Professional Documents
Culture Documents
Report
2004
01_0
Letter from the Chairman
05_0
14
26
08_0
Society
08_1
08_2
08_3
08_4
08_5
08_6
10_0
44
Economy
10_1
10_2
10_3
10_4
10_5
10_6
10_7
80
Basic amounts
International expansion
Segmented information
Inditex format by format
Corporate cash flow
Indicators of economic performance
Further indicators
10
14
Suppliers
11_0
09_0
07_0
04_0
Shareholders
06_0
Employees
03_0
Business profile
20
02_0
Perspective and strategy
Customers
Environment
36
09_1
09_2
09_3
09_4
09_5
66
Good Governance
96
12_0
Annexes
102
Dear shareholders,
Over recent years, many businesses worldwide
have considered the need to take on the
demands of their surroundings in terms of
social and environmental responsibility. This
approach has become an important strategy
insofar as the business world has understood
firstly, the opportunity cost due to not meeting a
growing social demand for transparency and
secondly, its agreement with the general
interests of companies.
This does not mean that the vast majority of
companies, Inditex included, have not always
been concerned about the impact that their
activities have had on society, over and above
their legitimate economic interests. This
concern has been reflected in their human
resources policies, in their dealings with
business partners, suppliers, organisations and
social institutions, and even in their conception
of customer relationships. This said Corporate
Responsability policies have often taken second
place to fulfilling business development targets
and, ultimately, creating value for shareholders.
Early on, corporate responsibility was limited to
a philanthropic expression, generally related to
the principles of the companys main
9 Good
6
y
ciet
So
Ec
on o
my
S up
pliers
mployees
4E
on
7 Envir ment
ss profile
sine
Bu
ustomers
3C
2
Shareholders
Gov
ern
an
c
ou
ri
nt
er
es
tg
rou
ps
trip
le
i on
ns
e
dim
Our commitments_
_with our
shareholders,
for transparency and good governance
_with our
costumers,
with their needs and espectations
_with our
employees,
_to
society,
the enviroment,
suppliers,
_with the
_with our
Activities 2004_
10
Oysho 1.3 %
Stradivarius 4.3 %
e
nc
rn
a
Go
S
f il e
|6
pro
rs
od
e
1 Business
i
l
Go
up p
S
9
5
y|
4 Employees |
om
con
E
l8
7 Environment
ve
S
|2
oc
ie t
ar
eh
old
ers
|
3 Cu
s to m e r s
Net profit*
No. of stores
No. of countries
International sales
Employees
2004
04/03
2003
2002
2001
5,670
23%
4,599
3,974
3,250
2,615
21%
628
41%
447
438
340
259
25%
2,244
322
1,922
1,558
1,284
1,080
56
48
44
39
33
55%
54%
54%
54%
52%
47,046
39,760
32,535
26,724
24,004
Zara 67.4 %
Sales by chain
Millions of euros
Format
Zara
Kiddys Class
Pull and Bear
Massimo Dutti
Bershka
Stradivarius
Oysho
Zara Home
weighting
(%)
2004
2003
04/03
2004
2003
3,819.6
120.6
378.9
481.3
516.0
241.9
71.7
40.4
3,219.6
89.7
287.9
388.9
395.0
162.0
45.1
10.6
19%
35%
32%
24%
31%
49%
59%
279%
67.4%
2.1%
6.7%
8.5%
9.1%
4.3%
1.3%
0.7%
70.0%
1.9%
6.3%
8.5%
8.6%
3.5%
1.0%
0.2%
23%
100%
100%
5,670.4
4,598.9
Zara
65.8
34.2
Kiddy's Class
12.8
87.2
30.2
69.8
Massimo Dutti
41.9
58.1
Bershka
35.7
64.3
Stradivarius
15.4
84.6
Oysho
31.5
68.5
Zara Home
12.7
87.3
Internacional
Sales by format
Sales total
12
2004
Main indicators
Turnover*
Nacional
6.7%
Rest world
10.5%
America
45.5
2004
37.3
Spain
Rest Europe
Arteixo A Corua
Inditex head office
Zara, Zara Home and Kiddys
Class head office
Zara and Kiddys Class logistics
centre
Production centres
Narn A Corua
Pull and Bear head office
Pull and Bear logistics centre
Indipunt (knitwear)
Zaragoza
Zara logistics centre
Elche - Alicante
Tempe head office
Tempe logistics centre (footwear)
04_0 Shareholders
04_1 Our shareholders
04_2 Communication channels
04_3 Share propers
14
ofile
4 Employees |
7 Environment
5 Su
l8
pp
s
lier
no
Eco
my
|9
nc
e
rn
a
oc
ie t
|6
ve
ar
Go
pr
Business
h
2S
eh
old
e
rs |
3 Cu
stomers
od
Go
Shareholders office
Any private investor is free to visit the Shareholders office to
obtain detailed information about the development of business
and future strategies. Through this channel, the 84,000
individual shareholders may issue any request for information
they consider relevant concerning the growth of INDITEX.
The Shareholders Office is particular relevant when calling and
holding the General Shareholders Meeting, traditionally held in
mid-July at Inditex head office in Arteixo (A Corua). Precise
information and documentation is sent to provide shareholders
with sufficient details on the meeting and the contents to be
discussed, as well as facilitating their participation in the
decision-making process of the main governing body.
www.inditex.com
The corporate website has been adapted to the Transparency Guidelines
>>
Shareholder breakdown
Shareholders
3,713
Individuals
Institutions
Board of Directors
Total
Shares
46,717,257
203,114,730
373,498,413
623,330,400
Individuals shareholders
7.50 %
Institutionals shareholders
32.60%
Individuals
>>
88,484 Shareholders
Website
The corporate website includes all of the
relevant information necessary for
Shareholders and Investors, and is aimed
at being a method of communication with
shareholders, offering them up to date
information on all of the significant aspects
of their interest.
The new Regulations of the Board of
Directors includes an expressed regulation
on the corporate website, detailing the
minimum documentation and information it
must contain. Also in FY2004, the
corporate website was adapted to comply
with the requirements on structure and
information detailed in Spanish Law
26/2003 dated 27 July (Law on
Transparency) and in Bulletin 1/2004
dated17 March from the Spanish National
Stock Market Commission.
84,771
59.90 %
Institutions
Board of Directors
16
www.zara.com
www.pullandbear.com
www.massimodutti.com
www.bershka.com
www.e-stradivarius.com
www.oysho.com
www.zarahome.com
< More than 3,700 institutional shareholders, owning 32.6% of the capital, play
a key role in setting share prices and their
liquidity.
15.66
31 January 2005
38.7%
21.72
31 January 2004
Variation 04/03
14.70
21.72
23 May 2001
31 January 2005
47.7%
Variation since initial value
140
INDITEX
120
IBEX 35
Index 100*
80
60
31/01/04
02/04
03/04
04/04
05/04
06/04
07/04
08/04
09/04
10/04
11/04
12/04
31/01/05
18
05_0 Customers
05_1 Our commitment
05_2 Customer relations model
20
nc
Go
2
So
e|
|6
rofil
P
s
s
r
s
od
1 Busine
lie
Go
up p
S
9
5
y|
4 Employees |
om
co n
E
l8
7 Environment
rn
a
ar
ve
Sh
ci
et
ho
ld
er
s|
3C
u sto
me r s
Actions 2004
We have
eliminated
Action guidelines
Inditex has adopted a full commitment in all of the areas of customers service. A
commitment based on two main principles that guide our activities.
Flexibility
We adapt to our customers
expectations
Fashion, despite being a global cultural
expression, has an essential component of
individual choice. Inditex proposes a wide
range of options, so that it is the customer
who makes their own decision, according
to their tastes and desires.
We continue
working on the
Oeko-tex
certification
We show
concern
We are
responsible
Personal customer
service
for our
customers
We launch
Customer
Service
Personal
Tailoring, a
Minimums
Campaign
new personalized
fitting service
We listen to
our customers
and create
new products
and services
22
We continue to make
advances in the certification
programme using the Oekotex Standard 100
Certification. In this period
we have achieved 24% of
certified product for
garments for 0 to 16 years
of age, guaranteeing the
absence of harmful
substances throughout all of
the production process.
We keep
improving to
offer you the
very best
service
Sustainability Report INDITEX CUSTOMERS 23
Customer satisfaction
we listen
The different chains that belong to the
Inditex group have a range of channels
open to the public to deal with any request
for information, suggestions or complaints
they may have. Apart from the
personalized service offered in our stores,
the group has a series of suggestion forms
available for the public. There are also
telephone helplines and e-mail services,
available via the websites of each chain.
Freedom to choose
The store is a dynamic, ever-changing environment.
Customers visiting any of our stores who are interested
in the fashion items we offer enjoy absolute freedom in
their contact with the product.
2004
845,638
Z 8,063,628
PB 594,457
PB 415,025
MD 430,357
BSK 543,26
STR 264,917
OYS 119,402
Z H 79,333
8%
32.24%
MD 676,084
BSK 794,779
STR 408,820
OYS 1 69,719
Z H 209,755
60%
38.43%
Others
12%
20%
17.45%
Customer attention
1st option
24
+
+
+
+
closer
quality
services
solutions
14000
12000
12000
10000
10000
8000
8000
6000
2nd option
16000
14000
Product/design
11.88%
16000
Z 5,612,396
TOTAL 12,015,327
I 1,002,677
Personalized service
we focus on solutions
www.inditex.com
www.zara.com
www.pullandbear.com
www.massimodutti.com
www.bershka.com
www.e-stradivarius.com
www.oysho.com
www.zarahome.com
6000
4000
4000
2000
2000
0
15,678
BSK
Z 11,350
BSK
10,539
Z 11,350
10,539
MD
6,294
MD
6,294
PB
1,947
PB
1,947
OYS ZH
1,435 1,405
OYS ZH
1,435 1,405
STR
8000
6,57
STR
6000
MD
6,294
6,57
0
I Inditex | Z Zara | PB Pull and Bear | MD Massimo Dutti
BSK Bershka | STR Stradivarius | OYS Oysho | ZH Zara Home
I Inditex | Z Zara | PB Pull and Bear | MD Massimo Dutti
BSK Bershka | STR Stradivarius | OYS Oysho | ZH Zara Home
06_0 Employees
26
organisation which we fulfil through targets and dayto-day tasks. Our corporate values and our way of
handling people are decisive factors in developing
the organisation and ensuring that it goes from
strength to strength.
us t o
m e rs
rofil
4 E m p l o y e es |
7 Environment
5 Su
pp
s
li e r
o
con
l8E
|
my
re
ci
et
ha
So
9G
od
ve
rn
a
p
Business
S
|2
nc
e
ho
ld
er
s|
3C
go
47,046 employees
Logstics: 5%
Central Services: 3%
Manufacturing: 4%
Kiddys Class 3%
Stradivarius 5%
30000
Total employees per activity
20000
Massimo Dutti 6%
Bershka 10%
10000
Logistics 5%
Central services 3%
2004
Zara 68%
who
we are
who we are
Young people: Average age:
83.5 % females / 16.5% males
what
we do
20,000
18,000
16,000
14,000
10,000
8,000
6,000
4,000
2,000
0
16
25
year 2002
35
45
55
year 2003
65
year 2004
total
stores
2002
logstics
2003
2004
factories
88 % commercial activity
in 30 countries
where
26 years old
2001
47,046 employees
young people
12,000
26,719
Spain
3,474
Portugal
3,017
France
1,890
Mexico
1,752
United Kingdom
1,332
Germany
1,326
Grecia
1055
Italy
690
Belgium
640
Venezuela
575
Turkey
499
Brazil
449
United States
436
Canada
433
Japan
370
Chile
386
Holland
340
Ireland
316
Argentina
291
Switzerland
235
Austria
139
Sweden
133
Denmark
112
Uruguay
99
Hungary
107
Czech Republic
73
Luxembourg
69
China & Hong Kong
59
Puerto Rico
30
Norway
21,933
3,265
2,523
1,723
1,449
1,165
1,239
745
629
617
532
470
357
341
314
367
238
65
313
190
179
101
121
110
55
70
9
47
12
21.82
6.40
19.58
9.69
20.91
14.33
7.02
41.61
9.70
3.73
8.08
6.17
25.77
27.86
37.90
0.82
62.18
423.08
0.96
53.16
31.28
37.62
9.92
1.82
47,046
39,179
20,08
Total
28
2000
Stores 88%
31/1/05
Factories 4%
94.55
4.29
666.67
25.53
150.00
we are
In 30 of the 56 countries
legal environment
attract
link
selectin
hiring
promote
professional
growth
+ motivate
training
development
internal promotion
internal communication
compensation
risk prevention
occupational health
acknowledgement
fringe benefits
social environment
we create a
great team
225.000
new candidates
flexible
job offers
we have
we create
multinational
management teams
we take on
young
professionals
with strong
managerial
potential
attract
hiring
hiring
link
we give
priority to our
employees
we emply
local
professionals
promote
stable
employment
we
70%
of employees
have a long-term
contract
recruitment
recruitment
30
internal
communication
internal
communication
we inform
on a
continuous
basis
training
training
development
development
focus
on customer
service
we identify
employees with
potential
27 countries
all
we provide
ongoing training
210.000
are trained
we combine different
learning
methods
in stores
we adapt
compensation to the
bussines
personal
contact
model
promotion
promotion
32
we encourage
we incorporate
interactive
communication systems
hazards
and
safety
hazards
and safety
to different
employee groups and
countries
we guarantee a
safe
environment
motivate
we launch
we adapt
financial reward
participation and
awareness
campaings
compensation
compensation
compensation
we reduce
absenteeism and
accidents
we promote
health
campaigns
health
healthan
and safety
safety
Sustainability Report INDITEX EMPLOYEES 33
protecting
candidate
data
hazards
safety
legislation
and
legal environment
attract
social
dialogue
freedom of
association
link
social contribution
we provide
local
employements
34
we build up
relationships
with
educational
centres
students
with their
first professional
experiencie
through
trainee
programmes
institutional
and
international
relationships
07_0 Suppliers
36
4 Employees |
7 Environment
5S
l8E
ie
p pl
rs
om
co n
|6
y|
e
nc
iet
rn
a
ve
e
rofil
Go
1 Business p
Sh
e
ar
So
c
ho
ld
er
s|
3C
us t o
m er s
od
Go
North Africa 3%
Morocco, Tunisia
Latin America 3%
Mexico, Peru, Venezuela,
Brazil, Argentina
Asia 23%
China, India, Bangladesh,
Thailand, Cambodia, Vietnam,
Pakistan, Indonesia, Sri lanka,
South Korea
38
<<
Production chain
strengthening programmes
Scope
1,250
Self-assessment
International legislation
40
2,662
National legislation:
In March 2003, this association created the
Business Social Compliance Initiative (or BSCI)
involving diverse business association and an
extensive network of retailers, distributors,
importers and producers of mainly clothing,
accessories, footwear and toys.
2003
<
2004
We subscribe to the
BSCI (Business Social)
Compliance and
methodology
Based in Brussels, the Foreign Trade
Association was created in 2002 with the aim of
firstly creating a pan-European organization
charged with developing a Code of Conduct for
External Manufacturers and Workshops
according to the SA 8000 methodology and
secondly with designing systems for verifying
their level of implantation in factories and
workshops by external and independent
auditors.
Workshopsnumber
Analysis
2
1
Good
Needs to improve
Critical
The audit did not discover any failure to comply with the standards of the BSCI
The audit discovered failure to comply with less than 50%
of the areas considered as non-essential
The audit discovered failure to comply with the majority
of the areas considered as essential
Number of workshops
2002-2004
Rejected 2005
Operating May 2005
Second audit programmed
(With corrective action plan)
Start of RSC programme
Certified Auditors (SAI)
Non-certified Auditors
European Union
Non-EU
North Africa
1,761
-901
860
214
189
-89
100
12
148
-81
67
22
2002
INTERTEK
PWC
KPMG
2002
INTERTEK
2002
INTERTEK
Asia
Latin America
487
-239
248
87
77
-34
43
9
2003
INTERTEK
Totales
2,662
-1,344
1,318
344
2004
INTERTEK
IPEDEHP
Peru
Scope
Context
Involving
IPDEHP
Antonio Ruiz de Montoya University
Local Peruvian businessmen
Creation of
internal social
capital
Stage 1. 2004-2005
Presentation to the factory directors of Inditexs RSC strategy, the BSCI initiative, the Code of
Conduct for External Manufacturers and Workshops, and the programme for creating social capital.
Stage 2. 2004-2005
Questionnaire to evaluate the internal social capital present in the factories. Identifying and capacitating
male and female employees potential social leaders who are trusted and relied on by their workmates.
Results:
_Identification of the factories internal social capital index
_Selecting social leaders capable of channelling internal demands with regard to Human Rights,
and connecting the situation of the factories with the main social organizations of the
communities where they live.
Stage 1. 2004-2005
Questionnaire on the human needs of the employees of the factories and their families.
Identifying the vulnerability factors that have a negative effect on the Human Development of the
employees and their families, giving priority to those having the greatest effect at social and employment level.
Creation of
external social
capital
Stage 2. 2004-2005
Geographical location of vulnerability factors. The following communities were identified San Juan de
Lurigancho, ATE-Vitarte and San Martn de Porras and the vulnerability factors, in order to be able to offer
an effective and efficient response to their needs.
Stage 3. 2005-2006
Identification and strengthening of social institutions capable of organizing programmes of social investment
in order to respond to the vulnerability factors.
Results:
_Identifying the external social capital index of the social organization.
_List of organizations and leaders sufficiently capacitated to deal with the Human Rights demands
of the employees and their families in the communities where they live.
Morocco
<
Scope
Context
Involving
Creation of
internal social
capital
Stage 1. 2002-2005
Presentation to the factory directors of Inditexs RSC strategy, the BSCI initiative, the Code of Conduct
for external manufacturers and workshops, and the action programme.
Stage 2. 2005-2006
Questionnaire to evaluate the internal social capital of the factories. Identifying and capacitating women
potential health promoters trusted by their co-workers. Results:
_Identification of the factories internal social capital index
_Having health promoters on hand capacitated to:
_Develop a health programme for women inside the factories
_Implant health awareness programmes in the communities
_Collaborate with the main social organizations in the community
Stage 1. 2002-2004
Creation of
external social
capital
Questionnaire on the human needs of the employees and their families. Identifying the vulnerability
factors that have a negative effect on the Human Development of the employees and their families,
giving priority to those of greater social-labour importance.
Stage 2. 2002-2004
Geographical location of the vulnerability factors. The following communities in Tangier were identified:
Ain Hayani, Mesnada, Mouatina and Ben Kirane, and the vulnerability factors were identified,
in order to give an efficient and effective response to their needs.
Stage 3. 2005-2006
42
Results:
_Identifying the external social capital index of the social organizations identified.
_Community associations are strengthened to respond to the demands for health
and services from the communities of the employees and their families.
08_0 Society
08_1
08_2
08_3
08_4
08_5
08_6
44
m er s
rofil
4 Employees |
7 Environment
p
5 Su
8 Ec
y
no m
rn
a
G
|9
ve
|6
nc
e
ty
oc
re
rs
plie
o
ha
Go
1 Business P
S
|2
ie
ho
ld
er
s|
3C
ust o
promote culture
d
oo
education as a driving
social change to build a
respect and
equality
We believe in
force for
shared world based on
dialogue
transparency
We believe in
and
08_1 Our
Social Commitment
We believe in the active For this reason we have concentrated all of our
social investment strategy in non-government
organizations (NGOs) capable of developing
network cooperation, such as Fe y Alegria and
programmes the Carolina Foundation in Latin America, and
Critas and the Red Cross in Spain.
participation of
companies in
cooperation
We believe in the
and
life
right to
safety
participation
46
Visitors
Programmes
Grants
Latin America
education
as a priority for
development
Hispanic
culture
In terms of education,
it is important to note that:
education
as a driving force for
social change
www.feyalegria.org
www.entreculturas.org
Entreculturas
Fe y Alegra
provision by Inditex
2,301,880
www.fundacioncarolina.org
Fundacin Carolina
provision by Inditex
180,212
business model
Inditex
Fe y Alegra
popular education network
48
Project evolution
and investments
Inditexshares
the Objectives
ofDakar
www.unesco.org
Argentina
Brazil
Peru
Venezuela
Central America
Peru
Venezuela
1,386,204
2002
2003
2,139,363
Argentina
Brazil
Peru
Venezuela
2004
2,301,880
_ Female educators network in the Home Nursery Network (Natal, Rio Grande do
Norte, Brazil).
1
To ensure that all children,
particularly the most disadvantaged,
have access to free, compulsory
and high quality primary
education by 2015
_ Full time accompaniment for 200 children between 6 and 12 from marginal areas
(Formosa, Argentina).
_ Extension of the educational offer for 120 children in marginal areas (Resistencia,
Argentina).
_ Financing the AVA TAVA Social Promotion Centre: Programme fighting sexual abuse
and violence against children (San Miguel, Argentina).
_ Improving educational conditions for 1,200 children from the district of Nossa Seora
da Vitoria (Ilheus, Brazil). Stage II.
_ Building and equipping workshops for training young people in Estado Bolvar and
Cuman (Venezuela)
_ One hundred young people from Natal -Brazil- at social risk take part in educational
and cultural activities
_ Support for more than 200 young people involved in the Community Cultural Centre in (Venezuela).
4
To
50
What is
Dakar?
UNESCO defined its commitment
towards the international community
in a document known as the Dakar
Framework for Action, aimed at
supporting a worldwide educational
strategy entitled Education for All.
_ Equal gender opportunities programmes have been included in the social investment
programmes that develop the other five objectives of the Dakar Frame work.
recognised and
quantifiable results
212,629
144,437
Accrued in 2004-2005
68,192
Provision by Inditex in FY 2004
Dakar Objectives
Argentina
Beneficiaries
Used in 2004
Dakar Objectives
To comprehensively extend and improve
Brazil
1
Improving educational conditions
for 1,200 children in the district of
Nossa Seora da Vitoria (Ilheus).
Stage II
Formosa is Argentinas poorest and most marginal province. Some 650,000 people live in the capital who
feel that their most basic needs have been ignored for years. For more than 10 years a group of nuns
known as the Missionaries of Mary have worked in the city, setting up a support programme so that
children of school age improve their results, to avoid the high percentage of children who drop out of
school or repeat academic years. This programme will form part of the Fe y Alegria network. Thanks to
this project, work will continue offering educational support that will directly benefit 200 children at
primary level.
families.
children.
of Human Rights.
52
40,000
Project duration12months
Beneficiaries
Dakar Objectives
recognised and
quantifiable results
mainly in areas related to reading,
writing, arithmetic and practical skills
Peru
1,020,361
502,585
Accrued in 2004-2005
517,776
840students
Project duration12months
Beneficiaries
721,449
376,927
Accrued in 2004-2005
344,522
Used in 2004
Used in 2004
Dakar Objectives
Venezuela
Improving educational
quality by building and
equipping workshops
Through this project, 2 workshops
and 21 classrooms have been
provided for the Fe y Alegra
network in the Andes, Caracas,
Central and Guayana regions,
making it possible for them
to offer training in IT, carpentry,
electricity, ironworking, fish farming
and agricultural activities.
2,635,769
180,304
Unirisco Project
Unirisco is a
Equity
Inditexs holding
As of 31st January 2005 a commitment was made
for an additional payment of
Spain
500,000
Commission and
30,000 and
universities.
university background.
_ Are backed by people
or Portuguese
university, although special attention is paid to
www.unirisco.org
54
high potential
4.000.000
4,000,000
Global provision
by Inditex in 2004
1,000,000
Victims
tsunami
Helping from the Beginning
Programme
Development
Singra Prestige
TheSingra
Emergency
Programme
Victims of the
tsunami
The SINGRA Emergency Programme,
planned to help alleviate the consequences
of the sinking of the oil tanker Prestige off
the Galician coast, was our first project. Our
work will continue for a number of years, as
part of a series of programmes.
56
In 2004 we began
a new Emergency Programme,
this time aimed at providing aid for
the victims of the tsunami that
devastated south east asia at the end
of 2004.
Terra de Soeira
Fisterra
_ Adapting houses for the sick and elderly in
Fisterra.
_ A forestry engineering company in Cee.
_ Creating a community radio station in Corcubin.
_ Supporting the hostelry sector in Corcubin.
_ Workshops on the environment, education of
values and study techniques for young people in
secondary schools in Cee.
_ Radio programme offering employment openings
in stations on the Costa da Morte.
_ Adapting houses for the sick or elderly and a
bed-lending service.
101Collaborating
companies
109 Projects
53 Courses
Offered
1,291 Students
187 Jobs
filled
37 Future
entrepeneurs
11 Companies
founded
Bergantios
_ Associations of Redeiras dedicated to
the repair of fishing nets and tackle
(Laxe and Porto do Son).
_ Searching for new cash crops in the
area of Traba and strengthening
agricultural resources in (Laxe).
_ Improving the working conditions of
female shellfish gatherers in Baldaio.
_ Boosting tourism for the port of Laxe
School garden project in Laxe.
The
Sustainable
results
Singra
emmergency programme
www.singra.org
Ferrol
Who do
Malpica
de Bergantios
Ponteceso
Coristanco
Camarias
1
Vimianzo
A CORUA
Cee
3
Corcubin
Lugo
Fisterra
O Barbanza
Chronology
November 2002
December 2002
March 2003
October 2003
September 2003
January 2004
A coordination office is
created in each of the
areas with a team of
professionals career
advisors, social workers,
educators and sociocultural workers, dedicated
to the project on a full-time
basis.
58
A Laracha
Laxe
Santiago de
Compostela
Carnota
4
Muros
_ A sculpture company in Ribeira.
_ A nursery in Muros.
4
Boiro
_ Preventive programmes for Alzheimer in Ribeira.
A
Pobra
do
Caramial
_ Work by students in Ribeira with seamen.
Ribeira
_ Pedagogical information on fish species with the Mar de Lira
association, in O Barbanza.
_ Child welfare service for the children of shellfish gatherers and
women working at sea.
Bueu
_ Support network for immigrants.
_ Repairing houses for elderly or disabled people.
Cangas
_ Supporting the Association of Net Repairers of Porto do Son.
Rianxo
Pontevedra
5
Ourense
O Morrazo
_ Gas fitting and plumbing course.
_ Cognitive stimulation workshops for the elderly.
_ Supporting the work of associations in O Morrazo.
_ Creation of the Association of Net Repairers of Bueu.
_ Programmes for the prevention of Alzheimer in Cangas.
Indonesia
India
During the initial stage of the
emergency, Critas dealt with some
125,000 people, organizing
Thailand
Work is underway to deal with the
most vulnerable victims: fishing
communities who have lost their
source of income. The plan is
aimed at guaranteeing the basic
Sri Lanka
Once the humanitarian aid effort
had been established and all
primary needs covered, refugee
camps were established for those
who had lost everything and who
could not demonstrate ownership of
their properties. In order to carry
out its programmes, Critas Sri
Lanka has 1,000
community groups. The
reconstruction plan has been
divided into two stages: the first,
lasting throughout 2005, will cover
basic needs such as
accommodation,
drinking water, schools
and sanitation for 33,000
families: the second, which will
focus on building houses, will
directly benefit some 21,000
families.
www.caritas.org
in South-East-Asia
India
Sri Lanka
Indonesia
Tailandia
Intervention plans:
from the emergency to
the reconstruction
In the most affected areas (Indonesia, Thailand, India and Sri Lanka) the regional
delegations of Critas who were already operating in the region started to offer
humanitarian aid immediately, supported on the ground by some 5,000 volunteers.
Initial efforts were focused on setting up temporary shelters, distributing essential items,
food and drinking water, as well as offering medical and psychological assistance
60
Promotional
activities
Amount:
75,000
Helping Promote
Art collection
founding
european
workgroups and the
Participation in
development
standardisation
and verification models
of
Patio Herreriano
Investments in other
educational
spaces
Amount:
8,000
www.museopatioherreriano.com
62
Investment:
669,726
10 principles of conduct
and action as an integral part of
Promoting the UN
Global Compact
in Spain
www.unglobalcompact.org
www.archicompostela.org
Corporate
information
Financial
reports
20
Espansion and
development of business
15
Press releases
distributed in 2004
The media
Japan 7%
Germany 3,5%
France 3,5%
UK 10,5%
Visits to
our headquarters
Scandinavia 3,5%
Mexico 3,5%
Companies
Media
Educational
institutions
Bodies and
institutions
68
28
39
20
Visits
by the media
Visits from
educational centres
Secondary education
Higher education/Spain
Higher education/international
Vocational training
56%
18%
7%
18%
public bodies
and institutions
other organizations
Germany 7,5%
France 7,4%
Portugal 8,7%
Holland 6,2%
UK 24,7%
Greece 3,8%
Italy 6,3%
Turkey 4,9%
Belgium 3,7%
Switzerland 3,6%
Others 7,8%
USA 2,3%
Denmark 3,5%
Mexico 2,5%
Austria 2,4%
Universities
and business schools
As far as collaboration with the educational media is concerned, Inditex gives
priority to Spanish and foreign universities and business schools. The interest
shown by this field in analysing our groups business model has been met by
Inditex, which has contributed to preparing educational material and case
studies, and has given speeches at conferences and seminars, for example as
part of the XX World Garment Industry Convention organized by the
Sweden 2,4%
Japan 2,3%
64
09_0 Environment
09_1
09_2
09_3
09_4
09_5
66
Development during FY2004 has allowed us to consolidate our sustainable growth strategy in all areas of
activity: products, own factories, suppliers, distribution,
stores and raising staff awareness. In some of these areas,
we have anticipated the goals set for 2005.
od
So
|2
fi l e
|6
o
r
p
s
1 Business
Go
lier
9
up p
|
S
5
my
4 Employees |
no
E co
8
nt l
Go
h
re
ci
et
a
Sh
ve
rn
old
an
ce
er
s|
3C
u st o
m er s
7 Environme
joint effort from different departments last year has allowed us to set
up an innovative and original training course that will provide traditional training for all the employees of our stores in Spain during the
course of 2005. We will base this on using a new sustainable
mascot and releasing the companys magazine.
Important actions taken during the year have included controlling
our emissions, especially greenhouse gases. We have made
substantial progress on supplier evaluations, and we have continued
to increase our energy efficiency. In this respect, we have dedicated
2004 to optimising the use of wind and solar energy, and to
planning new facilities for 2005.
Having marked out these paths, our work during 2005 will be
focused on completing actions relating to suppliers and stores, and
to optimising our consumption of resources and waste generation.
This will allow us to consolidate our sustainable growth model, and
will be the basis for developing improvement actions over the years
to come as far as the international expansion of our activity is
concerned.
Head office
Deputy chaiman
Enviroment Manager
Stores
Chain
managers
Chain
managers
Factories
Factory
managers
Environmental policy
We believe that the development of Inditexs activity should include a set of sustainable development criteria, which guarantee the proper
management of resources and environmental protection, as well as meeting societys needs.
In order to put the above into practice, we undertake to fulfil and enforce the following principles, which form our environmental policy:
HR Dept
Legal Dept
Enviromental
Representatives
Enviromental Mngmnt
Systems certified in
accordance with UNE
ISO 14001
_Legislative control
_Operational control
(waste, atmosphere, water)
_Liability control
_Cost control
MA Dept
Head of stores
Enviroment
Management
model in stores
Training
Enviroment
indicators
system
Enviromental
Representatives
Enviromental Mngmnt
Systems certified in
accordance with UNE
ISO 14001
_Legislative control
_Operational control
(waste, atmosphere, water)
_Liability control
_Cost control
1. We undertake to consider the environment factor when planning and developing our activities and those of our business partners, encouraging the environmental awareness of our staff, suppliers and society in general.
2. We undertake to fulfil the environmental regulations that apply to our activities, as well as any other obligations laid down. We will
endeavour to prevent pollution and reduce the environmental impact of our activities to the minimum.
3. We work towards continuously improving our Management System, thereby increasing its efficiency and ensuring a more efficient
consumption of resources.
4. We undertake to inform all of our employees and society about this policy, establishing a fluid communication policy with the authorities,
local communities and agencies.
These principles apply to all of Inditexs companies and work centres, being established under an Environmental Management System in
accordance with the ISO 14001 standard at the Inditexs head office, logistics centre and factory in Arteixo, and in the factories in Narn and
Ferrol, all in A Corua; as well as in the head offices and logistics centres of Zara, Zara Home and Kiddys Class chains in Arteixo; Pull and
Bear in Narn; Massimo Dutti, Bershka, Oysho and Kettering in Tordera; Stradivarius in Cabrianes and in the Plataforma Europa in Zaragoza,
all of which are in Spain.
Action
and
improvement plans
68
2001
2002
2003
2. Encourage external
communication with parties
involved
Audits in all
stores in Spain
2004
2005
2001
2002
2003
1. Promote, raise
awareness and provide
internal training on
sustainability
2004
Development of Internal
Communication Plan with
support of Sustainable
Mascot
2005
Lines of action
Lines of action
Strategies
Strategies
Strategies
Incorporate the
environment factor in
all strategies and
actions
Lines of action
2005
Improved Environmental
Management System
adapted to new ISO
14001:2004 standard
2004
2003
2002
2001
Strategies
Lines of action
1. Implement a global
sustainability indicators
system
Management of Chain
Indicators in corporate
Intranet
2005
2. Eco-efficiency studies in
processes and work centres
2004
2003
2002
2001
We offer training and awareness programmes for all of our working teams at our head offices, logistical
centres and factories in environmental issues.
(*) GHG= Green House Gases
70
In
Anticipating the goal set for 2005, we have
integrated all the industrial centres, chain head
offices and logistics centres into the
Environmental Management System, all of them
achieving the ISO 14001 certificate (the
Plataforma Europa in Zaragoza and the fashion
designer company Kettering in Tordera
achieved this in 2004). Our aim for 2005 is to
adapt the entire System to the ISO 14001:2004
standard. This will guarantee that 100% of our
management, manufacturing and distribution
processes are carried out with a high level of
environmental control.
In
In
During 2004 we
incorporated the
certification system in
Plataforma Europa and
Kettering offering
compliance with the ISO
1400 standard,
guaranteeing the
sustainable development
of our activity in 100%
of our working processes.
Environmental Requirements
Evaluation of Logistics Suppliers:
_Environmental Commitment
and Policy
_Types and characteristics of
methods of transport
_Atmospheric emission levels,
especially GHG
_Management of waste
generated during
maintenance operations
100%
suppliers
fulfil environmental
requirements,
especially control of
GHG
100% Logistics
Centres with ISO
14001
100% of stores
comply with the
Enviromental
Management Model
sites
With suppliers
All of our internal and external
suppliers have agreed to follow
the Code of Conduct that
guarantees good environmental
practices.
24%
product
certified with
Estimate of GHG
emissions by air
transportation
suppliers1,019 T CO2
Estimate of GHG
emissions by road
transporters suppliers
12,319 T CO2
50,000,000 hangers
Environmental Requirements
Evaluation Industrial
Subcontractors:
_Environmental Commitment
and Policy
_Atmospheric emission levels,
especially GHG
_Management of waste
generated during
maintenance operations
Oeko-tex
( 0 -16 years)
In
training
With the aim of encouraging participation and
awareness of employees, we have designed a
sustainable mascot that will be used to boost all of
Inditexs sustainable initiatives, both those that the
company promotes and those promoted by the
employees.
Its name Grindi is a combination of green and Inditex,
and it was chosen by holding an international
competition for all employees through the companys
magazine.
The training programs have continued developing,
with the result that 100% of the staff of head offices,
logistics centres and factories have been trained on
environmental issues.
72
distribution
reused
product
stores
All of the store staff working
in Spain have received
specific training in relation
to Environmental
Management and
Occupational Health and
Safety
We have implanted
the Indicators
System in all of our
stores
T/year
500
441.895
0.002
0.00187
SO2
SO2
300
0.00114
NOx
0.001
176.145
131.51
0.00007
0.00004
0.00003
0
2001
2002
2003
0.00035
0.00019
0.00001
0.00034
4.378
10.189
0.00063
0.0005
69.22
10.887
NOx
0.00105
0.00072
123.569
97.179
100
14.46
CO
0.0015
CO
250.149
208.48
200
400
2001
2004
2002
2003
2004
236,201,643
278,976,771
2001
2002
347,596,458
2003
2004
*Industrial centres:
226,660
250,000
200,000
T/year
T CO2
Concept
CO2 Emissions
150,000
15,127
Propane consumption
26
Gas-oil consumption
5,677
Electricity consumption
10,903
31,733
71,000
100,000
*Transport:
13,338
13,338
13,338
es
or
50,000
St
a
Tr
44,540
ns
31,733
rt
po
2003
*Stores:
Electricity consumption in stores
226,660
226,660
TOTAL
271,371
tre
en
lc
ria
2004
st
du
In
2002
(*) The ratio has been calculated by using the following formula:
Ratio= (absolute value of the year/number of garments put on the market during the year) x 1000.
The value used in the ratios are:
Number of garments commercialized:
2001: 181,935,742, 2002: 236,201,643, 2003: 278,976,771, 2004: 347,596,458
74
Includes head office, and all of Inditexs factories: (Choolet, Denllo, Fios, Glencare, Goa, Hampton, Indipunt, Jema, Kenner, Nikole, Samlor, Sircio, Stear, Trisko, Zintura, Inditex
Cogeneracin) and the head offices and logistics centres of Zara, Zara Home, Kiddys Class, Pull and Bear, Bershka, Oysho, Massimo Dutti and Stradivarius. All emission sources undergo
strict and frequent controls by an authorised inspection company, each in accordance with the parameters established by legislation in force. The data shown here has been taken from the
analysis of these reports.
Absolute data
1,293,840
589,465
393,337
2004
3.72
1.70
1.13
2004
5,191,590
14.93
5.50
1,913,205
4.78
1,334,751
265,012
339,040
2003
0.94
1.21
2003
7.97
7.39
2,224,782
2,063,764
6.40
1,513,430
192,050
189,400
2002
0.81
0.80
2002
10.46
10.04
2,472,221
2,373,420
12.90
2,347,056
Waste indicators
2001
124,356
41,307
2001
0.68
0.22
8.05
8.98
1,465,469
1,635,200
Wood
10
12
Plastic
14
16
Kg/Mil items
Textile waste
The waste is classified in accordance with the European Waste Catalogue (EWC) and its transposition into national and regional legislation.
Kg
16,000
14,000
12,000
Kg
10,000
9,000,000
2001
8,000
8,000,000
Total
6,000
7,000,000
4,000
Textile waste
2,000
6,000,000
2002
2004
2002
2001
pa
ck
.
.p
nt
Co
ts
Pa
in
am
Co
nt
la
s.
.a
bs
ed
pa
ck
us
et
.
in
M
Co
nt
am
.o
ils
.m
s
lf
ilt
er
s
en
t
Fl
Oi
uo
re
sc
fic
e
tte
Ba
Wood
3,000,000
Of
rie
s
Plastic
4,000,000
at
er
ia
l
5,000,000
2003
2004
2003
RPs
2,000,000
The last stage of our Waste Plan is recycling, as shown in the following graph.
0
Dec. 2001
Dec. 2002
Dec. 2003
Dec. 2004
55.25%
55.25%
Comparison of garments put on the market with total industrial waste generated
Comparison of items put on the market with total industrial waste generated
Comparison of items put on the market with total industrial waste generated
24.6 %
Total garments put on market
4.19%
24.6 %
compost
Other urban waste
sent to treatment plant and
compost
4.19%
18.1%
29.8%
18.1%
29.8%
50.3%
Three-year increase of garments: 72.5%
16.7%
2%
6.27%
6.27%
50.3%
Three-year increase of garments: 72.5%
16.7%
and
paperplant
sent to recycling plant
Cardboard andCardboard
paper sent to
recycling
2%
Textile
waste sent
Textile waste sent
to recycling
plant to recycling plant
Dec. 2001
Dec. 2002
Dec. 2003
Hazardous waste
sent to authorised
waste
Hazardous
waste sent
to authorised waste
treatment planttreatment plant
13.77%
Dec. 2004
Dec. 2001
Dec. 2002
Dec. 2003
13.77%
Dec. 2004
0.16%
0.16%
20.36%
20.36%
76
Renewable energy
2002
2003
Kwh
500,000,000
400,000,000
300,000,000
200,000,000
100,000,000
0
1,803,000 kwh
2001
Official communication channels have been established for all these groups, in order to answer their
demands or queries, as shown at the end of this Sustainability Report.
4,278,489 kwh
492,738,250
447,267,982
295,574,280
Table I: Environmental aspects according to interest group
233,007,223
Shareholders
2001
2004
The analysis of our environmental impact with interest groups has enabled us to identify and meet
their main environmental needs.
2002
2003
2004
Administration
Cogeneration gas consumption
Tep
8,000
6,000
4,000
10,000
5,684
5,517
6,472
Customers
7,650
5,936
3,728
4,000
2,000
1,848
2,000
0
2001
8,000
6,000
2,273
Gas-oil consumption
Tep
0
2002
2003
2004
2001
2002
2003
2004
Community
Control and reduction of impacts locally and on nearby towns
Application of environmental criteria to suppliers
Employees
Facilities and training to fulfil the commitment to the environment
Suppliers
Defining environmental criteria
Targets for their actions and technical support
115,016 m3
115,884 m3
161,790 m3
2004
2003
2002
78
10_0 Economy
10_1
10_2
10_3
10_4
10_5
10_6
10_7
80
Basic scope
International expansion
Segmented information
Inditex format by format
Corporate cash flow
Indicators of economic performance
Extra indicators
m er s
us t o
3C
s|
er
p
5 Su
4 Employees |
tl8
Environmen
r
pl i e
s|
no
Eco
9
y|
er
n
c
So
go
v
re
ha
ie
ty
2S
an
ce
ho
ld
i
prof
Business
le |
o
Go
2003
2004
Format
Zara
Kiddy's Class
Pull and Bear
Massimo Dutti
Bershka
Stradivarius
Oysho
Zara Home
Total
Company-managed
Franchises
Total
Company-managed
Franchises
Total
649
129
333
228
295
183
102
62
74
38
98
7
44
2
723
129
371
326
302
227
104
62
567
103
314
199
247
154
74
26
59
36
98
6
37
2
626
103
350
297
253
191
76
26
1,981
263
2,244
1,684
238
1,922
2004
2003
2002
2001
2000
04/00
* Results:
Sales
Interanual variation
5,670.4
23%
4,598.9
16%
3,974.0
22%
3,249.8
24%
2,614.7
28%
21%
EBITDA
Interanual variation
1,239.7
42%
873.5
1%
868.1
23%
704.5
35%
521.5
27%
24%
EBIT
Interanual variation
925.2
48%
627.0
-5%
659.5
27%
517.5
36%
379.9
28%
25%
628.1
41%
446.5
2%
438.1
29%
340.4
31%
259.2
27%
25%
Equity
Interanual variation
2,502.7
19%
2,105.9
20%
1,761.3
19%
1,486.2
27%
1,170.9
31%
21%
Balance total
Interanual variation
4,209.2
20%
3,510.4
16%
3,013.8
16%
2,588.6
23%
2,107.6
19%
19%
508.1
268.3
245.6
57.5
(50.6)
2,244
1,922
1,558
1,284
1,080
322
364
274
204
158
56
48
44
39
33
55%
54%
54%
54%
52%
9%
1%
11%
9%
9%
27%
23%
27%
26%
25%
* Balance:
Stores:
Number of stores at year-end
Net openings
Number of stores with stores opened
Other information:
% of sales in international stores
Variation of like-for-like sales
ROE
ROCE
Number of employees
40%
32%
41%
39%
34%
47,046
39,760
32,535
26,724
24,004
*millions of euros
82
Country
Andorra
Arab Emirates
Bahrain
Belgium
Cyprus
Ireland
Israel
Jordan
Kuwait
Lebanon
Malta
Mexico
Poland
Portugal
Qatar
Saudia Arabia
Spain
Franchised stores
3
16
3
16
10
1
25
5
11
7
5
17
7
39
4
26
34
Country
Franchised stores
Dominican Republic
El Salvador
Estonia
Finland
Holland
Iceland
Latvia
Lithuania
Luxembourg
Malaysa
Morocco
Panama
Roamnia
Russia
Singapore
Slovakia
Slovenia
1
1
1
3
1
1
1
1
1
3
2
1
2
4
3
1
2
TOTAL: 263
Sales in stores controlled by Inditex or franchised stores List of sales in own and franchised stored
2004
Format
Franchises 10 %
Zara
91%
9%
92%
Kiddy's Class
100%
0%
100%
0%
91%
9%
91%
9%
Massimo Dutti
68%
32%
65%
35%
Bershka
98%
2%
97%
3%
Stradivarius
82%
18%
80%
20%
Oysho
Zara Home
Company or joint
management 90 %
2003
Total
8%
98%
2%
98%
2%
100%
0%
100%
0%
90%
10%
90%
10%
New markets
2004
2003
2002
Companymanaged
2001
Companymanaged
Franchises
Companymanaged
Hong Kong
Morocco
Sweden
Russia
Italy
Finland
Holland
Hungary
Panama
Ireland
Malaysia
Switzerland
Malta
Luxembourg
Czech Republic
Franchises
Franchises
Romania
Slovenia
Singapore
Estonia
Jordan
Dominican Republic
Latvia
Companymanaged
2000
Franchises
Iceland
Companymanaged
Franchises
Denmark
Andorra
Austria
Qatar
El Salvador
Lithuania
8 new countries
84
6 new countries
7 new countries
4 new countries
4 new countries
Bershka 9.1 %
Zara 67.4 %
Stradivarius 4.3 %
Oysho 1.3 %
Sales by format
Specific weighting
millions of euros
2003
Var % 04/03
2004
2003
3,819.6
3,219.6
19%
67.4%
70.0%
Kiddys Class
120.6
689.7
35%
2.1%
1.9%
378.9
287.9
32%
6.7%
6.3%
Massimo Dutt
48.3
388.9
24%
8.5%
8.5%
Bershk
516.0
395.0
31%
9.1%
8.6%
Stradivarius
241.9
162.0
49%
4.3%
3.5%
Oysho
71.7
45.1
59%
1.3%
1.0%
Zara Home
40.4
10.6
279%
0.7%
0.2%
Sales total
5,670.4
4,598.9
100.0%
100.0%
23%
Bershka
35.7
64.3
Stradivarius
15.4
84.6
Oysho
31.5
68.5
Zara Home
12.7
87.3
International
National
32%
58.1
35%
41.9
34%
32%
53.9%
Massimo Dutti
16%
54.5%
69.8
14%
Total
30.2
20%
63.5%
13.4%
31.0%
40.9%
33.8%
16.6%
35.1%
8.5%
17%
65.8%
12.8%
30.2%
41.9%
35.7%
15.4%
31.5%
12.7%
87.2
30%
Zara
Kiddy's Class
Pull and Bear
Massimo Dutti
Bershka
Stradivarius
Oysho
Zara Home
12.8
30%
2003
Kiddy's Class
28%
2004
34.2
27%
Format
65.8
22%
Zara
21%
Zara
2004
21%
21%
Format
(%)
2004
2004
2003
2003
1Q
86
2Q
3Q
4Q
1Q
2Q
3Q
4Q
Var
Zara
Net sales
EBIT operation profit
EBIT margin
Stores
ROCE (%)
Massimo Dutti
04
03
04/03
3,819.6
3,219.6
19%
Net sales
647.8
476.1
36%
17.0%
14.8%
723
626
38%
33%
EBIT margin
97
03
Var
04/03
481.3
388.9
24%
75.1
60.1
25%
15.6%
15.5%
04
Stores
ROCE (%)
Kiddys Class
03
Var
04/03
378.9%
287.9
32%
6.2
8.9
198%
14.8%
6.6%
371
350
44%
16%
04
Net sales
EBIT operation profit
EBIT margin
Stores
ROCE (%)
Net sales
EBIT margin
04
ROCE (%)
89.7
35%
21.7
18.0
21%
18.0%
20.0%
129
61%
103
297
56%
26
80%
Inditex
Net sales
EBIT margin
Stores
ROCE (%)
71.1
45.1
59%
15.6
2.1
633%
21.8%
4.7%
EBIT margin
Stores
ROCE (%)
88
Net sales
Net sales
104
52%
76
7%
28
Stores
ROCE (%)
03
322
n/a
62
26
36
ROCE (%)
2%
253
04
32
Stores
302
EBIT margin
Stradivarius
1,922
40%
n/a
14.5%
Var
04/03
2,244
(4.5%)
16.0%
03
13.6%
0.8%
04
48%
16.3%
279%
Net sales
44%
Oysho
23%
627.0
10.6
31%
57.3
46%
4,598.9
925.2
(O.5)
395.0
82.5
52%
5,670.4
0.3
516. 0
49
Var
04/03
40.4
Zara Home
Net sales
03
Var
04/03
Var
04/03
04
04
03
03
Bershka
29
Var
04/03
120.6
Stores
21
03
326
50%
04
Var
04/03
241.9
162.0
49%
38.9
4.4
784%
16.1%
2.7%
227
191
43%
5%
36
FY 2004*
FY 2003 *
Variation % 04/03
5,674.2
4,601.5
23%
14.4
11.8
22%
18.8
16.3
15%
5,707.4
4,629.6
23%
Growth
Employee wages
821.4
678.2
21%
Tax payments
247.5
157.4
57%
Debt return
(22.3)
27.8
n.a.
220.2
89.3
147%
288.6
(19.6)
n.a.
2004
5,670.4
23%
2003
4,598.9
16%
3,974.0
2002
3,249.8
2001
2,636.2
2,293.0
15%
1,509.0
1,403.5
8%
5,700.6
4,629.6
23%
24%
2,614.7
2000
22%
28%
Sales indicators
10_6_1 Sales by geographical area
Employee wages
14 %
Tax payments
4%
Debt return
0%
Dividends paid out to shareholders
4%
External payments made for services
rendered and investments
26 %
2004
America 11.7%
America 10.5%
2004
2003
Spain 46.1%
90
Rest of world 1 %
America 6 %
53.5%
2003
50.1%
2002
51.5%
2001
51.9%
2000
51.2%
Spain 61 %
* In million of euros
Descrition
2004
2003
Var% 04/03
649.1
532.0
22.0%
172.3
146.2
17.9%
821.4
678.2
21.1%
*Million of euros
Description
Final balance of trade creditors
2004
2003
2002
2001
2000
134.8
129.5
97.7
95.9
71.0
5,670.4
4,598.9
3,974.0
3,249.8
2,614.7
42.0
35.5
40.7
33.9
36.8
10
11
10
2004
2003
2002
2001
2000
784.2
652.9
510.3
426.3
322.9
2,636.2
2,293.0
1,926.2
1,563.1
1,277.0
1,794.5
1,432.5
1,179.7
982.3
816.2
4,430.7
3,725.5
3,105.8
2,545.3
2,093.2
5.65
5.71
6.09
5.97
6.5
65
64
60
61
56
Institution
% of risk allowed
SPAIN
25%
SCH
SPAIN
18%
BNP
FRANCE
5%
SPAIN
5%
HOLLAND
6%
CAIXA GALICIA
FORTIS
92
Nationality
BBVA
Item
Balance 01/02/2004
Paid-in capital
Unrestricted reserves of parent company
Restritec reserves of parent company
Revaluation reserves
Additions
Reductions
Transfers
Dividends
Balance31/01/2005
20,379
20,379
852,582
(11,550)
841,032
18,945
18,945
1,692
1,692
799,755
4,747
(1,470)
238,999
1,042,031
Full year
2003
2002
2001
2000
8%
6%
12%
9%
13%
10%
(2%)
10%
9%
9%
9%
1%
11%
9%
9%
(540)
(129)
(75)
(486)
(126,817)
3,893
(20,518)
0,911
(142,531)
FY2003 resuts
446,451
(228,285)
(218,166)
FY2004 resuts
628,130
628,130
2,012,447
636,899
(21,988)
(218,166)
2,409,192
Total
Description
Sales cost
Rest of world 3%
2004
2003
2002
2001
2000
2,636.2
2,293.0
1,926.2
1,563.1
1,277.0
Initial stock
486.4
382.4
353.8
245.0
188.5
Final stock
514.0
486.4
382.4
353.8
245.0
Average stock
500.2
434.4
368.1
299.4
216.7
Turnover (times)
5.3
5.3
5.2
5.2
5.9
Turnover (days)
69
69
70
70
62
America 7%
2004
Spain 68 %
million of euros
2004
2003
Stock
514.0
486.4
Debtors
282.5
328.9
Accurued expenses
12.3
9.3
Short-term creditors
(1,208.1)
(1,011.2)
(399.3)
(186.6)
Working capital
94
96
m er s
Board of Directors
4 Employees |
5S
7 Environment
l ie
up p
l8
|
rs
no
Eco
my
ie
ty
c
So
go
ve
rn
rofi
re
1 Business p
le |
a
Sh
an
ho
ld
er
ce
s|
3C
|9
Go
Executive Director
Independent Director
She has been an Independent Director since April 2001. She has
a Science Degree and a Masters Degree in Chemistry. In 1993
she was appointed Financial Director of Barnes & Noble, where
she also served as Executive Deputy Chairman and Board
Member. She is currently the CEO of Akim, Inc. She is 53 years
old.
Independent Director
Domanial Director
Independent Director
Executive Director
Jos Luis Vzquez Mario
Independent Director
Independent Director
Executive Director
Executive Directors:
They perform management
responsibility tasks within the
Company.
Domanial Directors:
They are the holders or
representatives of the
holders of significant
shareholdings in the
Companys share capital.
Independent Directors:
Prestigious professionals with no links to
the executive team or to significant
shareholders, who meet the necessary
conditions to ensure their impartiality and
objectivity.
Members:
10
Meetings 2004:
Office
Members
Executive Committee
Members
Office
regulations.
Members::
8
Meetings
2004:
Office
Chairman
Board Member
Board Member
Board Member
Board Member
Antonio Abril Abadn acts as a Non-Audit and Control Committee Member Secretary.
Duties:
To report at General Meetings on any issues raised
by shareholders at such meetings on matters
concerning them.
To propose to the Board the appointment of the
external financial auditors who will check the annual
accounts. Such appointments are then submitted to
a vote at a General Meeting of Shareholders.
To supervise the internal audit services.
To be familiar with the financial information
process and the Companys internal control systems.
Members::
5
Meetings
2004:
Chairman
Board Member
Board Member
Board Member
Board Member
Duties:
To formulate appointment proposals for Board
Members and to internal offices of the Board of
Directors.
To propose to the Board possible members for
each Committee.
To formulate the criteria to be followed for
selecting the Companys senior managers, and to
inform of the appointment or removal of such
managers.
To inform the Board, on an annual basis, of the
performance assessment and remuneration of the
Companys senior managers and directors, and
particularly of the CEO.
Members::
Meetings
2004:
98
Risk map
INTERNAL
EXTERNAL
Strategic
1 Business environment
2 Regulations
3 Image and reputation
4 Human resources
5 Operations
6 Financial
7 Information for decision making
8 Technology and information systems
9 Governance and management
external
internal
1 Business environment:
4 Human Resources:
Operational
2 Regulations:
5 Operations:
Basic business activities, from designing
the idea to selling the finished product in
shops. Examples of this include failing to hit
the right design in collections, and bad
supply management.
6 Financial:
Monetary asset management and administration.
7 Decision-making information:
Adequate information at all levels.
100
12_0 Annexes
102
Pages
Chapters
02_0
01_0
01_0
8 and 9
02_0
17 and 18
25
41
63
04_2
05_2
07_2
08_5
17 and 18
25
41
63
04_2
05_2
07_2
08_5
17 and 18
25
41
63
04_2
05_2
07_2
08_5
Chapters
2.PROFILE
ORGANISATIONS PROFILE
2.1 Name of the reporting organisation
12 and 13
03_0
12 and 13
03_0
12 and 13
03_0
3.13 Explanation of whether and how the precautionary approach or principle addressed by the organisation
82
10_1
2.4 Description of the major divisions, operating companies, subsidiaries and joint ventures
12 and 13
03_0
3.14 Externally developed commitments or other voluntary initiatives that the organisation supports
56-62
08_3
85
10_2
3.15 Membership in business and industrial associations and / or national and international advocacy organisations
63
08_5
13
03_0
47-55
08_1
3.17 Reporting organisations approach to managing indirect economic, environmental and social impacts resulting from its
activities
4
6
40
01_0
02_0
07_3
3.18 Major decisions during the reporting period regarding the location of, or changes in, operations
N/A
N/A
3.19 Programmes and procedures pertaining to economic, environmental and social performance
91-95
10_6
10_1
74-78
09_4
01_0
41
07_2
02_0
82
10_1
02_0
68-72
09_0
40 and 41
07_2
12 and 13
03_0
82-89
10_1
13
10_1
84-86
10_3
91
10_6
92 and 95
10_6
EC.4 Percentage of the contracts paid in accordance with agreed terms, excluding agreed penalty arrangements
92
10_6
93
10_6
93
10_6
94
10_6
EC.8 Total sum of taxes of all types paid, broken down by country
94
10_6
(3)
N/A
47
08_1
85
10_2
16
04_0
13
03_0
82 - 89
10_2
12
03_3
82
4 and 5
7
8 and 9
Back flat
Front flat
108
Front flat
2.14 Significant changes in size, structure, ownership, products/services that have occurred since the previous Report
(1)
2.15 Basis for reporting on joint Reports, partially owned subsidiaries and other situations that could affect comparability from period
to period
102
N/A
N/A
2.17 Decisions to not apply GRI principles in the preparation of the Report
102
12_0
2.18 Criteria used in the accounting of economic, environmental and social costs and benefits
82
10_0
40 and 41
07_2
69
09_1
N/A
N/A
01_0
102
12_0
2.21 Policy and current practice with regard to providing independent mechanisms for the verification of the Report
109
12_2
16 and 17
04_0
24 and 25
05_2
12_0
REPORTS PROFILE
CLIENTS
SUPPLIERS
Back flat
EMPLOYEES
EC.5 Total salary costs broken down by country or region
CAPITAL SUPPLIERS
ADMINISTRATION
RAW MATERIALS
98 and 99
11_1
77 and 78
09_4
3.2 Percentage of the board of directors that are independent, executive directors
98 and 99
11_1
EN.2 Percentage of raw materials used which are wastes derived from sources external to the reporting organisation
77
09_4
3.3 Process for determining the expertise board members need to guide the strategic direction of the organisation in matters such as
environmental and social opportunities risks
98 and 99
11_1
3.4 Board-level processes for overseeing the identification and management of economic, environmental and social opportunities and risks
09_4
11_1
78
98 and 99
78
09_4
78
09_4
(4)
N/A
N/A
N/A
3.5 Linkage between executive compensation and achievement of financial and financial goals
(2)
N/A
3.6 Organisational structure and key individual responsible for oversight, implementation and audit of economic, environmental and social
policies
98 and 99
11-1
3.7 Mission and value statement, internally developed codes of conduct and policies relevant to economic, environmental and social
performance and the status of implementation
4
6 and 7
36,40 and 41
69
98
01_0
02_0
07_0
09_1
11_1
16-19
04_0
(1) Data on corporate acquisitions available in the 2004 Annual Report, edited jointly with this Sustainability Report for 2004 (2) Data available in the 2004 Corporate Governance Report,
ENERGY
WATER
BIODIVERSITY
EN.6 Location and size of land owned, rented or managed in biodiversity-rich habitats
EN.7 Analysis of the main impacts on biodiversity associated with activities or products in terrestrial, fresh water and marine
environments
(3) Immaterial figure (4) See Sustainability Report for 2003, page 132
104
Pages
Chapters
75
09_4
75
09_4
75
09_4
76 and 77
09_4
N/A
N/A
EN.13 Significant spillage of chemicals, oils and fuels, expressed in total figures and volume
78
09_4
72 and 73
09_3
EN.15 Percentage of the weight of the products sold that is reclaimable at the end of the products useful life and percentage
that is actually reclaimed
(5)
N/A
(6)
N/A
28 and 29
06_1
LA.2 Net employment creation and average turnover broken down broken down by country
28
06_1
LA.3 Percentage of employees represented by trade unions broken down geographically or percentage of employees covered
by collective bargaining agreements by countries
35
06_2
LA.4 Policy and procedures of information, consultation and negotiation with employees on the changes in the companys
operations
33
06_2
LA.5 Methods for registration and notification of occupational accidents and diseases
33
06_2
33
06_2
LA.7 Absentee, accident and occupational injury and lost day rates and number of work-related fatalities
33
06_2
(7)
N/A
32
06_2
30
06_2
40
07_2
99
11_1
HR.1 List of policies and guidelines as regards human rights relevant to the operations
40 and 41
07_2
HR.2 Evidence that impacts on human rights are taken into consideration when investing or choosing suppliers
40 and 41
07_2
HR.3 List of the policies for evaluating the action on human rights in the supply chain.
40 and 41
07_2
No discrimination
HR.4 List of the global policies dedicated to preventing all forms of discrimination in operations
40 and 41
07_2
40 and 41
07_2
40 and 41
07_2
40 and 41
07_2
(8)
N/A
(9)
N/A
(9)
N/A
PR.1 Description of the policy on customer health and safety during the use of products / services
77
09_3
PR.2 Description of policies and mechanisms for compliance referring to product information and labelling
(5)
N/A
(5)
N/A
COMPLIANCE
EN.16 Incidents of and fines associated with non-compliance with applicable international agreements and local regulations
associated with environmental matters
LA.11 Composition of senior management departments and corporate governance bodies including the female / male ratio
or other indicators of diversity
Strategy and management
(5) Data not available (6) Inditex was not sanctioned in financial years 2003 and 2004 for any failure to comply with internationally applicable agreements or local legislation in relation to environmental issues (7) Not put into effect in this financial year, 2004 (8) The evolution of Inditexs business model does not produce any significant negative impact (9) In accordance with the
stipulations of the International Chamber of Commerce, the anticorruption policy will be published in the financial year 2005
106
108