1. 1 A Service INDITEX INSIGHT DECK Growth markets and strategic initiatives April 2013 ISABEL CAVILL Senior Retail Analyst

2. 2 1.Introduction 2.Major Strategic Initiatives 3.Key Markets 4.Conclusions & Implications 5.Further Reading Contents All data correct at time of publishing.

3. 1. Introduction Inditex

4. 4 Corporate Structure E-commerce ITX Fashions Ltd 100% (Ireland) Manufacturing Internal Choolet SA, Confecciones Fios, Gonfecciones Goa, Denlio, Hampston, Jema Creacione Infantiles, Samlor, Stear, Trisko, Zintura, Glencare, Indipunt (all based in La Coruňa) External Inditex works with around 1,500 external suppliers around the world. Industria de Diseño Textil, S.A. (Inditex) and its subsidiaries form the Inditex Group. Inditex manages these companies on a centralised basis by applying policies and strategies at group level. The head office in La Coruňa (Spain) sets Inditex strategy, co- ordinates the brands and provides centralised IT, HR, Logistics, design and real estate functions. Zara Home Uterqüe Logistics (Zara) Zara Logistica SA (La Coruňa, Spain) - 50% of Zara women and menswear, serving Iberia, Americas and Middle East Plataforma Europa SA (Zaragoza, Spain) - 50% of Zara women and menswear, serving non-Iberian Europe, Russia and Asia Plataforma Logistica Leon SA (Leon, Spain) Zara Home and Zara distribution Plataforma Logistica Meco SA (Madrid, Spain) manages Zara childrenswear Textile Sourcing Comditel S.A (La Coruňa,) Tempe S.A. (Alicante) Nikole S.A (La Coruňa) Zara Asia Ltd (Hong Kong) ITX Trading S.A (Freiburg, CH) Uterqüe S.A (La Coruňa) Lefties Espaňa (La Coruňa,)

5. 5 Traditional model The Inditex model of production is a reversal of traditional clothing cycles as it is a ‘pull’ type production process rather than ‘push’. 1. Introduction Design Sourcing Store Customer Inditex model  Zara responds quickly to demand via a pull model which responds to real- time sales information from its stores.  Small batch quantities allow the retailer to see what items are working with shoppers.  A central distribution centre in Arteixo, with strong IT systems developed by Inditex and third parties, back up its supply chain model. All items are shipped back to Spain where they are then shipped out to stores around the world. Sourcing Design Store Customer