-	Financial Asset Investing

NACE 2002 Codes:
5242	-	Retail sale of clothing
7415	-	Management activities of holding companies
1822	-	Manufacture of other outerwear
1740	-	Manufacture of made-up textile articles, except apparel
1824	-	Manufacture of other wearing apparel and accessories not elsewhere classified

NAICS 2002 Codes:
44812	-	Women's Clothing Stores
315228	-	Men's and Boys' Cut and Sew Other Outerwear Manufacturing
314129	-	Other Household Textile Product Mills
551112	-	Offices of Other Holding Companies
315299	-	All Other Cut and Sew Apparel Manufacturing
314121	-	Curtain and Drapery Mills
448140	-	Family Clothing Stores
448110	-	Men's Clothing Stores
448130	-	Children's and Infants' Clothing Stores
315239	-	Women's and Girls' Cut and Sew Other Outerwear Manufacturing

US SIC 1987:
5621	-	Women's Clothing Stores
2391	-	Curtains and Draperies
2329	-	Men's and Boys' Clothing, Not Elsewhere Classified
5651	-	Family Clothing Stores
2392	-	House furnishing, Except Curtains and Draperies
2339	-	Women's, Misses', and Juniors' Outerwear, Not Elsewhere Classified
6719	-	Offices of Holding Companies, Not Elsewhere Classified
5611	-	Men's and Boys' Clothing and Accessory Stores
5641	-	Children's and Infants' Wear Stores
2389	-	Apparel and Accessories, Not Elsewhere Classified

UK SIC 2003:
52423	-	Retail sale of other women's clothing
18222	-	Manufacture of other women's outerwear
17401	-	Manufacture of soft furnishings
52424	-	Retail sale of other men's clothing
18249	-	Manufacture of other wearing apparel and accessories not elsewhere classified
17403	-	Manufacture of household textiles
7415	-	Management activities of holding companies
5242	-	Retail sale of clothing
1824	-	Manufacture of other wearing apparel and accessories not elsewhere classified
52422	-	Retail sale of children's and infants' clothing

UK SIC 2007:
4771	-	Retail sale of clothing in specialised stores
13921	-	Manufacture of soft furnishings
14132	-	Manufacture of women's outerwear, other than leather clothes and workwear
13923	-	Manufacture of household textiles (other than soft furnishings of 13.92/1)
642	-	Activities of holding companies
1419	-	Manufacture of other wearing apparel and accessories n.e.c.

Business Description

Industria de Diseno Textil SA (Inditex SA) is a Spain-based company primarily engaged in the textile industry. The Company’s activities include the design, confection, manufacturing, distribution and retail of men, women and children apparel, footwear and fashion accessories; as well as home furnishings and household textile products. The Company’s products retail distribution is conducted through a chain of more than 5,000 commercial stores, which are structured in eight brands: Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterque. The Company is a parent of Grupo Inditex, a group which comprises a number of controlled entities that, as of January 31, 2012, had operations established in over than 80 countries located worldwide. For the six months ended 31 July 2012, Inditex SA revenues increased 17% to EUR7.24B. Net income increased 32% to EUR943.6M. Revenues reflect Zara segment increase of 20% to EUR4.83B, Not Assigned segment increase of 11% to EUR1.74B, Bershka segment increase of 12% to EUR666.4M, Other Foreign segment increase of 38% to EUR1.9B, Other European Union Countries segment increase of 15% to EUR2.67B.

More Business Descriptions

Inditex is the parent of a group of companies, the principal activity of which consists of the retailing of fashion items, mainly clothing, footwear, accessories and household textile products. Inditex carries out its activity through various commercial formats such as Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterqüe. Each format’s commercial activity is carried out through chains of stores managed directly by companies in which Inditex holds all or the majority of the share capital or performed through franchises.

Clothing Mfr

Inditex is one of the worlds largest fashion retailers welcoming shoppers at its eight store formats -Zara Pull & Bear Massimo Dutti Bershka Stradivarius Oysho Zara Home and Uterque - boasting 5.527 stores in 82 countries. The Inditex Group is made up of more than 100 companies operating in textile design manufacturing and distribution. The groups success and its unique business model based on innovation and flexibility have made Inditex one of the biggest fashion retailers in the world. Our approach to fashion ? creativity quality design and rapid turnaround to adjust to changing market demands -- has allowed us to expand internationally at a fast pace and has generated an excellent public response to our retailers collections.

Inditex S.A. (Inditex), a group of about 100 companies is engaged in the retailing of fashion products. The company is also involved in textile designing, manufacturing and distribution of fashion products. The group’s product portfolio includes clothing, footwear, handbags, belts, handkerchiefs, tableware, cutlery, glassware, decorative items, perfumes, lingerie, accessories, home furnishings, textile and leather garments and other fashion products. The group sells its wide range of products through its different concept stores, namely, Zara, Pull and Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterque located all across the world. The group classifies its business into three reportable segments, namely, ZARA, Bershka and Other concepts. It operates business under flexible integrated model through a wide distribution channel of stores spread across the world. Under ZARA banner, the group offers a wide range of fashion collection, including men’s t-shirts, babies’ and children’s clothes, footwear, handbags, accessories and other products. Currently, the banner operates through a network of 1,688 stores, including approximately 300 ZARA kids stores located in 77 countries across the world. In 2009, the banner entered into four new geographic locations, namely, Montenegro, Ukraine, Honduras and South Korea. During the fiscal year ending January 2010, the segment generated EUR 7,076.74m, constituting 63.85% of the group’s total revenues. The company, through Bershka banner, sells a wide assortment of t-shirts, jeans, casual and urban wear and other related fashion products. Currently, Bershka operates through a network of 698 stores located in 49 countries across the globe. During the year 2009, the banner expanded its operations and entered into five new countries, namely, Austria, Montenegro, Colombia, Bahrain and Egypt. During the fiscal year ended 2010, the segment generated EUR 1,177.26m, constituting 10.62% of the group’s total revenues. Other concept segment includes banners, namely, Pull and Bear, Massimo Dutti, Stradivarius, Oysho, Zara Home and Uterque. Under Pull and Bear banner, the company sells an expansive range of clothing and accessories. It is also engaged in the designing of its clothing products. Pull and Bear operates through a network of 663 stores located in 45 countries across the globe. Massimo Dutti banner sells a wide variety of products, including urban fashions, casual wear, fragrances, eyewear and other related products. The chain operates through a network of 519 stores in 47 countries. Stradivarius sells international trend wear featuring cutting-edge design such as, a wide range of clothing products, including jeans, jackets, t-shirts and other accessories. Stradivarius operates through 573 stores in 42 countries. Oysho sells the newest fashion trends in women's lingerie and intimate apparel through its chain of 422 stores in 25 countries. Zara Home specializes in home decor and linens. Zara Home has 272 stores in 26 countries. Uterque sells accessories, fashion extras and a selection of quality fabric and leather garments. It has 72 stores in 15 countries. During the fiscal year ended 2010, Other concept segment generated EUR 2,829.50m, constituting 25.53% of the group’s total revenues. For the fiscal year ending 2010, Zara generated EUR 7,077m, accounting for 63.85% of the groups total revenue followed by, Bershka EUR 1,177m (10.62%), Massimo Dutti generated EUR 790m (7.13%), Pull and Bear EUR 771m (6.96%), Stradivarius EUR 702m (6.33%), Oysho EUR 280m (2.53%), Zara Home EUR 243m (2.19) and Uterque EUR 44m (0.4%). The company classifies its geographical segments into Spain, Rest of Europe, America, and Asia and Rest of the World. For the fiscal year 2010, Spain accounted for 33.46% of the total revenues, followed by Rest of the Europe 47.11%, America 9.89%, and Asia and Rest of the World 9.53%. Recently, Inditex launched its new Zara store in Rome and reached the 5,000 store mark, with stores in 77 countries and Zara launched its online store. Further, the company concluded the purchase of Otto Group’s outstanding minority stake in the German subsidiary Zara Deutschland.

Inditex S.A. (Inditex) is a diversified group of brand concept stores, principally engaged in textile designing, production and distribution of fashion products. The group offers a wide range of apparel and accessories, including textile and leather garments, footwear, handbags, belts, handkerchiefs, tableware, cutlery, glassware, decorative items, perfumes, lingerie, accessories, home furnishings and other fashion products. The group sells its wide range of products through its different concept stores, namely, Zara, Pull and Bear, Stradivarius, Oysho, Massimo Dutti, Bershka, Zara Home, Zara Kids and Uterque located all across the world. The group operates through 4,907 stores located in about 77 countries across the world. Inditex is headquartered in A Coruna, Spain.The company reported revenues of (Euro) EUR 13,792.61 million during the fiscal year ended January 2012, an increase of 10.11% over 2011. The operating profit of the company was EUR 2,522.01 million during the fiscal year 2012, an increase of 10.11% over 2011. The net profit of the company was EUR 1,932.29 million during the fiscal year 2012, an increase of 11.58% over 2011.

Cut and Sew Apparel Contractors

Brand/Trade Names

Zara	Stradivarius
Pull & Bear	Oysho
Massimo Dutti	Zara Home
Bershka	Uterqüe

Financial Data

Financials in:	EUR(mil)	1 Year Growth
Revenue:	13,792.6	10.1%
Net Income:	1,932.3	11.6%
Assets:	10,959.2
Long Term Debt:	1.5
Total Liabilities:	3,544.4
Working Capital:	2.7
Date of Financial Data:	31-Jan-2012

Market Data

Quote Symbol:	ITX
Exchange:	Mercado Continuo Espana
Currency:	EUR
Stock Price:	97.3
Stock Price Date:	10-12-2012
52 Week Price Change %:	44.6
Market Value (mil):	60,643,820.0
SEDOL:	7111314
ISIN:	ES0148396015

Subsidiaries

Company	Percentage Owned	Country
Bershka Ireland., Ltd.	100%	REPUBLIC OF IRELAND
Zara Portugal - Confecções Lda	100%	PORTUGAL
Oysho Commercial & Trading (Shangai) Co. Ltd	100%	PEOPLE'S REPUBLIC OF CHINA
Bershka (Portugal) Confecções Sociedade Unipessoal, Lda	100%	PORTUGAL
Bershka Ceska Republica, S.R.O.	100%	CZECH REPUBLIC
Bershka Croatia, Ltd.	100%	CROATIA
Bershka Polska Sp Z O.O.	100%	POLAND
Bershka Slovakia, S.R.O.	100%	SLOVAKIA
Oysho Korea Ltd	100%	SOUTH KOREA
Oysho Nederland BV	100%	NETHERLANDS
Oysho Croatia Ltd	100%	CROATIA
Oysho Serbia DOO Belgrade	100%	SERBIA
Massimo Dutti Canada Inc.	100%	CANADA
MD Benelux NV	100%	BELGIUM
Italco Moda Italiana Lda	100%	PORTUGAL
Massimo Dutti Portugal - Comercio e Industria Textil SA	100%	PORTUGAL
Massimo Dutti Japan Co.	100%	JAPAN
Massimo Dutti Serbia DOO Belgrade	100%	SERBIA
Uterqüe Commercial & Trading (Shangai) Co. Ltd	100%	PEOPLE'S REPUBLIC OF CHINA
Bershka Deutschland BV & CO KG	100%	GERMANY
Stradivarius Mexico, S.A. de C.V.	100%	MEXICO
Stradivarius Serbia DOO Belgrade	100%	SERBIA
Goa-Invest SA	100%	SPAIN
Zara Home Polska, Sp zo.o	100%	POLAND
Zara Home Diseño, S.L.	100%	SPAIN
Zara Home Deutschland B.V. & Co. KG	100%	GERMANY
ZHE, Gmbh	100%	GERMANY
Zara Home Brasil Produtos para o Lar, Ltda.	100%	BRAZIL
Zara Home Croatia, LT D	100%	CROATIA
Pull & Bear LogÃstica, S.A.	100%	SPAIN
Zara France SARL	100%	FRANCE
Fashion Retail España SA	100%	SPAIN
Comditel, S.A.	100%	SPAIN
Bershka Carpati, Srl	100%	ROMANIA
Bershka Ukraine, Llc	100%	UKRAINE
Bershka Magyaroszag Kft.	100%	HUNGARY
Bershka Cis, Ltd	100%	RUSSIA
Bershka Hong Kong Limited	100%	HONG KONG SAR
Bershka Bulgaria, LTD	100%	BULGARIA
Pull & Bear Portugal - Confecções Lda	100%	PORTUGAL
Massimo Dutti, S.A.	100%	SPAIN
Massimo Dutti Hong Kong, Ltd.	100%	HONG KONG SAR
Massimo Dutti Polska, Sp z.o.o.	100%	POLAND
Massimo Dutti Ro, Srl	100%	ROMANIA
Massimo Dutti Macau Ltd.	100%	PEOPLE'S REPUBLIC OF CHINA
Massimo Dutti Ukraine, Llc	100%	UKRAINE
Pull & Bear Diseño, S.L.	100%	SPAIN
Pull & Bear Macau, LTD	100%	PEOPLE'S REPUBLIC OF CHINA
Pull & Bear Nederland, B.V.	100%	NETHERLANDS
Lefties LogÃstica, S.A.	100%	SPAIN
Massimo Dutti Ceská Republika, s.r.o	100%	CZECH REPUBLIC
Zara Argentina, S.A.	100%	ARGENTINA
Zara Chile, S.A.	100%	CHILE
Zara USA, Inc.	100%	USA
Zara Hellas, S.A.	100%	GREECE
Zara Brasil, Lda.	100%	BRAZIL
Zara Nederland, B.V.	100%	NETHERLANDS
Pull & Bear Österreich Clothing, Gmbh	100%	AUSTRIA
Uterqüe España, S.A.	100%	SPAIN
Uterqüe Hellas	100%	GREECE
Uterqüe Cis, LTD	100%	RUSSIA
Uterqüe Giyim Limited	100%	TURKEY
Uterqüe México S.A. de C.V.	100%	MEXICO
Uterqüe Diseño, S.L.	100%	SPAIN
Inditex LogÃstica, S.A.	100%	SPAIN
Massimo Dutti Italia, S.R.L.	100%	ITALY
Massimo Dutti Ireland., Ltd.	100%	REPUBLIC OF IRELAND
Massimo Dutti USA, Ltd.	100%	USA
Zara Financiën B.V. Ireland	100%	REPUBLIC OF IRELAND
Zara Mexico, B.V.	100%	NETHERLANDS
Zara Holding, B.V.	100%	NETHERLANDS
ITX Financien, B.V.	100%	NETHERLANDS
ITX Holding, S.A.	100%	SWITZERLAND
Bershka Serbia DOO Belgrade	100%	SERBIA
Zara, S.A.	100%	SPAIN
Zara, S.A.	100%	ARGENTINA
Pull & Bear Magyarország Kft.	100%	HUNGARY
Corporación de Servicios XXI, S.A. de C.V.	100%	MEXICO
Lefties España SA	100%	SPAIN
Inditex Cogeneración AIE	100%	SPAIN
Inditex SA	100%	SPAIN
Fashion Logistic Forwarders SA	100%	SPAIN
FSF New York LLC	100%	USA
Bershka BSK Espana S.A.	100%	SPAIN
Zara Commercial (Beijing), Co Ltd.	100%	PEOPLE'S REPUBLIC OF CHINA
Zara Macau, Ltd.	100%	PEOPLE'S REPUBLIC OF CHINA
Zara Polska, Sp. Zo.o.	100%	POLAND
ZAO Zara CIS, Ltd.	100%	RUSSIA
Zara Deutschland, GmbH	100%	GERMANY
Zara Bucuresti, Srl	100%	ROMANIA
Zara Ukraine LLC	100%	UKRAINE
Zara Slovakia, S.R.O.	100%	SLOVAKIA
Zara Croatia, Ltd.	100%	CROATIA
Zara Retail Korea, Ltd.	80%	SOUTH KOREA
Zara Bulgaria LTD	100%	BULGARIA
Zara Immobiliare Italia SRL	100%	ITALY
Zara Diseño, S.L.	100%	SPAIN
Zara Management, B.V.	100%	NETHERLANDS
Kommanditgesellschaft ZARA Deutschland B.V. & Co.	100%	GERMANY
Stradivarius Portugal, Conf. Unip. Lda.	100%	PORTUGAL
Stradivarius Giyim Ithalat Ih. Ve Tic. Ltd.	100%	TURKEY
Stradivarius Polska, Sp zo.o	100%	POLAND
Stradivarius Ireland Limited	100%	REPUBLIC OF IRELAND
Stradivarius Italia SRL	100%	ITALY
Stradivarius CIS, Ltd.	100%	RUSSIA
Stradivarius France, S.A.R.L.	100%	FRANCE
Zara Österreich Clothing, GmbH	100%	AUSTRIA
Pull & Bear Serbia DOO Belgrade	100%	SERBIA
Pull & Bear BH DOO	100%	BOSNIA AND HERZEGOVINA
UTC Benelux NV	100%	BELGIUM
BSKE GmbH	100%	GERMANY
Zara Vittorio Il Italia SRL	100%	ITALY
Tordera LogÃstica SA	100%	SPAIN
ITX Fashion Ltd	100%	REPUBLIC OF IRELAND
Goa-Invest Deutschland GmbH	100%	GERMANY
ITX Fashion retail South Africa	100%	SOUTH AFRICA
Group Zara Australia Pty. Ltd.	80%	AUSTRALIA
Inditex Vastgoed Korea, Ltd.	100%	SOUTH KOREA
Inditex Trent Retail India Private LT D	51%	INDIA
Kiddy´s Class España, S.A.	100%	SPAIN
Fibracolor, S.A.	100%	SPAIN
Oysho Polska, Sp zo.o	100%	POLAND
Oysho CIS, Ltd.	100%	RUSSIA
Oysho France, S.A.R.L.	100%	FRANCE
Oysho MAGYARORSZAG, KFT	100%	HUNGARY
Pull & Bear Ceska Republika, S.R.O.	100%	CZECH REPUBLIC
Pull & Bear Commercial Beijing Co, Ltd.	100%	PEOPLE'S REPUBLIC OF CHINA
Gruputerqüe Portugal Conf. Lda	100%	PORTUGAL
Bershka Giyim Ithalat Ihracat Ve Tic.Ltd.	100%	TURKEY
Bershka Osterreich Clothing GmbH	100%	AUSTRIA
Bershka Commercial Beijing Co, Ltd	100%	PEOPLE'S REPUBLIC OF CHINA
Stradivarius Ceská Republika, s.r.o	100%	CZECH REPUBLIC
Stradivarius Commercial Shangai CO, LT D	100%	PEOPLE'S REPUBLIC OF CHINA
Zara Home Portugal, Conf. Soc. Unip. Lda.	100%	PORTUGAL
Zara Home Giyim Ithalat Ihracat Ve Ticaret Ltd.	100%	TURKEY
Massimo Dutti Commercial Beijing Co, Ltd.	100%	PEOPLE'S REPUBLIC OF CHINA
Massimo Dutti Bulgaria, LTD	100%	BULGARIA
Massimo Dutti Croatia, LT D	100%	CROATIA
Massimo Dutti Korea, LTD	100%	SOUTH KOREA
Massimo Dutti Diseño, S.L.	100%	SPAIN
Stradivarius Magyaroszag Kft.	100%	HUNGARY
Stradivarius Croatia, LT D.	100%	CROATIA
Stradivarius Slovakia, S.R.O.	100%	SLOVAKIA
Stradivarius Ro, Srl	100%	ROMANIA
Stradivarius Ukraine, Llc	100%	UKRAINE
Stradivarius Bulgaria, LTD	100%	BULGARIA
Stradivarius Diseño, S.L.	100%	SPAIN
Stradivarius Macau, LT D	100%	PEOPLE'S REPUBLIC OF CHINA
Pull & Bear Polska, Sp zo.o	100%	POLAND
Pull & Bear CIS, Ltd.	100%	RUSSIA
Pull & Bear Uk Limited	100%	UK
Pull & Bear Ro, Srl	100%	ROMANIA
Pull & Bear Ukraine, Llc	100%	UKRAINE
Stradivarius Korea, LTD	100%	SOUTH KOREA
Stradivarius Hong Kong, LTD	100%	HONG KONG SAR
Zara Belgique SA/NV	100%	BELGIUM
Zara Home U.K., Ltd.	100%	UK
Oysho Ro, Srl	100%	ROMANIA
Trisko SA	100%	SPAIN
Massimo Dutti Hellas, S.A.	100%	GREECE
Massimo Dutti Giyim Ithalat Ih.Ve Tic. Ltd.	100%	TURKEY
Massimo Dutti Venezuela, S.A.	100%	VENEZUELA
Massimo Dutti France, S.A.R.L.	100%	FRANCE
Massimo Dutti UK, Ltd.	100%	UK
Massimo Dutti Suisse, S.A.R.L.	100%	SWITZERLAND
Massimo Dutti Sverige, AB	100%	SWEDEN
Massimo Dutti Norge, AS.	100%	NORWAY
Massimo Dutti Danmark A/S	100%	DENMARK
Massimo Dutti CIS, Ltd.	100%	RUSSIA
Pull & Bear Slovakia, S.R.O.	100%	SLOVAKIA
Pull & Bear Croatia, LTD	100%	CROATIA
Pull & Bear Bulgaria, LTD	100%	BULGARIA
Zara Home Hellas, S.A.	100%	GREECE
Zara Home Nederland, B.V.	100%	NETHERLANDS
Zara Home Italia, S.R.L.	100%	ITALY
Zara Home Francia, S.A.R.L.	100%	FRANCE
Zara Home Ro, Srl	100%	ROMANIA
Zara Home CIS, Ltd.	100%	RUSSIA
Oysho Ukraine, Llc	100%	UKRAINE
Oysho Diseño, S.L.	100%	SPAIN
Oysho Bulgaria, LTD	100%	BULGARIA
Zara Home Ukraine, Llc	100%	UKRAINE
Indipunt Diseño SL	51%	SPAIN
Zara Taiwan BV	100%	NETHERLANDS
Zara Taiwan BV TW Branch	100%	TAIWAN
Pull & Bear Hong Kong LTD	100%	HONG KONG SAR
Massimo Dutti Deutschland, GmbH	100%	GERMANY
Uterqüe Italia, Srl.	100%	ITALY
Uterqüe Hong Kong, LTD	100%	HONG KONG SAR
Bershka Hellas, S.A.	97%	GREECE
Bershka Belgique, S.A.	100%	BELGIUM
Bershka France, S.A.R.L.	100%	FRANCE
Stradivarius BH DOO	100%	BOSNIA AND HERZEGOVINA
Grupo Massimo Dutti, S.A.	100%	SPAIN
Bershka Suisse, S.A.R.L.	100%	SWITZERLAND
Bershka Nederland, B.V.	100%	NETHERLANDS
Bershka Italia, S.R.L.	100%	ITALY
Bershka U.K., Ltd.	100%	UK
Zara México, S.A. de C.V.	95%	MEXICO
Massimo Dutti México, S.A. de C.V.	98%	MEXICO
Pull & Bear Mexico, S.A. de C.V.	98.50%	MEXICO
Bershka Mexico, S.A. de C.V.	97%	MEXICO
Zara Home Mexico, S.A. de C.V.	98.50%	MEXICO
Zara BH DOO	100%	BOSNIA AND HERZEGOVINA
Zara Serbia DOO Belgrade	100%	SERBIA
Nikole Diseño SL	100%	SPAIN
Inditex Montenegro DOO Podgorica	100%	MONTENEGRO
Bershka BH DOO	100%	BOSNIA AND HERZEGOVINA
Bershka Korea, LTD	100%	SOUTH KOREA
Bershka Diseño, S.L.	100%	SPAIN
Bershka Macau, LTD	100%	PEOPLE'S REPUBLIC OF CHINA
Bershka Japan, LTD	100%	JAPAN
Massimo Dutti Commercial Shangai CO, LTD	100%	PEOPLE'S REPUBLIC OF CHINA
Massimo Dutti Österreich, GMBH	100%	AUSTRIA
Pull & Bear Hellas, S.A.	100%	GREECE
Pull & Bear Giyim Ith. Ihrac.Ve Tic. Ltd.	100%	TURKEY
Pull & Bear Belgique, S.A.	100%	BELGIUM
Pull & Bear France, S.A.R.L.	100%	FRANCE
Pull & Bear Italia, S.R.L.	100%	ITALY
Pull & Bear Ireland, Ltd.	100%	REPUBLIC OF IRELAND
Stradivarius Hellas, S.A.	100%	GREECE
Zara Denmark A/S	100%	DENMARK
Zara Sverige, AB	100%	SWEDEN
Zara Norge, AS	100%	NORWAY
Zara Canada, Inc.	100%	CANADA
Zara Suisse S.A.R.L.	100%	SWITZERLAND
Zara Luxembourg, S.A.	100%	LUXEMBOURG
Za Giyim Ithalat Ihracat Ve Ticaret Ltd.	100%	TURKEY
Zara Italia, S.R.L.	100%	ITALY
Zara Japan Corp.	100%	JAPAN
Zara Ceská Republika, S.R.O.	100%	CZECH REPUBLIC
Zara Puerto Rico, Inc.	100%	PUERTO RICO
Za Clothing Ireland, Ltd.	100%	REPUBLIC OF IRELAND
Zara Magyarorszag, KFT.	100%	HUNGARY
Zara Monaco, SAM	100%	MONACO
Zara Asia Ltd	100%	HONG KONG SAR
Choolet SA	100%	SPAIN
Confecciones FÃos SA	100%	SPAIN
Confecciones Goa SA	100%	SPAIN
Denllo SA	100%	SPAIN
Hampton SA	100%	SPAIN
Jema Creaciones Infantiles SL	51%	SPAIN
Nikole SA	100%	SPAIN
Samlor SA	100%	SPAIN
Stear SA	100%	SPAIN
Zintura SA	100%	SPAIN
Glencare SA	100%	SPAIN
Indipunt SL	51%	SPAIN
Zara España SA	100%	SPAIN
G.Zara Uruguay SA	100%	URUGUAY
Zara Commercial (Shanghai), Co Ltd.	100%	PEOPLE'S REPUBLIC OF CHINA
Oysho España SA	100%	SPAIN
Oysho Venezuela SA	100%	VENEZUELA
Oysho Portugal Conf. Lda	100%	PORTUGAL
Oysho Mexico SA de CV	98.50%	MEXICO
Oysho Italia Srl	100%	ITALY
Oysho Hellas SA	100%	GREECE
Oysho Giyim Ithalat Ihracat Ve Ticaret Ltd	100%	TURKEY
BCN Diseños SA de CV	98%	MEXICO
Zara Home Belgique SA	100%	BELGIUM
Uterqüe SA	100%	SPAIN
Stradivarius España SA	100%	SPAIN
Zara Home España SA	100%	SPAIN
Zara LogÃstica SA	100%	SPAIN
Plataforma Europa SA	100%	SPAIN
Plataforma LogÃstica León SA	100%	SPAIN
Plataforma LogÃstica Meco SA	100%	SPAIN
Massimo Dutti LogÃstica SA	100%	SPAIN
Zara UK Limited	100%	UK
Bershka LogÃstica SA	100%	SPAIN
Oysho LogÃstica SA	100%	SPAIN
Stradivarius LogÃstica SA	100%	SPAIN
Zara Home LogÃstica SA	100%	SPAIN
Uterqüe LogÃstica SA	100%	SPAIN
Zara Holding II BV	100%	NETHERLANDS
Massimo Dutti Nederland, B.V.	100%	NETHERLANDS
Liprasa Cartera SL	100%	SPAIN
ITX Merken BV	100%	NETHERLANDS
ITX RE	100%	REPUBLIC OF IRELAND
ITX Trading SA	100%	SWITZERLAND
Zara Vastgoed BV	100%	NETHERLANDS
Vastgoed Asia Ltd	100%	PEOPLE'S REPUBLIC OF CHINA
SNC Zara France Immobilière	100%	FRANCE
SCI Vastgoed Ferreol P03302	100%	FRANCE
SCI Vastgoed Ferreol P03301	100%	FRANCE
SCI Vastgoed General Leclerc P03303	100%	FRANCE
SCI Vastgoed Nancy P03304	100%	FRANCE
Massimo Dutti Puerto Rico Inc.	100%	PUERTO RICO
KG Massimo Dutti Deutschland BV & Co	100%	GERMANY
Pull & Bear España, S.A.	100%	SPAIN
Pull & Bear Korea Ltd	100%	SOUTH KOREA
Invercarpro SA	100%	SPAIN
Robustae SGPS Unipessoal SA	100%	PORTUGAL

Shareholders

Major Shareholders

Gartler SA (50.01%); Partler 2006 SL (9.28%); Rosp Corunna Participaciones Empresariales SL (5.05%)

Key Corporate Relationships

Auditor: KPMG Auditores, SL

Auditor: KPMG Auditores, SL, KPMG Auditores SL

Strengths/Weaknesses (SWOT)

	Helpful to achieving the objective	Harmful to achieving the objective
Internal Origin (attributes of the organization)	Strengths · Multi-Concept Strategy · Robust Growth Prospects · Efficient Liquidity Position · Expanding Profitability Ratios · Operational Efficiency	Weaknesses · Legal Proceedings · Increased Operating Costs · Heavy Dependence on ZARA Brand
External Origin (attributes of the environment)	Opportunities · Positive Outlook for Apparel Market · Emerging Markets Providing Ladder for Growth · Growth in e-retail · New Store Openings	Threats · Increasing Manpower Cost · Foreign Exchange Risk · Slow Economic Recovery in Europe · Highly Competitive Environment

Overview

Inditex S.A. (Inditex), a group of over one hundred companies, is engaged in retailing of fashion products. Its business is classified into three reportable segments, namely, ZARA, Bershka and Other concepts. The company has efficient distribution system in 77 countries, along with broad product offerings which gives it a good market image. In addition, expansion through opening of new stores, increasing online opportunities and expansion in emerging markets ensure a positive future for the company. However, its heavy dependence on ZARA brand and increasing operating expenses are denting its growth prospects. Further, it faces challenges from global economic slowdown, foreign exchange risk and stiff competition.

Strengths

Multi-Concept Strategy

The group operates its business under flexible integrated model, with a mix of fashion apparels under its store network. It operates business operation through a network of 5,000 store outlets across 77 countries. The group under its operational efficiency targets customer group age ranging from 0 to 40 through distinctive concepts, utilizing product strategy and brand portfolio. Inditex renders a wide range of products through its different concept stores, namely, Zara, Pull and Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterque located all across the world. It launches nearly 30,000 new designs per year with regular customer interaction and constant modifications, within their store network. Inditex through its diversified sales platform has spread across Americas, Europe, Spain, Asia and rest of the world. With such strategic operational concept and structure, the group can expand its business and tap the unexplored markets.

Robust Growth Prospects

Inditex’s achievements during the year enabled it to record revenue of EUR 11,083.51 m in 2010, reflecting an increase of 6.5%, over EUR 10,406.96m during 2009. As a result, the company's operating margin resulted at EUR 1,728.39m along with a net margin of EUR 1,314.35m during 2009. Operating margins increased due to combination of sales growth boosted by expansions and online retail services. Additionally, the company was trading at a price/earnings (P/E) ratio of 26.69 at the end of fiscal year 2010. The company may have achieved this growth due to better competitive positioning or superior products and service offerings compared to other companies in the sector. Such stable revenue and growth rate will allow the company to pursue strategic capital investment opportunities in the future.

Efficient Liquidity Position

Inditex’s liquidity, which is above the industry average, can be attributed to its high performance across various liquidity indicators including current ratio, quick ratio and cash ratio. The company reported an increase in the current ratio from 1.36 times in 2009 to 1.71 times in 2010, followed by quick ratio from 0.92 times in 2009 to 1.28 times in 2010 and cash ratio from 0.61 times in 2009 to 1.05 times in 2010. This increase can be attributed to the decrease in the company’s total current liabilities from EUR 2390 million in 2009 to EUR 2304 million in 2010 and increase in the company’s total current assets from EUR 3264 million in 2009 to EUR 3943 million in 2010, as there was an increase in cash and equivalents from EUR 1466 million in 2009 to EUR 2420 million in 2010. Liquidity enables the company to meet short term functional obligations by the company to conduct day-to-day business. An increase in liquidity position of the company implies an advantage for meeting short term liquidations. Also, the company's current ratio was 1.71 at the end of fiscal year 2010. This was above the S&P 500 companies average* of 1.46. A higher than S&P 500 companies average* current ratio indicates that the company is in a strong financial position and is more capable of meeting its short term obligations than other companies in the S&P 500 index. Such an efficient liquidity position of the company indicates its strong financial position and stability.

Expanding Profitability Ratios

Increasing profitability ratios indicate the company’s strong performance and its ability to deliver the returns expected by its shareholders. In 2010, the company witnessed an increased performance over its profitability ratios including, gross margin of 57.09% as compared to 56.83% in 2009 followed by operating margin of 15.59% (15.45%); PBT margin of 15.62% (15.24%); and return on fixed assets at 39.35% (35.64%). Furthermore, the company's operating margin was above the S&P 500 companies average* of 7.26%. A higher than S&P 500 companies average* operating margin could indicate efficient cost management or a strong pricing strategy by the company. The operating margin has increased 13 basis points (bps) over 2009 which indicates management's high focus on improving profitability. In addition, the company's return on equity (ROE) was 24.7% for fiscal year 2010. This was above the S&P 500 companies average* of 4.5%. A higher than S&P 500 companies average* ROE indicates that the company is efficiently using the shareholders' money and that it is generating high returns for its shareholders compared to other companies. With such expanding margins and returns, the company can enhance its business opportunities and future growth prospects.

Operational Efficiency

Wider reach in terms of geography would mean reaping more benefits, eventually improving the profit margins, attaining economies of scale and recognition on a worldwide basis. Inditex offers its products through eight concept stores network namely, Zara, Pull and Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterque. The group offers a wide range of fashion products including clothing, footwear, handbags, belts, handkerchiefs, tableware, cutlery, glassware, decorative items, perfumes, lingerie, accessories and leather garments and other fashion products. In addition, it also offers textiles for bed, table and bathroom linens and other related products. Inditex through its large portfolio of product, brand and service offerings enables the company to cater to a large customer base across the regions. Inditex through its concept stores network has extended to 77 countries in Europe, the Americas, Asia and Africa. Additionally, its Zara concept store has commenced online services within 11 European markets, such as Spain, Italy, France, Germany, the United Kingdom, Portugal, Ireland, Austria, Belgium, the Netherlands and Luxembourg. Wide range of products and distribution services supports the company to cater to a diverse range of customer’s base, thereby generating more revenues and profits.

Weaknesses

Legal Proceedings

There are certain legal proceedings and litigations against the Inditex and its concept store, Zara which could be serious cause of concern. In 2009, the group’s Zara concept store was accused of selling clothes manufactured with cotton from Uzbekistan. For instance, Uzbekistan government is under observation by the International Labour Organization for concealing the involvement of forced child labour to collect cottons from the field. Zara sources garments produced from Bangladeshi manufacturers utilizing Uzbek cotton. Such legal proceedings increase the chance of damaging its goodwill and brand image within the customers, which could adversely affect its inventory management and financial position. Further, legal issues may also hinder shareholders’ faith in the company.

Increased Operating Costs

Increasing operating expenses would adversely impact the company’s operating performance, thereby recording comparatively lesser revenues. The company's increasing operating expenses can be attributed to its high cost operating model. Inditex’s operating expenses increased at a compound annual growth rate (CAGR) of 13.45% during 2006-2010. During 2010, the company's operating expenses increased 6.33% to EUR 9,355.13m, compared to EUR 8,798.42m in fiscal 2009. In 2008, the company's operating expenses increased 13.77% to EUR 7,782.49m, compared to EUR 6,840.01m in fiscal 2007. The increasing operating expenses had adverse impacts on the company's profits, as well as bottom line growth. With accumulated deficit totaling EUR 5,343.42m, the company's increasing operating expenses, if not curtailed, can have adverse impacts on its business operations.

Heavy Dependence on ZARA Brand

The company’s business is heavily dependent on ZARA's performance which is highest in number that is 1,688 out of total 4,907 Inditex stores as of October, 2010. For the year ended 2010, the company generated EUR 7,077m from Zara, constituting 63.85% of the total group’s revenues. Rest of the revenues is generated from the remaining seven brands. Heavy dependence on the Zara puts the company at a competitive disadvantage, as the brand is vulnerable to potential risks arising in its business locations. Poor performance of the brand can also hamper the company’s growth in revenues, which could halt the company’s growth plans.

Opportunities

Positive Outlook for Apparel Market

The performance of the apparel industry is forecasted to accelerate, with an anticipated CAGR rate of 2.6% during 2006-2011. In 2009, the European apparel retail industry generated total revenue of $384,195.8m. Inditex’s conceptual store network provides apparel, footwear, tableware, cutlery, glassware, decorative items, home furnishings, textile and leather garments for women, men and children through their stores. The women’s apparel segment is the most lucrative as compared to menswear segment in the market. The group’s offering include 30,000 new designs per year through their wide conceptual store channel. With such opportunities in the apparel industry, the company can enhance its growth opportunities thereby boost their top line growth.

Emerging Markets Providing Ladder for Growth

The company has an opportunity to expand its operations into emerging markets and benefit from increasing disposable incomes in these markets. The emerging markets are suitable retail destination as GDP in such markets is expected to grow. In addition, populations in many emerging countries are younger, increasingly urban and show a growing interest in modern retail formats. According to Global Retail Development Index (GRDI), India is the most attractive emerging market followed by Russia, China and United Arab Emirates in second, third and fourth position respectively. Moreover, according to IMF, the GDP growth rate for advanced economies in 2010 is 0.6% Further, it is estimated that most of these economies will post negative growth in 2010. In spite of global economic slowdown, emerging and developing economies recorded a GDP growth rate of 4.7% in 2010. The same was 1.5% in the previous year. In 2010, China’s GDP grew at 11.1% and India's grew at 8.60% which can creat a booming revenue generation in these markets.

Growth in e-retail

The company could benefit from the growing demand for e-retail. In September 2010, Inditex launched its online store to online shoppers in six countries namely, France, Germany, Italy, Portugal, Spain and the UK. Also, the company is planning to extend its online store to other markets in which it has stores. The company stands to benefit from the growth trend of e-retail, which is supported by rising internet penetration and increasing familiarity to online shopping. Now, more and more customers prefer to shop online and place their orders through credit cards, thereby avoiding the time consuming journey and billing queues. According to a report by Forrester, by 2012, nearly half of the US and Western EU retail sales will either be transacted online or influenced by the Web. Further the retail sales are expected to rise about 7% to USD 172.9 billion, in 2010. Earlier, in previous year, online retail sales grew by 6% to USD 155.2 billion.

New Store Openings

The company can increase its market presence, by opening new stores all across its existing business locations. Increased market presence would help the company in achieving greater sales, increased proximity with customers, and ensuring greater customer satisfaction to its customers. During the year 2009 and 2008, the company opened 343 and 573 new stores respectively, under all the banners, namely, Zara, Pull and Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterque. Recently, the company also opened its stores in several new countries, including Montenegro, India, China, Japan, South Korea, Ukraine, Honduras, South Korea, Austria, Colombia, Bahrain, Egypt and other countries. Recently in May & July 2010, Inditex SA opened three Zara outlets in Bourgas, Stara Zagora and Sofia’s Vitosha Street in Bulgaria. It is also planning to enter the Australian and South African markets along with "Zara online" in Japan, South Korea and the US in 2011. Further the company opened its first Zara store in India, Delhi, in the select CityWalk shopping centre. Capital expenditure is approximately EUR 570 million as a result of new store openings in 2010.

Threats

Increasing Manpower Cost

Increasing manpower costs may have an adverse effect on the company. With the shortage of talented manpower and increasing government mandated minimum wages, the labor costs in the developing countries have been on the rise. At financial year end 2009, the company employed around 92,301 people compared to 89,112 employees in all locations. The increase in wages and salaries could hamper the company’s operating profit, which would directly affect the company’s profit margins. In the UK, the government increased the minimum wage rate from GBP 5.73 an hour in October 2008 to GBP 5.80 an hour in May 2009. Further increase is expected in the next few years. Any such increase in the minimum wages increases the operating costs of retailers and has an adverse effect on their profits.

Foreign Exchange Risk

The company is present in all major growth markets for apparel business across the world. The company’s principal translation currency exposures are the US Dollar, the Mexican Peso, the Japanese Yen and the Pound Sterling which are fully consolidated in the financial statements of the company. Foreign exchange risk arises from future commercial transactions, recognized assets and liabilities and net investments in foreign operations. The company also faces huge impact due to foreign currency fluctuations. Financial statement of foreign subsidiaries, which do not report in Euro are to be translated to Euro & thus due to changes in currency exchange rates, it creates a massive foreign exchange risk for the company.

Slow Economic Recovery in Europe

The company’s business performance may be highly affected due to the ongoing slowdown in the global economy. The IMF has predicted that the global GDP growth slowed by 3.0% in 2009 comparative to 3.9% in 2008 In addition, the Euro zone growth is expected to be -0.3% in 2010, while emerging and developing economies are expected to grow by 4.7%. The GDP of France is expected to grow at a mere 1.4% in 2010. In addition according to the French government recent predictions the economy of the country is expected to grow by 2% next year, down from the previous forecast of 2.5%. Also the IMF expects the German economy to expand 1.2 percent this year and 1.7% in 2011. In addition the Euro has depreciated 6% against the dollar from the beginning of 2010 on concerns about fiscal policy in Greece and the entire Euro region. Further, the European countries are adversely affected by globally economic slowdown and this could negatively impact the operations of the company. Thus, the company having its business across the world, global slowdown would adversely affect operational efficiency.

Highly Competitive Environment

The company faces intense competition from various players in its business sector and location. Its major competitive factor that affects their business includes store location, product availability, customer service and product offerings, credit availability, quality and price. It competes hard with other apparel stores, online apparel retailers, and local and regional retailers operating through national and regional chains. Inditex faces competition from top retailers of the world, including Metro, Marks and Spencer, The TJX Companies, Inc., REWE Group, J.C Penney, The Gap Inc., Coles Mayer Ltd, Best Buy Co. Inc, H & M Hennes & Mauritz AB and other apparel retailers. Such an intense competition poses a threat to the company’s existing market share and margins.

Corporate Structure News

Inditex SA
Total Corporate Family Members: 177

Company Name	Company Type	Location	Country	Industry	Sales (USD mil)	Employees
Inditex SA	Parent	Arteixo	Spain	Retail (Apparel)	19,117.4	111,033
Zara España Sa	Subsidiary	Arteixo, La Coruña	Spain	Apparel and Accessories	2,075.0	10,206
Massimo Dutti Logistica S.A.	Subsidiary	La Coruna	Spain	Miscellaneous Transportation		6,000
Corporación de Servicios XXI, S.A. de C.V.	Subsidiary	México, D.F.	Mexico	Retail (Apparel)	1,223.3	5,000
Bershka Bsk España Sa	Subsidiary	Arteixo, La Coruña	Spain	Retail (Apparel)	1,261.9	4,461
Bershka Logistica Sa	Subsidiary	Arteixo, La Coruña	Spain	Miscellaneous Transportation	31.4	434
Bershka Belgie - Bershka Belgique	Subsidiary	Bruxelles	Belgium	Retail (Apparel)	25.7	133
Stradivarius España Sa	Subsidiary	Arteixo, La Coruña	Spain	Apparel and Accessories	904.3	3,785
Pull & Bear España Sa	Subsidiary	Arteixo, La Coruña	Spain	Retail (Apparel)	866.4	3,297
Pull & Bear UK Ltd.	Subsidiary	London	United Kingdom	Retail (Apparel)	19.1	97
Grupo Massimo Dutti Sa	Subsidiary	Arteixo, La Coruña	Spain	Retail (Apparel)	969.5	2,688
Massimo Dutti Logistica Sa	Subsidiary	Arteixo, La Coruña	Spain	Miscellaneous Transportation	18.2	213
Zara U.K. Ltd.	Subsidiary	London	United Kingdom	Retail (Apparel)	590.4	2,571
Zara	UK Branch/Trading address	London	United Kingdom	Retail (Apparel)	590.4	1,116
Zara	UK Branch/Trading address	London	United Kingdom	Retail (Apparel)	590.4	125
Zara	UK Branch/Trading address	Manchester	United Kingdom	Retail (Apparel)	590.4	60
Zara	UK Branch/Trading address	Glasgow	United Kingdom	Retail (Apparel)	590.4	55
Zara	UK Branch/Trading address	Belfast	United Kingdom	Retail (Apparel)	590.4	40
Zara	UK Branch/Trading address	Sheffield	United Kingdom	Retail (Apparel)	590.4	40
Zara	UK Branch/Trading address	Reading	United Kingdom	Retail (Apparel)	590.4	35
Zara	UK Branch/Trading address	Bromley	United Kingdom	Retail (Apparel)	590.4	3
Zara	UK Branch/Trading address	London	United Kingdom	Retail (Apparel)	590.4
Oysho España Sa	Subsidiary	Arteixo, La Coruña	Spain	Retail (Apparel)	304.2	1,395
Kiddy's Class España Sa	Subsidiary	Arteixo, La Coruña	Spain	Retail (Apparel)	198.5	1,138
Zara Belgique - Zara Belgie	Subsidiary	Bruxelles	Belgium	Retail (Apparel)	217.4	1,009
Zara Home España Sa	Subsidiary	Arteixo, La Coruña	Spain	Recreational Products	296.9	996
Pull & Bear Portugal - Confecções Lda	Subsidiary	Lisboa	Portugal	Retail (Apparel)	113.7	751
Plataforma Logistica Meco Sa	Subsidiary	Arteixo, La Coruña	Spain	Retail (Apparel)	59.8	714
Bershka (Portugal) Confecções Sociedade Unipessoal, Lda	Subsidiary	Lisboa	Portugal	Retail (Apparel)	116.9	692
Bershka Italia S.R.L.	Subsidiary	Milan	Italy	Retail (Apparel)	131.6	647
Zara Suisse S.A.R.L.	Subsidiary	Fribourg	Switzerland	Footwear		600
Plataforma Europa S.A.	Subsidiary	Zaragoza	Spain	Business Services		500
Grupo Massimo Dutti S.A.	Subsidiary	Tordera	Spain	Retail (Apparel)		500
Za Clothing Ireland Limited	Subsidiary	Dublin, Leinster	Ireland	Retail (Apparel)	60.6	303
Oysho Portugal Conf. Lda.	Subsidiary	Lisbon	Portugal	Retail (Apparel)	30.3	260
Stradivarius Logistica Sa	Subsidiary	Arteixo, La Coruña	Spain	Miscellaneous Transportation	21.7	259
Zara Home Logistica Sa	Subsidiary	Arteixo, La Coruña	Spain	Miscellaneous Transportation	13.6	253
Massimo Dutti U.K. Ltd.	Subsidiary	London	United Kingdom	Retail (Apparel)	45.7	157
Stear Sa	Subsidiary	Arteixo, La Coruña	Spain	Apparel and Accessories	193.0	132
Massimo Dutti Deutschland Gmbh	Subsidiary	Hamburg, Hamburg	Germany	Retail (Apparel)	31.3	132
Lefties Logistica Sa	Subsidiary	Arteixo, La Coruña	Spain	Apparel and Accessories	6.8	124
Goa-Invest S.A.	Subsidiary	Zaragoza	Spain	Construction Services	361.5	100
Zara Argentina S.A.	Subsidiary	Tortuguitas, Buenos Aires	Argentina	Business Services	78.5	100
Massimo Dutti Sverige AB	Subsidiary	Stockholm, Uppland	Sweden	Retail (Apparel)		100
Samlor Sa	Subsidiary	Arteixo, La Coruña	Spain	Business Services	81.4	97
Glencare Sa	Subsidiary	Arteixo, La Coruña	Spain	Business Services	80.3	95
Confecciones Fios Sa	Subsidiary	Arteixo, La Coruña	Spain	Apparel and Accessories	83.7	93
Zintura Sa	Subsidiary	Arteixo, La Coruña	Spain	Apparel and Accessories	132.1	79
Zara Home UK Ltd.	Subsidiary	London	United Kingdom	Retail (Specialty)	14.1	79
Zara Ceska Republika S.R.O.	Subsidiary	Prague	Czech Republic	Retail (Apparel)		60
Trisko Sa	Subsidiary	Arteixo, La Coruña	Spain	Apparel and Accessories	55.9	56
Choolet Sa	Subsidiary	Arteixo, La Coruña	Spain	Apparel and Accessories	3.3	50
Confecciones Goa Sa	Subsidiary	Arteixo, La Coruña	Spain	Apparel and Accessories	59.6	49
Hampton Sa	Subsidiary	Arteixo, La Coruña	Spain	Apparel and Accessories	76.9	46
Nikole Sa	Subsidiary	Arteixo, La Coruña	Spain	Retail (Apparel)	140.3	45
Zara Luxembourg S.A.	Subsidiary	Luxembourg	Luxembourg	Retail (Apparel)		35
Zara USA, Inc.	Subsidiary	New York, NY	United States	Business Services		35
Zara	Branch	Los Angeles, CA	United States	Retail (Apparel)	11.2	60
Zara	Branch	Miami, FL	United States	Retail (Apparel)	9.3	59
Zara	Branch	New York, NY	United States	Retail (Apparel)	9.5	51
Zara	Branch	Dallas, TX	United States	Retail (Apparel)	9.3	50
Zara	Branch	Pasadena, CA	United States	Retail (Apparel)	7.9	50
Zara	Branch	Tampa, FL	United States	Retail (Apparel)	7.9	50
Zara	Branch	Santa Monica, CA	United States	Retail (Apparel)	7.4	40
Zara	Branch	Washington, DC	United States	Retail (Apparel)	6.3	40
Zara	Branch	New York, NY	United States	Apparel and Accessories	27.3	35
Zara	Branch	Las Vegas, NV	United States	Retail (Apparel)	5.6	30
Zara	Branch	Costa Mesa, CA	United States	Retail (Apparel)	4.7	30
Zara	Branch	Washington, DC	United States	Retail (Apparel)	4.7	30
Zara	Branch	Miami, FL	United States	Retail (Apparel)	4.4	28
Zara	Branch	Edison, NJ	United States	Retail (Apparel)	4.7	25
Zara	Branch	Canoga Park, CA	United States	Retail (Apparel)	4.0	25
Zara	Branch	Palm Beach Gdns, FL	United States	Retail (Apparel)	3.6	23
Zara	Branch	Orlando, FL	United States	Retail (Apparel)	3.5	22
Zara	Branch	Atlanta, GA	United States	Retail (Apparel)	3.3	21
Zara	Branch	Houston, TX	United States	Retail (Apparel)	3.7	20
Zara	Branch	Philadelphia, PA	United States	Retail (Department and Discount)	3.2	20
Zara	Branch	New York, NY	United States	Retail (Apparel)	2.8	15
Zara	Branch	Wayne, NJ	United States	Retail (Apparel)	2.8	15
Zara	Branch	Greenwich, CT	United States	Retail (Apparel)	2.8	15
Zara	Branch	Stamford, CT	United States	Retail (Apparel)	2.8	15
Zara	Branch	Los Angeles, CA	United States	Retail (Apparel)	2.8	15
Zara	Branch	San Antonio, TX	United States	Retail (Apparel)	2.8	15
Zara	Branch	Peabody, MA	United States	Retail (Apparel)	2.8	15
Zara	Branch	Atlanta, GA	United States	Retail (Apparel)	2.8	15
Zara	Branch	Skokie, IL	United States	Retail (Apparel)	2.8	15
Zara	Branch	San Francisco, CA	United States	Retail (Apparel)	2.8	15
Zara	Branch	Miami Beach, FL	United States	Retail (Apparel)	2.4	15
Zara	Branch	Garden City, NY	United States	Retail (Apparel)	2.0	11
Zara	Branch	Natick, MA	United States	Retail (Apparel)	1.4	9
Zara	Branch	Sherman Oaks, CA	United States	Retail (Apparel)	1.4	9
Zara	Branch	Boston, MA	United States	Retail (Apparel)	1.4	9
Zara	Branch	Bethesda, MD	United States	Retail (Apparel)	1.4	9
Zara	Branch	Los Angeles, CA	United States	Retail (Apparel)	1.4	9
Zara	Branch	New York, NY	United States	Retail (Apparel)	1.4	9
Zara	Branch	Chicago, IL	United States	Retail (Apparel)	1.4	9
Zara	Branch	Orlando, FL	United States	Retail (Apparel)	1.4	9
Zara	Branch	San Francisco, CA	United States	Apparel and Accessories	3.6	4
Zara	Branch	New York, NY	United States	Apparel and Accessories	1.4	3
Zara Nederland B.V.	Subsidiary	Amsterdam, North Holland	Netherlands	Business Services		30
Zara Retail Korea Ltd.	Subsidiary	Seoul	Korea, Republic of	Retail (Specialty)		25
Zara Canada Inc.	Subsidiary	Montreal, QC	Canada	Retail (Apparel)		25
Zara Canada	Branch	North York, ON	Canada	Retail (Apparel)	20.6	80
Zara Canada	Branch	Montreal, QC	Canada	Retail (Apparel)	19.7	80
Zara Canada	Branch	Calgary, AB	Canada	Retail (Apparel)	14.8	60
Zara Canada	Branch	Burnaby, BC	Canada	Retail (Apparel)	14.7	60
Zara Canada	Branch	Mont-Royal, QC	Canada	Retail (Apparel)	9.9	40
Zara Canada	Branch	Edmonton, AB	Canada	Retail (Apparel)	9.2	37
Zara Canada	Branch	Laval, QC	Canada	Retail (Apparel)	8.7	35
Zara Canada	Branch	Toronto, ON	Canada	Retail (Apparel)	6.2	30
Zara Canada	Branch	Toronto, ON	Canada	Retail (Apparel)	6.2	30
Zara Canada	Branch	Toronto, ON	Canada	Retail (Apparel)	5.3	30
Zara Canada	Branch	Brossard, QC	Canada	Retail (Apparel)	6.2	25
Zara Canada	Branch	Quebec, QC	Canada	Retail (Apparel)	4.9	20
Zara Canada	Branch	Vancouver, BC	Canada	Retail (Apparel)	3.7	18
Zara Canada	Branch	Vancouver, BC	Canada	Retail (Apparel)	2.9	12
Zara Canada	Branch	Rosemere, QC	Canada	Retail (Apparel)	1.5	6
Zara Canada	Branch	Toronto, ON	Canada	Retail (Apparel)	0.4	2
Massimo Dutti Polska Sp z.o.o.	Subsidiary	Warsaw	Poland	Retail (Apparel)		25
Zara Financien B.V.	Subsidiary	Amsterdam, North Holland	Netherlands	Business Services		25
Oysho CIS Ltd.	Subsidiary	Moscow	Russian Federation	Textiles - Non Apparel		25
Zara Chile S.A.	Subsidiary	Santiago	Chile	Business Services		25
Massimo Dutti Ireland Ltd.	Subsidiary	Dublin	Ireland	Textiles - Non Apparel		23
Zara Ukraine LLC	Subsidiary	Kiev	Ukraine	Retail (Apparel)		20
Stradivarius Polska Sp zo.o	Subsidiary	Warsaw	Poland	Retail (Apparel)		20
Bershka Ireland Ltd.	Subsidiary	Cork, Munster	Ireland	Retail (Apparel)		20
ITX Trading S.A.	Subsidiary	Fribourg	Switzerland	Retail (Apparel)		15
Bershka Osterreich Clothing GmbH	Subsidiary	Seiersberg, Styria	Austria	Retail (Apparel)		15
Pull & Bear Polska Sp zo.o	Subsidiary	Krakow	Poland	Retail (Apparel)		14
Bershka Suisse S.A.R.L.	Subsidiary	Geneva	Switzerland	Footwear		11
Uterque S.A.	Subsidiary	Barcelona	Spain	Retail (Apparel)		11
Zara Holding B.V.	Subsidiary	Amsterdam, North Holland	Netherlands	Investment Services		10
Zara France SARL	Subsidiary	Paris	France	Retail (Apparel)	1,027.0	4,505
Zara Portugal - Confecções Lda	Subsidiary	Lisboa	Portugal	Retail (Apparel)	352.6	2,429
Zara Hellas S.A.	Subsidiary	Athens	Greece	Retail (Apparel)	258.2	1,400
Zara Vastgoed B.V.	Subsidiary	Amsterdam, Noord-Holland	Netherlands	Investment Services
Zara Mexico B.V.	Subsidiary	Amsterdam, Noord-Holland	Netherlands	Miscellaneous Financial Services
Zara México, S.A. De C.V.	Subsidiary	Ciudad De Mexico, Distrito Federal	Mexico	Retail (Apparel)		811
Zara México, S.A. De C.V.	Branch	Tlanepantla, Puebla	Mexico	Retail (Apparel)		45
Zara Mexico	Branch	Mexico City, Distrito Federal	Mexico	Retail (Apparel)		40
Zara Mexico S.A. De C.V.	Branch	Mexico City, Distrito Federal	Mexico	Retail (Apparel)		33
Zara Mexico S.A. De C.V.	Branch	Puebla, Puebla	Mexico	Apparel and Accessories
Zara Mexico,S.A.De C.V.	Branch	Mexico City, Distrito Federal	Mexico	Retail (Apparel)
Bershka Nederland B.V.	Subsidiary	Almere, Flevoland	Netherlands	Retail (Apparel)		8
Comditel Sa	Subsidiary	Arteixo, La Coruña	Spain	Apparel and Accessories	27.2	7
Zara Home Belgique S.A.	Subsidiary	Brugge, West Flanders	Belgium	Business Services		5
Massimo Dutti Norge AS.	Subsidiary	Oslo	Norway	Retail (Apparel)
Zara International Ltd.	Subsidiary	London	United Kingdom	Nonclassifiable Industries
Bershka Ceska Republica S.R.O.	Subsidiary	Prague	Czech Republic	Apparel and Accessories
Choolet S.A.	Subsidiary	La Coruna	Spain	Apparel and Accessories
Inditex Cogeneracion A.I.E.	Subsidiary	La Coruna	Spain	Electric Utilities
Zara Monaco SAM	Subsidiary	Monaco	Monaco	Retail (Apparel)
Zara Sverige AB	Subsidiary	Stockholm, Uppland	Sweden	Retail (Apparel)
Stradivarius Logistica S.A.	Subsidiary	Sellent, Barcelona	Spain	Apparel and Accessories
Zara Osterreich Clothing GmbH	Subsidiary	Vienna	Austria	Retail (Apparel)
Oysho Hellas S.A.	Subsidiary	Athens	Greece	Footwear
Oysho Polska Sp zo.o.	Subsidiary	Warsaw	Poland	Apparel and Accessories
Oysho France, S.A.R.L.	Subsidiary	Arcueil, Val-de-Marne	France	Personal and Household Products
Massimo Dutti Hellas S.A	Subsidiary	Athens	Greece	Retail (Apparel)
Massimo Dutti Mexico S.A. de C.V.	Subsidiary	Cuauhtemoc, Colima	Mexico	Footwear
Stradivarius CIS Ltd.	Subsidiary	Moscow	Russian Federation	Retail (Apparel)
Zara Home CIS Ltd.	Subsidiary	Moscow	Russian Federation	Retail (Apparel)
Goa Invest S.A.	Subsidiary	La Coruna	Spain	Real Estate Operations
Pull & Bear Mexico S.A. de C.V.	Subsidiary	Mexico	Mexico	Retail (Apparel)
Oysho Espana S.A.	Subsidiary	Tordera, Barcelona	Spain	Retail (Apparel)
Denllo S.A.	Subsidiary	La Coruna	Spain	Textiles - Non Apparel
Hampton S.A.	Subsidiary	La Coruna	Spain	Apparel and Accessories
Nikole S.A.	Subsidiary	La Coruna	Spain	Retail (Apparel)
Stear S.A.	Subsidiary	La Coruna	Spain	Business Services
Zintura S.A.	Subsidiary	La Coruna	Spain	Business Services
Massimo Dutti France S.A.R.L.	Subsidiary	Paris	France	Retail (Apparel)
Zara Home ederland B.V.	Subsidiary	Amsterdam, North Holland	Netherlands	Retail (Apparel)
Zara Home Italia S.R.L.	Subsidiary	Milan	Italy	Recreational Products
Zara Logistica S.A.	Subsidiary	La Coruna	Spain	Miscellaneous Transportation
Bershka BSK Espana S.A.	Subsidiary	Tordera, Barcelona	Spain	Retail (Apparel)
Pull & Bear Ceska Republika S.R.O.	Subsidiary	Prague	Czech Republic	Retail (Apparel)
Stradivarius France S.A.R.L.	Subsidiary	Englos, Nord	France	Retail (Apparel)

Competitors Report

CompanyName	Location	Employees	Ownership
Adolfo Dominguez SA	San Cibrao Das Vinas, Spain	1,930	Public
Antonio Puig Sa	Barcelona, Spain	1,396	Public
Arcadia Group Ltd.	London, United Kingdom	2,375	Private
Benetton Group SpA	Ponzano Veneto, TV, Italy	347	Public
Casino Guichard Perrachon SA	Saint-Etienne, France	207,498	Public
Diesel SpA	Molvena, VI, Italy	668	Public
El Corte Ingles Sa	Madrid, Spain	55,760	Public
Fast Retailing Co Ltd	Yamaguchi-Shi, Japan	14,612	Public
French Connection Group	London, United Kingdom	2,558	Public
Gruppo PAM SpA	Spinea, VE, Italy	299	Public
H & M Hennes & Mauritz AB	Stockholm, Sweden	94,000	Public
Ikea International A/S	Helsingborg, Sweden	118,000	Private
Limited Brands, Inc.	Columbus, Ohio, United States	18,000	Public
LVMH Fashion Group	Paris, Cedex, France	34	Private
Mercadona Sa	Tavernes Blanques, Valencia, Spain	67,208	Public
NEXT plc	Leicester, United Kingdom	28,685	Public
PPR SA	Paris, France	41,952	Public
Prada S.p.A.	Milano, Italy	7,740	Public
Selfridges & Co. Ltd.	London, United Kingdom	2,260	Private
Tefron Ltd.	Misgav, Israel	571	Public
The Gap Inc.	San Francisco, California, United States	132,000	Public
The Gymboree Corporation	San Francisco, California, United States	5,470	Private
Valentino Fashion Group SpA	Milano, Italy	13,081	Public

Board of Directors

Name	Title	Function
Pablo Isla Alvarez de Tejera	Chief Executive Officer, Chairman of the Board, Executive Director	Chairman
Biography: Mr. Pablo Isla Alvarez de Tejera serves as Chief Executive Officer, Chairman and Executive Member of the Board of Directors of Industria de Diseno Textil SA Inditex. He has held these posts since July 19, 2011. Previously, he acted as First Vice Chairman of the Company's Board. He is also Chairman of the Company's Executive Committee. In the past, he was Chairman of the Board of Directors of Altadis. From 1992 to 1996, he was Director of Legal Services for Banco Popular, until he was appointed as General Director of State Assets at the Ministry of Economy and Finance. In 1998, he re-joined Banco Popular as General Counsel. He has been Member of the Board of Directors of Bershka Espana SA, Stradivarius Espana SA, Pull&Bear Espana SA, Oysho Espana SA, Massimo Dutti SA, Grupo Massimo Dutti SA, Zara Mexico SA DE CV, Zara Espana SA and Uterque Espana SA; Chairman of Zintura SA, Choolet SA, Confecciones Fios SA, Confecciones Goa SA, Denllo SA, Glencare SA, Hampton SA, Nikole SA, Samlor SA and Stear SA, and Vice Chairman of Tempe SA. In addition, he is Member of the Board of Directors of Telefonica SA. He obtained a degree in Law from Universidad Complutense de Madrid. Age: 48 Education: Universidad Complutense de Madrid (Law) Compensation/Salary:2,454,000 Compensation Currency: EUR
Jose Arnau Sierra	Vice Chairman of the Board	Vice-Chairman
Biography: Mr. Jose Arnau Sierra serves as Vice Chairman of the Board of Direcyors of Inditex SA. He was appointed to this post on July 17, 2012. He joined the Company's Board of Directors on June 12, 2012. He is also Member of the Company's Executive, Nominating and Remuneration, as well as Audit and Control Committees.
Carlos Espinosa de los Monteros Bernaldo de Quiros	Independent Director	Director/Board Member
Biography: Age: 67 Education: Northwestern University, MBA Universidad Pontificia Comillas (Law) Universidad Pontificia Comillas (Business Administration) Compensation/Salary:100,000 Compensation Currency: EUR
Irene Ruth Miller	Independent Director	Director/Board Member
Biography: Ms. Irene Ruth Miller has been Independent Member of the Board of Directors of Industria de Diseno Textil SA Inditex since April 20, 2001. She is also Member of the Company's Nominating and Remuneration Committee, as well as Chairman of the Audit and Control Committee. She began her professional career at General Foods Corporation and later worked as Investment Banker for Rothschild Inc and Morgan Stanley & Co. In 1991, she joined Barnes & Noble as Senior Vice President of Corporate Finance, and in 1993, she became Chief Financial Officer. In 1995, she was appointed as Vice Chairman of the Board of Directors of Barnes & Noble. She joined Akim Inc in 1997 and currently she serves as its CEO. In addition, she is Member of the Boards of Directors of Coach Inc, Barnes & Noble Inc and Toronto Dominion Bank Financial Group. In the past, she acted as Member of the Board of Directors of Oakley Inc, Benckiser NV and The Body Shop International Plc. She holds a Bachelor of Science degree from the University of Toronto and Master of Science degree in Chemistry from the Cornell University. Age: 60 Education: Cornell University, MS (Chemistry) University of Toronto, BS Compensation/Salary:100,000 Compensation Currency: EUR
Amancio Ortega Gaona	Director	Director/Board Member
Biography: Mr. Amancio Ortega Gaona serves as Member of the Board of Directors of Industria de Diseno Textil SA Inditex since July 19, 2011. Before that, he acted as Chairman and Executive Member of the Board of Directors of the Company. He is also Member of the Company's Executive Committee. In addition, he has been Chairman of the Board of Directors of Partler 2006 SL and Gartler SL. Age: 75 Compensation/Salary:378,000 Compensation Currency: EUR
Flora Perez Marcote	Director, Representative of Gartler SL	Director/Board Member
Compensation/Salary:100,000 Compensation Currency: EUR
Emilio Saracho Rodriguez de Torres	Independent Director	Director/Board Member
Biography: Mr. Emilio Saracho Rodriguez de Torres serves as Independent Member of the Board of Directors of Industria de Diseno Textil SA Inditex. He was appointed to this post on July 13, 2010. He is Member of the Company's Executive, Audit and Control, as well as Nominating and Remuneration Committees. He has also been Independent Member of the Board of Directors of Cintra Concesiones de Infraestructuras de Transporte SA. In 1980, he joined the Chase Manhattan Bank, where he was responsible for the activities in the Oil, Telecommunications and Capital Goods sectors. In 1985, he joined Banco Santander de Negocios and was Director of the Investment Banking Division and in 1989, he became Director of Global Enterprises Division of Grupo Santander until he was appointed as Co-CEO. In the past, he was Member of the Board of Directors of FISEAT, Santander de Pensiones and Santander de Leasing. In 1995, he became General Director of Global Investment Banking of Santander Investment, and between 1996 and 1998, he managed Banco Santander's operations in Asia. Between 2006 and January 1, 2008, he acted as Chief Executive Officer of JP Morgan Private Bank for Europe, Middle East and Africa, as well as he was Member of its Operating and European Management Committees and President of JP Morga Espana and Portugal. In addition, he worked at Goldman Sachs. Currently, he is Member of the Executive Committee and Executive Committee for Investment Banking of JP Morgan Chase. He graduate in Economic Sciences from Universidad Complutense de Madrid and obtained a Masters of Business Administration degree from the University of California in Los Angeles in 1980. Age: 56 Education: University of California, Los Angeles, MBA Universidad Complutense de Madrid (Economic Sciences) Compensation/Salary:100,000 Compensation Currency: EUR
Nils Smedegaard Andersen	Independent Director	Director/Board Member
Biography: Mr. Nils Smedegaard Andersen serves as Independent Member of the Board of Directors of Industria de Diseno Textil SA Inditex. He was appointed to this post on July 13, 2010. He is Member of the Company's Executive, Audit and Control, as well as Nominating and Remuneration Committees. He joined Carlsberg in 1983, where he became Vice President in 1988, and from 1990 to 1997, he acted as Chief Executive Officer of Carlsberg Espana and Carlsberg German Brewery. In 1999, he re-joined Carlsberg as Member of its Executive Committee. In 2001, he was appointed as Chief Executive Officer of Carlsberg A/S, post he held until 2007 when he was named Associate Partner and Chief Executive Officer of AP Moller - Maersk Group. In addition, he is Board Member of ERT and IRT, as well as President of Maersk Oil Gas A/S and Danish Supermarket A/S. Moreover, he has worked at Holsten-Brauerei AG, Turk Tuborg Bira Ve Malt Sanayii AS, William Demant Holding A/S and Zaklady Piwowarskie Okocim SA. In 2010, he was awarded as Knight of the Dannebrog. He obtained a Master of Science degree in Economics from Aarhus Universitet in 1982 and holds a Bachelor's degree in Commerce from the same university. Age: 54 Education: Aarhus Universitet, MS (Economics) Aarhus Universitet, B (Commerce) Compensation/Salary:100,000 Compensation Currency: EUR
Juan Manuel Urgoiti Lopez de Ocana	Director	Director/Board Member
Biography: Mr. Juan Manuel Urgoiti Lopez de Ocana serves as Member of the Board of Directors of Industria de Diseno Textil SA Inditex. He has held this post since February 1, 2007. Previously, he was Independent Member of the Company's Board and has been on the Company's Bard since January 2, 1993. He is Member of the Company's Executive, Audit and Control, as well as Nominating and Remuneration Committees. He joined Banco de Vizcaya in 1962 and after holding many executive positions; he was appointed General Manager in 1978, Member of the Board of Directors in 1984 and Chief Executive Officer in 1986. In 1988, he was appointed Chief Executive Officer of Banco Bilbao Vizcaya. He has been President of Ahorrobank, Banco de Credito Canario, Banco Occidental, Instituto de Biologia y Sueroterapia and Laboratorios Delagrange and Board Member of Antibioticos SA. In addition, he has served as Chairman of Banco Gallego and Deputy Chairman of Acciona SA, as well as President of Fundacion Gaias-Cidade da Cultura and Fundacion Jose Antonio de Castro. Currently, he is Second Vice Chairman of the Board of Directors of Acciona SA. He holds the Gran Cruz de Merito Civil award and has been awarded with the Commander of the Order of the British Empire (CBE). He graduated in Law from Universidad de Madrid. Age: 72 Education: Universidad de Madrid (Law) Compensation/Salary:100,000 Compensation Currency: EUR

Executives

Name	Title	Function
Pablo Isla Alvarez de Tejera	Chief Executive Officer, Chairman of the Board, Executive Director	Chief Executive Officer
Biography: Mr. Pablo Isla Alvarez de Tejera serves as Chief Executive Officer, Chairman and Executive Member of the Board of Directors of Industria de Diseno Textil SA Inditex. He has held these posts since July 19, 2011. Previously, he acted as First Vice Chairman of the Company's Board. He is also Chairman of the Company's Executive Committee. In the past, he was Chairman of the Board of Directors of Altadis. From 1992 to 1996, he was Director of Legal Services for Banco Popular, until he was appointed as General Director of State Assets at the Ministry of Economy and Finance. In 1998, he re-joined Banco Popular as General Counsel. He has been Member of the Board of Directors of Bershka Espana SA, Stradivarius Espana SA, Pull&Bear Espana SA, Oysho Espana SA, Massimo Dutti SA, Grupo Massimo Dutti SA, Zara Mexico SA DE CV, Zara Espana SA and Uterque Espana SA; Chairman of Zintura SA, Choolet SA, Confecciones Fios SA, Confecciones Goa SA, Denllo SA, Glencare SA, Hampton SA, Nikole SA, Samlor SA and Stear SA, and Vice Chairman of Tempe SA. In addition, he is Member of the Board of Directors of Telefonica SA. He obtained a degree in Law from Universidad Complutense de Madrid. Age: 48 Education: Universidad Complutense de Madrid (Law) Compensation/Salary:2,454,000 Compensation Currency: EUR
Lorena Alba Castro	Logistics General Manager	Division Head Executive
Costas Antimissaris	Director of Uterque Business Unit	Division Head Executive
Eva Cárdenas Botas	Directora de Zara Home	Division Head Executive
Eva Cardenas Botas	Manager of Zara Home Business Unit	Division Head Executive
Jose Pablo del Bado Rivas	Director of PullBear Business Unit	Division Head Executive
Jesus Echevarria Hernandez	Communication and Institutional Relations General Manager	Division Head Executive
Carlos Mato López	Director de ZARA	Division Head Executive
Luis Maseres Ghiloni	Manager of Uterque Business Unit	Division Head Executive
Carlos Mato Lopez	Manager of Zara Business Unit	Division Head Executive
Oscar Perez Marcote	Manager of Bershka Business Unit	Division Head Executive
Jorge Perez Marcote	Manager of Massimo Dutti Business Unit	Division Head Executive
Carmen Sevillano Chaves	Manager of Oysho Business Unit	Division Head Executive
Jorge Triquell Valls	Manager of Stradivarius Business Unit	Division Head Executive
Lorena Alba Castro	Directora General de Logistica	Managing Director
AgustÃn GarcÃa- Fernández	Director General Internacional	Managing Director
Jesús Hernández	Director General de Comunicación & Relaciones Institucionales	Managing Director
Ramón Reñón Túñez	Director General de Expansión	Managing Director
Jordi Triquell Valls	Manager Stradivarius	Administration Executive
Antonio Abril Abadin	General Secretary, Non-Member Secretary of the Board, General Counsel	Company Secretary
Biography: Mr. Antonio Abril Abadin serves as General Secretary, Non-Member Secretary and General Counsel of the Board of Directors of Industria de Diseno Textil SA Inditex. He has held these posts since June 8, 2010. Previously, he served as Executive Member of the Board of Directors of the Company. He aslo acts as Secretary Non-Member of the Company's Executive, Audit and Control, as well as Nomination and Remuneration Committee. In addition, has been General Secretary of the Company since January 1993. He joined the Company in 1989 as Director of the Legal Department, after having been posted as State Lawyer in the State Legal Service at the Regional Office of Treasury and Law Courts in Lugo and at the Governmental Regional Office of Galicia, in A Coruna. Moreover, he has acted as Member of the Board of Directors of Banco Gallego SA. He graduated in Law from Universidad de Oviedo. Education: Universidad de Oviedo (Law)
Ignacio Fernandez Fernandez	Chief Financial Officer	Finance Executive
Carlos González	Director de AuditorÃa Interna	Finance Executive
Carlos Crespo Gonzalez	Internal Audit Director	Accounting Executive
Begoña Lopezcano	Gerente de Recursos Humanos	Human Resources Executive
Begona Lopez-Cano Ibarreche	General Manager of Human Resources	Human Resources Executive
Juan Romero	Director de Compras & Contratación	Sales Executive
Abel Lopez Cernadas	Director of Import, Export and Transport	International Executive
Jesus Echeverria	Gerente de Telecomunicaciones	Corporate Communications Executive
Gabriel Moneo Marina	Information Technology General Manager	Information Executive
Javier Monteoliva Diaz	Legal Department Director	Legal Executive
Abel Cernadas	Director de Exportación y Transporte	Logistics Executive
Juan Jose Lopez Romero	Director of Purchasing and Contracting	Purchasing Executive
Javier Chércole Blázquez	Director de Responsabilidad Social Corporativa	Government/Public Affairs Executive
Fred Langhammer	An Independent Director	Other
Biography: Fred H. Langhammer 67 is Chairman Global Affairs of The Estee Lauder Companies Inc. a manufacturer and marketer of cosmetics products. Prior to being named Chairman Global Affairs Mr. Langhammer was Chief Executive Officer of The Estee Lauder Companies Inc. from 2000 to 2004 President from 1995 to 2004 and Chief Operating Officer from 1985 through 1999. Mr. Langhammer joined The Estee Lauder Companies in 1975 as President of its operations in Japan. In 1982 he was appointed Managing Director of its operations in Germany. He has been a director of Central European Media Enterprises Ltd. since December 2009 and was also a director of The Shinsei Bank Limited from 2005 to 2009 and a director of AIG from 2006 to 2008. Mr. Langhammer has been a Director of the Company since 2005.
Francisco Luzon Lopez	Director	Other	GMD
Biography: He has been an independent director since February 1997. He is a graduate in Business Studies and Economics from the University of Bilbao. He has collaborated as a lecturer at the University of Deusto (Bilbao). He joined the Banco de Vizcaya in 1972 gaining wide experience in that Group in different Units and functions becoming General Manager and Board member in 1986. In 1988 after its merger with the Banco de Bilbao he went on to become a member of the Board of Directors of the Banco Bilbao Vizcaya. At the end of the same year he was appointed President of the Banco Exterior de Espana office which he held from 1988 to 1996. In 1991 he was the driving force behind the creation of the new Grupo Bancario Argentaria of which he was the founder and was Chairman until 1996. After that year he joined the Banco Santander Central Hispano as Director-General Manager Deputy to the Chairman and in charge of Strategy Communication and Institutional Relations. At the present time he holds the position of Executive Vice President for Latin America on the Board of Banco Santander. Likewise he is the Worldwide Deputy Chairman of Universia. He was appointed to the Board of the company on 28 February 1997 and re-elected during the AGM held on 20 July 2000 and 16 July 2004. Age: 63
Marcos Lopez Garcia	Director of Stock Market	Other
Felix Poza Pena	Director of Social and Corporate Responsibility	Other
Ramon Renon Tunez	Special Advisor to the Chairman and Chief Executive Officer	Other

Significant Developments

Inditex SA Plans over 16 New Zara Stores in Romania by End of 2013-SeeNews - The Corporate Wire

Oct 09, 2012

SeeNews - The Corporate Wire reported that Inditex SA plans to increase the number of stores it operates under the Zara brand in Romania to more than 100 by the end of 2013. The Company currently operates 84 Zara stores in Romania and plans to open four new ones by the end of 2012.

India's Government Rejects Inditex Group's Application To Sell Massimo Dutti Brand Via Joint Venture With Trent Ltd-Reuters

Jul 25, 2012

Reuters reported that Inditex Group announced that India's government has rejected its application to sell Massimo Dutti brand in the country via a joint venture with Tata Group's Trent Ltd. The application made by Inditex's unit Zara Holdings BV to sell a more upscale brand was rejected by the Foreign Investment Promotion Board (FIPB).

Inditex SA Announces FY 2011 Dividend Payment; Appoints External Auditor

Jul 17, 2012

Inditex SA announced that its shareholders, at the Ordinary Shareholders' Meeting held on July 17, 2012, approved a dividend payment for fiscal year 2011 at a gross value of EUR 1.80 per share (an ordinary dividend at a value of EUR 1.60 per share and an extraordinary dividend at a value of EUR 0.20 per share). The dividend of EUR 0.90 per share was already distributed on May 2, 2012 and the remaining payment of EUR 0.90 per share will be effective on November 2, 2012. The Company also announced the appointment of Deloitte SL as its External Auditor for fiscal years from 2012 to 2014, both included.

Inditex SA Acquires Property To Open New Zara Store In London-Reuters

Jun 18, 2012

Reuters reported that Inditex SA announced that it has acquire a 7,000 square-meter property for new Zara store, located on the corner of Oxford Street and New Bond Street in London, the United Kingdom, at a value of GBP 155 million . The seller was the German fund manager Deka.

Inditex SA To Continue Expansion As Profit Soars-DJ

Mar 21, 2012

Dow Jones reported that Inditex SA expects to open about 130 stores a year in China alone over the next few years, representing about a third of its annual store openings. The Company entered the Chinese market five years ago and expects to have 425 stores in 50 cities in the largest Asian economy by the end of 2012. Inditex SA currently has 275 stores in China.

Inditex SA To Increase 2011 Dividend Payment-Reuters

Mar 20, 2012

Reuters reported that Inditex SA is planning to increase a dividend payment for fiscal year 2011 by 12.5% to a total of EUR 1.80 per share.

Inditex SA Opens New Zara Store in Romania-SeeNews - The Corporate Wire

Mar 07, 2012

SeeNews - The Corporate Wire reported that Inditex SA has opened a store under the Zara brand in the central Romanian town of Sibiu. This is the Company's eighteenth Zara store in Romania. It covers an area of 1,500 square meters. Inditex SA operates 77 stores in Romania under seven brands.

Inditex SA to Open Four New Stores in Romania's Craiova-SeeNews - The Corporate Wire

Feb 22, 2012

SeeNews - The Corporate Wire reported that Inditex SA will open four new stores in the Romanian southwestern city of Craiova on February 23, 2012. The Company will open stores of its brands, Zara, Pull&Bear, Stradivarius and Bershka, in Electroputere Parc Mall in Craiova. Inditex SA had 71 stores at the end of October 2011 in Romania, including 16 Zara stores, 15 Pull&Bear, 14 Bershka and 13 Stradivarius stores. The Company also operates Massimo Dutti, Oysho and Zara Home stores in the country.

News

Sweden's H&M said to hold talks with 3 Indian firms for market foray Xinhua News Agency (506 Words)	22-Oct-2012
OVER 25 INTERNATIONAL BRANDS REPRESENTED IN DALMA GARDEN MALL IN YEREVAN ARKA News (393 Words)	22-Oct-2012
Antonio Banderas, Fernando Alonso named envoys for "Brand Spain" EFE Ingles (270 Words)	17-Oct-2012
IndustriALL committed to trade union networks and Global Framework Agreements PressWIRE (724 Words)	17-Oct-2012
Inditex to book EUR 500m revenues online in 2013 - report ADP Spain News (155 Words)	15-Oct-2012
Employment or Exploitation: Are suppliers to retailers like Walmart, Carrefour sweatshops? Srinivasan, Sriram, Times of India (1894 Words)	12-Oct-2012
Zara Home Debuts with E-Commerce in the US PR Newswire US (447 Words)	09-Oct-2012
Inditex plans over 16 new Zara stores in Romania by end-2013 - media SeeNews (74 Words)	09-Oct-2012
H&M and Anna Dello Russo: another successful creative partnership Lauren Cochrane, guardian.co.uk, Guardian Web (575 Words)	09-Oct-2012
EANS-News: ATRIUM SIGNS EURO RTV AGV AT ATRIUM FELICITY DEVELOPMENT APA EconomicNews Service (Austria) (524 Words)	08-Oct-2012

Articles

BANGLADESH: Inditex backs new garment testing laboratory Katie Smith, just-style.com (153 Words) (1 Page)	19-Oct-2012
US: Inditex takes Massimo Dutti to New York Katie Smith, just-style.com (127 Words) (1 Page)	12-Oct-2012
SPAIN: Inditex H1 net profit up 32% to EUR944m Richard Woodard, just-style.com (214 Words) (1 Page)	19-Sep-2012
CHINA: Inditex to launch Chinese Zara site Petah Marian, just-style.com (147 Words) (1 Page)	03-Sep-2012
INVESTORS CHEER AS ESPIRIT HIRES INDITEX MAN City A.M. (London, England) (54 Words) (1 Page)	08-Aug-2012
HONG KONG: Esprit appoints Inditex's Martinez as CEO Petah Marian, just-style.com (246 Words) (1 Page)	07-Aug-2012
SPAIN: Inditex to invest EUR150m in logistics platform Petah Marian, just-style.com (175 Words) (1 Page)	27-Jul-2012
SPAIN: Inditex to expand headquarters Petah Marian, just-style.com (162 Words) (1 Page)	26-Jun-2012
SPAIN: Inditex increases non-EU European production Petah Marian, just-style.com (261 Words) (1 Page)	25-Jun-2012
Sales still smart at Zara owner Inditex The Independent (London, England) (125 Words) (1 Page)	14-Jun-2012

Annual Income Statement

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Jan-2012	31-Jan-2011	31-Jan-2010	31-Jan-2009	31-Jan-2008
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Jan-2012	Updated Normal 31-Jan-2011	Updated Normal 31-Jan-2010	Updated Normal 31-Jan-2009	Updated Normal 31-Jan-2008
Filed Currency	EUR	EUR	EUR	EUR	EUR
Exchange Rate (Period Average)	0.721468	0.759051	0.714938	0.688599	0.722989
Auditor	KPMG Auditores, SL	KPMG Peat Marwick LLP	KPMG LLP	KPMG LLP	KPMG LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified
Net Sales	19,117.4	16,503.0	15,502.8	15,113.2	12,910.4
Revenue	19,117.4	16,503.0	15,502.8	15,113.2	12,910.4
Other Revenue	-	-	-	-	139.2
Other Revenue, Total	-	-	-	-	139.2
Total Revenue	19,117.4	16,503.0	15,502.8	15,113.2	13,049.5
Cost of Revenue	7,778.9	6,724.9	6,651.6	6,524.4	5,651.5
Cost of Revenue, Total	7,778.9	6,724.9	6,651.6	6,524.4	5,651.5
Gross Profit	11,338.5	9,778.0	8,851.1	8,588.8	7,258.9
Selling/General/Administrative Expense	-	-	-	1,493.4	1,183.1
Labor & Related Expense	3,096.7	2,647.3	2,506.0	2,473.4	2,037.2
Total Selling/General/Administrative Expenses	3,096.7	2,647.3	2,506.0	3,966.8	3,220.3
Depreciation	969.1	847.7	874.4	839.9	687.0
Depreciation/Amortization	969.1	847.7	874.4	839.9	687.0
Loss (Gain) on Sale of Assets - Operating	50.6	42.5	28.9	-	-
Unusual Expense (Income)	50.6	42.5	28.9	-	-
Other Operating Expense	3,721.8	3,218.2	3,022.7	1,417.8	1,242.2
Other, Net	4.7	4.7	1.6	28.3	-36.7
Other Operating Expenses, Total	3,726.5	3,223.0	3,024.3	1,446.2	1,205.5
Total Operating Expense	15,621.8	13,485.4	13,085.2	12,777.3	10,764.3
Operating Income	3,495.7	3,017.5	2,417.5	2,336.0	2,285.2
Interest Expense - Non-Operating	-5.1	-4.7	-13.2	-13.6	-6.4
Interest Expense, Net Non-Operating	-5.1	-4.7	-13.2	-13.6	-6.4
Interest Income - Non-Operating	41.9	27.7	11.7	37.9	28.5
Investment Income - Non-Operating	28.4	-	-	-55.6	-31.1
Interest/Investment Income - Non-Operating	70.3	27.7	11.7	-17.8	-2.6
Interest Income (Expense) - Net Non-Operating Total	65.2	23.0	-1.5	-31.4	-9.1
Other Non-Operating Income (Expense)	-13.9	18.0	6.8	-	-
Other, Net	-13.9	18.0	6.8	-	-
Income Before Tax	3,547.0	3,058.5	2,422.8	2,304.6	2,276.2
Total Income Tax	850.3	764.5	573.5	472.4	536.5
Income After Tax	2,696.6	2,294.0	1,849.3	1,832.1	1,739.7
Minority Interest	-18.4	-12.5	-10.9	-11.9	-10.4
Net Income Before Extraord Items	2,678.3	2,281.6	1,838.4	1,820.3	1,729.3
Net Income	2,678.3	2,281.6	1,838.4	1,820.3	1,729.3
Income Available to Common Excl Extraord Items	2,678.3	2,281.6	1,838.4	1,820.3	1,729.3
Income Available to Common Incl Extraord Items	2,678.3	2,281.6	1,838.4	1,820.3	1,729.3
Basic/Primary Weighted Average Shares	623.2	623.1	623.1	621.7	620.9
Basic EPS Excl Extraord Items	4.30	3.66	2.95	2.93	2.78
Basic/Primary EPS Incl Extraord Items	4.30	3.66	2.95	2.93	2.78
Diluted Net Income	2,678.3	2,281.6	1,838.4	1,820.3	1,729.3
Diluted Weighted Average Shares	623.2	623.1	623.1	621.7	620.9
Diluted EPS Excl Extraord Items	4.30	3.66	2.95	2.93	2.78
Diluted EPS Incl Extraord Items	4.30	3.66	2.95	2.93	2.78
Dividends per Share - Common Stock Primary Issue	1.97	1.71	1.36	1.25	1.19
Gross Dividends - Common Stock	1,555.2	1,313.9	1,046.2	950.5	901.8
Interest Expense, Supplemental	5.1	4.7	13.2	13.6	6.4
Depreciation, Supplemental	814.6	752.5	765.2	702.9	627.9
Total Special Items	50.6	42.5	28.9	-	-
Normalized Income Before Tax	3,597.6	3,101.0	2,451.8	2,304.6	2,276.2
Effect of Special Items on Income Taxes	12.1	10.6	6.8	-	-
Inc Tax Ex Impact of Sp Items	862.5	775.1	580.4	472.4	536.5
Normalized Income After Tax	2,735.1	2,325.9	1,871.4	1,832.1	1,739.7
Normalized Inc. Avail to Com.	2,716.7	2,313.4	1,860.5	1,820.3	1,729.3
Basic Normalized EPS	4.36	3.71	2.99	2.93	2.78
Diluted Normalized EPS	4.36	3.71	2.99	2.93	2.78
Amort of Intangibles, Supplemental	132.2	68.1	68.6	66.9	52.2
Rental Expenses	1,938.7	1,675.9	1,586.2	1,493.4	1,183.1
Normalized EBIT	3,546.3	3,060.0	2,446.5	2,336.0	2,285.2
Normalized EBITDA	4,493.1	3,880.7	3,280.2	3,105.7	2,965.3
Current Tax - Total	997.9	775.1	664.0	306.4	563.7
Current Tax - Total	997.9	775.1	664.0	306.4	563.7
Deferred Tax - Total	-147.6	-10.6	-90.5	166.0	-27.2
Deferred Tax - Total	-147.6	-10.6	-90.5	166.0	-27.2
Income Tax - Total	850.3	764.5	573.5	472.4	536.5

Annual Balance Sheet

Financials in: USD (mil)

	31-Jan-2012	31-Jan-2011	31-Jan-2010	31-Jan-2009	31-Jan-2008
UpdateType/Date	Updated Normal 31-Jan-2012	Updated Normal 31-Jan-2011	Updated Normal 31-Jan-2010	Updated Normal 31-Jan-2009	Updated Normal 31-Jan-2008
Filed Currency	EUR	EUR	EUR	EUR	EUR
Exchange Rate	0.762416	0.729395	0.71945	0.76147	0.675402
Auditor	KPMG Auditores, SL	KPMG Peat Marwick LLP	KPMG LLP	KPMG LLP	KPMG LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified
Cash	1,598.8	-	-	-	-
Cash & Equivalents	2,948.3	4,707.3	3,363.8	1,925.6	2,170.3
Short Term Investments	66.5	0.1	-	-	-
Cash and Short Term Investments	4,613.5	4,707.4	3,363.8	1,925.6	2,170.3
Trade Accounts Receivable - Net	139.0	123.2	156.8	768.7	297.0
Other Receivables	580.1	560.6	451.2	20.1	392.1
Total Receivables, Net	719.1	683.9	608.0	788.8	689.1
Inventories - Finished Goods	1,585.2	1,571.4	1,310.7	1,302.2	1,387.3
Inventories - Work In Progress	33.8	35.3	28.6	23.2	35.3
Inventories - Raw Materials	55.9	58.5	40.3	59.9	68.7
Total Inventory	1,675.0	1,665.2	1,379.6	1,385.3	1,491.3
Other Current Assets	124.0	76.2	130.2	186.8	63.8
Other Current Assets, Total	124.0	76.2	130.2	186.8	63.8
Total Current Assets	7,131.7	7,132.6	5,481.7	4,286.5	4,414.5
Land/Improvements	1,809.2	1,559.9	1,364.0	1,163.9	1,246.8
Machinery/Equipment	7,598.9	7,121.0	6,598.7	5,776.6	5,645.3
Other Property/Plant/Equipment	802.0	422.5	408.2	571.7	558.7
Property/Plant/Equipment - Gross	10,210.1	9,103.4	8,370.9	7,512.2	7,450.9
Accumulated Depreciation	-4,880.9	-4,446.0	-3,793.1	-2,991.6	-2,739.4
Property/Plant/Equipment - Net	5,355.2	4,681.2	4,596.3	4,531.7	4,725.5
Goodwill, Net	286.1	180.5	183.0	172.9	185.9
Intangibles - Gross	1,420.7	1,294.9	1,213.5	-	1,152.7
Accumulated Intangible Amortization	-615.2	-532.9	-472.2	-	-385.8
Intangibles, Net	805.5	761.9	741.2	719.6	766.9
LT Investment - Affiliate Companies	-	-	-	-	0.0
LT Investments - Other	12.5	12.2	21.4	18.9	53.6
Long Term Investments	12.5	12.2	21.4	18.9	53.6
Deferred Income Tax - Long Term Asset	467.4	410.4	325.5	266.7	196.9
Other Long Term Assets	316.0	292.6	236.7	216.3	177.2
Other Long Term Assets, Total	783.4	703.0	562.2	483.0	374.2
Total Assets	14,374.3	13,471.6	11,585.8	10,212.7	10,520.6
Accounts Payable	2,410.9	2,586.6	2,165.2	2,023.4	2,336.3
Accrued Expenses	234.1	199.6	186.1	-	-
Notes Payable/Short Term Debt	0.0	0.0	0.0	289.5	493.8
Current Portion - Long Term Debt/Capital Leases	0.9	3.7	48.7	17.8	55.9
Income Taxes Payable	267.7	292.5	231.9	109.9	165.1
Other Payables	601.5	531.0	571.8	699.1	588.3
Other Current Liabilities	30.0	53.8	-	-	0.0
Other Current liabilities, Total	899.2	877.4	803.7	809.0	753.4
Total Current Liabilities	3,545.0	3,667.3	3,203.8	3,139.8	3,639.4
Long Term Debt	1.0	4.5	4.0	8.2	49.8
Capital Lease Obligations	1.0	1.2	3.0	9.2	12.9
Total Long Term Debt	2.0	5.7	6.9	17.4	62.7
Total Debt	2.9	9.4	55.7	324.7	612.4
Deferred Income Tax - LT Liability	239.4	236.7	240.3	280.8	164.3
Deferred Income Tax	239.4	236.7	240.3	280.8	164.3
Minority Interest	53.5	50.7	57.5	35.3	35.4
Reserves	193.2	214.7	176.6	133.7	70.6
Other Long Term Liabilities	615.7	541.0	493.4	404.9	339.8
Other Liabilities, Total	808.9	755.7	670.0	538.6	410.4
Total Liabilities	4,648.9	4,716.1	4,178.6	4,011.9	4,312.2
Common Stock	122.6	128.2	130.0	122.8	138.4
Common Stock	122.6	128.2	130.0	122.8	138.4
Additional Paid-In Capital	26.7	27.9	28.3	26.8	30.2
Retained Earnings (Accumulated Deficit)	9,591.4	8,719.3	7,427.1	6,201.9	6,191.2
Treasury Stock - Common	0.0	-0.8	-0.9	-0.8	-10.3
Translation Adjustment	-27.1	-93.0	-190.6	-222.6	-141.2
Other Equity	11.7	-26.1	13.3	72.7	-
Other Equity, Total	-15.4	-119.1	-177.2	-149.9	-141.2
Total Equity	9,725.4	8,755.5	7,407.3	6,200.8	6,208.4
Total Liabilities & Shareholders’ Equity	14,374.3	13,471.6	11,585.8	10,212.7	10,520.6
Shares Outstanding - Common Stock Primary Issue	623.3	623.1	623.1	623.1	621.0
Total Common Shares Outstanding	623.3	623.1	623.1	623.1	621.0
Treasury Shares - Common Stock Primary Issue	0.0	0.2	0.2	0.2	2.4
Employees	109,512	100,138	92,301	89,112	79,517
Accumulated Intangible Amort, Suppl.	615.2	532.9	472.2	390.5	385.2
Total Long Term Debt, Supplemental	1.6	4.9	48.5	324.7	96.9
Long Term Debt Maturing within 1 Year	0.6	0.4	44.6	307.3	47.0
Long Term Debt Maturing in Year 2	0.3	1.1	1.0	4.3	12.5
Long Term Debt Maturing in Year 3	0.3	1.1	1.0	4.3	12.5
Long Term Debt Maturing in Year 4	0.3	1.1	1.0	4.3	12.5
Long Term Debt Maturing in Year 5	0.3	1.1	1.0	4.3	12.5
Long Term Debt Maturing in 2-3 Years	0.5	2.3	2.0	8.7	24.9
Long Term Debt Maturing in 4-5 Years	0.5	2.3	2.0	8.7	24.9
Long Term Debt Matur. in Year 6 & Beyond	0.0	0.0	0.0	0.0	0.0
Total Capital Leases, Supplemental	1.4	4.5	7.2	13.4	21.8
Capital Lease Payments Due in Year 1	0.3	3.3	4.2	4.2	8.9
Capital Lease Payments Due in Year 2	0.3	0.3	0.7	2.3	3.2
Capital Lease Payments Due in Year 3	0.3	0.3	0.7	2.3	3.2
Capital Lease Payments Due in Year 4	0.3	0.3	0.7	2.3	3.2
Capital Lease Payments Due in Year 5	0.3	0.3	0.7	2.3	3.2
Capital Lease Payments Due in 2-3 Years	0.5	0.6	1.5	4.6	6.4
Capital Lease Payments Due in 4-5 Years	0.5	0.6	1.5	4.6	6.4
Cap. Lease Pymts. Due in Year 6 & Beyond	-	0.0	0.0	0.0	0.0
Total Operating Leases, Supplemental	3,702.2	3,698.4	4,238.3	2,957.8	3,601.1
Operating Lease Payments Due in Year 1	1,120.5	1,115.4	1,054.4	783.6	789.8
Operating Lease Payments Due in Year 2	422.6	418.9	485.4	338.4	407.0
Operating Lease Payments Due in Year 3	422.6	418.9	485.4	338.4	407.0
Operating Lease Payments Due in Year 4	422.6	418.9	485.4	338.4	407.0
Operating Lease Payments Due in Year 5	422.6	418.9	485.4	338.4	407.0
Operating Lease Pymts. Due in 2-3 Years	845.3	837.8	970.7	676.7	813.9
Operating Lease Pymts. Due in 4-5 Years	845.3	837.8	970.7	676.7	813.9
Oper. Lse. Pymts. Due in Year 6 & Beyond	891.1	907.3	1,242.4	820.8	1,183.4

Annual Cash Flows

Financials in: USD (mil)

	31-Jan-2012	31-Jan-2011	31-Jan-2010	31-Jan-2009	31-Jan-2008
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Jan-2012	Updated Normal 31-Jan-2011	Updated Normal 31-Jan-2010	Reclassified Normal 31-Jan-2010	Updated Normal 31-Jan-2008
Filed Currency	EUR	EUR	EUR	EUR	EUR
Exchange Rate (Period Average)	0.721468	0.759051	0.714938	0.688599	0.722989
Auditor	KPMG Auditores, SL	KPMG Peat Marwick LLP	KPMG LLP	KPMG LLP	KPMG LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified
Net Income/Starting Line	3,547.0	3,058.5	2,422.8	2,304.6	2,276.2
Depreciation	960.0	838.3	873.8	826.8	687.0
Depreciation/Depletion	960.0	838.3	873.8	826.8	687.0
Deferred Taxes	-	-	-	-	-53.2
Other Non-Cash Items	16.6	41.5	117.1	16.7	2.5
Non-Cash Items	16.6	41.5	117.1	16.7	2.5
Accounts Receivable	-111.0	-157.7	227.6	-232.0	-121.2
Inventories	-78.5	-299.2	67.8	-104.7	-273.2
Accounts Payable	-93.4	478.2	69.9	208.1	477.7
Other Operating Cash Flow	-902.0	-592.1	-532.9	-441.6	-482.1
Changes in Working Capital	-1,185.0	-570.6	-167.5	-570.2	-398.6
Cash from Operating Activities	3,338.6	3,367.6	3,246.2	2,578.0	2,513.8
Purchase of Fixed Assets	-1,499.5	-812.3	-644.8	-1,237.3	-1,175.8
Purchase/Acquisition of Intangibles	-168.8	-97.7	-37.6	-113.4	-121.7
Capital Expenditures	-1,668.4	-910.0	-682.4	-1,350.6	-1,297.5
Acquisition of Business	-146.5	-	0.0	-8.9	-9.9
Sale of Business	-	-	-	-	42.5
Sale of Fixed Assets	-	-	-	-	13.2
Investment, Net	-37.1	-49.1	-17.6	-34.3	-36.8
Purchase of Investments	-17.5	-34.0	0.5	31.6	-14.3
Other Investing Cash Flow	-	0.0	-13.5	1.0	-
Other Investing Cash Flow Items, Total	-201.1	-83.2	-30.6	-10.6	-5.2
Cash from Investing Activities	-1,869.4	-993.2	-713.0	-1,361.2	-1,302.7
Other Financing Cash Flow	0.9	-0.9	0.4	-2.9	0.7
Financing Cash Flow Items	0.9	-0.9	0.4	-2.9	0.7
Cash Dividends Paid - Common	-1,391.4	-989.9	-926.1	-960.7	-721.4
Total Cash Dividends Paid	-1,391.4	-989.9	-926.1	-960.7	-721.4
Short Term Debt, Net	-19.7	-42.8	-285.0	-199.5	296.7
Long Term Debt Issued	-	-	14.7	16.5	-
Long Term Debt Reduction	-	-	-4.9	-41.6	-
Long Term Debt, Net	-32.3	-45.2	9.8	-25.1	-1.0
Issuance (Retirement) of Debt, Net	-52.0	-87.9	-275.2	-224.6	295.7
Cash from Financing Activities	-1,442.6	-1,078.7	-1,200.9	-1,188.2	-425.1
Foreign Exchange Effects	19.7	39.2	1.8	-27.8	-11.9
Net Change in Cash	46.2	1,335.0	1,334.1	0.7	774.1
Net Cash - Beginning Balance	4,759.0	3,188.3	2,050.9	2,128.7	1,253.3
Net Cash - Ending Balance	4,805.1	4,523.3	3,385.1	2,129.4	2,027.5
Cash Taxes Paid	960.8	669.3	547.0	421.2	536.5

Annual Income Statement

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Jan-2012	31-Jan-2011	31-Jan-2010	31-Jan-2009	31-Jan-2008
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Jan-2012	Updated Normal 31-Jan-2011	Updated Normal 31-Jan-2010	Updated Normal 31-Jan-2009	Updated Normal 31-Jan-2008
Filed Currency	EUR	EUR	EUR	EUR	EUR
Exchange Rate (Period Average)	0.721468	0.759051	0.714938	0.688599	0.722989
Auditor	KPMG Auditores, SL	KPMG Peat Marwick LLP	KPMG LLP	KPMG LLP	KPMG LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified
Net Revenue	19,117.4	16,503.0	15,502.8	15,113.2	-
Sales - Own Shops	-	-	-	-	11,986.5
Sales - Franchised Shops	-	-	-	-	923.9
Other Op. Revenue	-	-	-	-	139.2
Total Revenue	19,117.4	16,503.0	15,502.8	15,113.2	13,049.5
Work in Progress	-86.5	-292.5	87.1	-69.2	-253.5
Purchases	7,865.4	7,017.5	6,564.5	6,593.6	5,905.0
Personnel Costs	3,096.7	2,647.3	2,506.0	2,473.4	2,037.2
Dep./Amortization	969.1	847.7	874.4	839.9	687.0
Other Op. Expense	3,721.8	3,218.2	3,022.7	1,417.8	1,242.2
Rental Expense	-	-	-	1,493.4	1,183.1
Other Expense	4.7	4.7	1.6	28.3	-36.7
Extra. Gain Disposal	50.6	42.5	28.9	-	-
Total Operating Expense	15,621.8	13,485.4	13,085.2	12,777.3	10,764.3
Financial Expenses	-14.1	-	-	-	-
Interest Income	41.9	27.7	11.7	37.9	28.5
Interest Expense	-5.1	-4.7	-13.2	-13.6	-6.4
Other Fin. Revenue	0.2	18.0	6.8	-	-
Foreign Exchange Net	28.4	-	-	-55.9	-18.7
Dividends	-	-	-	0.3	0.2
Equity Investment	-	-	-	0.0	-10.4
ST Investments	-	-	-	0.0	-2.2
Net Income Before Taxes	3,547.0	3,058.5	2,422.8	2,304.6	2,276.2
Provision for Income Taxes	850.3	764.5	573.5	472.4	536.5
Net Income After Taxes	2,696.6	2,294.0	1,849.3	1,832.1	1,739.7
Minority Interest	-18.4	-12.5	-10.9	-11.9	-10.4
Net Income Before Extra. Items	2,678.3	2,281.6	1,838.4	1,820.3	1,729.3
Net Income	2,678.3	2,281.6	1,838.4	1,820.3	1,729.3
Income Available to Com Excl ExtraOrd	2,678.3	2,281.6	1,838.4	1,820.3	1,729.3
Income Available to Com Incl ExtraOrd	2,678.3	2,281.6	1,838.4	1,820.3	1,729.3
Basic Weighted Average Shares	623.2	623.1	623.1	621.7	620.9
Basic EPS Excluding ExtraOrdinary Items	4.30	3.66	2.95	2.93	2.78
Basic EPS Including ExtraOrdinary Item	4.30	3.66	2.95	2.93	2.78
Diluted Net Income	2,678.3	2,281.6	1,838.4	1,820.3	1,729.3
Diluted Weighted Average Shares	623.2	623.1	623.1	621.7	620.9
Diluted EPS Excluding ExtraOrd Items	4.30	3.66	2.95	2.93	2.78
Diluted EPS Including ExtraOrd Items	4.30	3.66	2.95	2.93	2.78
DPS-Common Stock	1.97	1.71	1.36	1.25	1.19
Gross Dividends - Common Stock	1,555.2	1,313.9	1,046.2	950.5	901.8
Normalized Income Before Taxes	3,597.6	3,101.0	2,451.8	2,304.6	2,276.2
Inc Tax Ex Impact of Sp Items	862.5	775.1	580.4	472.4	536.5
Normalized Income After Taxes	2,735.1	2,325.9	1,871.4	1,832.1	1,739.7
Normalized Inc. Avail to Com.	2,716.7	2,313.4	1,860.5	1,820.3	1,729.3
Basic Normalized EPS	4.36	3.71	2.99	2.93	2.78
Diluted Normalized EPS	4.36	3.71	2.99	2.93	2.78
Interest Expense	5.1	4.7	13.2	13.6	6.4
Amort of Intangibles	132.2	68.1	68.6	66.9	52.2
Depreciation	814.6	752.5	765.2	702.9	627.9
Rental Expense	1,938.7	1,675.9	1,586.2	1,493.4	1,183.1
Current Tax	997.9	775.1	664.0	306.4	563.7
Current Tax - Total	997.9	775.1	664.0	306.4	563.7
Deferred Tax	-147.6	-10.6	-90.5	166.0	-27.2
Deferred Tax - Total	-147.6	-10.6	-90.5	166.0	-27.2
Income Tax - Total	850.3	764.5	573.5	472.4	536.5

Annual Balance Sheet

Financials in: USD (mil)

	31-Jan-2012	31-Jan-2011	31-Jan-2010	31-Jan-2009	31-Jan-2008
UpdateType/Date	Updated Normal 31-Jan-2012	Updated Normal 31-Jan-2011	Updated Normal 31-Jan-2010	Updated Normal 31-Jan-2009	Updated Normal 31-Jan-2008
Filed Currency	EUR	EUR	EUR	EUR	EUR
Exchange Rate	0.762416	0.729395	0.71945	0.76147	0.675402
Auditor	KPMG Auditores, SL	KPMG Peat Marwick LLP	KPMG LLP	KPMG LLP	KPMG LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified
Raw Materials	55.9	58.5	40.3	59.9	68.7
WIP	33.8	35.3	28.6	23.2	35.3
Finished Goods	1,585.2	1,571.4	1,310.7	1,302.2	1,387.3
Trade Receivables	139.0	123.2	156.8	768.7	297.0
Public Administration	-	-	-	-	279.2
Other Receivables	557.5	537.4	429.5	-	110.4
Tax Receivable	22.6	23.2	21.8	20.1	2.5
Inv. Securities	66.5	0.1	-	-	-
Cash and Equivalents	2,948.3	4,707.3	3,363.8	1,925.6	2,170.3
Cash	1,598.8	-	-	-	-
Other Current Assets	124.0	76.2	130.2	186.8	63.8
Total Current Assets	7,131.7	7,132.6	5,481.7	4,286.5	4,414.5
Rights to Leased Premises	-	-	-	698.0	-
Other Intangibles	-	-	-	21.6	-
Intangible Asset, Gross	1,420.7	1,294.9	1,213.5	-	-
Rights	-	-	-	-	1,098.7
Industry Property	-	-	-	-	34.1
Software	-	-	-	-	14.3
Advances	-	-	-	-	5.7
Accum. Amort.	-606.8	-527.0	-471.3	-	-385.2
Provisions	-8.4	-5.9	-0.9	-	-0.6
Land/Structures	1,809.2	1,559.9	1,364.0	1,163.9	1,246.8
Install./Machine	7,598.9	7,121.0	6,598.7	5,776.6	5,645.3
Other Tangibles	384.1	359.2	313.2	266.6	257.3
Advances	568.3	173.8	170.1	343.2	332.3
Depreciation	-4,880.9	-4,446.0	-3,793.1	-2,991.6	-2,739.4
Provisions	-150.4	-110.4	-75.0	-38.1	-30.8
Holdings Companies	-	-	-	-	0.0
Inv. Securities	12.5	12.2	21.4	18.9	53.6
Real Estate Investments	26.0	23.8	18.4	11.1	14.0
Other	316.0	292.6	236.7	216.3	177.2
Goodwill Consol.	286.1	180.5	183.0	172.9	185.9
Deferred Tax	467.4	410.4	325.5	266.7	196.9
Total Assets	14,374.3	13,471.6	11,585.8	10,212.7	10,520.6
Payable/Loans	0.6	0.4	44.6	13.6	47.0
Credits	-	-	-	289.5	493.8
Leasings	0.3	3.3	4.2	4.2	8.9
Other Financial Liabilities	30.0	53.8	-	-	0.0
Trade Acc. Pybl.	2,410.9	2,586.6	2,165.2	2,023.4	2,336.3
Non-Trade Pybl.	601.5	531.0	571.8	699.1	588.3
Accrual Accounts	234.1	199.6	186.1	-	-
Tax Payable	267.7	292.5	231.9	109.9	165.1
Total Current Liabilities	3,545.0	3,667.3	3,203.8	3,139.8	3,639.4
Payable/Credits	1.0	4.5	4.0	8.2	49.8
Leasings	1.0	1.2	3.0	9.2	12.9
Total Long Term Debt	2.0	5.7	6.9	17.4	62.7
Minority Int.	53.5	50.7	57.5	35.3	35.4
Deferred Tax	239.4	236.7	240.3	280.8	164.3
Conting. Prov.	193.2	214.7	176.6	133.7	70.6
Other Liability	615.7	541.0	493.4	404.9	339.8
Total Liabilities	4,648.9	4,716.1	4,178.6	4,011.9	4,312.2
Capital	122.6	128.2	130.0	122.8	138.4
Additional Cap.	26.7	27.9	28.3	26.8	30.2
Other Reserves	71.5	74.7	75.7	71.6	80.7
Own Shares	0.0	-0.8	-0.9	-0.8	-10.3
Translate Diff.	-27.1	-93.0	-190.6	-222.6	-141.2
Retained Earnings	9,519.9	8,644.6	7,351.3	6,130.3	6,110.5
Cash Flow	11.7	-26.1	13.3	72.7	-
Total Equity	9,725.4	8,755.5	7,407.3	6,200.8	6,208.4
Total Liabilities & Shareholders' Equity	14,374.3	13,471.6	11,585.8	10,212.7	10,520.6
S/O-Common Stock	623.3	623.1	623.1	623.1	621.0
Total Common Shares Outstanding	623.3	623.1	623.1	623.1	621.0
T/S-Common Stock	0.0	0.2	0.2	0.2	2.4
Accumulated Intangible Amortization	615.2	532.9	472.2	390.5	385.2
Full-Time Employees	109,512	100,138	92,301	89,112	79,517
LT Debt Maturing Within 1 Year	0.6	0.4	44.6	307.3	47.0
LT Debt Maturing Within 5 Years	1.0	4.5	4.0	17.4	49.8
LT Debt Remaining	-	-	-	-	0.0
Total Long Term Debt, Supplemental	1.6	4.9	48.5	324.7	96.9
Capital Leases Maturing Within 1 Y	0.3	3.3	4.2	4.2	8.9
Capital Leases Maturing Within 5 Y	1.0	1.2	3.0	9.2	12.9
Capital Leases Remaning	-	0.0	0.0	0.0	0.0
Total Capital Leases	1.4	4.5	7.2	13.4	21.8
Operating Leases Maturing Within 1 Y	1,120.5	1,115.4	1,054.4	783.6	789.8
Operating Leases Maturing Within 5 Y	1,690.6	1,675.7	1,941.5	1,353.4	1,627.8
Operating Leases Remaning	891.1	907.3	1,242.4	820.8	1,183.4
Total Operating Leases	3,702.2	3,698.4	4,238.3	2,957.8	3,601.1

Annual Cash Flows

Financials in: USD (mil)

	31-Jan-2012	31-Jan-2011	31-Jan-2010	31-Jan-2009	31-Jan-2008
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Jan-2012	Updated Normal 31-Jan-2011	Updated Normal 31-Jan-2010	Reclassified Normal 31-Jan-2010	Updated Normal 31-Jan-2008
Filed Currency	EUR	EUR	EUR	EUR	EUR
Exchange Rate (Period Average)	0.721468	0.759051	0.714938	0.688599	0.722989
Auditor	KPMG Auditores, SL	KPMG Peat Marwick LLP	KPMG LLP	KPMG LLP	KPMG LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified
Net Income	3,547.0	3,058.5	2,422.8	2,304.6	2,276.2
Depreciation	960.0	838.3	873.8	826.8	687.0
Net Provisions	57.1	80.6	74.3	32.9	-
Deferred Tax	-	-	-	-	-53.2
Exchange Variations	-40.5	-39.1	42.9	-16.1	2.5
Other	58.8	77.2	14.1	-20.4	54.4
Inventories	-78.5	-299.2	67.8	-104.7	-273.2
Accounts Rcvbl.	-111.0	-157.7	227.6	-232.0	-121.2
Payables	-93.4	478.2	69.9	208.1	477.7
Taxes Paid	-960.8	-669.3	-547.0	-421.2	-536.5
Cash from Operating Activities	3,338.6	3,367.6	3,246.2	2,578.0	2,513.8
Intangibles Invest.	-168.8	-97.7	-37.6	-113.4	-121.7
Tangibles Invest.	-1,499.5	-812.3	-644.8	-1,237.3	-1,175.8
Acq.-Business	-146.5	-	0.0	-8.9	-9.9
Add. Investments	-17.5	-34.0	0.5	31.6	-14.3
Other Asset Invest.	-37.1	-49.1	-17.6	-34.3	-36.8
Other Investing Activities	-	0.0	-13.5	1.0	-
Fixed Asset Sales	-	-	-	-	13.2
Sale of Business	-	-	-	-	42.5
Cash from Investing Activities	-1,869.4	-993.2	-713.0	-1,361.2	-1,302.7
Increase Debt	-	-	14.7	16.5	-
Decrease Debt	-	-	-4.9	-41.6	-
Financial Debt	-32.2	-1.1	-	-	-22.8
Net Other Debt	-0.1	-44.1	-	-	21.8
Net Current Debt	-19.7	-42.8	-285.0	-199.5	296.7
Dividends	-1,391.4	-989.9	-926.1	-960.7	-721.4
Other Financing	0.9	-0.9	0.4	-2.9	0.7
Cash from Financing Activities	-1,442.6	-1,078.7	-1,200.9	-1,188.2	-425.1
Foreign Exchange Effects	19.7	39.2	1.8	-27.8	-11.9
Net Change in Cash	46.2	1,335.0	1,334.1	0.7	774.1
Net Cash - Beginning Balance	4,759.0	3,188.3	2,050.9	2,128.7	1,253.3
Net Cash - Ending Balance	4,805.1	4,523.3	3,385.1	2,129.4	2,027.5
Cash Taxes Paid	960.8	669.3	547.0	421.2	536.5

Financial Health

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

Key Indicators USD (mil)
Â	Quarter Ending 31-Jul-2012	Quarter Ending Yr Ago	Annual Year End 31-Jan-2012	1 Year Growth	3 Year Growth	5 Year Growth
Total Revenue1	9,313.6	16.60%	19,117.4	10.11%	9.84%	10.97%
Operating Income1	1,592.7	35.45%	3,495.7	10.11%	16.17%	13.21%
Income Available to Common Excl Extraord Items1	1,213.9	31.65%	2,678.3	11.57%	15.52%	14.05%
Basic EPS Excl Extraord Items1	1.95	31.60%	4.30	11.55%	15.43%	13.96%
Capital Expenditures2	952.3	-	1,668.4	74.26%	8.98%	6.89%
Cash from Operating Activities2	1,679.4	-	3,338.6	-5.77%	10.71%	11.51%
Free Cash Flow	692.8	-	1,580.5	-35.41%	12.55%	17.65%
Total Assets3	14,681.8	17.00%	14,374.3	11.53%	12.11%	13.80%
Total Liabilities3	5,743.0	13.94%	4,648.9	3.04%	5.08%	9.09%
Total Long Term Debt3	1.9	-61.90%	2.0	-62.99%	-51.14%	-49.57%
Employees3	-	-	109512	9.36%	7.11%	9.60%
Total Common Shares Outstanding3	623.3	0.04%	623.3	0.04%	0.01%	0.08%
1-ExchangeRate: EUR to USD Average for Period	0.777294	Â	0.721468	Â	Â	Â
2-ExchangeRate: EUR to USD Average for Period	0.777294	Â	0.721468	Â	Â	Â
3-ExchangeRate: EUR to USD Period End Date	0.815705	Â	0.762416	Â	Â	Â

Key Ratios
Â	31-Jan-2012	31-Jan-2011	31-Jan-2010	31-Jan-2009	31-Jan-2008
Profitability
Gross Margin	59.31%	59.25%	57.09%	56.83%	56.23%
Operating Margin	18.29%	18.28%	15.59%	15.46%	17.51%
Pretax Margin	18.55%	18.53%	15.63%	15.25%	17.44%
Net Profit Margin	14.01%	13.83%	11.86%	12.04%	13.25%
Financial Strength
Current Ratio	2.01	1.94	1.71	1.37	1.21
Long Term Debt/Equity	0.00	0.00	0.00	0.00	0.01
Total Debt/Equity	0.00	0.00	0.01	0.05	0.10
Management Effectiveness
Return on Assets	18.72%	19.18%	16.41%	16.95%	19.58%
Return on Equity	28.00%	29.57%	26.15%	28.12%	32.72%
Efficiency
Receivables Turnover	26.34	26.76	21.35	19.52	22.20
Inventory Turnover	4.50	4.63	4.65	4.36	4.46
Asset Turnover	1.33	1.38	1.38	1.40	1.47

Market Valuation USD (mil)
P/E (TTM)	28.09	.	Enterprise Value2	69,984.2
Price/Sales (TTM)	4.09	.	Enterprise Value/Revenue (TTM)	3.85
Price/Book (MRQ)	8.32	.	Enterprise Value/EBITDA (TTM)	15.86
Market Cap as of 12-Oct-20121	78,468.1	.
1-ExchangeRate: EUR to USD on 12-Oct-2012	0.772847
2-ExchangeRate: EUR to USD on 31-Jul-2012	0.815705

annual Ratios

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Jan-2012	31-Jan-2011	31-Jan-2010	31-Jan-2009	31-Jan-2008
Financial Strength
Current Ratio	2.01	1.94	1.71	1.37	1.21
Quick/Acid Test Ratio	1.50	1.47	1.24	0.86	0.79
Working Capital1	3,586.6	3,465.3	2,277.9	1,146.7	775.1
Long Term Debt/Equity	0.00	0.00	0.00	0.00	0.01
Total Debt/Equity	0.00	0.00	0.01	0.05	0.10
Long Term Debt/Total Capital	0.00	0.00	0.00	0.00	0.01
Total Debt/Total Capital	0.00	0.00	0.01	0.05	0.09
Payout Ratio	45.87%	46.63%	46.08%	42.71%	42.76%
Effective Tax Rate	23.97%	25.00%	23.67%	20.50%	23.57%
Total Capital1	9,728.3	8,764.9	7,462.9	6,525.5	6,820.8
Efficiency
Asset Turnover	1.33	1.38	1.38	1.40	1.47
Inventory Turnover	4.50	4.63	4.65	4.36	4.46
Days In Inventory	81.02	78.91	78.57	83.76	81.79
Receivables Turnover	26.34	26.76	21.35	19.52	22.20
Days Receivables Outstanding	13.85	13.64	17.09	18.70	16.44
Revenue/Employee2	165,193	171,503	166,905	153,368	175,673
Operating Income/Employee2	30,206	31,359	26,028	23,705	30,763
EBITDA/Employee2	38,388	39,887	35,004	31,517	39,919
Profitability
Gross Margin	59.31%	59.25%	57.09%	56.83%	56.23%
Operating Margin	18.29%	18.28%	15.59%	15.46%	17.51%
EBITDA Margin	23.24%	23.26%	20.97%	20.55%	22.72%
EBIT Margin	18.29%	18.28%	15.59%	15.46%	17.51%
Pretax Margin	18.55%	18.53%	15.63%	15.25%	17.44%
Net Profit Margin	14.01%	13.83%	11.86%	12.04%	13.25%
COGS/Revenue	40.69%	40.75%	42.91%	43.17%	43.31%
SG&A Expense/Revenue	16.20%	16.04%	16.16%	26.25%	24.68%
Management Effectiveness
Return on Assets	18.72%	19.18%	16.41%	16.95%	19.58%
Return on Equity	28.00%	29.57%	26.15%	28.12%	32.72%
Valuation
Free Cash Flow/Share2	2.54	4.10	4.09	1.78	2.10
Operating Cash Flow/Share 2	5.07	5.62	5.18	3.74	4.33
1-ExchangeRate: EUR to USD Period End Date	0.762416	0.729395	0.71945	0.76147	0.675402
2-ExchangeRate: EUR to USD Average for Period	0.762416	0.729395	0.71945	0.76147	0.675402

Current Market Multiples
Market Cap/Earnings (TTM)	28.09
Market Cap/Equity (MRQ)	8.32
Market Cap/Revenue (TTM)	4.09
Market Cap/EBIT (TTM)	21.31
Market Cap/EBITDA (TTM)	16.85
Enterprise Value/Earnings (TTM)	26.44
Enterprise Value/Equity (MRQ)	7.83
Enterprise Value/Revenue (TTM)	3.85
Enterprise Value/EBIT (TTM)	20.06
Enterprise Value/EBITDA (TTM)	15.86

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.59
UK Pound	1	Rs.85.81
Euro	1	Rs.69.91

INFORMATION DETAILS

Report Prepared by :

SDA

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.