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OUR PRIORITIES CONTRIBUTION TO COMMUNITY WELFARE RELATED SUSTAINABLE DEVELOPMENT GOALS INDITEX’S CONTRIBUTION Goal 3: Ensure healthy lives and promote well-being for all at all ages. Community health and well-being is one of the priorities of our Corporate Community Investment. We collaborate with organisations of reference in this field, such as Caritas, Médecins Sans Frontières (MSF), Water.org, Every Mother Counts or Medicus Mundi, as well as humanitarian relief initiatives and development cooperation programmes. Goal 4: Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all. Education is one of the three major fundamental areas in our Corporate Community Investment projects. We develop a range of initiatives focused on providing opportunities through education, which offer people the possibility of a decent life, of personal development and foster social justice. We cooperate with academic institutions, both in our closest area of influence, such as the University of Coruña (Spain), as well as in the areas in which we cooperate, such as Tsinghua University (China), Beijing Normal University (China) or the University of Dhaka (Bangladesh). Goal 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all. The sustainable development of communities in which we operate by encouraging the labour integration of people who are at risk of social exclusion. To this end, we develop programmes which encourage employment for vulnerable groups, in cooperation with non-profit organisations and social enterprises whose aim is to help build a more diverse and inclusive society. Goal 10: Reduce inequality within and among countries. A high percentage of our Corporate Community Investment goes towards initiatives that help promote social inclusion and to reducing inequalities. Among other actions included in this category are in-kind contributions by Inditex to people in need, channelled through institutions such as Red Cross and Cáritas. Goal 12: Ensure sustainable consumption and production patterns. We encourage responsible production and consumption through social actions that promote a circular economy, among others. In this context, we cooperate with community organisations such as the China Environmental Protection Foundation, the MISTI or Caritas, to develop social economy projects dedicated to giving clothing and footwear a second life, through the reuse and recycling.

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Page 1: OUR PRIORITIES CONTRIBUTION TO COMMUNITY WELFARE

OUR PRIORITIES

CONTRIBUTION TO COMMUNITY WELFARE

RELATED SUSTAINABLE DEVELOPMENT GOALS

INDITEX’S CONTRIBUTION

Goal 3: Ensure healthy lives and promote well-being for all at all ages.

Community health and well-being is one of the priorities of our Corporate Community Investment. We collaborate with organisations of reference in this field, such as Caritas, Médecins Sans Frontières (MSF), Water.org, Every Mother Counts or Medicus Mundi, as well as humanitarian relief initiatives and development cooperation programmes.

Goal 4: Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all.

Education is one of the three major fundamental areas in our Corporate Community Investment projects. We develop a range of initiatives focused on providing opportunities through education, which offer people the possibility of a decent life, of personal development and foster social justice. We cooperate with academic institutions, both in our closest area of influence, such as the University of Coruña (Spain), as well as in the areas in which we cooperate, such as Tsinghua University (China), Beijing Normal University (China) or the University of Dhaka (Bangladesh).

Goal 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.

The sustainable development of communities in which we operate by encouraging the labour integration of people who are at risk of social exclusion. To this end, we develop programmes which encourage employment for vulnerable groups, in cooperation with non-profit organisations and social enterprises whose aim is to help build a more diverse and inclusive society.

Goal 10: Reduce inequality within and among countries.

A high percentage of our Corporate Community Investment goes towards initiatives that help promote social inclusion and to reducing inequalities. Among other actions included in this category are in-kind contributions by Inditex to people in need, channelled through institutions such as Red Cross and Cáritas.

Goal 12: Ensure sustainable consumption and production patterns.

We encourage responsible production and consumption through social actions that promote a circular economy, among others. In this context, we cooperate with community organisations such as the China Environmental Protection Foundation, the MISTI or Caritas, to develop social economy projects dedicated to giving clothing and footwear a second life, through the reuse and recycling.

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Our priorities - Contribution to Community Welfare

103-1, 103-2, AF33

Inditex’s Corporate Community Investment (CCI) encompasses the activities that illustrate the company’s commitment to contributing to social development, in the communities that have needs to be met, especially in the geographic areas where Inditex operates. These activities comply with the following principles:

- They are voluntary. The company has no legal obligation whatsoever at the time they are carried out.

- They are non-profit activities and provide a social and/or environmental benefit. Initiatives are targeted to social and/or environmental benefit, including support for any non-profit organisation. The scope also extends to those organisations that, despite the fact that they are not always being non-profit in character, their purpose is contributing to social well-being.

- Beneficiaries shall not be restricted. Activities shall be open to all potential beneficiaries, without prior classifications which may be discriminatory or beneficial to them, due to their belonging to or being related to companies in their capacity of customers, offspring of employees or any other similar circumstances.

In the 2017 financial year, Inditex has gained deeper knowledge regarding the link between its CCI program with the United Nations Sustainable Development Goals. Inditex’s investment in the community materialises through collaboration with specific projects focussing on the following lines of action that are related to the company’s activity, and their potential impacts, and for which reason they are considered as strategic.

- Education: initiatives that focus on providing opportunities through education, that offer people the possibility of a

decent life, the personal development of youth and foster social justice.

- Social welfare: initiatives which encourage employment and entrepreneurship of vulnerable groups, whilst encouraging labour integration of people at risk of social exclusion.

- Emergency relief: actions focusing on protecting life, health and wellness of people in emergency situations resulting from natural disaster or similar circumstances.

Examples of these three lines of action during the financial year 2017 are highlighted below:

- The launching of new long term strategic projects for specific activities in the academic field, in partnership with Beijing normal University, Tsinghua University or the University of La Coruña.

- The reinforcement of regular collaboration projects in the fields of development cooperation, humanitarian aid and social actions, through different organisations such as Every Mother Counts, Médecins Sans Frontières (MSF), Water.org, Fundación Entreculturas and Cáritas.

- The establishment of extraordinary emergency relief programmes, such as the one set up in partnership with the Red Cross as a result of the earthquake in Mexico.

- The launching of new initiatives that leverages additional resources from Inditex’s employees to social purposes, such as the initiatives Teaming or Big Idea Project.

More information is available on pages 65 and 66 of this Annual Report.

|CORPORATE COMMUNITY INVESTMENT

In the 2017 financial year, Inditex has strengthened the aligment between its Corporate Community Investment program and the United Nations Sustainable Development Goals, with the aim of promoting prosperity and protecting the planet. 82% of the contributions to the CCI activities targeted primarily towards five specific SDGs, and more than 1.5 million people directly benefited from the different projects.

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three point scale identifying three distinct levels of change that a beneficiary might experience. Numbers recorded under each of the depth of impact headings are mutually exclusive:

- Connection: the number of people reached by an activity who have reported some limited change as a result of an activity.

- Improvement: the number of people who have reported some substantive improvement in their lives as a result of the activity.

- Transformation: the number of people who have reported an enduring change in their circumstances, or for whom a change has been observed, as a result of the improvements made.

With regards to the type of impact, the changes experienced by beneficiaries are broken down into the following three categories. In this case, the same beneficiary can experience more than one type of impact.

- Behaviour or attitude change: the activity has helped generate behavioural changes that improve the life of the people. Likewise, the activity has enabled a change in negative attitudes or prejudices, allowing people to make better decisions.

- Skills or personal effectiveness: the activity has helped to develop new skills or improve existing skills, enabling them to develop academically, in the workplace or socially.

- Quality-of-life or well-being: the activity has helped people to be healthier, happier or more comfortable, through improved emotional, social or physical well-being.

- Strengthening of strategic initiatives aligned with the business model such as the Closing the Loop programme in cooperation with non-profit organisations such as China Environmental Protection Foundation, Cáritas or the Red Cross, among others; the opening of new stores within the for&from project, that targets the labour integration of people with disabilities; or the launching of a new programme in partnership with ILO for promoting fundamental principles and rights at work in the cotton supply chain.

Inditex invested over 48.1 million euros in corporate community investment projects in 2017. This statistic represents a 20% increase on the previous year. More than 1.5 million people have directly benefited from the corporate community investment projects implemented throughout the year, which represents a 45% increase in terms of the reach of our CCI compared to the previous year.

The most relevant community investment programmes developed during the year, according to LBG1 methodology, are outlined in the rest of this chapter. These programmes are subject to an exhaustive monitoring progress and continuous accountability, according to previously defined objectives for each programme based on a range of key performance indicators (KPIs).

The aforementioned methodology enables us to simply and thoroughly structure the voluntary corporate community CCI program, quantify and measure the impact on society, both in terms of depth as well as the type of impact.

In terms of the depth of the impact, the effects of our projects have on beneficiaries are broken down into the following

1 A detailed description of the LBG model can be found at www.lbg-online.net

EPGO Program in Argentina (Photo: Entreculturas)

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CORPORATE COMMUNITY INVESTMENT 2017*

thousands of hours dedicated by employees to CCI projects during working hours

(14% more than the previous year)millions of garments donated to social causes

(76% more than the previous year)

community organisations supported

(11% more than the previous year)

Community projects performed

(14% more than the previous year)

millions of euros in leverage (**)

millions of euros invested in CCI projects

(20% more than the previous year)

INPUTS

OUTPUTS

73

3.67

409

12.6

48.1

594

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(*) Data calculated in accordance with LBG methodology based on voluntary contributions by Inditex to Corporate Community Investment projects during the 2017 financial year. The exchange rate valid on 31 January 2018 was used to convert contributions into euros.

(**) Measure of any additional resources contributed to a community organization or activity that come from sources other than the company -employees, suppliers and customers, among other-.

(***) Of the total 1,584,446 direct beneficiaries, the impact assessment was carried out on 1.527.237 direct beneficiaries. The remaining direct beneficiaries correspond mainly to in-kind donations to which impact assessment is not applied.

(****) Assessment carried out on 212 community organisations supported by Inditex, on 68 long-term strategic projects.

Impact on people (depth of impact)(***)

6% of beneficiaries made a connection

65% made an improvement

29% made a transformation

Impact on community organisations (****)

99% improved existing/delivered new services

88% improved management processes

93% increased their profile

85% taken on more staff or volunteers

millions of direct beneficiaries

(40% more than the previous year)

Impact on people (type of impact) (***)

40% experienced a positive change in their behaviour or attitude

4% developed new skills or an increase in their personal effectiveness

90% experienced a positive impact on their quality of life or well-being

IMPACT

1.58

99%

90%

65%

Page 6: OUR PRIORITIES CONTRIBUTION TO COMMUNITY WELFARE

2017

93%7%

2016

91%9%

2015

85%15%

Our priorities - Contribution to Community Welfare

103-2, 103-3

CORPORATE COMMUNITY INVESTMENT 2017

The Corporate Community Investment (CCI) strategy is based on Inditex’s Corporate Citizenship Policy. Implementation of this strategy in 2017 can be summarised by the following indicators.

MAXIMIZING THE EFFECTIVENESS OF CONTRIBUTIONS

93% contributions driven by strategic projectsThe concentration of investments in long-term strategic projects allows us to maximise the effectiveness and amplify the positive impact.

INCREASING INVESTMENT

20% Increased Corporate Community InvestmentInditex has sustainably increased its Corporate Community Investment. It exceeded 48.1 million euros in 2017, 20% more than the previous year and double that of 5 years before.

For the third year in a row, investment in long-term strategic projects for specific activities (community investments and commercial initiatives) has increased, in front of charitable gifts in response to short-term or one-off events.

charitable gifts long-term strategic investment

PARTNERSHIP THAT GOES BEYOND CASH CONTRIBUTION

FOCUS ON STRATEGIC COMMUNITY PROJECTS

Beyond cash contributions - which increased by 13% on the previous year -, Inditex has boosted in-kind contributions - which increased 44% - as well as ttime contributions by employees to community activities during working hours, which grew by 14%.

14%increase time

contributions by employees

44% increase garments

donated to social causes

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103-2, 103-3, AF34

of investment targeted primarily towards 5 SDGs linked to our activity

of investment carried out in strategic geographical areas

INCREASING THE SCOPE

14%

INCREASE IN THE NUMBER OF DIRECT BENEFICIARIES

Increase in the number of CCI projects developed594 CCI projects were developed in 2017, which represents an increase of 14% on the previous year.

In 2017, Corporate Community Investment projects have benefited 45% more people than the previous year. similarly, a total of 409 community organisations were benefited, which is 11% more than the previous year.

ALIGNING TO THE CORPORATE STRATEGY

82%

93%

MAXIMIZING IMPACT REQUIRES FOCUS

a) Activity area 82% of the investment has been focused on activities that have had SDG’s 3, 4, 8, 10 and 12 as the main objective. 81% of investment was targeted towards strengthening the strategic focuses defined in the Corporate Citizenship Policy - education, ssocial welfare and emergency relief.

b) Geographical area Inditex has targeted 93% of its Corporate Community Investment to projects focused on strategic geographical areas, in terms of supplier cluster locations - 67% - as well as their commercial activity - 86%.

45% PEOPLE

11% ORGANISATIONS

MAKING GREATER IMPACT

96%DEPTH OF IMPACT TYPE OF IMPACT

direct beneficiaries included within the impact assessmentThe impact assessment was extended to 1.53 million people - 96% of the total number of beneficiaries - compared to 0.57 million people in the previous year - which represented 52% of the total number of beneficiaries.

Both the level of depth and types of positive impacts generated for direct beneficiaries have increased.

behaviour or attitude chageskills or personal effectivenessquality-of-life or well-being

connectionimprovementtransformation

2017 2016

2017 201640%

4%

29%16%

6% 11%65% 73%

40%

14%

90%

79%

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EVOLUTION OF CORPORATE COMMUNITY INVESTMENT 2015-2017

24.2 8.91.5

3.5

0.5

28.0

9.6 1.9

6.9

0.5

31.613.8 2.2

7.3

0.5

BY FORM OF CONTRIBUTION(in millions of euros)

BY DRIVER FOR CONTRIBUTION (*)(in millions of euros)

TOTAL CORPORATE COMMUNITY INVESTMENT 2015-2017(in millions of euros)

2015 2016 2017 2015 2016 2017 2015 2016 2017

2015 2016 2017

2015 2016 2017

CASH TIME

COMMERCIAL INITIATIVES IN THE COMMUNITY

IN-KIND MANAGEMENT COSTS

Charitable gifts:one-off institutional donations to the general goals of community organizations.

Community investment: Long-term strategic commitment in partnerships with the community to support specific social activities.

Commercial initiatives in the community: Initiatives of social interest directly related to the company’s retail activity.

25.929.2

37.0

2015 2016 2017

COMMUNITY INVESTMENT

5.23.4 3.3

2015 2016 2017

CHARITABLE GIFTS

(*) Management costs are not included.

35.1

40.0

48.1

2015 2016 2017

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DISTRIBUTION OF CORPORATE COMMUNITY INVESTMENT 2017

The primary or main SDG of each of the 594 Corporate Community Investment projects developed during the current year have been identified. In 2017 we have focused our efforts on SDGs 8, 10 and 12, which represent our priorities, due to the alignment with the company’s activity. In addition, we have contributed significantly to SDGs 3 and 4. More specifically, we have targeted 82% of the Corporate Community Investment - 39 million euros - to initiatives which have had some of the five SDGs as the main goal.

BY SDG (*)

BY ISSUE ADDRESSED (*)

EDUCATIONSOCIAL WELFARE HUMANITARIAN RELIEF OTHERS

19%16%23%42%

BY LOCATION OF ACTIVITY (*)

82%21%

13%

18%16%

14%

OTHERS18%

44% 24%

Spain AmericasEurope

(excluding Spain)Asia and rest of the world

21% 11%

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2017 the first year of operation of the new EPGO II programme (Educate People, Generate Opportunities II), which continues the work carried out by EPGO I, completed in December 2016.

Through this new three-year programme, Inditex and Entreculturas are investing in education and training for employment, as well as in vulnerable groups - especially the displaced or refugees - via the humanitarian relief channel. This work is carried out in 11 Latin American countries, Africa and Asia, with the objective of directly benefiting 165,500 people during these three years.

After the first year of implementation, a total of 111,537 people in Argentina, Bolivia, Brazil, Ecuador, Mexico, Paraguay, Peru, Uruguay, Venezuela, South Africa and Lebanon have directly benefited from these educational, employment and humanitarian relief initiatives.

KEY PROGRAMMES IN 2017

EDUCATION

81%7%

12%

Depth of impact Type of impact

33%

81%

34%

111,537direct beneficiaries

Impact on beneficiaries

connection behaviour or attitude changeimprovement skills or personal effectivenesstransformation quality-of-life or well-being

EPGO PROGRAMME (EDUCATE PEOPLE, GENERATE OPPORTUNITIES)

Our Educational programmes

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The Colombia Borders Programme, developed between 2015 and 2017 in Colombia, Ecuador and Venezuela, aims to provide opportunities and support for the displaced victims or refugees of the Colombian armed conflict. To this effect, Inditex and Entreculturas and the Jesuit Refugee Service carry out activities involving livelihood, formal education and protection and the guarantee of access to rights.

4,420 direct beneficiaries have been registered in the third year of the programme, in aspects such as social economic integration and food security. They have also been offered legal assistance so that they can access their rights, and rights have been guaranteed for educational access, permanent and academic certification of children, young people, displaced persons and refugees.

THE COLOMBIA BORDERS PROGRAMME

51%9%

Depth of impact Type of impact

69%

63%

26%

4,420direct beneficiaries

Impact on beneficiaries

connection behaviour or attitude changeimprovement skills or personal effectivenesstransformation quality-of-life or well-being

40%

In 2016, Inditex signed a three-year cooperation agreement with CYDF for building 10 Village Hope Schools per year. In 2017, 5 Village Hope Schools were selected for construction in Baoshan, Yunnan Province, and the other 5 schools were under construction in Xiji County, Ningxia Province. 895 adolescents have directly benefited from the program.

Inditex Village Hope School Program has improved the infrastructure for rural education in poverty-striken providing access to quality education for students. This program has improved their mental and physical health as well as students’ academic performances. What’s more, this program has also encouraged the investment in elementary education from local government, which will improve the level of school management and teaching, and arouse the whole society’s attention and support to rural primary schools in the impoverished areas.

In 2017 September, Inditex volunteers visited the hopes, taking the opportunity to know and collaborate with the students involved in the program. The Inditex Village Hope School Program has won the “CYDF best partner award in 2017”.

VILLAGE HOPE SCHOOL PROGRAMME

52%1%

Depth of impact Type of impact

100%

47%

45%

895 direct beneficiaries

Impact on beneficiaries

connection behaviour or attitude changeimprovement skills or personal effectivenesstransformation quality-of-life or well-being

47%

More than 1.5 million people directly benefited from our Corporate Community

Investment projects in 2017

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The Emerging Markets Institute of Beijing Normal University, in collaboration with Inditex, has set up in 2017 the program called “The Belt and Road Scholarship” for the IMBA students, whom are pursuing master degree of business administration from developing countries. In particular, it has been awarded this scholarship for students coming from countries along the routes of the Belt and Road. With the help from the Belt and Road scholarship, students have adequate financial support for their thesis writing and the completion of the final projects.

In 2017, it has been established an honorary award “Inditex Chair Professors Funding” for outstanding scholars from Emerging Markets Institute. Those award-winning professors are receiving research funds for doing research concerning the issues of sustainable development as well as education in poverty-stricken areas.

BEIJING NORMAL UNIVERSITY

PROGRAMME

100direct beneficiaries

Impact:

Not applicable. Initiative launched in 2017.

The partnership between Inditex and Tsinghua University School of Economics (Tsinghua SEM) is defined by a three-year agreement between the parties, which began its journey in 2017 and will run until 2019.

In January 2018, 40 MBA students from Tsinghua SEM were selected to travel to Spain to take part in a programme named “Fashion Industry in the Social Media Era”. The students have the opportunity to share their opinions about Inditex’s sustainability policy.

They also gained first-hand knowledge of the ins and outs of the industry, with case studies and visits to the group headquarters. In addition, they underwent training in corporate social responsibility and environmentally friendly practices applied to the fashion business.

TSINGHUA UNIVERSITY PROGRAMME

95%

Depth of impact Type of impact

100%

5%

5%

840 direct beneficiaries

Impact on beneficiaries

connection behaviour or attitude changeimprovement skills or personal effectivenesstransformation quality-of-life or well-being

5%

Tsingua University Programme

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In 2017, the Chair for Refugees and Forced Migrants - created by Inditex and the Comillas Pontifical University - has concluded its research on social integration of applicants for international protection and the role of the Spanish International Reception and Integration System, in collaboration with different organisations such as the Jesuit Migrant Service and, in particular, the University of Duesto.

At the same time, an agenda for quantitative research has been pushed forward, about the refugee population in Spain and its territorial inclusion, in addition to a study carried out with Cáritas of Spain. Finally, two doctoral research grants have been promoted for the Southern European Border and about the psychological intervention processes with refugees, the latter in cooperation with Harvard University.

CHAIR OF REFUGEES AND FORCED MIGRANTS

The Inditex Chair of Spanish Language and Culture in the University of Dhaka (Bangladesh) has been undertaking their activity in this university since 2011. Conceived as a partnership project between the local university and those in A Coruña and Santiago de Compostela, it currently has a team of six teachers.

The Chair teaches Spanish to more than 400 students every year and a cultural activities programme that is open to all students on the campus. The first seminar on Ibero-American studies was organised by this course - and has become the first international academic activity promoted by the Chair in the University of Dhaka.

A photography project featuring an exhibition about the life and works of poet Octavio Paz was also organised. This was a partnership between Spanish and Bangladeshi professionals in collaboration with the Mexican Embassy in New Delhi. In addition, there is an ongoing yearly summer scholarship programme for students at the Chair, and for teacher training, bringing three students from this country to the University of Santiago de Compostela.

INDITEX CHAIR OF SPANISH LANGUAGE AND

CULTURE IN BANGLADESH

66%1%

33%

Depth of impact Type of impact

21%

1%

20%

6,000 direct beneficiaries

Impact on beneficiaries

connection behaviour or attitude changeimprovement skills or personal effectivenesstransformation quality-of-life or well-being

83%1%

Depth of impact Type of impact

1%

17%

100%

481 direct beneficiaries

Impact on beneficiaries

connection behaviour or attitude changeimprovement skills or personal effectivenesstransformation quality-of-life or well-being

16%

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The mission of the Inditex-Universiy of A Coruña (UDC) Chair of Social Responsibility is to promote a space for community, academic training and research applied to social responsibility and innovation by public bodies and administration, companies and non-profit organisations.

2017 saw the sixth edition of the Specialisation Course in Social Responsibility and Innovation (CERIS), a postgraduate course that attracted 143 pre-registration requests, 28 of which were accepted, and 12 received scholarships from Inditex. A total of 625 certified training hours have been delivered through this course. Training is carried out by a team of specialised teaching professionals (around 50%), teachers from the UDC (around 25%), and from other universities (the remaining 25%). 35 invited teachers have also participated.

The TEMPE-ASPA Chair of Disability and Employability at the Miguel Hernández University, in Spain, aims to improve the quality of life of disabled people through social economic training in a university and corporate environment.

The Chair has carried out a range of research and training activities in 2017. The book Employability of people with disabilities and limited intellectual ability, has been published within the framework of the research project to develop employability strategies for people with an intellectual disability.

Similarly, in the area of education, the first edition of the University Expert in Auxiliary Retail Tasks was completed by a total of thirteen students with disabilities.

INDITEX-UDC CHAIR OF SOCIAL RESPONSIBILITY

TEMPE-APSA CHAIR OF DISABILITY AND EMPLOYABILITY

94% 87%6% 13%

Depth of impact Depth of impactType of impact Type of impact

0% 0%

0% 0%

6% 13%

496 direct beneficiaries

202 direct beneficiaries

Impact on beneficiaries

Impact on beneficiaries

connection behaviour or attitude changeimprovement skills or personal effectivenesstransformation quality-of-life or well-being

connection behaviour or attitude changeimprovement skills or personal effectivenesstransformation quality-of-life or well-being

Tempe-APSA chair of Disability and Employability

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at the beginning of its third year, already benefiting around 230,000 people in both countries.

In Cambodia, in particular, over 190,000 people have access to drinking water and sanitation today, thanks to over 42,000 lines of microcredit granted. Water.org has signed agreements with five specialised local microfinance institutions in order to reach this population: Vision Fund Cambodia, LOLC, SAMIC, Chamroeun and Agora Microfinance (AMK).

At the same time, educational activities are already underway to promote healthier hygiene habits and the importance of water and toilet usage in partnership with non-profit credit institution SAMIC.

With respect to Bangladesh, over 35.000 people have gained critical access to safe water and/or improved sanitation through more than 7.000 WaterCredit loans. Water.org supported Sajida Foundation and WAVE Foundation as they each developed policies and procedures for water and sanitation lending, conducted demand assessments and supply side analysis, piloted their newly developed WaterCredit products, and subsequently implemented WaterCredit across their networks.

They have also developed educational programmes to raise awareness about the importance of hygiene and the provision of sanitation and drinking water systems.

We have maintained our partnership with Water.org since 2015 through microcredit lines named WaterCredit, to facilitate access to drinking water and sanitation to over 160,000 people in Bangladesh and Cambodia until 2019. Ever so, the programme has exceeded its final objectives

SOCIAL WELFARE

WATER.ORG PROGRAMME

100%

Depth of impact Type of impact

0%

100%

0%

226,527direct beneficiaries

Impact on beneficiaries

connection behaviour or attitude changeimprovement skills or personal effectivenesstransformation quality-of-life or well-being

Water.org Programme in India (Photo: Water.org)

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particularly focussed on the provision of prenatal care and attention to pregnant women.

Thanks to this alliance, Every Mother Counts has collaborated with the HOPE Foundation for Women and Children of Bangladesh, providing care for pregnant women and their children, as well as maternal education on issues such as breastfeeding, care for the new-born, family planning and vaccination for 1,500 women in the Cox’s Bazar region, in the south east of the country. At the same time the organisation has provided an ambulance for patient transport and financing to provide healthcare for Rohingya refugees that reached the region in 2017.

Also it has launched a photo-journalism project in Bangladesh to portray in images the experience of a pregnancy in conditions of extreme vulnerability.

In the United States, the support of Inditex for Every Mother Counts has allowed to provide the Florida non-profit organization Commonsense Childbirth with a grant to help women on low income and in a situation of social exclusion so that they have access to pre and post-natal care and education and social support. Funds were also used to support public education and awareness programs in the United States including races and other events.

In March 2017, Inditex signed a three-year agreement with the non-profit organisation Every Mother Counts (EMC) by which the Group will contribute a million dollars for projects by the organisation in the United States and Bangladesh,

EVERY MOTHER COUNTS PROGRAMME

99%1%

Depth of impact Type of impact

88%

11%

7%

12,695 direct beneficiaries

Impact on beneficiaries

connection behaviour or attitude changeimprovement skills or personal effectivenesstransformation quality-of-life or well-being

Every Mother Counts Programme in Bangladesh (Photo: Every Mother Counts)

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The Community Development Programme in Bangladesh, in collaboration with Cáritas, focusses on working with communities vulnerable to natural disasters or situations of extreme poverty both in rural areas and in the capital, Dhaka. It is centred around two lines of action:

1) Enhancing the adaptation capacity of the communities vulnerable to natural phenomena such as droughts and floods.

Mitigating the consequences of natural disasters and offering sustainable ways of life to the population of four regions of Bangladesh exposed to floods and drought are the objectives of this line of action, promoting the production of a Plan for disaster preparation and reduction for communities in the Gaibandha, Naogaon, Sherpur and Sunamganj districts.

This Plan includes development activities based on the necessities identified by the communities. With them it is intended to improve the management of the water resources and contribute to the reforestation of the different areas. The issues of subsistence and improving the ways of life have also been considered as key to the development of vulnerable communities.

2) Contribution to the improvement of socio-economic conditions and the dignity of people in the communities affected by extreme poverty in Dhaka.

Improving the quality of life for people by promoting Human Rights in the urban communities affected by extreme poverty -the so-called slums- in the capital Dhaka by means of the development of social institutions for unemployed women without resources is the objective of this line of action of the Community Development Programme in Bangladesh.

Likewise, access to social services for children under six is facilitated. To do this five health and childcare centres have been created, providing training for parents’ associations. Furthermore, in 2017 emphasis has been placed on the training and education of women and adolescents, nutritional support, healthcare and hygiene, maternal and reproductive health among other educational activities.

COMMUNITY DEVELOPMENT PROGRAMME IN BANGLADESH

28%

14%

Depth of impact Type of impact

14%

17%

30,612direct beneficiaries

Impact on beneficiaries

connection behaviour or attitude changeimprovement skills or personal effectivenesstransformation quality-of-life or well-being

58%100%

Community Development Programme in Bangladesh (Photo: Caritas)

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The Community Development Programme in Cambodia, in collaboration with Cáritas, works in rural areas through community associations, farming cooperatives and healthcare volunteers, and relies on the collaboration of healthcare centres and local authorities.

Its principal objective is to improve the resilience of local communities to the challenges posed by climate change, introducing techniques to increase crop yields and animal husbandry. The promotion of farming cooperatives is another of the lines of action and aims to foster business opportunities on a local level.

In 2017, a work cycle finished in 44 villages, and developmental support started in 18 new communities. The programme also pays special attention to maternal and infant health via access to healthcare centres and hospitals, vaccines, prenatal and postnatal care, and the improvement of nutrition for children and the pregnant.

The programme, begun in 2015 in collaboration with Medicus Mundi, has the promotion of health in the working environment and the prevention of work bases illness as its principal foci. In 2017 it continued with this work, with the training of the hygiene and safety committees, and health promotion activities, influencing the improvement of working conditions.

In this context, and thanks to the collaboration with the project partners -both the members of civil society (Union of Feminist Action and the Moroccan Occupational Health Association) and the public administration (Ministries of Labour and Professional Integration, and that of National Education)- have conducted awareness raising events on social rights and the right to health, strengthening of occupational risk prevention skills and literacy for women working in garment sector in Tangiers.

73%24%

3%

Depth of impact Type of impact

24%

95%

6%

1,129direct beneficiaries

Impact on beneficiaries

connection behaviour or attitude changeimprovement skills or personal effectivenesstransformation quality-of-life or well-being

30%

6%

Depth of impact Type of impact

43,124direct beneficiaries

Impact on beneficiaries

connection behaviour or attitude changeimprovement skills or personal effectivenesstransformation quality-of-life or well-being

64%

33%

65%

3%

COMMUNITY DEVELOPMENT PROGRAMME IN CAMBODIA

PROGRAMME FOR CLOTHING WORKERS WELFARE

IMPROVEMENT IN MOROCCO

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Since 2011 Inditex has supported the Cáritas programme with employment in Spain. The objective is to promote access to decent employment for people in situations of social exclusion through the following lines of action:

- Personal accompaniment for each person so as to assist their journey to social inclusion.

- Training, with the focus on improving skills, as a basic requirement to boost employability.

- Encouraging social economy initiatives that generate productive structures in a social and economic environment based on the principles of justice, social cohesion and the generation of opportunities for all.

Thanks to the collaboration with Inditex, in 2017, 32 social economy projects have been consolidated, 1,139 people have improved their employability, 849 of them have received training and 460 have also found a job.

In 2017, and through social organisations such as Missão Paz, CDHIC, CAMI and Aliança Empreendedora, Inditex has benefited 10,400 immigrants in vulnerable situations.

The programme has been fundamentally organised around the following lines of action: migratory regularisation, training for citizenship and humanitarian emergency situations (food and shelter), reaffirming Inditex’s ongoing commitment to the promotion of Human Rights and occupational improvement in the textile sector. Out of the total beneficiaries, 456 people received healthcare.

60%40%

Depth Type of impact

100%

40%

1,139direct beneficiaries

Impact on beneficiaries

connection behaviour or attitude changeimprovement skills or personal effectivenesstransformation quality-of-life or well-being

63%

9%

Depth of impact Type of impact

68%

15%

33%

10,400direct beneficiaries

Impact on beneficiaries

connection behaviour or attitude changeimprovement skills or personal effectivenesstransformation quality-of-life or well-being

100%

28%

EMPLOYMENT AND TRAINING PROGRAMME IN SPAIN

IMMIGRANT INTEGRATION PROGRAMME IN BRAZIL

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Inditex headquarters. Specifically, Inditex has organised this programme through two projects called Coruña Emprega and A Flote, in collaboration with the City Council of A Coruña and the Emalcsa Foundation.

The Coruña Emprega Project centres on professional qualification and on labour mediation to foster the incorporation into the employment market of highly vulnerable groups with difficulties obtaining work. A total of 124 unemployed people found a job in 2017 through Inditex support, representing an average of 69.2% obtaining work. Likewise, 727 people received personalised employment guidance. And 1,755 hours of employment training were given, and 710 hours of work experience in companies.

In relation to the A Flote project, Inditex and the Emalcsa Foundation signed a three-year agreement in May 2017 to contribute to the integration of people at risk of exclusion through the management of immediate relief for social emergency situations that require the social services of the A Coruña City Council. Additionally, the programme foresees measures to prevent the exacerbation of the situation that gave rise to the emergency. Through this project, more than 300 financial relief packages have been managed, mainly related to the right to housing.

During 2017 Inditex strengthened its collaboration in local projects whose objective is to contribute to the social integration and welfare of people at risk of exclusion residing in the A Coruña area (Spain), the province of the

A CORUÑA PROGRAMME

43%

21%

Depth of impact Type of impact

98%

37%

44%

1,097direct beneficiaries

Impact on beneficiaries

connection behaviour or attitude changeimprovement skills or personal effectivenesstransformation quality-of-life or well-being

36%

The Coruña Emprega Project centres on the incorporation into the employment market of highly vulnerable groups

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In September 2017 two earthquakes devastated Mexico and left close to 400 dead as well as serious damage to the country’s infrastructure. Faced with this situation, Inditex launched an emergency programme in collaboration with the Mexican Red Cross and Entreculturas.

The project in collaboration with the Mexican Red Cross mainly centred on the strengthening, equipping and certification of the Urban Search and Rescue (USAR) teams. At the same time, and through the collaboration with Entreculturas, two initiatives have been supported that have benefited more than 18,000 people affected by the earthquake. On the one hand, and together with the Jesuit Migrant Service, the reconstruction of the migrant hostels damaged by the earthquake has begun. On the other hand, a Loyola Foundation project for the reconstruction of housing for affected families has been supported.

Owing to its location on the border with Syria, the Turkish province of Killis has taken in hundreds of thousands of people fleeing the Syrian conflict since the war began over seven years ago. Nearly 135,000 people with limited access to medical care live in the city. Inditex has supported this Médecins Sans Frontières (MSF) project since 2013, which has allowed primary medical and mental health care to be offered to thousands of people since then.

The direct involvement of the Turkish government, within the framework of its agreement with the European Union, has allowed MSF to concentrate on one of the most necessary services after several years of forced displacement: mental health. In 2017 the MSF teams of psychologists and psychotherapists attended and accompanied more than 30,000 people in individual and group sessions.

MEXICO EMERGENCY PROGRAMME SYRIAN REFUGEE CARE

IN KILLIS (TURKEY)

95%3%

2%

Depth of impact Type of impact

34%

97%

1%

30,794direct beneficiaries

Impact on beneficiaries

connection behaviour or attitude changeimprovement skills or personal effectivenesstransformation quality-of-life or well-being

18,582direct beneficiaries

Impact on beneficiaries

Not applicable: one-off programme of an

immediate nature for short-term activities.

HUMANITARIAN RELIEF

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Support to the MSF Emergency Unit (Photo:MSF)

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2017 marks the completion of the seventh year of armed conflict in Syria. Although many people have crossed the country's borders and found refuge in countries such as Turkey, Lebanon and Jordan, others have had to remain in their country.

Presently, around 400,000 people are surviving in the north of Aleppo, on the border with Turkey. Away from the battlefront, the displaced population has sought refuge in the Azaz area. Médecins Sans Frontières (MSF) has kept the Al Salamah hospital operational, ensuring high quality, free medical attention in the region. Inditex supports this project that, in 2017, allowed more than 57,000 people to be seen as outpatients, more than 14,000 children to be vaccinated and assisted nearly 900 births.

The south of Bangladesh is, since August 2017, the destination for more than 900,000 Rohingya refugees that have fled Myanmar. The massive arrival in Bangladesh has stretched the country, and the international agencies, to the limit, causing a scarcity of food and drinking water.

In September, Médecins Sans Frontières (MSF) began to work in the region with the aim of offering medical attention, water and sanitation services to the population in two of its refugee camps. Thanks to this intervention, close to 70,000 people have been seen as outpatients and for mental health. Also, the humanitarian medical organisation has dealt with an outbreak of diphtheria by means of a specific treatment centre with which it has treated around 1,000 patients.

The Inditex contribution to this project has been largely destined to equipping MSF clinics, purifying water and constructing latrines.

ACCESS TO HEALTH FOR THE SYRIAN POPULATION IN THE

NORTH OF AZAZ, SYRIA

ACCESS TO HEALTH FOR THE ROHINGYA REFUGEES

IN BANGLADESH

69%13%

Depth of impact Type of impact

25%

54%

1%

106,743direct beneficiaries

Impact on beneficiaries

connection behaviour or attitude changeimprovement skills or personal effectivenesstransformation quality-of-life or well-being

99%1%

Depth of impact Type of impact

4%

100%

1%

68,254direct beneficiaries

Impact on beneficiaries

connection behaviour or attitude changeimprovement skills or personal effectivenesstransformation quality-of-life or well-being

18%

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The focus of Médecins Sans Frontières (MSF) when it comes to treating infant malnutrition in India is based on demonstrating the benefits of outpatient treatment. The objective is to ensure that those children with higher levels of malnutrition and without additional medical complications can be treated appropriately in their houses, without the need for admission.

In mid-2017, MSF launched a project in Chakradharpur, West Bengal, based on outpatient therapy for malnutrition, thanks to the financing of Inditex.

In this context, community workers have been trained that visit rural areas to identify cases, while equipping outpatient treatment centres where mothers are given food with the essential nutrients so that they can recover at home. In a few months they have treated more than 2,800 children with positive results.

Inditex has maintained its commitment to the Emergency Unit structure of Médecins Sans Frontières since 2011. This support is key to guaranteeing the immediacy of the agency when it comes to responding in a professional and safe manner to humanitarian alerts anywhere in the world, and being able to organise emergency missions exclusively based on medical needs.

This support has allowed the maintenance of the professional structure of the Emergency Unit at its base in Barcelona (Spain) and two of its regional teams, based in the Democratic Republic of Congo and in the Central African Republic, countries with recurrent humanitarian crises.

In 2017 the MSF emergency teams attended to more than 840,000 people in Iraq, delivering medical and logistical supplies to the hospitals in Mosul while the final offensive for the liberation of the city was taking place. Also it has supported the victims of the conflict in Yemen, who also suffered a serious outbreak of cholera. Furthermore, hundreds of malnourished children have been attended to in the state of Borno, in Nigeria. And it has worked in two remote areas of the Democratic Republic of Congo to attend to the displaced and the victims of the violence in the country. In these countries massive vaccination campaigns have been organised against measles and pneumonia.

TREATMENT OF INFANT MALNUTRITION IN

CHAKRADHARPUR, INDIASUPPORT FOR THE MSF

EMERGENCY UNIT

79%21%

Depth of impact Type of impact

21%

2%

2,821direct beneficiaries

Impact on beneficiaries

connection behaviour or attitude changeimprovement skills or personal effectivenesstransformation quality-of-life or well-being

49%

4%

Depth of impact Type of impact

54%

1%

843,810direct beneficiaries

Impact on beneficiaries

connection behaviour or attitude changeimprovement skills or personal effectivenesstransformation quality-of-life or well-being

100%

47% 100%

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In addition to the projects described in the previous sections, Inditex has allocated 19% of its Corporate Community Investment projects in 2017 to activities related to health, economic development, art and culture, among others.

These activities include, mainly, charitable gifts at a corporate level and contributions from our Group brands and subsidiaries to community organisations. In this

context, Inditex assigned more than three million euros in 2017 for charitable gifts, both money and in kind, that was distributed among more than 200 community organisations.

In order to systematise and channel this work, Inditex relies on the Sponsorship and Patronage Committee, the body charged with the approval of these projects.

OTHERS

EPGO Program in Brazil (Photo: Entreculturas)