Consolidated Annual Accounts 2022

Translation of consolidated annual accounts originally issued in Spanish and prepared in
accordance with the regulatory financial reporting framework applicable to the Group in Spain
(see below and Note 35). In the event of a discrepancy, the Spanish-language version prevails.
CONSOLIDATED
ANNUAL ACCOUNTS
2022
Consolidated income
statement
17
Inditex Annual Report 2022 / Consolidated Annual Accounts
(Amounts in millions of euros) (Notes) 2022 2021

Net sales (4) 32,569 27,716
Cost of sales (5) (14,011) (11,902)
GROSS PROFIT 18,559 15,814
57.0 % 57.1 %
Operating expenses (6) (9,867) (8,596)
Other losses and income, net (7) (43) (35)
GROSS OPERATING PROFIT (EBITDA) 8,649 7,183
Other results (33) (231) -
Amortisation and depreciation (8) (2,899) (2,901)
NET OPERATING PROFIT (EBIT) 5,520 4,282
Financial results (9) (214) (142)
Results of companies accounted for using the equity method (18) 53 58
PROFIT BEFORE TAXES (PBT) 5,358 4,199
Income tax (25) (1,211) (949)
NET PROFIT 4,147 3,250
NET PROFIT ATTRIBUTABLE TO NON-CONTROLLING INTERESTS 17 7
NET PROFIT ATTRIBUTABLE TO THE PARENT 4,130 3,243
EARNINGS PER SHARE, euros (10) 1.327 1.042
18
Consolidated statement
of comprehensive income
19

Net profit 4,147 3,250
Items that will be reclassified to the income statement in future years
Other comprehensive income recognised directly in equity:
Translation differences related to financial statements of foreign operations 126 122
Cash flow hedges
Profit (26) - 6
Loss (26) (14) -
Tax effect 2 (1)
Total 114 127
Transfers to the income statement:
Cash flow hedges
Profit (26) (6) -
Loss (26) - 3
Tax effect 2 -
Total (4) 3
Total comprehensive income for the year 4,257 3,380
Total comprehensive income attributable to:

Equity holders of the Parent 4,240 3,373
Non-controlling interests 17 7
Total comprehensive income for the year 4,257 3,380
20
Consolidated balance
sheet
21
(Amounts in millions of euros) (Notes) 31/01/2023 31/01/2022

ASSETS
NON-CURRENT ASSETS 15,344 15,343
Rights of use (16) 4,910 5,224
Other intangible assets (15) 810 589
Goodwill (17) 193 202
Property, plant and equipment (14) 7,591 7,481
Investment property 24 21
Financial investments (18) 334 307
Other non-current assets (19) 278 340
Deferred tax assets (25) 1,203 1,179
CURRENT ASSETS 14,639 13,602
Non-currents assets held for sale (33) 183 -
Inventories (13) 3,191 3,042
Trade and other receivables (12) 851 842
Income tax receivable (25) 238 219
Other current assets 85 82
Other financial assets (26) 8 22
Current financial investments (21) 4,522 2,374
Cash and cash equivalents (21) 5,561 7,021
TOTAL ASSETS 29,983 28,945
EQUITY AND LIABILITIES

EQUITY 17,033 15,759
Equity attributable to the Parent 17,008 15,733
Equity attributable to non-controlling interests 25 26
NON-CURRENT LIABILITIES 4,813 5,157
Provisions (22) 283 287
Other non-current liabilities (23) 222 248
Financial debt (21) - 1
Non-current lease liability (16) 3,924 4,262
Deferred tax liabilities (25) 385 359
CURRENT LIABILITIES 8,137 8,030
Financial debt (21) 13 35
Other financial liabilities (26) 46 22
Current lease liability (16) 1,517 1,562
Income tax payable (25) 264 211
Trade and other payables (20) 6,297 6,199
TOTAL EQUITY AND LIABILITIES 29,983 28,945
22
of cash flows
23

Profit before taxes and non-controlling interest 5,358 4,199
Adjustments to profit
Amortisation and depreciation (8) 2,899 2,901
Provisions for impairment 28 51
Results from companies consolidated by equity method (18) (53) (58)
Lease financial expenses (9) 116 92
Other 170 81
Income tax paid (1,176) (734)
Funds from operations 7,343 6,530
Variation in assets and liabilities
Inventories (193) (759)
Receivables and other current assets (58) (154)
Current payables (418) 1,136
Changes in working capital (669) 223
Cash flows from operating activities 6,674 6,754

Payments relating to investments in intangible assets (388) (460)
Payments relating to investments in property, plant and equipment (1,027) (666)
Collections relating to investments in other financial investments 27 25
Payments relating to investments in other financial investments (3) -
Payments relating to investments in other assets (19) (18) (8)
Collections relating to investments in other assets (19) 54 54
Changes in current financial investments (2,148) (2,198)
Cash flows from investing activities (3,504) (3,253)
Payments relating to non-current financial debt (1) (5)
Payments relating to acquisition treasury shares (61) (71)
Changes in current financial debt (17) 27
Lease payments fixed charge (1,621) (1,668)
Dividends (2,914) (2,192)
Cash flows used in financing activities (4,614) (3,909)
Net increase in cash and cash equivalents (1,443) (408)

Cash and cash equivalents at the beginning of the year (21) 7,021 7,398
Effect of exchange rate fluctuations on cash and cash equivalents (17) 31
Cash and cash equivalents at the end of the year (21) 5,561 7,021
24
of changes in equity
25
(Amounts in millions of euros) Equity attributable to the Parent

Reserves of companies
Share Retained Other accounted for using the Treasury Translation Non-controlling
Capital premium earnings reserves equity method shares differences Cash flows Subtotal interests Total equity
Balance at 1 February 2021 94 20 14,703 221 240 (51) (704) (3) 14,520 30 14,550
Profit for the year - - 3,243 - - - - - 3,243 7 3,250
Profit distribution - - (283) 250 33 - - - - - -
Dividends distribution - - 19 - (19) - - - - - -
Transfers - - (53) - - - 53 - - - -
Hyperinflaction and Other movements - - 13 - 4 - - - 17 1 18
Other comprehensive income for the year - - - - - - 122 8 130 - 130
· Translation differences related to foreign operations - - - - - - 122 - 122 - 122
· Cash flow hedges - - - - - - - 8 8 - 8
Operations with equity holders or owners - - (2,180) 74 - (71) - - (2,177) (12) (2,189)
· Treasury shares - - - - - (71) - - (71) - (71)
· Share-based payments recognition - - - 74 - - - - 74 - 74
· Share-based payments exercise - - - - - - - - - - -
· Dividends - - (2,180) - - - - - (2,180) (12) (2,192)
Balance at 31 January 2022 94 20 15,462 545 258 (122) (529) 5 15,733 26 15,759
Balance at 1 February 2022 94 20 15,462 545 258 (122) (529) 5 15,733 26 15,759
Profit for the year - - 4,130 - - - - - 4,130 17 4,147
Profit distribution - - (58) - 58 - - - - - -
Dividends distribution - - 35 - (35) - - - - - -
Transfers - - (66) - - - 66 - - - -
Hyperinflaction and Other movements - - (150) 1 (2) - 93 - (58) 1 (57)
Other comprehensive income for the year - - - - - - 126 (16) 110 - 110
· Translation differences related to foreign operations - - - - - - 126 - 126 - 126
· Cash flow hedges - - - - - - - (16) (16) - (16)
Operations with equity holders or owners - - (2,893) (6) - (8) - - (2,907) (19) (2,926)
· Treasury shares - - - - - (61) - - (61) - (61)
· Share-based payments recognition - - - 64 - - - - 64 - 64
· Share-based payments exercise - - 2 (70) - 53 - - (15) - (15)
· Dividends - - (2,895) - - - - - (2,895) (19) (2,914)
Balance at 31 January 2023 94 20 16,460 540 279 (130) (244) (11) 17,008 25 17,033
26
To 31 January 2023
NOTES TO THE CONSOLIDATED

ANNUAL ACCOUNTS
OF THE INDITEX GROUP
2022
1. Activity and description of the Group

Industria de Diseño Textil, S.A. with registered office in Spain The internationalisation policy, the Group’s multi-brand format,
(Avenida de la Diputación s/n, Edificio Inditex, Arteixo, A its sustainable production commitments and the support for
Coruña), is the Parent of a fashion global group of companies total integration of channels and new technologies as
present in 5 continents, in both hemispheres, north and south, alternatives for customer communication and sales, represent a
the Inditex Group (hereinafter also “the Group”, “the Inditex means of risk diversification that mitigates our overall exposure
Group” or “the Company”). to risks in the market.
Inditex is listed on all the four Spanish stock exchanges. The operation of this business model would not be feasible
without the integration and flexibility of every stage of our value
Its main activity consists of offering the latest fashion trends
chain: design, production, logistics, stores and customers (with
(clothing, footwear, accessories and household textile products)
to meet customer demands, using high quality and sustainability integrated points of sale, both physical and online).
standards and at attractive prices.
The sales and design teams are strongly focused on the
This activity is carried out through different retail concepts: Zara, customer and firmly committed to sustainability in the
Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho and processes and materials used in our products. The permanent
Zara Home. Each format operates through an online and store contact with stores and online teams by our team of designers,
model that is managed directly by companies over which Inditex through the Product Management Department, helps them to
exercises control through the ownership of all or the majority of learn about customer preferences. In addition, their active
the share capital and of the voting rights, except in certain promotion and search for more sustainable materials and
markets where, for several reasons, the business is carried out production processes help to raise standards of quality and to
through franchises. reduce the social and environmental impact of our activity.
Certain franchise agreements entered into by the Group include Manufacturing and procurement is based on environmentally
purchase options which, if exercised, would essentially enable and socially responsible management of the supply chain which
the Group to have access to the lease rights over the premises ensures dignified working conditions for all the employees of
in which the franchised stores operate and the assets suppliers and manufacturers. Our supply chain has a global
associated with these stores. These options may be exercised presence, organised via 12 supplier clusters that concentrate
after a certain period of time has elapsed since the signing of 98% of total production (12 clusters and 97% of production in
the franchise agreement. 2021), albeit with a very significant weighting of procurement in
areas of proximity to the design centres. Accordingly, we have
The Group holds joint ownership interests in the entities making the capacity to adapt our commercial range to any change of
up the Tempe Group. Based on an analysis of the contractual trend that emerges, so as to immediately adjust the number of
arrangements giving it joint control, the Group classified its garments to actual demand, a factor which has proved crucial in
ownership interest in the Tempe Group as a joint venture. The 2022 and 2021.
interest in the Tempe Group was accounted for using the equity
method. The logistics and distribution system enables the Company to
make continuous shipments to physical and online stores from
The Group does not have any other significant non-controlling the logistics centres of every retail concept throughout every
interests. season. This system operates mainly with centralised logistics
centres for every chain, where stocks are kept and which
In order to offer the latest fashion trends at the right time, distribute the products to physical and online stores worldwide.
meeting high standards of sustainability and with the required
quality, at Inditex we have developed an integrated and flexible The people working in our Company make the sustained and
business model that is clearly customer-oriented. sustainable development of this model possible: a diverse
human team with 182 nationalities (177 nationalities in 2021),
This model helps face business environment challenges. The marked by its creative talent, its passion for fashion, teamwork,
strong competitiveness in the sector, driven by new an enterprising spirit, permanent innovation and responsible
technologies and an increasingly awareness of environmental effort.
challenges, defines a context with a constantly evolving
customer profile. The Group’s goal is to provide fashion products that meet the
most demanding sustainability and health and safety criteria,
Furthermore, geopolitical, demographic and socioeconomic built on respect and promotion of human rights, transparency
changes in supplier or distribution countries, or the retraction in and continuous dialogue with stakeholders.
consumption in certain markets, are, among others, factors
which could affect the optimal achievement of our business
targets. Business can also be affected by potential
consequences of climate change, which could influence
consumer demand patterns and the supply and demand of
textile raw materials used to manufacture the garments, among
others.
28
At 31 January 2023, the various Group concepts had stores in Number of stores
operation with the following geographical distribution:
Company
Managed Franchised Total
Number of stores Spain 1,229 38 1,267
Company Rest of Europe 3,044 156 3,200
Managed Franchised Total
Americas 601 156 757
Spain 1,187 38 1,225
Rest of the World 539 714 1,253
Rest of Europe 2,486 157 2,643
Total 5,413 1,064 6,477
Americas 597 153 750
Rest of the World 457 740 1,197
The majority of company-managed store premises are held
Total 4,727 1,088 5,815
under leases. Information on the main terms of the leases is
provided in Note 16.
At 31 January 2022, the geographical distribution of stores was
as follows:
2. Basis for preparation

The consolidated annual accounts of the Inditex Group, which The Group uses certain performance measures additional to
Parent is Industria de Diseño Textil, S.A., for 2022 were prepared those defined in IFRS, since these measures include information
by the Board of Directors on 14 March 2023 and will be that is essential to assess the evolution of the Group.
submitted for approval at the corresponding Annual General
Meeting. It is considered that they will be approved without any In the consolidated income statement, gross profit, EBITDA,
changes. The consolidated annual accounts for 2021 were EBIT and PBT are defined as follows:
approved by the shareholders at the Annual General Meeting
held on 12 July 2022. • Gross profit: the difference between sales and the cost of
sales. Note 4 and Note 5 contain detailed information on the
These consolidated annual accounts were prepared in items included in these line items in the consolidated income
accordance with the International Financial Reporting Standards statement. The percentage gross profit is calculated as the
(IFRS) and related interpretations (IFRIC and SIC) adopted by gross profit in absolute terms as a percentage of net sales.
the European Union (IFRS-EU) and with the other provisions of
the applicable regulatory financial reporting framework. • Gross operating profit (EBITDA): earnings before financial
results, results from companies consolidated by equity
Inditex’s financial year and that of most of its subsidiaries starts method, taxes and depreciation and amortisation, calculated
on 1 February of each year and ends on 31 January of the as the gross profit less operating expenses and other gains
following year. The twelve-month period ended 31 January 2023 and losses, net.
will hereinafter be referred to as “2022”, the twelve-month period
ended 31 January 2022 as “2021”, and so on. • Net operating profit (EBIT): earnings before financial results,
results from companies consolidated by equity method and
The consolidated financial statements are presented in euros, taxes, calculated as EBITDA less depreciation and
since the euro is the Group’s presentation currency. amortisation and other results.
Unless otherwise stated, the amounts shown in these • Profit before taxes (PBT): calculated as EBIT less financial
consolidated annual accounts are expressed in millions euros. results and results from companies consolidated by equity
method.
The separate annual accounts of the Parent (Inditex) for 2022
were prepared by the Board of Directors in a separate
document to these consolidated annual accounts. Other alternative measures of performance are as follows:
These consolidated annual accounts present fairly the equity • Return on capital employed (ROCE): defined as PBT divided
and financial position of the Inditex Group at 31 January 2023, as by average capital employed in the year (average of equity
well as the results of its operations, the changes in equity and attributable to the Parent plus net financial debt for the year).
the cash flows for the year then ended. The average capital employed considered for the ROCE
calculation by concept relates to the non-current assets,
The consolidated annual accounts of the Inditex Group for 2022 excluding the deferred tax assets, of the concept.
were prepared on the basis of the accounting records of Inditex
and of the other Group companies. • Return on equity attributable to the Parent (ROE), defined as
net profit attributable to the Parent divided by average
shareholders' equity for the year.
29
• Working capital: defined as inventories plus receivables minus

current payables in the consolidated balance sheet.
Impacts of Covid-19
The Covid-19 pandemic continued to affect business
• Net financial position: defined as Cash and Cash Equivalents performance in 2022, albeit more moderately, as almost all
and Current financial investments less Current and Non- restrictions have now been lifted and the situation in most of the
current financial debt, with explicit interest (without Group’s markets has normalised, boosting the economic
considering lease debt). recovery and reinvigorating consumer spending.
• Average net financial debt: defined as Current and Non- The comparison of fiscal year 2022 with the same period of the
Current Financial Debt with explicit interest (without previous year is somewhat skewed by the pandemic, due to the
considering lease debt), less Cash and Cash equivalents and latter’s most significant impact in the first and fourth quarters of
Current financial investments (considered zero if the result is 2021 as a result of restrictions in important markets for the
negative). Group.
• Store operating profit: income generated by sales, at both Some of the supply markets have continued to face sporadic
physical stores and online, as well as all expenses directly disruptions as a result of the pandemic, including temporary
attributable and necessary to generate said income. factory closures, shipping delays, etc., but much less so than in
previous years.
• Quarterly results: calculated as the difference between the The flexibility of the business model has enabled the Group to
cumulative income statement at the end of each quarter less
soften the impact of these disruptions. By leveraging its highly
the cumulative income statement at the end of the
immediately preceding quarter. diverse supply sources, along with its technological
infrastructure, digitalisation initiatives and integration of the
• Sales growth at constant exchange rates: year-on-year physical and online store on which the Group's integrated
change in like-for-like sales growth, eliminating the exchange strategy hinges, it was able to continue operating as normal in
rate effect. This is defined as the calculation of sales in both this context. Business model flexibility, efficient management of
periods, applying the exchange rate for the comparable the integrated inventory, and control over operating expenses
period. have been and continue to be crucial to the group's operational
and financial performance in the period.
• Sales in comparable stores: those stores that have remained
open continuously, without closures or refurbishments, The main judgements and estimates used to measure certain
throughout the entire period for comparison. items of the financial statements were updated to take into
account the impact of the pandemic. Moreover, the specific
These consolidated annual accounts have been prepared on a impacts associated with the pandemic were recognised in the
going concern basis, in the absence of doubts as to the Group's income statement of the year, as part of operating profit:
ability to continue its operations. The assessment that there are no
• Rent concessions obtained from lessors were booked as
material uncertainties affecting the Group's capacity to continue
negative variable lease payments (Note 3.2.o).
with its operations was based on the following information:
• The Group obtained positive results in 2022 overall and in all • Costs linked to the increase in Group store and workplace
of its operating segments (Note 11). health and safety measures form a part of operating expenses
in accordance with their nature.
• Performance forecasts for Spring/Summer 2023.
• Payments received in various countries from social security
• The capacity to adapt the supply chain to changing systems or other government departments in order to
conditions. maintain employment and safeguard economic activity were
booked reducing the amount of the expense they are aimed at
• The flexibility of the model based on sales channel integration. offsetting.
• The capacity to manage the financial risks to which the Group

is exposed (Note 26 Financial instruments and risk
management policy).
• The positive net financial position and the existence of

sufficient undrawn financing facilities to fund the Group’s
activities.
30
The Group’s long-term business plan is still in force, as the
pandemic is considered to be a temporary situation that does
Material estimates and measurement of
not alter its long-term expectations. Accordingly, during the year, uncertainty
the Group has continued to implement the fully integrated store
and online based on key strategic lines: product proposal, In preparing the consolidated financial statements as at 31
customer experience, sustainability and talent retention. January 2023 judgements and estimates were made in order to
measure certain assets, liabilities, income, expenses and
obligations reported herein. Below are the estimates and
Conflict in Ukraine assumptions most exposed to uncertainty:
As a result of the war in Ukraine, which began on 24 February • The assessment of possible impairment losses on certain
2022, the Group temporarily suspended operations in both non-current, non-financial assets. In determining the
Ukraine (from that very moment) and the Russian Federation recoverable value of non-current assets (in accordance with
(from 5 March), as the conflict prevented normal operations the methodology described in Note 3.2.f), estimates are made
throughout the region. The Group's operations in Ukraine of the cash flows at cash-generating units (CGUs) for which
remain suspended to date and in the Russian Federation purpose assumptions are made such as estimated sales
operations have been terminated (Note 33). growth at comparable stores, the performance of operating
expenses and the gross margin of each of the CGUs. These
estimates are based on the Group's prior experience and on
Macroeconomic environment macroeconomic indicators, and the costs incurred by the
Group in relation to implementing the sustainability strategy
The uncertain and challenging macroeconomic and geopolitical are also considered. Accordingly, these estimates are affected
environment were hallmarks of the year. Numerous markets by uncertainty to the extent that they depend on the future
have seen a widespread increase in interest rates, as well as a performance of each cash-generating unit and on the
significant rise in inflation, affecting the cost of many of the possibility of there being events outside the Group’s control in
goods and services in our value chain. In particular, commodity relation to the Covid-19 pandemic (such as mandatory
markets, especially energy and certain textile fibres, temporary closures of physical stores for health reasons), the
experienced a generalised uptick in the year. Energy costs, both evolution of the conflict in Ukraine itself or a general decline in
in the sales markets and in supplying countries linked to the the economic environment that worsens revenue forecasts, as
transformation processes in our value chain, have risen sharply. well as the costs increase.
The situation in the transportation market tended to normalise in • The determination of inventory costs and its net realisable
the final months of the year, although it has not yet returned to value. In establishing the recoverable value of inventories (in
pre-pandemic conditions. Restrictions on commercial traffic and accordance with the methodology described in Note 3.2.h),
rising fossil fuel prices, mainly as a result of geopolitical estimates of net realisable value are used, based on
tensions, have added complexity to an already stressed assumptions linked primarily to the success of the collections,
environment. which determines sales performance, stock rotation, the
volume of discounted units and the percentage discount.
In this very challenging context, once again the flexibility of our These estimates are affected by uncertainty to the extent that
business model has come to the fore. Spending has been they depend on future events associated with the collections’
systematically and rigorously controlled. In addition, in
commercial success.
anticipation of potential supply chain stress, and harnessing the
flexibility of our business model, during the year the Group
brought inventory inflows forward, a situation that normalised • The opinions related to the determination of the lease term, as
throughout the year. well as the estimation of the discount rates applied in the
measurement of the liability under IFRS 16.
• Assessment of counterparty credit risk of financial institutions

in which the Group holds Cash and cash equivalents and
Current financial investments.
The remaining estimates, judgements and assumptions

considered in preparing these consolidated annual accounts
are as follows:
• The consideration of the online business in the model of the

non-current assets impairment test.
• The useful life of property, plant and equipment, intangible

assets and investment property.
• The fair value of certain assets, mainly financial instruments.
• The assumptions used in the actuarial calculation of liabilities

for pensions and other obligations with employees.
31
• The calculation of the provisions required for contingencies

relating to litigation in progress and doubtful debts. These estimates were made using the best information available
at the time of preparation of this consolidated annual accounts.
• The recovery of deferred tax assets on the basis of the However, events that take place in the future might make it
existence of future taxable profits. necessary to change these estimates. Changes in accounting
estimates would be applied prospectively in accordance with
The estimates used took into account the risks deriving from IAS 8.
climate change. The costs linked to the Sustainability Strategy
are factored into the Group’s budgets and business plans which In preparing these consolidated annual accounts the Group
generally cover a 3-year period, and are used to test the omitted any information or disclosures which, not requiring
impairment of the Group’s non-financial assets (Note 3.2.f). disclosure due to their qualitative importance, were considered
However, given the nature of the Group's assets and the not to be material in accordance with the concept of materiality
mitigation measures that it is implementing as part of its defined in the IFRS Conceptual Framework.
Sustainability strategy (Note 32), the risk deriving from climate
change is not considered to have a material impact on the The basis of consolidation and accounting policies applied are
estimates of the useful lives of assets, the realisable value of disclosed in Note 3.
inventories or the analyses in the impairment testing of non-
financial assets.
3. Selected accounting policies

3.1. Basis of consolidation
The profit or loss and each component of other comprehensive
income are allocated to the equity attributable to shareholders
i) Subsidiaries of the Parent and to non-controlling interests in proportion to
their interests, even if this results in the non-controlling interests
Subsidiaries are entities over which the Parent has control and, having a deficit balance. Agreements entered into between the
therefore, the power to govern their financial and operating Group and non-controlling interests are recognised as a
policies (Note 1). Subsidiaries are consolidated by aggregating separate transaction.
the total amount of their assets, liabilities, income, expenses and
cash flows, after making the adjustments and eliminations The share of non-controlling interests of the equity and income
relating to intra-Group transactions. The results of subsidiaries of the subsidiaries is presented under ‘Equity attributable to
acquired during the year are included in the consolidated non-controlling interests’ and ‘Net profit attributable to non-
annual accounts from the effective acquisition date. A detail of controlling interests’, respectively.
the subsidiaries is provided in Annex I.
For business combinations any excess of the consideration

ii) Jointly controlled entities
transferred plus the value assigned to non-controlling interests
over the net amounts of the assets acquired and the liabilities Jointly controlled entities are those entities over whose activities
assumed is recognised as goodwill. the Group has joint control, established by contractual
arrangement. As indicated in Note 1, on the basis of the analysis
Or, where appropriate, the deficiency, after assessing the performed of the contractual arrangements, the Group
amount of the consideration transferred, the value assigned to classified these interests as joint ventures. Pursuant to IFRS 11,
the non-controlling interests and the identification and valuation Joint Arrangements, these entities are accounted for using the
of the net assets acquired, is recognised in profit or loss. equity method in the consolidated financial statements.
Acquisitions of equity interests in businesses subsequent to

obtaining control and partial disposals that do not result in a loss
iii) Harmonisation of criteria
of control are recognised as transactions with shareholders in
equity. Each of the companies included in the scope of consolidation
prepares its annual accounts and other accounting records in
The non-controlling interests shown in the consolidated accordance with the corresponding reporting standards, based
statement of changes in equity relate to non-controlling on the legislation in force in the country of origin. Where these
interests in subsidiaries, and they are presented in consolidated recognition and measurement criteria differ from those adopted
equity separately from the equity attributable to shareholders of by the Inditex Group in preparing its consolidated annual
the Parent. accounts, they are adjusted in order to present the consolidated
annual accounts using uniform accounting policies.
32
iv) Intra-Group eliminations These adjustments were made retrospectively from 1 February
2018 in Argentina and 1 February 2022 in Turkey. Hyperinflation
All intra-Group receivables, payables and transactions, and any adjustment has not been significant in the Net profit attributable
intra-Group gains or losses not yet realised vis-à-vis third to the Parent or the net equity of the Group.
parties, are eliminated in the consolidation process.
There are no other companies in the consolidation perimeter of
the Group, with the exception of the aforementioned, which
v) Translation of financial statements denominated have been considered hyperinflationary economies.
in foreign currencies
The financial statements of companies with a functional vii) Companies with a reporting date that differs
currency other than the euro, except in the case of from that of the Group
hyperinflationary countries, have been translated as follows:
Companies with a reporting date that differs from that of the
• Assets and liabilities are translated to euros at the exchange consolidated annual accounts were consolidated using the
rates prevailing at year-end. annual accounts at their respective reporting dates (see Annex
I). Temporary adjustments are made to reflect the effect of
• Items composing the equity of these companies are significant transactions occurring between the reporting date of
translated to euros at the historical exchange rates (or, for these subsidiaries and that of the consolidated annual accounts.
retained earnings, at the average exchange rates for the year
in which they were generated).
• Income and expenses are translated to euros at the exchange

rates prevailing at the dates on which they were recognised,
while average exchange rates are used in those cases in
which the application of this simplifying criterion does not
generate significant differences.
The differences arising from the application of these exchange

rates are included in consolidated equity under ‘Translation
differences’.
However, exchange differences arising from trade balances

payable and receivable and financing transactions between
Group companies, with foreseeable settlement, are recognised
in income statement for the year.
vi) Financial statements in hyperinflationary

economies
Since 1 August 2018 and 31 July 2022 Argentina and Turkey,
respectively, have been considered hyperinflationary
economies. Consequently, the Group's financial statements of
Argentine and Turkish subsidiaries (see Annex I) have been
integrated into the consolidated financial statements by making
the hyperinflation adjustments provided for in IAS 29 in order to
reflect changes in the overall purchasing power of their
currencies; that is, the financial statements that were at historical
values have been restated to current values, applying the
corresponding general price index and converted to the Group's
presentation currency, considering the closing exchange rate
between the euro and the Argentine peso/Turkish lira.
General price indexes of general acceptance in Argentina and

Turkey have been used to restate the financial statements at
current values. Specifically, the Wholesale Price Index for the
balances prior to 2017 (IPM) and the Consumer Price Index (CPI)
for the balances from 2017 onwards have been used in
Argentina. The Consumer Index Price (CPI) has been used in
Turkey.
In relation to the conversion to presentation currency, a closing

exchange rate of 203.46 Argentine pesos and of 20.45 Turkish
liras per euro was applied.
33
viii) Changes in the scope of consolidation

Annex I details all the companies in the consolidation perimeter.
In 2022, the following companies were merged:
Acquiring Company Acquired Company

G.Zara Uruguay, S.A. G.Zara Home Uruguay, S.A.
Inditex Österreich Gmbh Massimo Dutti Österreich Clothing, Gmbh
Pull & Bear Österreich Clothing, Gmbh
Bershka Osterreich Clothing, Gmbh
Zara Home Österreich Clothing Gmbh
ITX Turkey P.IT.IH.TIC.LTD.STI Oysho Giyim Ltd.
Massimo Dutti Giyim Ltd.
Pull & Bear Giyim Ltd.
Bershka Giyim Ltd.
Stradivarius Giyim Ltd.
Zara Home Ev Teks. Aks. Mob.
Itx Retail Suisse Sarl Oysho Suisse Sàrl
Massimo Dutti Suisse, S.A.R.L.
Pull & Bear Suisse, Sárl
Bershka Suisse, S.A.R.L.
Zara Home Suisse Sàrl.
Zara Chile, S.A. Zara Home Chile Spa
Itx Magyarország Kft. Oysho Magyarorszag, Kft
Massimo Dutti Magyarország Kft.
Pull & Bear Magyarország, Kft.
Bershka Magyarorszag, Kft
Stradivarius Magyarorszag, Kft
Zara Home Magyarorszag Kft.
Itx Bulgaria Eood Oysho Bulgaria, Ltd.
Massimo Dutti Bulgaria, Ltd.
Pull & Bear Bulgaria, Ltd.
Bershka Bulgaria, Ltd.
Stradivarius Bulgaria, Ltd.
Zara Home Bulgaria Eood
Massimo Dutti Limited Liability Company Uterque Cis Limited Liability Company
Itx Retail Mexico, S.A. De C.V. Robustae Mexico, S.A De C.V.
Oysho Mexico, S.A. De C.V.
Massimo Dutti Mexico, S.A. De C.V.
Pull & Bear Mexico, S.A. De C.V.
Stradivarius Mexico, S.A. De C.V.
Zara España, S.A. Born, S.A.
Kiddy's Class España, S.A.
Confecciones Fios, S.A. Hampton, S.A.
34
3.2. Accounting policies including any additional costs incurred until the assets are ready
for their intended use, less accumulated depreciation and any
impairment losses or write-downs that have to be recognised
(Note 3.2.f).
Standards effective for application in reporting
periods beginning on or after 1 January 2022 Depreciation is taken on a straight-line basis over the estimated
The accounting policies used to prepare these consolidated useful lives of the assets.
annual accounts are the same as those applied to the
The estimated average useful lives are as follows:
consolidated annual accounts for the year ended 31 January
2022, since none of the standards, interpretations or
Description Useful life (years)
amendments that are applicable for the first time this year have
had an impact on the Group's accounting policies. Buildings 25 to 50
Fixtures, furniture and machinery 8 to 20
Other property, plant and equipment 4 to 13
Standards and amendments issued and approved
for application in the EU in reporting periods The Group reviews the useful lives of its property, plant and
beginning on or after 1 January 2023 equipment at each financial year-end. Any change in the initially
established estimates is accounted for as a change in an
The Group is analysing the impact of the new standards and
accounting estimate.
amendments to the existing ones entering into force in the
European Union from 1 January 2023 onwards, although they After initial recognition of an asset, only those costs that it is
are not expected to have a material effect on the consolidated probable will give rise to future economic benefits and that can
annual accounts on the date on which their application be measured reliably are capitalised.
becomes mandatory in the European Union.
Periodic maintenance, upkeep and repair expenses are
Standards issued and pending approval for use in recognised in profit or loss as they are incurred.
the European Union
The Group intends to adopt the standards, interpretations and c) Other intangible assets
amendments to standards issued by the IASB, which are not
/ Industrial property: intellectual property is charged for the
mandatory in the European Union, as soon as they enter into
amounts paid for the acquisition of title to or the right to use
force, if they are applicable to it. Although the Group is currently
the related items, or for the expenses incurred in registration of
analysing their impact, based on the analyses carried out to
the rights developed by the Group. It is amortised on a
date, the Group estimates that their initial application will not
straight-line basis over a maximum period of ten years.
have a material impact on its consolidated annual accounts on
the date when their application becomes mandatory in the
European Union. / Computer software: software is stated at cost and is amortised
on a straight-line basis over a five to ten-year period.
a) Translation of foreign currency balances and / Industrial designs: these items are reflected at their production
cost, which includes the cost of samples, staff costs and other
transactions
directly or indirectly attributable costs, and are amortised on a
Foreign currency transactions are translated by applying the straight-line basis over an estimated useful life of two years.
exchange rates prevailing at the date of the transaction (except
in the case of hyperinflationary countries). Monetary assets and / Intellectual property: stated at cost and includes costs of right-
liabilities denominated in foreign currencies are translated to of-use and development of online content. Amortised on a
euros at the end of the reporting period using the closing rate. straight-line basis in less than one year.
Exchange differences arising on translating these items at those
exchange rates are recognised in the consolidated income The Group reviews the useful lives of its intangible assets at
statement for the year as financial result. each reporting date. Any change in the initially established
estimates would be accounted for as a change in an accounting
In presenting the consolidated statement of cash flows, cash
estimate.
flows arising from transactions in a foreign currency are
translated to euros by applying the exchange rates at the date of
the cash flow. The effect of exchange rate changes on cash and
cash equivalents denominated in foreign currency is presented
d) Equity holdings or instruments
separately in the consolidated statement of cash flows under Investments in companies over which the Group does not
“Effect of exchange rate changes on cash and cash exercise significant influence are recognised at fair value
equivalents”. through income statement.
b) Property, plant and equipment

Items of property, plant and equipment are stated at cost,
35
e) Investment property The recoverable amount of assets is the higher of fair value less
costs to sell and value in use. Value in use is determined on the
Investment property consists of assets held to generate rental basis of the expected future cash flows for the period in which
income or for capital appreciation or both, and is stated at cost these assets are expected to generate revenue, expectations
of acquisition less accumulated depreciation and any about possible variations in the amount or timing of those future
impairment losses that have to be recognised (Note 3.2.f). cash flows, the time value of money, the price for bearing the
Investment property is depreciated on a straight-line basis over uncertainty inherent in the asset, and other factors that market
the useful lives of the corresponding assets. participants would consider in pricing the future cash flows to
be derived from the asset.
f) Impairment of non-current assets Recoverable amount is determined for each individual asset,
unless the asset does not generate cash inflows that are largely
The Group periodically assesses whether there are any
independent of those from other assets or groups of assets. If
indications that its non-current assets, including goodwill, might
this is the case, recoverable amount is determined for the CGU
have become impaired, in order to determine whether their
to which the asset belongs. Based on the actual management of
recoverable amount is lower than their carrying amount
operations, the Group has defined each of the commercial
(impairment loss). In the case of goodwill the impairment tests
premises in which it carries out its activities (stores) as basic
are performed at least once a year or more frequently if there
cash-generating units, although these basic units can be
are indications of impairment.
aggregated at concept-country level, or even at the level of all
Impairment of non-current assets (property, plant and the companies located in a given country or all the companies
equipment and intangible assets) other than goodwill corresponding to a given concept (concept level). Group assets
which are not clearly assignable under this structure (for
The Group has developed a general, systematic procedure for
example industrial or logistics assets) are treated separately in a
carrying out these impairment tests based on the monitoring of
manner consistent with this general policy but considering their
certain events or circumstances, principally an analysis of
specific nature. In this case, the aforementioned indicator of
commercial premises that have passed the initial period of
impairment is applied at a higher aggregation level (concept-
consolidation determined by the Group for the generation of
country, country or concept) and if it is necessary to calculate
profits and which are incurring operating losses, as well as
the impairment, all the cash flows generated at that aggregation
operating decisions regarding the continuity of a particular
level must be capable of ensuring the recovery of all the assets
location, or other circumstances which indicate that the value of
associated therewith.
an asset may not be recovered in full. This methodology is
applied to all the stores, except for those which, because of their The Group uses the budgets and business plans, which
importance, are considered to generate flows at a higher generally cover a period of three years, of the various cash-
aggregation level (concept-country), as is the case of flagship generating units to which the assets are assigned. The key
stores and corporate assets. Flagship stores are those whose assumptions on which the budgets and business plans are
characteristics (basically their being in Premium locations) based are estimated sales growth in comparable stores and the
globally contribute to the overall set of the same brand’s cash- evolution of the operating expenses and gross profit of each of
generating units located in the country. For the impairment test, the cash-generating units, based on experience and knowledge
flagship stores are considered together with the other cash- of the trends in each of the markets in which the Group operates
generating units of a single concept and country. and on the macroeconomic indicators that reflect the current
and foreseeable economic situation for each market.
Corporate assets essentially refer to the distribution centres, and
Considering the Group’s business model, online sales and
the impairment tests are performed grouping together the cash
associated costs by concept/country are attributed
generating units of each operating segment.
proportionally to the cash-generating units of each concept/
The operating profit is defined as total sales revenue less all the country.
directly attributable expenses required to generate that revenue.
The estimated cash flows are extrapolated to the period not
For those cash-generating units (CGUs) that are scheduled to covered by the business plan using a growth rate and expense
be closed, an impairment loss is recognised using the same structure that are similar to those of the last year of the business
methodology. plan in the remaining term of the leases for the commercial
premises or without any time limit in the case of company-
In determining the assets with each CGU, the Group includes managed premises (perpetual income). Where the growth rates
the net carrying amount of property, plant and equipment and exceed the industry or country rates, the latter reflect Group’s
intangible assets associated with that CGU, and the rights of use best estimates regarding the business performance, based on
stemming from the lease agreements. Directly-related lease its understanding of each market.
liabilities are not taken into account when determining the
carrying amount of the CGU. Hence, in order to ensure The discount rate applied is usually a after-tax measure based
on the risk-free rate for 30-year bonds issued by the
consistency, the lease payments associated with this liability are
governments in the relevant markets (or similar instruments, if
not treated as cash outflows in calculating the cash flows no 30-year bonds have been issued), adjusted by a risk
associated with each CGU. premium to reflect the increase in the risk of the investment per
country and the systematic risk of the Group. The lease liability is
considered to calculate the risk premium.
36
The average discount rate, resulting from those applied by the The sensitivity analysis evidences the existence of an additional
Group in the various markets, used for the purpose of asset impairment amounting to 2.3 and 6.5 million euros for
calculating the present value of the estimated cash flows was as each of the assumptions, respectively.
follows:
Impairment of goodwill
2022 Average 2021 Average Goodwill acquired through a business combination is allocated
Spain 8.41 % 7.29 % to the group of basic cash-generating units aggregated at
Rest of Europe 8.95 % 8.34 % concept-country level, for the purpose of performing the related
impairment tests. This aggregation is made on the basis of:
Americas 12.29 % 12.17 %
Asia and rest of the world 7.47 % 7.17 % • The degree of independence of the cash flows in each case.
The recoverable value of the assets calculated with pre-tax • How the Group monitors the economic performance of its
discount rates would not differ, as they are at an average of operations, and the model with which its operations are
8.55% for Spain, 9.06% for the rest of Europe, 12.51% for conducted.
Americas and 7.58% for Asia and rest of the world.
• The degree to which the CGUs are subject to the same
Although the Group’s business and profits for the years 2021
and, to a lesser extent, 2022 have been affected by the macroeconomic circumstances.
pandemic, its long-term business plan remains in effect as the
pandemic is considered to be a temporary situation that does • The level with which the goodwill would be naturally
not alter its long-term expectations. associated on the basis of the business model.
In testing the impairment of fixed assets, the key assumptions In any case, this aggregation is never larger than an operating
on which the budgets and business plans are built have been segment, as defined in IFRS 8.
updated with the most recent information available, which
factors in the uncertainty generated by the current Each year, or more often if there are indications of impairment,
macroeconomic and geopolitical environment, the Covid-19
pandemic, the demand for the products sold by the Group and an impairment test is performed, using the methodology
other considerations affecting the estimated operating margin described in the preceding point, unless, if the CGU in question
of each of the cash-generating units. is an acquired company, the cash flow analysis is performed
considering a period of five years, after which perpetual income
The results obtained from the 2022 impairment test performed is projected using a perpetuity growth rate of 2% with respect to
on non-current assets (property, plant and equipment and the growth of the preceding period. The impairment tests for
intangible assets) are shown in the tables of changes included in 2022 and 2021 did not give rise to the recognition of any
Notes 14, 15 and 16 to the consolidated annual accounts relating impairment loss on goodwill.
to property, plant and equipment, other intangible assets and
leases. In addition, the Group has performed a sensitivity analysis
similar to the one described in the section on non-current fixed
The related charge for the period amounting to 64 million euros assets.
(52 million euros in 2021) (Notes 8, 14, 15 and 16) is due primarily
to the impairment corresponding to the closures scheduled and This sensitivity analysis does not imply any additional
the impairment calculated based on the methods described impairment in 2022.
previously.
Reversals of impairment losses
Impairment losses reversed in the period amounting to 11 million Reversals of impairment losses on fixed assets are recognised
euros (70 million euros in 2021) (Notes 8, 14, 15 and 16) with a credit to “Depreciation and amortisation charge” in the
correspond to those CGUs for which impairment had been consolidated income statement, up to the limit of the carrying
recognised in prior years and for which, due to their earnings amount that the asset would have had, net of depreciation or
performance, the calculation for the year shows that the amortisation, had the impairment loss never been recognised,
estimated flows make it possible to recover the value of the solely in those cases in which, once the internal and external
assets associated with the CGU and, consequently, the factors have been assessed, it can be concluded that the
impairment losses recognised in prior years are fully or partially indications of impairment that led to the recognition of the
reversed. impairment losses have ceased to exist or have been partially
reduced.
In addition, considering the current macroeconomic context
and the upward trend in interest rates, the Group has performed The reversal of an impairment loss for a CGU is allocated to the
a sensitivity analysis on the result of the impairment test in the assets of the unit, except for goodwill, pro rata with the carrying
light of the following assumptions:
amounts of those assets and taking into account the limit for the
• Increase of 200 basis points in the discount rate. reversal referred to in the preceding paragraph.
• 10% reduction in future cash flows. An impairment loss recognised for goodwill must not be
reversed in a subsequent period.
37
g) Trade and other receivables To determine net realisable value, all costs necessary for the
realisation of the sale, both incremental and direct costs specific
Receivables are initially recognised at fair value and to the realisation of the sale, are taken into account. In this
subsequently at their amortised cost in accordance with the regard, the Group does not have notable direct and specific
effective interest rate method, less the provision for losses costs linked to the sale of provisioned items. However, the
through impairment. Group incurs indirect selling costs such as staff or store lease
expenses. Following an accounting treatment similar to that of
A provision for impairment losses of trade receivables is
IAS 36 (definition of ‘costs of disposal’) and IFRS 5 (definition of
established when the requirements set out in section l) Financial
‘costs to sell’), the Group considers that these costs should not
instruments are complied with. The amount of the provision is
be taken into account in the determination of the net realisable
recognised in the income statement.
value provision, as they are not considered direct and specific
costs.
h) Inventories Furthermore, the determination of net realisable value is
Inventories are measured at the lower of acquisition or influenced by the evolution of various commercial variables,
production cost and net realisable value. linked primarily to the success of the collections, which
determines sales performance, stock rotation, the volume of
The cost of inventories comprises all costs of purchase and discounted units and the discount percentage.
costs of conversion, as well as design, logistics and transport
costs and any directly allocable costs incurred in bringing the The Group's methodology for estimating the performance of
inventories to their present location and condition. these commercial variables consists of taking as a basis the
historical information, the actual performance of the current
The costs of conversion comprise the costs directly related to collection up to the date on which these estimates are made
the units of production and a systematically calculated portion and the end-of-campaign forecasts, i.e. considering not only the
performance of the various commercial variables of similar
of indirect, variable and fixed costs incurred during the
campaigns in previous years, but also the actual data and
conversion process. forecasts of how the current campaign will develop in order to
evaluate and consider the impacts associated with possible
Cost is calculated on a FIFO basis and includes the cost of
deviations from the historical performance. This analysis is
materials consumed, labour and manufacturing expenses. carried out for each concept to ensure maximum reliability of
the estimates.
At each accounting close, the Group calculates the provision
corresponding to the inventories that are estimated to be sold
below their acquisition price. This provision is made for each
i) Cash and cash equivalents
campaign and for each retail concept.
Cash and cash equivalents include cash on hand and demand
Net realisable value is understood to be: deposits at banks. They also include other short-term, highly
liquid investments that are readily convertible to known amounts
• Raw materials and other supplies: replacement cost. However, of cash and which are subject to an insignificant risk of changes
raw materials and other supplies are not written down below in value, on initial investment. Investments which mature in less
cost if the finished goods in which they will be incorporated than three months from the acquisition date are also included.
are expected to be disposed of at or above production cost.
In the statement of cash flows, bank overdrafts which are
• Goods in progress: the estimated selling price for the repayable on demand and form an integral part of the Group’s
corresponding finished goods, less estimated costs of cash management are included as a component of cash and
completion. cash equivalents. Bank overdrafts are recognised in the
consolidated balance sheet as financial liabilities relating to
• Finished goods for sale: estimated selling price in the normal bank borrowings.
course of business. In this regard, the Group’s goods are sold
in stores and online. Additionally, and to a very limited extent,
goods not sold in stores or online are sold through third
parties.
The selling price of goods varies over the course of their

commercial lifetime, and during sale season a part of the
various collections is sold at a discount.
38
j) Employee benefits l) Financial instruments
Obligations to Group personnel to be settled in the long term Financial assets
are estimated based on the dates on which they vest through
The Group's financial assets are maintained within a business
the application, where appropriate, of actuarial assumptions.
model that aims to collect the contractual cash flows of financial
The Group has allocated a provision to cover the liability
assets, which are exclusively the principal and interest. For this
corresponding to the estimated portion vested at year end.
reason, all of the Group's financial assets are valued after the
The staff costs incurred in the year are determined based on the initial recording at amortised cost, with the exception of bonds
best estimate of the degree to which the conditions giving and derivative financial instruments, which are valued at their fair
entitlement to payment have been met and the period that has value.
elapsed since the commencement of the vesting period for
Financial assets recognised at amortised cost: The amortised
each of the obligations.
cost is determined using the effective interest rate method,
The staff costs incurred in relation to the beneficiaries of the which is the discount rate that equals the value of all future
plans referred to in Note 27 to the consolidated annual accounts expected cash flows of a financial asset during its remaining life,
are recognised with a credit to liability and equity accounts in excluding losses for impairment, to the value of said financial
the period in which the costs are incurred. asset at the time of initial recognition.
The amortised cost of a financial asset is the amount at which

the financial asset is initially recognised, less the repaid principal
k) Provisions and contingent liabilities amounts, plus interest recognised by the effective interest rate
Provisions are recognised in the balance sheet when: method, less any impairment loss. The interest income derived
from the application of the effective interest rate method is
• the Group has a present obligation (legal or constructive) as recognised as a financial result in the consolidated income
result of a past event; statement. However, given that most of the Group's financial
assets valued at amortised cost correspond to accounts
• it is probable that an outflow of resources embodying receivable from customers and temporary financial investments,
economic benefits will be required to settle the obligation; and with maturities in the short term, the impact on the consolidated
income statement for the years 2022 and 2021 of the effective
• a reliable estimate can be made of the amount of the
interest rate method is not relevant.
obligation.
Financial assets measured at fair value: Investment funds, as
Provisions are quantified on the basis of the best information
well as derivative financial instruments, which are maintained
available at the date of preparation of the annual accounts and
within the exchange rate risk hedging policy, are valued at their
are reviewed at the end of each reporting period.
fair value. On the other hand, securities (which for the most part
If it is no longer probable that an outflow of resources will no correspond to the guarantees of compliance with lease
longer be required to settle the obligation, the provision is contracts for premises), are valued at their fair value, which does
reversed. The provision is reversed against the consolidated not differ significantly from the value of the consideration given.
income statement item where the corresponding expense was
Impairment of financial assets
recognised.
The Group recognises a provision for impairment for financial
There are no risks that might give rise to significant future assets recognised at amortised cost. This provision is updated
contingencies affecting the Group that have not already been at each closing date to reflect changes in the credit risk of each
taken into account in these consolidated annual accounts. financial instrument since its initial recognition.
On the other hand, contingent liabilities are possible obligations The Group's policy is to recognise the credit losses expected at
that arise as a result of past events, whose future materialisation 12 months, provided that:
is conditioned by whether or not one or more future events
beyond the control of the Group occur. Unlike provisions, • The credit risk is low at the time of initial recognition of the
contingent liabilities are not recognised in the consolidated financial asset.
balance sheet, but are disclosed in the accompanying Notes to
the annual accounts, unless the possibility of an outflow in • The credit risk has not increased significantly since
settlement is considered to be remote. recognition date.
The Group guarantees the debts of certain companies in the Otherwise, the Group would recognise the expected loss during
Netherlands, pursuant to the provisions of Article 403.1, Book 2, the life of the financial asset. In such case, interest is calculated
Part 9 of the Civil Code of the Netherlands. on the gross value of the financial asset. Additionally, if after the
significant increase in credit risk, objective evidence of
impairment of the financial asset is shown, interest is calculated
considering the value of the financial asset, net of the
recognised impairment. On the other hand, it is considered that
a financial asset is unpaid when its expiration date has not been
reimbursed.
39
To measure credit losses expected at 12 months on financial m) Derivatives and hedging operations
instruments other than trade receivables (Note 26) a
methodology is used based on probability of default (PD), loss Financial instruments acquired by the Group to hedge forecast
given default (LGD) and exposure at default (EAD), using market transactions in foreign currencies are initially recognised at fair
information. This methodology enables expected credit losses value.
from the counterparty to be measured at the time of the initial
Foreign currency hedges relating to forecast transactions are
recognition of the financial assets and allows it to be determined
treated as cash flow hedges, and therefore any gains or losses
whether, at each accounting close date, there has been a
derived from measuring the hedging instrument at fair value
significant increase in the risk of these financial assets or if the
which correspond to the effective portion of the hedge are
counterparty has incurred in default. This information is subject
recognised in equity. The ineffective portion is charged to
to periodic review by the Group’s Management, which
finance costs or credited to finance income, as appropriate.
determines when there has been a significant increase in the
counterparties’ estimated credit losses. The estimated Amounts recognised in equity are taken to income when the
impairment loss is not significant, since almost all financial forecast transaction takes place with a charge or credit to the
assets have a low risk. income statement heading under which it was recognised. Also,
gains or losses recognised in equity are reclassified to finance
In turn, for accounts receivable of commercial origin (Note 12),
income or costs when the forecast transaction is no longer
the Group has a methodology analogous to the one described
expected to occur. The fair value of the hedges is recognised,
above (Note 26), although in this case the measurement of
depending on whether it is positive or negative, under “Other
credit risk of the counterparties is based on factors that affect
financial assets” or “Other financial liabilities” in the
the ability of debtors to meet payment obligations, such as
accompanying consolidated balance sheet.
factors of the economic environment where they operate or the
history of defaults of the counterparty with the Group. In order for these financial instruments to qualify for hedge
accounting, they are initially designated as hedging instruments
Likewise, a commercial debtor is considered to have incurred
and the hedging relationship is documented. Also, the Group
non-payment when it has not met its obligations at maturity, in
verifies, both at inception and periodically over the term of the
which case a provision is established based on seniority for the
hedge, using “effectiveness tests”, that the hedging relationship
past due balances held with said debtor.
is effective, i.e. that it is prospectively foreseeable that the
Derecognition of financial assets changes in the fair value or cash flows of the hedged item
(attributable to the hedged risk) will be almost fully offset by
Financial assets are derecognised from the consolidated those of the hedging instrument. Also, the ineffective portion of
balance sheet when the contractual rights to receive cash flows the hedging instrument is recognised immediately in the
from the asset expire or when substantially all the risks and consolidated income statement.
benefits associated with their property are transferred to another
entity. Any gains or losses from changes in the fair value of financial
instruments that are not considered to be accounting hedges
are recognised directly in the income statement.
The fair value of the instruments was calculated using valuation

techniques based on the spot exchange rate and yield curves,
according to the fair value hierarchy shown below:
Level 1
Fair value is calculated on the basis of quoted prices
(unadjusted) in active markets for identical assets or liabilities
that the entity can access at the measurement date.
Level 2
Fair value is calculated on the basis of inputs other than quoted
prices included within Level 1 that are observable for the asset
or liability, either directly or indirectly.
Level 3
A fair value measurement in which some significant variable is
based on unobservable inputs for the asset or liability.
The measurement methodology, based on the aforementioned

hierarchy, is as follows:
Level 2 instruments
The Group assigns the assets and liabilities associated with its
OTC derivative positions to this level and measures them using
observable market inputs.
40
Level 3 instruments n) Revenue recognition
The Group allocates assets and liabilities related to its derivative
positions where there are no observable market inputs. They are Revenue from sales is recognised when the commitment
estimated through implicit market forward curves and obligations with the customers have been satisfied and which, in
extrapolations of observable market data. In the case of options, general, occurs when the goods are given to the customer.
pricing models based on Black & Scholes formulas are used. Revenue is recognised by the value of the consideration
received. Sales returns, actual and anticipated, are considered
The Group does not have financial instruments included in Level part of the total price of each sale transaction. The amount of
1. the provision for expected refunds at the end of the fiscal year is
not relevant in the accompanying consolidated income
Accordingly, the fair value of the instruments arranged by the statement.
Group is calculated as follows:
Sales of goods to franchises are recognised when control of the
Foreign currency forwards goods is transferred to the franchises. On the other hand,
Fair value measurement income from royalties received from franchisees is recognised
as the franchisee makes use of the rights obtained through the
Foreign currency forwards are basically measured by franchise agreement.
comparing the contract strike price (agreed delivery price) with
the market forward rate for the maturity of the contract. Once In the accompanying consolidated balance sheet no assets nor
the estimated future settlement of the contract has been liabilities have been recorded by contract, as they are not
obtained based on the aforementioned comparison (in euros), considered significant.
the settlement is discounted using the risk-free zero coupon
yield curve (or the interbank yield curve). This risk free valuation There are no significant contracts with financing components.
is subsequently adjusted to include each party's credit risk, both
the risk corresponding to the counterparty (Credit Value
Adjustment or "CVA" or counterparty default risk) and own risk
(Debit Value Adjustment or "DVA" or own default risk).
The CVA and the DVA are calculated by multiplying the

estimated exposure by the probability of default and the loss
severity (which measures the loss given default). Where
possible, the probability of default and the assumed recoverable
amount in the event of default are obtained from quoted CDSs
or from other observable market inputs. The CVA and the DVA
calculations are netted for each counterparty with which the
entity has an ISDA master agreement providing for the netting of
the derivative positions in the event of default.
Options purchased
Fair value measurement:
The determination of the fair value of the (“Plain Vanilla”) options

is based on a modified version of the Black-Scholes formula
(Garman-Kohlhagen). Fair value is a function of the price of the
underlying, the strike price, the time to maturity and the volatility
of the underlying. The credit adjustment is carried out by direct
discounting with credit spread method curves.
Options sold
Fair value measurement:
The determination of the fair value of the options is based on a

modified version of the Black-Scholes formula (Black 76 Model).
Fair value is a function of the price of the underlying, the strike
price, the time to maturity and the volatility of the underlying.
41
o) Leases The lease payments included in the liabilities comprise:
The Group actively manages a large number of lease contracts • Fixed payments (including fixed payments in essence), less
(more than 6,500 contracts). any incentive to lease receivables;
The leases recognised in which the Group acts as the lessee

• Variable lease payments, which depend on an index or rate;
relate mainly to the premises where the stores are located. It has
also been determined that certain contracts for logistics
• Amounts the lessee expects to pay as residual value
services are leases based on the terms of said contracts which
guarantees;
grant the Group exclusive access to the logistics facilities where
these services are provided.
• The exercise price of a call option if the lessee is reasonably
The contracts are very heterogeneous and the clauses agreed sure of exercising that option;
depend to a large extent on the market, the concept, the lessor,
the specific location, whether they are in shopping centres or • Payments for penalties resulting from lease termination, if the
are street level stores, etc.; in short, they depend on each term of the lease reflects that the lessee will exercise an option
location and lessor, although the Group's policy is to always to terminate the lease.
seek maximum flexibility (for example, through the absence of
mandatory compliance periods and penalties, the longest Variable lease payments, which do not depend on an index or
possible extension options, variable payments that depend on rate, are not included in the measurement of the lease liability
the performance of the leased asset, etc.). and or of the right-of-use asset, and are recorded as an
operating expense as they accrue.
At the start date of each contract, the Group assesses whether a
contract is or contains a lease. For those contracts that qualify The contingent rents, common expenses and other expenses
as such, the Group recognises a liability for the present value of related to the lease do not form part of the determination of the
the lease payments known at the inception, to be made over the lease liability and of the right of use, and are recognised as an
term of the lease and an asset for the right to use the underlying expense in the income statement on an accrual basis.Fixed-rent
asset over the lease term. Right of use assets are measured at payments are replaced by the depreciation of the right of use
cost (which includes initial direct costs incurred, any lease and the interest recognised over the lease liability.
payments made before or at the inception of the lease less
incentives received) less accumulated depreciation and The lease liability is presented in two separate lines on the
impairment losses, and are adjusted for any remeasurement of consolidated balance sheet, “Long-term lease liability” for the
lease liabilities. The rights of use are amortised on a straight-line liability to be settled over a period exceeding 12 months and
basis over the term of the lease. “Short-term lease liability” for the portion to be settled in the next
12 months.
Lease incentives include amounts received from shopping
centre developers or owners of commercial premises as After the commencement date, the lease liability is measured by
consideration for entering into a lease contract. They mainly increasing the carrying amount to reflect interest on the lease
correspond to amounts for refurbishing the leased premises to liability and reducing the carrying amount to reflect the lease
ready them for their intended use (contributions to construction payments made.
work).
The Group remeasures the lease liability (and makes the
In the case of leases with fixed rents or guaranteed minimum corresponding adjustment to the right of use) when:
rents, the contributions to construction work diminish the right-
of-use asset, whereas in the case of leases with variable rents • There is a change in the term of the lease or a significant
(for which a right-of-use asset is not previously recognised), change in facts and circumstances that results in a change in
these contributions are recognised as a non-current liability the assessment of the exercise of an extension option, in
under “Other non-current liabilities - Lease incentives” and the which case the lease liability is measured by discounting the
portion expected to be taken to income in the following year as revised payments at the revised discount rate.
a current liability under “Trade and other payables”. These
contributions linked to variable rental lease contracts are • A change in future lease payments results from a change in an
credited to income as a reduction in lease expenses under index or a change in the expected payables related to a
“Operating expenses” over the lease term. residual value guarantee, in which case the lease liability is
measured by discounting the changed payments at the
The right to use the asset is presented under the “Rights of use” discount rate before the change.
heading in the consolidated balance sheet.
• A lease is amended and the amendment is not accounted for
The lease liability is initially measured at the present value of the as a separate lease, in which case the lease liability is
known lease payments, except for those made before or at the remeasured by discounting the revised lease payments at a
commencement date of the contract. The present value of the revised discount rate.
lease liability is determined using an incremental interest rate by
country, term and currency, based on the type of assets leased. The Group applies the exemption relating to leases whose
underlying asset is considered to be of low value. For these
contracts, the Group recognises the lease payments as an
operating expense over the term of the contract.
42
The Group applies IAS 36 to determine whether the right to use The present value of the lease liability is determined using the
the asset is impaired, following the procedures described in implicit interest rate in the lease, and if this cannot be easily
section f) “Impairment of non-current assets” of this note on determined the lessee will use its incremental debt interest rate.
accounting principles. In particular, the right of use arising under Given the difficulty of determining the implicit interest rate of
a lease agreement is deemed to be an asset of the cash- each lease, the Group uses its incremental interest rate by
generating unit with which it is associated. market, term and currency, based on the type of assets leased.
The average weighted rate according to the lease of each
Application of IFRS 16 requires significant judgements regarding contract by geographical area is as follows:
certain key estimates, such as determination of the lease term
and the discount rate (Note 2). 2022 2021
There is also considerable diversity in the terms agreed in the Spain 2.20 % 0.23 %
lease contracts, although the Group's policy is always to seek Rest of Europe 2.43 % 0.91 %
maximum flexibility with short or even non-existent mandatory Americas 4.80 % 3.80 %
periods and unilateral extension options for the Group that are Asia and rest of the world 3.10 % 2.03 %
as long as possible.
The mandatory term agreed in lease contracts averages less As stated above, the Group performs very active management
than 3 years. After these non-cancellable periods, the Group of its lease agreements, which leads to a high volume of
can terminate the contract simply by means of notice, generally additions, removals and contractual amendments. These
of between 6 months and one year. amendments will add an additional variability factor to the
Group’s trading figures.
To determine the lease term there is an assessment of whether
the lessee has reasonable certainty that they will exercise the The Group has no relevant commitments as lessee in respect of
lease extension option, or that they will not exercise the option to uncommenced leases or residual value guarantees. The Group
terminate the lease. The Group determines the lease term as the has no material lease commitments for which it does not yet
non-revocable period of the lease plus those unilateral options have the underlying asset at its disposal for use. In general, the
for extensions over which there is reasonable certainty of lease contracts do not contain any restrictions or covenants with
execution, and for which the following aspects are considered: lessors other than those generally governing this type of
contract.
• The costs related to contract termination. There are generally
no penalties for contract termination, other than the payment During the first five months of the financial year 2022 and
of fixed rents for non-cancellable periods, and there are no financial year 2021, as a result of rental renegotiations linked to
residual value guarantees. Covid-19, the Group has applied to all rent concessions the
practical expedient introduced by the amendment to IFRS 16 –
• The importance of the leased asset for the Group’s operations. Leases – concerning the accounting of rent concessions. The
The assets leased (individually) are not critical to the Group’s amounts recognised in this connection in the consolidated
operations, although there are certain key locations which income statement for the years 2022 and 2021 were 26 and 203
contribute to the Group’s image (flagship stores) or in which million euros, respectively.
very significant investments have been made, where the
degree of certainty regarding the execution of extension
options or non-execution of cancellation options is higher. p) Finance income and costs
Interest income and interest expenses are recognised on an
• The conditions to be complied with in order to exercise or not accrual basis using the effective interest method. Dividend
exercise the options. Generally the required conditions are of income is recognised when the right to receive payment is
an administrative nature, such as the deadline by which the established.
intention to exercise the option needs to be notified, etc.
• The historical experience and the business plans approved by

the Group’s Management, which generally cover a 3-year
period. These business plans consider the Group’s strategic
lines in order to anticipate and adapt to the transformation
process currently underway in the sector as a result of the
development of online sales. The Group periodically reviews
these business plans and incorporates, among others,
initiatives relating to the stores it plans to absorb or refurbish.
As mentioned above, the Group has a wide variety of lease

contracts and has performed a case-by-case analysis to
determine the lease term in each case. This analysis shows that
the terms of leases vary widely, in a range of between 2 and 18
years. Stores earmarked for closure are not included in the
above range and the term is adapted to the estimated date of
closure.
43
q) Income tax r) Current and non-current assets and liabilities

The income tax expense for the year comprises current tax and The Group classifies assets and liabilities as current and non-
deferred tax. Current and deferred tax is recognised as income current items in the consolidated balance sheet. Assets and
or as an expense and included in net profit or loss for the period, liabilities are classified as current when they are expected to be
except to the extent that the tax arises from a transaction which realised or settled within twelve months of the balance sheet
is charged or credited, in the same or a different period, directly date, and are otherwise classified as non-current.
to equity, or from a business combination.
Assets and liabilities are not offset, unless required or permitted
Current tax is the tax expected to be paid or recovered in the by a standard or interpretation.
year, using tax rates in force at the consolidated balance sheet
date, in respect of the current period, and any adjustment to tax
payable or recoverable in respect of prior periods. s) Treasury shares
Deferred tax is calculated using the balance sheet liability Treasury shares acquired by the Group are presented
method, which provides for temporary differences between the separately at cost as a reduction of equity in the consolidated
carrying amounts of assets and liabilities for financial reporting balance sheet, and no gains or losses are recorded as a result
purposes and the amounts used for tax purposes. Deferred tax of transactions carried out with treasury shares.
liabilities are the amounts of income taxes payable in the future
in respect of taxable temporary differences, while deferred tax Costs incurred in treasury share transactions are recorded as a
assets are the amounts of income taxes recoverable in the reduction of equity, after consideration of any tax effect.
future due to the existence of deductible temporary differences,
tax loss carryforwards or tax credit carryforwards.
t) Grants
The Group recognises deferred tax assets and liabilities for When relating to expenses in the year (such as the partial or
temporary differences, except where they relate to the initial total payment of salaries or social security contributions during
recognition of an asset or liability in a transaction which is not a the months of lockdown), grants are accounted for as a
business combination and which at the time of the transaction reduction in expense in the year under the heading which
affected neither gross accounting profit nor taxable profit (tax resulted in their recognition.
loss), or in the case of deferred tax liabilities, where the
temporary differences relate to the initial recognition of goodwill.
Deferred tax liabilities are also recognised for temporary
u) Non-current assets held for sale
differences associated with investments in subsidiaries, except
to the extent that the Parent is able to control the timing of their The Group classifies non-current assets as held for sale if it
reversal and it is probable that the temporary differences will not determines that their carrying amount will be recovered mainly
reverse in the foreseeable future. through a sale rather than through continuing use, provided that
the sale is considered highly probable, the asset is available for
Deferred tax assets and liabilities are measured at the tax rates immediate sale in its present condition and the sale is expected
that are expected to apply to the period when the asset is to be completed within one year from the date of classification.
realised or the liability is settled, based on tax laws that are in
force at the consolidated balance sheet date, and reflecting the Assets are measured at the lower of carrying amount and fair
tax consequences that would follow from the manner in which value less costs to sell, and are presented in the consolidated
the Group expects to recover or settle the carrying amount of its balance sheet under 'Non-current assets held for sale' in
assets and liabilities. Current assets. Assets are no longer depreciated or amortised
once they are classified as held for sale.
Deferred tax assets are recognised to the extent that it is
probable that future taxable profits will be available against
which the corresponding unused tax losses or tax credits can
be utilised. Deferred tax assets, whether recognised or not, are
reviewed at each consolidated balance sheet date.
The Group only offsets current tax assets and liabilities if it has a
legally enforceable right to set off the recognised amounts and
intends either to settle on a net basis, or to realise the asset and
settle the liability simultaneously.
Deferred tax assets and liabilities are recognised in the

consolidated balance sheet under non-current assets and
liabilities, irrespective of the expected date of realisation or
settlement.
44
4. Net sales
Sales in the consolidated income statement include amounts Group Management believes there are no differentiated income
received from the sale of goods and income from rentals, categories with respect to the manner in which the nature,
royalties and other services rendered in the ordinary course of amount, timing and uncertainty of revenues from ordinary
the Group’s business, net of VAT and other sales taxes. activities and cash flows are affected by economic factors. This
consideration is consistent with the breakdown of revenues by
The detail of this line item in 2022 and 2021 is as follows: operating segments (Note 11).
2022 2021
Net sales in company-managed stores and
29,498 25,302
online
Net sales to franchises 2,674 2,150
Other sales and services rendered 397 264
Total 32,569 27,716
5. Cost of sales
The detail of this line item in 2022 and 2021 is as follows: Raw materials and consumables include mainly amounts
relating to the acquisition from or production by third parties of
2022 2021 products held for sale or transformation, and other direct
Raw materials and consumables 14,159 12,623 expenses related to the acquisition of goods (Note 3.2.h).
Change in inventories (171) (773)
Change in provisions 23 52
Total 14,011 11,902
6. Operating expenses
The detail of “Operating expenses” and of the changes therein is The detail, by category, of the headcount of the Group and its
as follows: jointly controlled entities at 31 January 2023 is as follows:
2022 2021 Gender

Personnel costs 4,753 4,179 Categories W M Total
Operating leases (Note 16.3) 859 519 Manufacturing and logistics 4,515 5,743 10,258
Other operating expenses 4,255 3,898 Central services 6,917 4,457 11,374
Total 9,867 8,596 Stores 111,769 31,596 143,365
Total 123,201 41,796 164,997
The detail of “Personnel costs” is as follows:
2022 2021
Wages, salaries and similar 3,980 3,498
Social contributions 773 681
Total 4,753 4,179
45
The detail, by category, of the headcount of the Group and its “Indirect selling expenses” includes mainly expenses relating to
jointly controlled entities at 31 January 2022 is as follows: store and online operations, commissions on credit, debit card
payments, logistics and shipping to customers. “Administrative
Gender expenses” includes all kinds of professional services,
Categories W M Total “Maintenance, repairs and utilities” includes maintenance and
utilities expenses and “Other” includes mainly travel,
Manufacturing and logistics 4,501 5,666 10,167
communications and other operating expenses.
Central services 6,868 4,415 11,283
Stores 113,624 29,968 143,592
Total 124,993 40,049 165,042
The detail of “Other operating expenses” is as follows:
2022 2021
Indirect selling expenses 2,546 2,514
Administrative expenses 559 516
Maintenance, repairs and utilities 730 609
Other 420 259
Total 4,255 3,898
7. Other losses and income, net

This heading includes extraordinary staff costs incurred in the
year as well as the changes in the prices of the debts
recognised as a result of the existence of cross call and put
options between the Group and the owners of some of the
shares of certain of the subsidiaries, since these cross options
are considered to be a deferred acquisition of the shares
constituting the underlying. The estimated option strike price is
recognised as a liability and changes are recognised in the
consolidated income statement (Note 26).
Following there is a description of the main cross put and call

options on those investments:
a) Subsidiary domiciled in South Korea

The Group holds a call option on 20% of the share capital of
Zara Retail Korea, Ltd. This shareholding belongs to Lotte
Shopping Co., Ltd., which in turn has a put option to sell the
entire holding to Industria de Diseño Textil, S.A. The strike price
is set on the basis of the non-controlling shareholder’s share of
the equity of the investee when the call option is exercised.
b) Subsidiary domiciled in South Africa

The Group holds a call option on 10% of the share capital of ITX
Fashion Retail South Africa (Proprietary), LTD. This shareholding
belongs to Peter Vundla Retail (Propietary), LTD, which in turn
has a put option to sell the entire holding to Industria de Diseño
Textil, S.A. The strike price is set on the basis of the non-
controlling shareholder’s share of the equity of the investee
when the call option is exercised.
46
8. Amortisation and depreciation
The detail of "Amortisation and depreciation" is as follows:
2022 2021
Amortisation and depreciation charge (Note 14, 15
and 16) 2,776 2,848
Changes in provisions (Note 14, 15 and 16) 53 (18)
Profit/(loss) on assets 145 61
Other (Note 33) (75) 10
Total 2,899 2,901
9. Financial results
The detail of “Financial results” in the consolidated income Finance income and costs comprise mainly (excluding Lease
statement for 2022 and 2021 is as follows: finance costs), the interest accrued on the Group’s financial
assets and liabilities during the year (Note 21).
2022 2021
Finance income 85 4
Net foreign exchange differences are due principally to
fluctuations in the currencies with which the Group operates
Foreign exchange gains 47 43
(Note 26) between the time when income, expenses and asset
Lease foreign exchange gains - 1 acquisitions or disposals are recognised and when the
Total income 132 48 corresponding assets or liabilities are settled or measured in
accordance with the applicable accounting principles, as well as
the impact of the hyperinflaction adjustment amounting to 90
Finance costs (28) (21)
million euros (16 million euros in 2021)
Lease finance costs (Note 16) (116) (92)
Foreign exchange losses (195) (71)
Lease foreign exchange losses (7) (6)
Total expenses (346) (190)
Total (214) (142)
10. Earnings per share

Basic earnings per share were calculated by dividing net profit As of 31 January 2023, taking into consideration treasury shares
for the year attributable to the Parent by the weighted average that are subject to the long-term incentive plans (Note 24), the
number of ordinary shares outstanding during the year, calculation of diluted earnings per share would result in an
excluding the average number of treasury shares held by the amount of 1.326 euros per share (1.040 as of 31 January 2022).
Group (Note 24), which totalled 3,112,455,405 in 2022 and
3,113,570,977 in 2021.
Diluted earnings per share are calculated based on the profit for
the year attributable to the holders of equity instruments of the
Parent and the weighted average of the ordinary shares
outstanding for the dilutive effects of the potential ordinary
shares.
47
11. Segment reporting

The principal activity of the Inditex Group comprises the retail segment.
and online distribution of clothing, footwear, accessories and
household textile products through various retail concepts The segment liabilities, financial results and taxes are not
targeted at different sectors of the public. disclosed as they do not form part of the key business indicators
defined above or of the segment information reported
The origin and predominant nature of the risks and rewards of periodically to the Board of Directors and to the Group
the Inditex Group’s business units are influenced mainly by the Management.
particular retail concept to which the units belong. The internal
structure of the Inditex Group, the business decision-making Group Management believes there are no differentiated income
process and the system for communicating information to the categories with respect to the manner in which the nature,
Board of Directors and Group Management are organised by amount, timing and uncertainty of revenues from ordinary
retail concept and geographic area. activities and cash flows are affected by economic factors.
The key business indicators, understood as those that are part The Inditex Group segment information is as follows:
of the periodic segment reporting to the Board of Directors and
the Group Management, and used in the decision-making
process, are the sales figure and the profit before taxes by
2022
Zara / Zara Home Bershka Other Inter-segment Total
Sales to third parties 23,902 2,396 6,451 (180) 32,569
Profit before taxes 4,002 326 1,030 - 5,358
Amortisation and depreciation 2,097 221 580 1 2,899
Segment total assets 24,826 1,432 3,725 29,983
ROCE 31 % 32 % 40 % 33 %
Number of stores 2,312 860 2,643 5,815
2021
Zara / Zara Home Bershka Other Inter-segment Total
Sales to third parties 19,714 2,178 5,955 (131) 27,716
Profit before taxes 2,838 330 991 39 4,199
Amortisation and depreciation 2,040 233 623 5 2,901
Segment total assets 23,693 1,426 3,826 28,945
ROCE 25 % 32 % 37 % 28 %
Number of stores 2,489 971 3,017 6,477
For presentation purposes Inditex has integrated the reporting segments based on distribution criteria considered reasonable
of Zara and Zara Home into a single segment due to the existing by Group Management. Inter-segment transactions are carried
synergies between both concepts. The goal is to leverage the out on an arm’s length basis.
operational and brand management impact of the combined
store and online platform. Total segment assets relate to "Total Assets" in the consolidated
balance sheet.
In addition, the retail concepts other than Zara, Zara Home and
Bershka have been grouped into a single reporting segment The ROCE and ROE are calculated as defined in Note 2 to these
due to the similarities in the nature of the products sold and their consolidated annual accounts.
management and monitoring model.
Zara was the first concept created by the Inditex Group and its
For the purpose of reconciliation with the consolidated financial positioning is based on a fashion offering featuring a wide range
statements, the sales to third parties relate to "Net sales" in the of products. Zara Home sells fashionable household products.
consolidated income statement and the depreciation and
amortisation charge corresponds to "Amortisation and Bershka targets the younger consumers and its aim is to offer
depreciation" in the consolidated income statement. the latest fashion at affordable prices.
The segment’s Profit before taxes refers to "Profit before taxes”

in the consolidated income statement. Income and expenses
which might be considered to be corporate in nature or as
belonging to all segments were allocated to each of the
48
11.1. Geographical reporting
Net sales Non-current assets
In the presentation of information by geographical segment,
revenue is based on the geographical location of customers 2022 2021 31/01/2023 31/01/2022
and segment non-current assets are based on the geographical Spain 5,021 4,267 5,058 4,657
location of assets. Segment non-current assets do not include Rest of Europe 16,306 14,051 5,690 5,901
deferred tax assets neither Other non-current assets. Americas 6,556 4,877 2,073 2,051
Asia and rest of the
4,686 4,521 1,042 1,215
world
Total 32,569 27,716 13,863 13,824
12. Trade and other receivables

The detail of this line item at 31 January 2023 and 2022 is as Part of the Group’s activity is carried on through franchised
follows: stores (Note 1). Sales to franchisees are made under agreed
collection terms, which are partially guaranteed as described in
31/01/2023 31/01/2022 Note 26.
Trade receivables (Note 26) 267 267
Balances receivable from public authorities comprise VAT and
Receivables due to sales to
franchises (Note 26)
323 242 other taxes and duties incurred by Group companies in the
countries in which they operate.
Public entities 147 251
Other current receivables (Note 26) 114 82 Other current receivables include items such as rental
Total 851 842 incentives due from shopping centre developers (Note 16) and
outstanding balances from sundry operations.
Trade receivables are mainly customer debit/credit card
payments pending collection.
13. Inventories
The detail of this line item at 31 January 2023 and 2022 is as
follows:
31/01/2023 31/01/2022
Raw materials and consumables 228 199
Goods in process 65 59
Finished goods for sale 2,898 2,784
Total 3,191 3,042
The Group takes out insurance policies to cover the possible

risks of material damage to its inventories.
49
14. Property, plant and equipment

The detail of the items composing “Property, plant and
equipment” in the accompanying consolidated balance sheet
and of the changes therein is as follows:
Land and Fixtures, furniture Other property, plant Work in

buildings and machinery and equipment progress Total
Cost
Balance at 01/02/2021 2,263 11,086 844 248 14,442
Acquisitions 7 726 195 106 1,034
Hyperinflation adjustments 2 11 1 - 14
Disposals (Note 8) (12) (700) (145) - (857)
Transfers (3) 163 5 (171) (6)
Foreign exchange translation differences 46 170 9 2 227
Balance at 31/01/2022 2,303 11,456 909 185 14,854
Balance at 01/02/2022 2,303 11,456 909 185 14,854
Acquisitions 3 932 207 199 1,341
Disposals (Note 8) (14) (716) (182) (10) (922)
Transfers (3) (123) (12) (106) (244)
Foreign exchange translation differences 16 (25) (4) 1 (12)
Balance at 31/01/2023 2,308 11,676 933 270 15,187
Depreciation
Balance at 01/02/2021 470 5,887 478 - 6,835
Depreciation charge for the year (Note 8) 41 800 198 - 1,039
Disposals (Note 8) (5) (556) (137) - (698)
Transfers (1) (1) - - (2)
Foreign exchange translation differences 6 96 8 - 110
Balance at 31/01/2022 512 6,234 548 - 7,294
Balance at 01/02/2022 512 6,234 548 - 7,294
Depreciation charge for the year (Note 8) 39 727 204 - 970
Disposals (Note 8) (7) (585) (169) - (761)
Transfers (8) (71) (9) - (88)
Foreign exchange translation differences 1 (23) (3) - (25)
Balance at 31/01/2023 538 6,388 583 - 7,509
Impairment losses (Note 3.2.f)
Balance at 01/02/2021 - 203 2 - 206
Charge for the year (Note 8) - 36 - - 36
Amounts charged to profit or loss (Note 8) - (68) - - (68)
Disposals (Note 8) - (102) - - (102)
Transfers - 4 - - 4
Foreign exchange translation differences - 3 - - 3
Balance at 31/01/2022 - 76 2 - 79
Balance at 01/02/2022 - 76 2 - 79
Charge for the year (Note 8) - 41 5 - 46
Hyperinflation adjustments - 1 - - 1
Amounts charged to profit or loss (Note 8) - (8) 1 - (7)
Disposals (Note 8) - (23) (4) - (27)
Transfers - (4) - - (4)
Foreign exchange translation differences - (1) - - (1)
Balance at 31/01/2023 - 83 4 - 87
Carrying amount
Balance at 31/01/2022 1,791 5,146 359 185 7,481
Balance at 31/01/2023 1,770 5,205 346 270 7,591
50
“Fixtures, furniture and machinery” includes mainly assets Through its corporate risk management policy, the Group
related to stores. “Other property, plant and equipment” identifies, assesses and controls damage and liability-related
includes, inter alia, information technology equipment and motor risks to which the Group companies are exposed. It does this by
vehicles. compiling and measuring the main risks of damage, loss of
profits and liability affecting the Group and implements
“Disposals” comprise mainly assets related to the commercial prevention and protection policies aimed at reducing, to the
premises at which the Group carries out its commercial extent possible, the frequency and intensity of these risks.
activities. “Transfers” correspond mainly to assets transferred to Likewise, standard measurement criteria are established at
Non-current assets held for sale (Note 33). corporate level which enable the different risks to which the
Group is exposed to be quantified and the assessment policies
Fully depreciated items of property, plant and equipment implemented for insurance purposes to be defined.
include mainly machinery, fixtures and furniture, with a gross
cost value of 1,885 million euros at 31 January 2023 (1,970 million Lastly, the Group takes out insurance policies through corporate
euros at 31 January 2022). insurance programs to protect its assets from the various risks,
and establishes suitable limits, excesses and conditions in view
The Group performed an impairment test and a sensitivity of the nature of the assets and the financial dimension of the
analysis based on reasonably possible changes in the main Group.
variables used in asset measurement, and the results did not
vary significantly (Note 3.2.f).
15. Other intangible assets

“Other Intangible Assets” includes basically amounts paid for the The detail of the items comprised under this paragraph in the
registration and use of Group brand names, industrial designs of consolidated balance sheet and of the changes therein in 2022
items of clothing, footwear, accessories and household goods and 2021 is as follows:
created during the year, the cost of software applications and
the cost of intellectual property development.
Computer Other intangible

Industrial property Total
software assets
Cost
Balance at 01/02/2021 35 578 197 810
Acquisitions 3 214 285 502
Disposals (Note 8) - (9) (247) (256)
Foreign exchange translation differences - - (1) (1)
Balance at 31/01/2022 38 783 234 1,055
Balance at 01/02/2022 38 783 234 1,055
Acquisitions 2 295 248 545
Disposals (Note 8) - (1) (218) (219)
Balance at 31/01/2023 40 1,077 264 1,381
Amortisation
Balance at 01/02/2021 24 246 96 366
Amortisation charge for the year (Note 8) 2 100 253 355
Disposals (Note 8) - (9) (247) (256)
Transfers - - 1 1
Balance at 31/01/2022 26 337 103 466
Balance at 01/02/2022 26 337 103 466
Amortisation charge for the year (Note 8) 2 86 236 324
Disposals (Note 8) - - (220) (220)
Transfers - - 1 1
Balance at 31/01/2023 28 423 120 571
Carrying amount
Balance at 31/01/2022 12 446 131 589
Balance at 31/01/2023 12 654 144 810
51
The Group performed an impairment test and a sensitivity that meet the requirements for capitalisation under IAS 38. The
analysis based on reasonably possible changes in the main Group also capitalised 248 million euros (285 million euros in
variables used in asset measurement, and the results did not 2021) in respect of the development of industrial designs and
vary significantly (Note 3.2.f). intellectual property, and other intangibles associated with the
Group's activity that meet the requirements for capitalisation
The Group capitalised 295 million euros in 2022 (214 million under IAS 38.
euros in 2021) corresponding to software development activities
16. Leases
16.1. Right of use assets
This heading records the measurement of the right to use the
asset underlying the lease contracts during the term of the
contract, for those contracts in which the Group is the lessee.
Cost Amortisation
Balance at 01/02/2021 8,350 Balance at 01/02/2021 2,873
Acquisitions 1,422 Amortisation charge for the year (Note 8) 1,454
Disposals ( Note 8) (533) Disposals (Note 8) (220)
Foreign exchange translation differences 175 Transfers (4)
Balance at 31/01/2022 9,414 Foreign exchange translation differences 68
Balance at 31/01/2022 4,171
Balance at 01/02/2022 9,414
Acquisitions 1,392 Balance at 01/02/2022 4,171
Disposals ( Note 8) (551) Amortisation charge for the year (Note 8) 1,482
Foreign exchange translation differences (16) Disposals (Note 8) (333)
Balance at 31/01/2023 10,239 Foreign exchange translation differences (23)
Balance at 31/01/2023 5,297
Impairment losses
The Group leases commercial premises in which it carries out
Balance at 01/02/2021 -
its business activity. New items for the year relate to additions
amounting to 342 million euros (298 million euros in 2021) and Charge for the year (Note 8) 16
sums associated with revaluations and renegotiations of Amounts charged to profit or loss (Note 8) (2)
contracts modifying the term and/or future rents amounting to Transfer 4
1,050 million euros (1,124 million euros in 2021). Foreign exchange translation differences 1
Balance at 31/01/2022 19
Balance at 01/02/2022 19
Charge for the year (Note 8) 18
Amounts charged to profit or loss (Note 8) (4)
Foreign exchange translation differences (1)
Balance at 31/01/2023 32
Carrying amount
Balance at 31/01/2022 5,224
Balance at 31/01/2023 4,910
52
16.2. Lease liabilities
The breakdown of lease liabilities is as follows: The breakdown of maturity is as follows:
31/01/2023 31/01/2022 2022 2021

Non-current 3,924 4,262 Less than one year 1,517 1,562
Current 1,517 1,562 One to five years 3,656 3,674
Total 5,441 5,824 Over five years 268 588
16.3. Other information

Amounts recognised in the consolidated income statement: Some of the Group’s commercial premises leases contain
conditions for the payment of variable rent that are linked to the
2022 2021 sales generated in such stores, such that the payment for the
Amortisation charge on right of use lease is linked to the development of the store. Variable rent in
1,482 1,454
(Note 8) these stores amounted to 388 million euros (387 million euros in
Lease liabilities interest expenses
116 92
2021). The expense for leases to which the low value exemption
(Note 9) has been applied is not significant.
Variable rent payments (Note 6) 546 450
Others * (Note 6) 313 69 The amount of income from leasing and subleasing is not
significant. The Group has no relevant commitments for signed
* Including mainly Common Expenses, other lease services and the rent
concessions obtained pursuant to application of the practical expedient introduced
lease contracts that have not yet entered into force.
by the amendment to IFRS 16
53
17. Goodwill
The detail of this line item in the consolidated balance sheet and The goodwill arising from the acquisition or termination of
of the changes therein in 2022 and 2021 is as follows: franchise contracts corresponds to the amount of the intangible
assets that did not meet the requirements established in IFRS 3
2022 2021 for separate recognition. These requirements related essentially
Opening balance 202 201 to the capacity of the assets to generate future cash flows.
Transfers (Note 33) (10) -
The recovery of the goodwill is adequately guaranteed through
Foreign exchange translation the profitability of the acquired companies, whose future cash
differences 1 1
flows support the carrying amount of goodwill at year-end (Note
Closing balance 193 202 3.2.f).
Investee 2022 2021
Also, sensitivity analyses were performed based on reasonably
Stradivarius España, S.A. 53 53 possible changes in the main variables used in asset
Itx Portugal - Confecções, S.A. 51 51 measurement, and the recoverable amount is higher than the
Zara Polska, S.p. Zo.o. 33 34 related carrying amount (Note 3.2.f).
Massimo Dutti Benelux, N.V. 20 20
Itx Retail Mexico, S.A. de C.V. 12 12
Other 24 32
Closing balance 193 202
18. Financial investments

The detail of this line item in the consolidated balance sheet and
of the changes therein in 2022 and 2021 is as follows:
Loans and
other credit Investments
facilities accounted for using
the equity method Other Total
Balance at 01/02/2021 - 258 2 261
Acquisitions - 58 - 58
Disposals (Note 28) - (25) - (25)
Transfers 9 - - 9
Foreign exchange traslation differences - 4 - 4
Balance at 31/01/2022 9 295 2 307
Balance at 01/02/2022 9 295 2 307

Acquisitions - 53 3 56
Disposals (Note 28) - (27) - (27)
Transfers 3 - (1) 2
Foreign exchange translation differences (1) (3) - (4)
Balance at 31/01/2023 12 317 5 334
The carrying amount of the ownership interest in the Tempe

Group in the accompanying consolidated balance sheet does
not differ significantly from the value of the Group’s share of the
net assets of the Tempe Group (Note 28 ).
There are no significant restrictions of any kind on the Tempe

Group’s ability to transfer funds to the Group in the form of cash
dividends or the repayment of loans or advances granted by the
Group.
54
19. Other non-current assets
The detail of this line item in the consolidated balance sheet and The guarantees and deposits relate mainly to security deposits
of the changes therein in 2022 and 2021 is as follows: paid to owners of leased commercial premises to ensure
compliance with the conditions stipulated in the leases (Note 16),
Guarantees Other Total and to amounts paid to secure compliance with contracts in
Balance at 01/02/2021 329 51 380 force.
Acquisitions 6 2 8
Disposals (54) - (54)
Transfers 5 (2) 3
Foreign exchange translation
differences 4 (1) 3
Balance at 31/01/2022 290 50 340
Balance at 01/02/2022 290 50 340

Acquisitions 12 6 18
Disposals (54) - (54)
Transfers (6) (17) (23)
differences (3) - (3)
Balance at 31/01/2023 239 39 278
20. Trade and other payables

The detail of this line item in the consolidated balance sheets at The following table shows the information on the average period
31 January 2023 and 2022 is as follows: of payment to suppliers in fiscal year 2022 and 2021, required by
Law 15/2010, of 5 July:
31/01/2023 31/01/2022
Trade payables 4,544 4,636 2022 2021
Personnel 683 569 Days
Public entities 553 490 Average period of payment to suppliers 39.91 41.84
Other current payables 517 504 Ratio of transactions settled 40.22 42.39
Total 6,297 6,199 Ratio of transactions not yet settled 36.42 35.48
Amount
Total payments made 4,672 3,705
Total payments outstanding 413 324
2022 2021
No. of invoices paid within the legal term
(in thousands) 318 271
% of total subject invoices (number) 98 % 97 %
Amount of invoices paid within the legal
term 4,589 3,619
% of total subject invoices (amount) 98 % 98 %
This information relates to suppliers and creditors of Group

companies domiciled in Spain.
55
21. Net financial position

The detail of the Group's net financial position is as follows: The total limit of financing facilities available at 31 January 2023
for the Group amount to 8,083 million euros (7,665 million euros
31/01/2023 31/01/2022 at 31 January 2022). Committed financing facilities amounts to
3,569 million euros (3,567 million euros at 31 January 2022),
Cash in hand and at banks 2,530 3,588
undrawn at year-end. As at 31 January 2023 the subsidiaries had
Short-term deposits 2,830 2,388 very short-term financing of 12 million euros (34 million euros in
Fixed-income securities 201 1,045 2021). The financing is remunerated at interest rates negotiated
Total cash and cash by the Group, which usually comprise a money market rate plus
5,561 7,021 a spread according to the creditworthiness of the company
equivalents
holding the debt.
Current financial investments 4,522 2,374

Current financial debt (13) (35) Financial debt is denominated in the following currencies:
Non-current financial debt - (1)
31/01/2023 31/01/2022
Net financial position 10,070 9,359
Euro 2 2
Turkish lira - 1
“Cash on hand and at banks” includes cash on hand and in
demand deposits at banks. “Short-term deposit” and “Fixed- Indian rupee - 2
income securities” include term deposits and units in money Rouble - 27
market investment funds that use unitholders' contributions to Hryvnia 11 4
acquire fixed-income securities with maturities of less than three Total 13 36
months that have a high credit rating, are highly liquid and
convertible to known amounts of cash, and are subject to an
The maturity schedule of the Group’s bank borrowings at 31
insignificant risk of changes in value. All the balances under this
January 2023 and 2022 was as follows:
line item are unrestricted as to their use and there are no
guarantees or pledges attached to them.
31/01/2023 31/01/2022
“Current financial investments” on the asset side of the Less than one year 13 35
consolidated balance sheet relates mainly to investments in One to five years - 1
money market investment funds and fixed-income securities,
Total 13 36
with maturities ranging from three to twelve months, all of which
have high credit ratings and are highly liquid.
In addition, through its main banks, the Group made 2,420
The detail of the Group's bank borrowings and obligations under million euros (2,277 million euros at 31 January 2022) in supply
finance leases is as follows: chain financing programmes available to its suppliers in order to
give them access to liquidity. This allows suppliers to choose, on
Other financial a voluntary basis, to bring forward the collection of their
Loans invoices. The initially agreed payment terms remain unchanged,
operations Total
Current 12 1 13
and this item is therefore recognised under trade payables and
shown as operating cash flow. At 31 January 2023 usage of
Non-current - - - these programmes amounted to 1,025 million euros (1,263
Total 31/01/2023 12 1 13 million euros in 2021).
Other Financial
Loans
operations Total
Current 34 1 35
Non-current - 1 1
Total 31/01/2022 34 2 36
56
22. Provisions
The detail of this line item in the consolidated balance sheet and
of the changes therein in 2022 and 2021 is as follows:
Pensions and similar

obligations with
personnel Liability Other provisions Total
Balance at 01/02/2021 59 110 83 252
Provisions recorded during the year 31 33 3 67
Disposals (9) (6) (2) (17)
Transfers (6) - (8) (14)
Foreign exchange translation differences (1) - - (1)
Balance at 31/01/2022 74 137 76 287
Balance at 01/02/2022 74 137 76 287

Provisions recorded during the year 45 13 - 58
Disposals (1) (23) - (24)
Transfers (28) (3) (1) (32)
Foreign exchange translation differences (1) (2) (3) (6)
Balance at 31/01/2023 89 122 72 283
Provision for pensions and similar The estimated average payment period for the amounts
provisioned depends largely on the local legislation of each of
obligations to personnel the markets in which the Group operates. An analysis is
performed each year of the portion that will foreseeably have to
Certain Group companies have undertaken to settle specific be paid the following year and the related amount is transferred
obligations to personnel. The Group has recorded a provision to to current payables.
cover the liability corresponding to the estimated vested portion
of these obligations at 31 January 2023. The Directors of Inditex consider that the provisions recorded in
the consolidated balance sheet adequately cover the risks
relating to litigation, arbitration and other contingencies and do
Provision for liabilities not expect any liabilities additional to those recognised to arise
therefrom.
The amounts shown here correspond to present obligations
due to legal claims or constructive obligations arising from past
events which will probably result in an outflow of resources and
can be reliably estimated. At the date of preparation of these
consolidated annual accounts there were no legal proceedings
the final outcome of which could significantly affect the Group's
equity position.
In estimating the amounts provisioned at year-end, the Group

used the following hypotheses and assumptions:
• Maximum amount of the contingency
• Foreseeable evolution and factors on which the contingency

depends
57
23. Other non-current liabilities

The detail of this line item in the consolidated balance sheet and Lease incentives correspond to incentives received from
of the changes therein in 2022 and 2021 is as follows: developers of shopping centres or owners of commercial
premises under lease contracts with variable rental payments.
Lease
incentives Other Total
Balance at 01/02/2021 182 98 280
Acquisitions 86 - 86
Changes through profit or loss (7) 17 10
Transfers (103) (21) (124)
Balance at 31/01/2022 154 94 248
Balance at 01/02/2022 154 94 248

Acquisitions 59 - 59
Changes through profit or loss (1) 7 6
Hyperinflation adjustments 15 - 15
Transfers (83) (21) (104)
Balance at 31/01/2023 142 80 222
24. Equity
Share capital
At 31 January 2023 and 2022, the Company’s share capital Inditex shares are listed on the four Spanish stock exchanges.
amounted to 94 million euros, and was divided into The shares are represented by book entries. Moreover,
3,116,652,000 fully subscribed and paid shares of 0.03 euros par pursuant to Article 497 of the Spanish Companies Act, Inditex
value each. All the shares are of a single class and series, carry has engaged the services of Sociedad de Gestión de Sistemas
the same voting and dividend rights. de Registro, Compensación y Liquidación de Valores, S.A.
(Iberclear) to provide the daily share ownership notification
The Parent’s share premium at 31 January 2023 and 2022 service. As per the Parent’s shareholder register, the members
amounted to 20 million euros, while retained earnings amounted of the Board of Directors directly or indirectly owned, at 31
January 2023 and 31 January 2022, 59.298% and 59,375%,
to 20,028 million euros and 21,024 million euros, respectively.
respectively, of the Parent’s share capital (Note 30). At 31
The Company’s legal reserve, amounting to 19 million euros,
January 2023 and 2022, Pontegadea Inversiones, S.L. held
was recognised in compliance with Article 274 of the Spanish 50.010% of the shares of Inditex.
Companies Act, which establishes that 10% of profit for each
year must be transferred to the legal reserve until the balance of
this reserve reaches at least 20% of the share capital. The legal
reserve is not distributable to shareholders and if it is used to
offset losses, in the event that sufficient other reserves are not
available for this purpose, the reserve must be replenished with
future profits. At 31 January 2023 and 2022, the Parent had
appropriated to this reserve the minimum amount required by
the Spanish Companies Act.
The total consolidated reserves at 31 January 2023 include

restricted reserves amounting to 1,144 million euros (1,271 million
euros at 31 January 2022) whose distribution is limited due to
domestic legal requirements (basically bylaw reserves).
58
Dividends Consequently, at 31 January 2023, the Company owned a total
The dividends paid by the Parent in 2022 and 2021 amounted to of 4,932,514 treasury shares, representing 0.158% of the share
2,895 million euros and 2,180 million euros, respectively. These capital.
amounts correspond to payments of 0.93 euros per share and
0.70 euros per share, respectively. Translation differences
The distribution proposed by the Board of Directors is shown in
Details and variations in translation differences are as follows:
Note 29.
Balance at Balance at
Reclassification Variation
Treasury shares Currency 31/01/2023 01/02/2022
Brazilian
95 7 (11) 99
real
The Annual General Meeting held on 16 July 2019, approved a
2019-2023 Long-Term Incentive Plan (Note 26 to the Turkish lira 59 (12) (36) 107
consolidated annual accounts for 2019) and authorised the Mexican
50 16 (29) 63
Board of Directors to derivatively acquire treasury shares to peso
cater for this plan. Likewise, the Annual General Meeting held on Polish zloty 12 (1) 2 11
13 July 2021 approved a new 2021-2025 Long-Term Incentive British
Plan (Note 26 to the consolidated annual accounts for 2021). 10 (3) 12 -
pound
Russian
At 31 January 2022, the Company owned a total of 4,226,305 - (41) (135) 176
rouble
treasury shares, representing 0.136% of the share capital. (34) 47 - (81)
US Dollar
During the first half of 2022, the first cycle (2019-2022) of the Other 51 (79) (23) 154
2019-2023 Long Term Incentive Plan was settled. The part of the Total 244 (66) (219) 529
incentive in shares was delivered to the Plan beneficiaries and
charged to treasury shares already owned by the Company on The accumulated translation differences of the Russian Rouble
the delivery date. 1,793,791 shares, representing 0.058% of the were charged to results in 2022 as a consequence of the
share capital were delivered. termination of operations in this market (Note 33).
On 12 July 2022, pursuant to a new Temporary Share Buy-back
Programme and under the authorisation in force granted by the
Annual General Meeting, 2,500,000 treasury shares were
acquired, in order to enable the Parent to fulfil the requirements
of shares delivery to beneficiaries of the second cycle of the
2019-2023 Long-Term Incentive Plan as well as to the
beneficiaries of the first cycle, and if applicable, the second
cycle of the 2021-2025 Long-Term Incentive Plan.
25. Income tax

Companies included in these consolidated annual accounts pay
the corporate income tax individually, except for certain
countries (like Spain or the Netherlands) where they pay taxes
under the consolidated tax group regime.
In the case of Spain, the consolidated tax group includes

Industria de Diseño Textil, S.A., as the Parent, and those Spanish
subsidiaries that meet the requirements provided for in Spanish
legislation regulating the taxation of the consolidated tax groups
as subsidiaries. The subsidiaries composing the
aforementioned Spanish tax group are as follows:
59
Bershka BSK España S.A. Hampton S.A. Oysho Logística S.A. Zara Diseño S.L.
Bershka Diseño S.L. Indipunt S.L. Plataforma Cabanillas S.A. Zara España S.A.
Bershka Logística S.A. Inditex S.A. Plataforma Europa S.A. Zara Home Diseño S.L.
Born S.A. Inditex Logística S.A. Plataforma Logística León S.A. Zara Home España S.A.
Choolet S.A. Kiddys Class España S.A. Plataforma Logística Meco S.A. Zara Home Logística S.A.
Comditel S.A. Lefties España S.A. Pull&Bear Diseño S.L. Zara Logística S.A.
Confecciones Fíos S.A. Lefties Logística S.A. Pull&Bear España S.A. Zara S.A.
Confecciones Goa S.A. Massimo Dutti Diseño S.L. Pull&Bear Logística S.A. Zintura S.A.
Denllo S.A. Massimo Dutti Logística S.A Inditex Renovables S.L.
Fashion Logistic Forwarders S.A. Massimo Dutti S.A. Stear S.A.
Fashion Retail S.A. Nikole S.A. Stradivarius Diseño S.L.
Glencare S.A. Nikole Diseño S.L. Stradivarius España S.A.
Goa-Invest S.A. Oysho Diseño S.L. Stradivarius Logística S.A.
Grupo Massimo Dutti S.A. Oysho España S.A. Trisko S.A.
The balance of the “Current Liability for Income Tax” heading in The reconciliation of the income tax expense that would result
the consolidated balance sheet corresponds to the provision for from applying the standard tax rate in force in Spain to the profit
Income Tax relating to the profits for the year 2022, net of before tax and the income tax expense recognised in the
withholdings and prepayments made in the period. The heading consolidated income statement for 2022 and 2021 is as follows:
“Creditors” includes the liability corresponding to other
applicable taxes. 2022 2021
Consolidated accounting profit for the year
The balance of “Current asset for income tax” in the 5,358 4,199
before taxes
consolidated balance sheet corresponds, mainly, to amounts to Tax expense at tax rate in force in the
be recovered from tax authorities for such concept. The balance 1,339 1,050
country of the Parent
of the “Accounts receivable” heading in the accompanying Net permanent differences (83) (73)
consolidated balance sheet includes, among others, the amount (88) (61)
Effect of application of different tax rates
by which the input VAT exceeded output VAT for the period.
Adjustments to prior years' taxes (17) (19)
The income tax expense includes both the part concerning Tax withholdings and other adjustments 88 76
expense for current tax and the corresponding expense for Adjustments to deferred tax assets and
5 3
deferred tax. The current tax is the amount to be paid for the liabilities
income tax related to the fiscal gain of the period and for other Tax withholdings and tax benefits (33) (27)
fiscal charges derived from compliance with the regulations that Income tax expense 1,211 949
regulate the income tax. The deferred tax reflects the amounts
of tax on the profits to be paid or recovered in future periods
The permanent differences correspond, mainly, to expenses not
and arises from the recognition of deferred tax assets and
tax deductible and to tax revenues for the contribution of rights
liabilities.
to use certain assets to a subsidiary.
The income tax expense comprises the following:
The companies that make up the consolidated Group have
benefited from the tax benefits provided for in the tax
2022 2021 regulations in force in each country amounting to 33 million
Current taxes 1,225 880 euros at 31 January 2023 (27 million euros at 31 January 2022).
Deferred taxes (14) 69 These deductions and bonuses derive, fundamentally, from
investments, the correction of double taxation and, to a lesser
extent bonuses.
Temporary differences correspond mainly to differences

between the carrying amount of an asset or liability in the
balance sheet and its tax base, the main difference relating to
right-of-use as a result of application of IFRS 16. The
consolidated balance sheet closed as of 31 January 2023
includes the assets and liabilities for deferred taxes existing at
that date.
60
The detail of “Deferred tax assets” and “Deferred tax liabilities” in At 31 January 2023, the Group has tax losses subject to
the accompanying consolidated balance sheet is as follows: compensation with future benefits amounting to 296 million
euros (453 million euros at 31 January 2022). The
Deferred tax assets arising from: 2022 2021 aforementioned breakdown of Deferred tax assets includes
those corresponding to tax loss carryforwards pending
Provisions 155 151
offsetting, with a balance of 36 million euros at 31 January 2023
Non-current assets 174 191 (50 million euros at 31 January 2022) that, for the most part, are
IFRS 16 207 220 not subject to a period of effective compensation. The Group,
Valuation adjustments 64 72 based on the methodology established to verify the existence of
signs of impairment in its non-current assets (Note 3.2.f),
Tax losses 36 50 constructs the hypotheses to analyse the existence of sufficient
Intra-Group transactions 210 186 fiscal gains in the future that allow to offset such tax losses
Other 357 309 before they prescribe. Additionally, the reversal in the same
Total 1,203 1,179
entity of deferred tax liabilities related to the same tax authority
that may give rise to taxable amounts in sufficient quantity to
apply the unused tax losses against them is taken into account.
Deferred tax liabilities arising from: 2022 2021
Intra-Group transactions 163 155
IFRS16 73 64 In addition, some companies that make up the consolidated
group have reserves that could be subject to taxation should
Non-current assets 72 69
they be distributed. These consolidated financial statements
Valuation adjustments 6 4 include the tax effect associated with such distribution insofar as
Other 71 67 it is likely to occur in the foreseeable future. Temporary
Total 385 359 differences, associated with investments in subsidiaries,
associates and permanent establishments, which have not been
These balances were determined using the tax rates that, based registered for the exception provided for in IAS 12, amount to
on enacted tax laws, will be in force in the period when they are 358 million euros (292 million euros in 2021).
expected to reverse, and in some cases these tax rates may
On the other hand, in accordance with the tax legislation
differ from the tax rates in force in the present year.
applicable to the Parent of the Group, the dividends proposed or
The expense for deferred income tax was adjusted for the declared to the shareholders of said company, before the
difference between the balances calculated at the tax rate in financial statements have been formulated and that have not
force at the end of the present year and those calculated at the been recognised as liabilities, do not generate consequences in
new tax rates at which they will reverse. the Income tax of the Parent.
The changes in deferred tax assets and liabilities in 2022 and The years open to inspection in relation to the main taxes vary
2021 were as follows: according to the tax legislation of each country in which the
Group operates. Ordinary audits are currently being performed
on Group companies in various markets. In any case, it is not
Deferred tax assets arising from: 2022 2021
expected that, as a consequence of the ongoing verification
Opening balance 1,179 1,276 actions, as well as those that could be carried out in the future in
Charge/Credit to income statement 45 (90) relation to non-prescribed periods, liabilities will be revealed that
Charge/Credit to equity 1 19 significantly affect the equity situation or the Group's results.
Transfers (22) (26)
Closing balance 1,203 1,179
Deferred tax liabilities arising from: 2022 2021

Opening balance 359 396
Charge/Credit to income statement 31 (21)
Charge/Credit to equity 5 10
Transfers (10) (26)
Closing balance 385 359
61
26. Financial instruments

and risk management policy
Financial risk management policy Certain Group subsidiaries are granted internal financing
denominated in currencies other than the euro. In accordance
The Group’s activities are exposed to various financial risks: with prevailing foreign currency risk management policies,
market risk (foreign currency risk, raw materials risk and interest derivatives are arranged, mainly forwards, to hedge the changes
rate risk) and other risks (credit risk, liquidity risk and country in fair value related to exchange rates.
risk). The Group’s financial risk management focuses on the
uncertainty of financial markets and aims to minimise the As described in Note 3.2.m, the Group applies hedge
potential adverse effects on the profitability of its business. accounting to mitigate the volatility that would arise in the
consolidated income statement as a result of the existence of
This note provides information on the Group’s exposure to each significant foreign currency transactions. Hedge accounting has
of the aforementioned risks, the Group’s objectives, policies and been used because the Group meets the requirements
processes for managing risk, the methods used to measure described in Note 3.2.m on accounting policies in order to be
these risks, any changes from the previous year and the able to classify financial instruments as hedges for accounting
financial instruments used to mitigate the risks. purposes.
The Group applies the hedge accounting rules established in

Foreign currency risk the applicable reporting standards. As a result, certain financial
instruments were formally designated as hedging instruments
The Group operates in an international environment and, and the Group verified that the hedges are highly effective. The
accordingly, is exposed to foreign currency risk on transactions maturity dates of the hedging instruments were negotiated so
in currencies, in particular the US dollar (the euro is the Group's that they coincide with those of the hedged items. In 2022, using
reference currency and the functional currency of the Parent). hedge accounting, no significant amounts were recognised in
Foreign currency risk arises on future commercial transactions, consolidated income statement either as a result of transactions
recognised assets and liabilities and net investments in foreign that ultimately did not occur or as a result of the ineffectiveness
operations. of the hedges. Approximately 71% of the cash flows associated
with hedges in US dollars are expected to occur in the six
Foreign currency risk is managed in line with the corporate risk months subsequent to year-end, while the remaining 29% are
management model guidelines, which establish the ongoing expected to fall due between six months and one year. Also, the
monitoring of exchange rate fluctuations and other measures impact on the consolidated income statement will foreseeably
designed to mitigate this risk, mainly through the optimisation of occur in those periods. The derivatives hedging the cash flows
the Group's operations, including centralisation, in order to from intra-Group transactions to supply finished goods for sale
minimise the impact, using natural hedges, the benefits of to end customers have short-term time horizons aligned with
diversification and the arrangement of financial hedges. the expected cash flows.
Merchandise and goods for resale are acquired partly through The fair value of the hedging instruments was calculated as
orders placed with foreign suppliers, mostly in US dollars. In described in Note 3.2.m.
accordance with prevailing foreign currency risk management
policies, the Group’s Management arranges derivatives, mainly
foreign currency forwards, to hedge fluctuations in cash flows
Raw material risk
relating to the EUR-USD exchange rate. The Group also uses
non-derivative financial instruments as hedges (e.g., deposits As a result of its business model, the Group is also exposed to
held in currencies other than the euro), and these instruments potential cost volatility and inflation related to the impact
are recognised under “Current financial asset”. resulting from price increases of the many raw materials (both
textile and non-textile) consumed directly and indirectly in the
The Group's head companies supply their subsidiaries with Group's operations and in its procurement of goods, primarily
finished goods for sale to the end customers. With a view to our commercial products (clothing, footwear, accessories and
reducing the fluctuations in value of the expected foreign household textile products), and services, especially in terms of
currency cash flows arising from these intra-Group transactions supply and distribution transport, as well as energy
(denominated in currencies other than the euro), the Group consumption. This risk is measured using ‘at risk’ methodologies
occasionally uses financial derivatives such as purchased from a portfolio of exposures standpoint.
options, zero-premium option combinations and, occasionally,
foreign currency forwards.
62
Economic risk measurement methodology Credit risk
The Group uses the Cash-Flow-at-Risk (CFaR) methodology in The Group is not exposed to significant concentrations of credit
order to estimate the potential impact of exchange rate and raw risk as policies are in place to cover sales to franchises and
material price fluctuations on consolidated profit before tax and, retail sales represent the vast majority of revenue. Collections
if applicable, determine the relevant mitigation strategies. CFaR are made primarily in cash or through credit card payments.
is a methodology widely used in risk management. It is an
evolution of the Value-at-Risk (VaR) method focused on the The Financial Risk Management Policy ensures the
possible loss related to future cash flows. Given a portfolio, measurement, assessment, quantification and mitigation of the
exposed to one or more risks, the CFaR represents the credit risk of investment products and the counterparty risk of
maximum expected loss for a defined time horizon with a given financial institutions by establishing very detailed analysis criteria
confidence interval. The CFaR measures risk in aggregate and Value-at-Risk (VaR) methodologies.
terms, considering the potential diversification benefit resulting
from the correlations between the components of the portfolio The VaR methodology implemented takes into account the
of exposures. counterparty’s probability of default as estimated by the market,
the time horizon of the investments, and the percentage of risk
The underlying portfolio used in the CFaR calculation is exposure that is not expected to be recovered in the event of
composed of future flows denominated in the currency and/or default (loss given default). VaR represents the maximum
raw material in which the underlying risk is expressed for up to expected loss for a defined time horizon with a given confidence
one year. It is estimated that this portfolio represents interval. The exposures used are up to one year. Distributions
substantially all of the Group's exposure to foreign currency and are simulated using the Monte Carlo method by generating
raw material price risk and that the possible adverse changes in random scenarios based on market changes over the previous
exchange rates would affect the following year’s consolidated year. A 95% confidence interval is selected.
profit. The main parameters and assumptions used in the CFaR
calculation relate to the horizon of the estimated flows, the As regards the limitations of the calculation, it should be noted
scenario simulation technique and the selected confidence that the actual maximum loss could be higher than the
interval. The cash flows considered have a duration of up to one estimated loss, since when opting for a 95% confidence level
year, taking as a time horizon the maturity date of each cash
there are 5% of scenarios in which the expected loss is higher.
flow. Distributions are simulated using the Monte Carlo method
by generating random scenarios based on market changes In addition, future market changes do not necessarily coincide
over the previous three years. A 95% confidence interval is with the behaviour of the previous year.
selected. In addition, using the same methodology, the portfolio
performance is analysed periodically and repeatedly under In accordance with the risk management framework, risk
highly stressed scenarios based on market movements during appetite and target risk are set and residual risk is quantified. In
historical periods of high volatility. addition, limits are set and monitored to ensure that residual risk
is within the risk appetite and is also compliant with target risk.
As regards the limitations of the calculation, it should be noted
that the actual maximum loss could be higher than the Although credit risk increased as a result of the market
estimated loss, since when opting for a 95% confidence level conditions initially caused by Covid-19, credit risk in the market
there are 5% of scenarios in which the expected loss is higher. has since moderated. This, together with active management,
In addition, future market changes do not necessarily coincide allowed for its mitigation, thus returning the Group's residual risk
with the behaviour of the previous three years. It may also be the to pre-pandemic levels.
case that the estimated flows, i.e., the portfolio used for the
calculation, differ from the actual flows. In addition, the Group It is estimated that the residual risk resulting from the Group’s
uses the Value-at-Risk (VaR) method to manage foreign twelve-month cash investments could be up to 42 million euros
exchange risk in relation to the most relevant accounting items. at 31 January 2023 (15 million euros at 31 January 2022).
In accordance with the risk management framework, risk The credit risk resulting from the arrangement of financial
appetite and tolerance levels are set and residual risk is derivatives is mitigated by the requirement that such
quantified. Furthermore, limits are set and monitored to ensure instruments be subject to an ISDA master agreement.
that residual risk is within the risk appetite and is also compliant
Occasionally, where deemed necessary, the Group requests
with the established risk tolerance level.
that additional security be provided in the form of pledged
It is estimated that the resulting negative impact on the 12- collateral.
month expected cash flows, attributable to an adverse change
In relation to accounts receivable of commercial origin, the
in the exchange rate and raw material prices resulting from the
Group estimates that at closing date there has not been a
CFaR calculation, could be 599 million euros at 31 January 2023
significant increase in credit risk since its recognition, which is
(381 million euros at 31 January 2022).
why the expected loss at 12 months has been estimated, not
being significant, and it has not been considered necessary to
make valuation corrections with accounts receivable not due.
The main financial assets of the Group are shown in the

“Financial instruments: other information” section below.
63
Liquidity risk At 31 January 2023, there was no significant risk in relation to the
repatriation of funds or any material cash surpluses not available
The Group is not exposed to significant liquidity risk, as it for use by the Group or its subsidiaries. Similarly, there are no
maintains sufficient cash and cash equivalents to meet the significant restrictions on the Group's ability to access the
outflows required in its normal operations. If the Group has a assets and settle the liabilities of its subsidiaries.
specific financing requirement, either in euros or in other
currencies, it resorts to loans, credit facilities or other types of At 31 January 2023, the Group was not operating in markets in
financial instruments (Note 21). which there was more than one exchange rate.
Note 21 contains a detail of the financial liabilities, along with

their scheduled maturities. Capital management
The Group’s capital management objectives are to safeguard its
Interest rate risk ability to continue operating as a going concern, so that it can
continue to generate returns for shareholders and benefit other
The Group's exposure to interest rate risk, which in no case is stakeholders, and to maintain an optimum capital structure to
significant, arises principally in relation to the following items: reduce the cost of capital.
• Cash and cash equivalents: the generalised increase in The Group manages its capital structure and makes
interest rates, especially in the most significant currencies for adjustments thereto in response to changes in economic
the Group's investment (Note 21) has boosted the expected
conditions. The current capital management policy is based on
returns on the Group's financial position (Note 9).
self-financing through funds generated by operations. The
• Financial debt: given the amount of the Group’s external shareholder remuneration policy is detailed in Note 30.
financing (Note 21), any change in interest rates at year-end
There were no significant changes to capital management in the
would not significantly affect consolidated profits.
year.
• Discount rates: used in the calculation of the impairment
losses on non-current assets (property, plant and equipment
and intangible assets) and goodwill. (Note 3.2.f).
• Derivatives: given the type of hedging instruments arranged,

the interest rate risk is not material.
The Group does not have any material financial assets or

liabilities designated as at fair value through profit or loss. A
potential change in fair value would not imply significant impact.
Country risk
The international presence of the Group's business activities
exposes it to the country risk of multiple geographical regions, in
both its supply and its sales and distribution activities. The
Group adapts its administrative and business processes in
order to minimise country risk and take advantage of the
benefits of geographical diversification.
The conflict in Ukraine forced the Group to suspend its

operations in that country and in the Russian Federation (Note
33). Operations in Ukraine remain temporarily suspended. The
Group continues to track the unfolding conflict and its complex
repercussions closely, and to put in place plans to mitigate its
impact.
One of the most significant manifestations of country risk is

foreign currency risk and the possibility of exposure to limits or
controls on the free circulation of cash flows due to a lack of
currency convertibility, in current or capital account terms, or to
unexpected restrictions on the movement of capital. The Group
manages cash at corporate level based on a highly active
repatriation policy aimed at reducing the aforementioned risks
to a minimum. Country risk is also considered when assessing
the jurisdictions in which the Group’s cash is located.
64
Financial instruments
At 31 January 2023 and 2022, the Group had arranged hedging
derivatives consisting basically of forwards on its future
purchases in US dollars, forwards to hedge intra-Group
financing, and options. The fair value of these derivatives is
recognised under “Other financial assets” or “Other financial
liabilities” depending on the related balance.
On 16 January 2023, the Group entered into a VPPA (Virtual

Power Purchase Agreement) for the supply of 100%-renewable
electricity over a period of 10 years. The related projects are in
the development phase, pending final approval, and will come
on stream in 2025. This contract has been booked as a Level 3
financial instrument for which changes in the fair value of the
option sold are recognised in the income statement.
The detail of “Other financial assets” and “Other financial

liabilities” in the consolidated balance sheet is as follows:
Other financial assets 2022 2021

Fair value of the hedging instruments 8 22
Total 8 22
Other financial liabilities 2022 2021

Fair value of the hedging instruments 29 7
Reciprocal call and put options (Note 7) 17 15
Total 46 22
The detail of the fair value (measured as indicated in Note 3.2.m)

of the financial instruments for 2022 and 2021 is as follows:
2022
OTHER FINANCIAL ASSETS MEASURED AT FAIR VALUE AND CLASSIFICATION ON A FAIR VALUE HIERARCHY
Income
Transfer to Recognise
Fair Value Transfer to Income from Directly in Fair Value
Description Level 2022 Income Equity Equity 2021
OTC Derivatives:
Foreign currency forwards 2 8 (8) (6) - 22
Energy options 3 - - - - -
Total Derivates 8 (8) (6) - 22
OTHER FINANCIAL LIABILITIES MEASURED AT FAIR VALUE AND CLASSIFICATION ON A FAIR VALUE HIERARCHY
Income
OTC Derivatives:
Foreign currency forwards 2 29 8 - 14 7
Energy options 3 - - - - -
Total Derivates 29 8 - 14 7
65
2021
OTHER FINANCIAL ASSETS MEASURED AT FAIR VALUE AND CLASSIFICATION ON A FAIR VALUE HIERARCHY
Income
OTC Derivatives:
Foreign currency forwards 2 22 14 - 6 2
Total Derivates 22 14 - 6 2
OTHER FINANCIAL LIABILITIES MEASURED AT FAIR VALUE AND CLASSIFICATION ON A FAIR VALUE HIERARCHY
Income
OTC Derivatives:
Foreign currency forwards 2 7 (4) (3) - 14
Total Derivates 7 (4) (3) - 14
There have been no transfers between the different levels (Note 2022 2021
3.2.m). Cash and cash equivalents (Note 21) 5,561 7,021
Current financial investments (Note 21) 4,522 2,374
Financial instruments: other information Trade receivables (Note 12) 267 267
Receivable due to sales to franchises (Note 12) 323 242
The main financial assets held by the Group, other than cash
Other current receivables (Note 12) 114 82
and cash equivalents and derivative financial instruments, are
the loans and receivables related to the Group’s principal Guarantees (Note 19) 239 290
activity and the guarantees given in relation to the lease of Total 11,026 10,276
commercial premises, which are shown under “Other non-
current assets”. The main financial assets of the Group are as The main financial liabilities of the Group relate to accounts
follows: payable on commercial transactions.
In 2022 and 2021 no significant impairment losses were

recognised on financial assets.
27. Employee benefits

Obligations for benefit plans or defined Likewise, in certain countries, the worker participates in a
percentage of the profits generated by the Group companies in
contributions that country. The liabilities related to these items are recorded in
the "Provisions" and "Other non-current liabilities" heading in the
The Group does not maintain obligations with its employees as consolidated balance sheet. The impact of these obligations on
a general rule for defined benefit plans or contributions. the consolidated income statement and the consolidated
However, in certain countries, due to the legislation or regulation balance sheet is not significant.
in force or local labour practice, the Group assumes certain
commitments related to the payment of certain amounts for
accidents, illness or retirement, among others, sometimes
partially paid by the worker and risk is partially or totally
externalised through hiring the corresponding insurance
policies.
66
Long-term incentive plans
2019-2023 Long-term incentive plan 2021-2025 Long-term incentive plan

The Annual General Meeting held on 16 July 2019 approved the The Annual General Meeting held on 13 July 2021 approved a
2019-2023 Long-Term Incentive Plan for members of the new 2021-2025 Long-Term Incentive Plan for members of the
management team and other staff of Inditex and its Group of management team and other personnel of Inditex and its Group
Companies (hereinafter referred to as the “2019-2023 Plan”). of Companies (hereinafter referred to as the ‘2021-2025 Plan’).
Under this Plan, each of the beneficiaries had the right, provided Under this Plan, each of the beneficiaries will be entitled,
the terms and conditions established therein are fulfilled, to provided the terms and conditions established therein are
receive up to a maximum amount of the incentive allocated. fulfilled, to receive up to a maximum amount of the incentive
allocated.
The 2019-2023 Plan combined a multi-year cash bonus and a
promise to deliver shares which, after a specified period of time The 2021-2025 Plan combines a multi-year cash bonus and a
has elapsed and the achievement of the specific objectives has promise to deliver shares which, after a specified period of time
been verified, would be paid to the Plan beneficiaries, either in has elapsed and the achievement of the specific objectives has
full or at the percentage applicable in each case. been verified, will be paid to the Plan beneficiaries, either in full
or at the percentage applicable in each case.
The 2019-2023 Plan had a total duration of four years and was
structured into two mutually independent time cycles. The first The 2021-2025 Plan has a total duration of four years and is
cycle (2019-2022) of the 2019-2023 Plan ran from February 1, structured into two mutually independent time cycles. The first
2019 to January 31, 2022 and was settled in the first quarter of cycle (2021-2024) of the Plan runs from 1 February 2021 to 31
2022. The second cycle (2020-2023) runs from 1 february 2020 January 2024. The second cycle (2022-2025) spans the period
to 31 January 2023, and is scheduled to be settled in the first from 1 February 2022 to 31 January 2025.
quarter of 2023.
The 2021-2025 Plan is linked to critical business, sustainability
The 2019-2023 Plan was linked to critical business targets and and shareholder value creation targets. The most significant
the creation of shareholder value. Furthermore, also linked long- development is that the share of sustainability- and
term variable remuneration to objectives related to sustainability environment-linked goals has increased to 25% of the overall
and the environment, with this index having a maximum weight Plan, with respect to the 2019-2023 Plan.
of 10% over the whole.
The 2021-2025 Plan does not expose the Group to any material
The 2019-2023 Plan did not expose the Group to any material risks.
risks.
The liabilities related to the plans in cash is shown registered in
To cater for this 2019-2023 Plan, the Company has, as a plan the ‘Provisions’ and “Trade and other payables” item of the
asset, a sufficient number of treasury shares to be able to settle consolidated balance sheet, and its annual allocation is included
the future obligations (Note 24). in the ‘Operating expenses’ item in the consolidated income
statement.
The incentive to be received will be calculated as provided for in
resolution nine of the Annual General Meeting held on 16 July The amount relating to the equity-settled component of the
2019. plans is recognised under ‘Equity’ in the consolidated balance
sheet and the related period charge is reflected under
‘Operating expenses’ in the consolidated income statement.
The impact of these obligations on the consolidated income

statement and balance sheet is not significant.
67
28. Jointly controlled entities

Inditex has a 50% stake in the group formed by the parent,
Tempe, S.A., and its subsidiaries, which detail is shown in the
Appendix I. These companies engage mainly in the design,
supply and distribution of footwear to Inditex Group companies,
their main customer.
Set forth below is the financial information of the Tempe Group,

obtained from its consolidated financial statements prepared in
accordance with IFRS, together with other relevant financial
information:
2022 2021 2022 2021

Fixed assets 254 251 Net sales 1,408 1,305
Other 36 36 Gross profit 396 391
Non-current assets 290 287 Operating expenses (246) (214)
Inventories 330 325 Amortisation and depreciation (25) (24)
Trade and other receivables 436 392 Net operating profit (EBIT) 125 153
Cash and cash equivalents 24 20 Net profit 105 119
Current assets 790 737
In 2022 the Group received dividends totalling 27 million euros
Non-current liabilities (27) (26) (25 million euros in 2021) from Tempe (see Note 18).
Trade and other payables (393) (387)
Other (9) (2)
Current liabilities (402) (389)
Net assets 651 609
29. Proposed distribution

of the profit of the Parent
The proposed appropriation of the Parent’s profit in 2022 in the The proposal covers a dividend distribution in the maximum
amount of 1,906 million euros made by the Board of Directors amount of 3,740 million euros, corresponding to 1.20 (gross)
consists of distributing dividends in a maximum amount of 1,870 euros per share for the entire stake of the Parent (3,116,652,000
million euros and allocate at least 36 million euros to voluntary shares). Since the Parent’s net income in 2022 has reached
reserves. 1,906 million euros, the difference between the interim dividend
and the full dividend will be charged against the Parent’s
The Board of Directors will propose to shareholders at the unrestricted reserve.
Annual General Meeting to pay shares with a right to dividend, a
dividend of 1.20 euros per share, being comprised of a 0.796
euros per share ordinary dividend and a 0.404 euros per share
bonus dividend.
Out of the total amount of 1.20 euros per share, 0.60 euros per
share will be paid on 2 May 2023 as ordinary dividend against
2022 results, and 0.60 euros per share will be distributed against
the Parent’s unrestricted reserves, payable on 2 November 2023
as ordinary and bonus dividend.
68
30. Remuneration of the Board of Directors
and related party transactions
Remuneration of the Board of Directors Other information concerning the Board
The remuneration earned by the Board of Directors of the
of Directors
Parent and Senior Management of the Group in 2022 is shown
At 31 January 2023, per the Parent’s Register of Shareholders,
in the section on related party transactions.
the members of the Board of Directors directly or indirectly held
the following ownership interests in the share capital of Inditex:
From the total number of voting

rights attributed to the shares,
indicate, where appropriate,
the additional votes attributed
% Voting rights % Voting rights through % Total voting corresponding to the shares
Name or company name of director attributed to the shares financial instruments rights with a loyalty vote
Direct Indirect Direct Indirect Direct Indirect
Ms Marta Ortega Pérez 0.0014% - - - 0.0014 % - -
Mr Amancio Ortega Gaona 1 - 59.2940 % - - 59.2940 % - -
Mr Óscar García Maceiras 0.0004% - - - 0.0004 % - -
Mr José Arnau Sierra 0.0010% - - - 0.0010 % - -
Pontegadea Inversiones, S.L. 2 50.0100% - - - 50.0100 % - -
Bns Denise Patricia Kingsmill - - - - - - -
Ms Anne Lange - - - - - - -
Ms Pilar López Álvarez 0.0001% - - - 0.0001 % - -
Mr José Luis Durán Schulz 0.0001% - - - 0.0001 % - -
Mr Rodrigo Echenique Gordillo 0.0006% - - - 0.0006 % - -
Mr Emilio Saracho Rodríguez de Torres - - - - - - -
Total 59.298%
¹ Through Pontegadea Inversiones, SL and Partler Participaciones, S.LU. (Partler 2006, S.L. holds 100% of its stake and its is controlled by Mr Ortega Gaona)
² Represented by Ms Flora Pérez Marcote
Pursuant to the provisions of article 229 of the Spanish Furthermore, when the Board of Directors deliberated on the
Companies Act, as amended by Law 31/2014, of 3 December, appointment and re-election of one position, the compensation
none of the directors of Inditex has communicated any situation or any other agreement referred to a director or to a person or
during 2022 any situation that, directly and/or indirectly, through company related to a director, the affected party was absent
persons related to them, could place them in a potential conflict from the Company meeting during the deliberation and voting of
of interest with the Parent. the corresponding resolution.
Notwithstanding the foregoing, Mr Rodrigo Echenique Gordillo

and Ms Pilar López Álvarez, hold positions on the Boards of
Related party transactions
Directors of Grupo Santander and Microsoft Western Europe, Related parties are the subsidiaries, jointly controlled entities
respectively, and perform their duties as independent directors (Note 28) and associates detailed in Appendix I to the notes to
of the Parent, without prejudice to the commercial relationships the consolidated annual accounts, the significant or controlling
that Inditex has maintained with these companies for years. In shareholders, the members of the Board of Directors of Inditex
any case, the Board of Directors ensures, through the Audit and and the Senior Management of the Inditex Group, as well as
Compliance Committee that the transactions with significant their close family members, as defined in IAS 24, of Commission
directors, significant shareholders and/or Senior Management, Regulation (EC) No 1126/2008, of 3 November, adopting certain
or with their respective related persons, are carried out under international accounting standards, and in Article 2, section 3 of
market conditions and respecting the principle of equal Spanish Ministry of Economy and Finance Order
treatment to shareholders. EHA/3050/2004, of 15 September, on information on related
party transactions that issuers of securities listed on official
secondary markets must disclose.
69
The transactions with related parties were performed on an

arm's length basis.
Significant shareholders
The transactions performed by the Inditex Group with
Inditex Group companies Pontegadea Inversiones, S.L., Partler Participaciones S.L.U,
Partler 2006, S.L. and/or with natural persons or companies
The transactions between Inditex and its subsidiaries, form part related to them, and/or with Rosp Corunna Participaciones
of the normal course of business in terms of their purpose and Empresariales, S.L.U. and/or with natural persons or companies
terms and conditions and were eliminated in full on related to it were as follows:
consolidation and, therefore, they are not disclosed in this Note.
The following tables detail the transactions and the outstanding Company name of
significant Nature of Type of
balances between Inditex and its jointly controlled entities in the
shareholder relationship operation 2022 2021
consolidated balance sheet:
Pontegadea
Inversiones, S.L.,
Transactions: Partler
Lease of
Participaciones, Contractual (40) (37)
Company 2022 2021 assets
S.L.U., Partler 2006,
Jointly controlled entities (1,025) (970) S.L. or related
entities or persons
Corresponding mainly to finished goods procurements. Pontegadea

Inversiones, S.L.,
Partler Services
Balances: Participaciones, Contractual (construction 21 8
S.L.U., Partler 2006, work)
31/01/2023 31/01/2022 S.L. or related
Current financial investments - 1 entities or persons
Trade and other receivables 37 11 Pontegadea
Non-current financial investments 317 295 Inversiones, S.L.,
Partler Other
Trade and other payables 389 356 Participaciones, Contractual 2 -
income
Current financial debt 2 - S.L.U., Partler 2006,
S.L. or related
entities or persons
The transactions with significant shareholders, the members of
the Board of Directors and/or Senior Management are detailed Rosp Corunna
below, as the case may be. Participaciones Lease of
Contractual (1) (1)
Empresariales, S.L. assets
U. or related entities
or persons
A significant part of the related-party transactions that are

recorded every year in this section corresponds to the payment
of rents associated with the commercial premises that several
companies of the Group have leased for the exercise of their
activity and which are owned by companies related to the
controlling shareholder or to significant shareholders.
70
Members of the Board of Directors and
Senior Management
The amounts indicated in the following tables and paragraphs
referring to remuneration and termination benefits are
expressed in thousands of euros in both years.
The following table show the remuneration and termination

benefits of the members of the Board of Directors in 2022:
Remuneration
Remuneration for serving on Multiannual
of Deputy Comittees variable
Remuneration Chairman of and other Remuneration Variable remuneration
Name or social name of of Board Board of Board of for chairing Fixed remuneration (cash and Total
the Director Type members Directors Directors Committees remuneration 2022 shares) 2022 Compensation 2022
(1)
Ms Marta Ortega Pérez Propietary 834 - - - - - - - 834
Mr Óscar García
Executive 100 - - - 2,041 3,750 2,483 - 8,374
Maceiras
Mr Amancio Ortega
Propietary 100 - - - - - - - 100
Gaona
Mr José Arnau Sierra Propietary 100 80 200 - - - - - 380
PONTEGADEA
(2) Propietary 100 - - - - - - - 100
INVERSIONES S.L.
Bns Denise Patricia
Independent 100 - 150 50 - - - - 300
Kingsmill
Ms Anne Lange Independent 100 - 150 - - - - - 250
Ms Pilar López Álvarez Independent 100 - 150 50 - - - - 300
Mr Jose Luis Durán
Independent 100 - 150 28 - - - - 278
Schulz
Mr Rodrigo Echenique
Independent 100 - 150 50 - - - - 300
Gordillo
Mr Emilio Saracho
Affiliate 100 - 150 22 - - - - 272
Rodríguez de Torres
Mr Pablo Isla Álvarez de
(3) Executive 16 - - - 597 788 2,819 22,990 27,210
Tejera
TOTAL 1,850 80 1,100 200 2,638 4,538 5,302 22,990 38,698
Notes:
(1) The remuneration for the financial year 2022 corresponds to the portion accrued in the period from 1 April 2022, the effective date of her appointment as new Chair
(non-executive), through 31 January 2023.
(2) Represented by Ms Flora Pérez Marcote.
(3) The effective date of his resignation was 31 March 2022.
The total remuneration and termination benefits earned by The directors' remuneration for the 2022 financial year includes
Senior Management of the Inditex Group in 2022 were as the fixed terms of the remuneration paid to Directors in their
follows: status as such and the fixed remuneration and the short-term
and long-term variable remuneration earned by the CEO, Mr
2022 Óscar García Maceiras, and by the former Executive Chairman,
SENIOR MANAGEMENT Mr Pablo Isla Álvarez de Tejera, for the performance of their
executive functions. In particular, it includes:
Remuneration 92,020
Termination benefits 12,761 The amount of the remuneration earned by: (i) Mr García as
Total 104,781 director and for the performance of executive functions from 1
February 2022 through 31 January 2023 and by (ii) Mr Isla, in his
The aforementioned remuneration for 2022 includes fixed capacity as director, and the part of his fixed remuneration
remuneration and both, the short-term and long-term variable (wage) earned for the performance of executive functions, both
remuneration accrued by Senior Managers of the Group in of them for the period running from 1 February 2022 through 31
office at 31 January 2023, as well as by those who have March 2022, date of economic effects of his resignation.
performed duties as senior managers at any time during the
Also included in the above referred global remuneration are the
reporting period, including the corresponding compensation.
amounts accrued and paid in 2022 to the former Executive
The evolution of Senior Managers' remuneration versus the Chairman itemized as follows:
previous year is primarily due to a higher number of officers that
qualify as such and to the increase in the short-term and long-
term variable remuneration as a result of the Company's strong
operating performance in 2022. Additionally, long-term
remuneration has also been affected by a higher price of Inditex
shares compared to the one in the previous year.
71
(i) The following amounts as early settlement of current With regard to the long-term variable remuneration, included
incentives and other items of fixed remuneration: therein is the amount accrued for the second cycle (2020-2023)
of the 2019-2023 LTIP. The incentive accrued in 2022 in this
– Of the incentive for the second cycle (2020-2023) of the regard has amounted to 2,483 thousand euros for the CEO and
2019-2023 Plan: the incentive - determined by the board of 35,628 thousand euros for Senior Managers, which has
directors to be for a level of achievement on target -, materialized as follows:
prorated for the time between the cycle commencement
and the date of his departure, amounted to 980 thousand • CEO: (i) an incentive in cash in the aggregate gross amount of
euros and 46,859 shares. 1,035 thousand euros and (ii) incentive in shares equivalent to
a total number of 49,477 shares corresponding to the gross
– Of the incentive for the first cycle (2021-2024) of the amount of 1,448 thousand euros.
2021-2025 Plan: the incentive - determined by the board of
directors to be for a level of achievement on target -, • Senior Managers: (i) an incentive in cash in the aggregate
prorated for the time between the cycle commencement gross amount of 17,089 thousand euros and (ii) incentive in
and the date of his departure, amounted to 421 thousand shares equivalent to a total number of 633,369 shares
euros and 24,418 shares. corresponding to the gross amount of 18,539 thousand euros.
– Of the annual variable remuneration for 2022: the incentive It bears mention that for the purposes of quantifying the part of
prorated for the time between the beginning of the year and such incentive to be delivered in shares, the closing price of
the date of his departure - estimated by the Board of Inditex share on the last business day of the week before the
Directors at maximum level of achievement -, amounted to board meeting when the board of directors assessed and
788 thousand euros. approved the level of target achievement for the second cycle of
the 2019-2023 Plan (i.e. 10 March 2023) was considered.
– Of the portion of the fixed remuneration for FY2022
(February and March 2022) he had earned as extra wage The incentive in cash and in shares will be delivered within the
payments (July and December) the amount of 132 thousand month following the publication of the annual accounts for 2022.
euros.
(ii) As severance pay:
– Severance pay for termination amounted to 3,250 thousand

euros, and
– The consideration for his post-contractual non-compete

obligation amounted to 19,740 thousand euros.
72
An itemised breakdown of the remuneration of the members of
the Board of Directors in 2021 is as follows:
Remuneration Remuneration for Multiannual

of Deputy serving on variable
Chairman of Comittees and Remuneration Variable remuneration
Name or social name of Remuneration of Board of other Board of for chairing Fixed remuneration (cash and Total
the Director Type Board members Directors Directors Committees remuneration 2021 shares) 2021 Compensation 2021
Mr Pablo Isla Álvarez
Executive 100 - - - 3,250 4,875 4,218 - 12,443
de Tejera
Mr José Arnau Sierra Propietary 100 80 200 - - - - - 380
Mr Óscar García
(1) Executive 17 - - - 277 382 70 - 746
Maceiras
Mr Carlos Crespo
(2) Executive 83 - - - 1,179 1,868 2,633 - 5,763
Gonzalez
Mr Amancio Ortega
Propietary 100 - - - - - - - 100
Gaona
PONTEGADEA
(3) Propietary 100 - - - - - - - 100
INVERSIONES S.L.
Bns Denise Patricia
Independent 100 - 150 50 - - - - 300
Kingsmill
Ms Anne Lange Independent 100 - 150 - - - - - 250
Ms Pilar López Álvarez Independent 100 - 150 50 - - - - 300
Mr José Luis Durán
Independent 100 - 150 - - - - - 250
Schulz
Mr Rodrigo
Independent 100 - 150 50 - - - - 300
Echenique Gordillo
Mr Emilio Saracho
Independent 100 - 150 50 - - - - 300
Rodríguez de Torres
TOTAL 1,100 80 1,100 200 4,706 7,125 6,921 - 21,232
Notes:
(1) The remuneration for the 2021 financial year corresponds to the portion accrued in the period from December 1, 2021, the date of economis effects of his appointment
as the new CEO, to January 31, 2022.
(2) The remuneration for the 2021 financial year corresponds to the portion accrued in the period from February 1 to November 30, 2021, the date of economic effects of
his resignation as CEO.
(3) Represented by Ms. Flora Pérez Marcote.
The amounts corresponding to the remunerations accrued by:

The total remuneration and termination benefits earned by
(i) Mr Pablo Isla Álvarez de Tejera, as a director and for the
Senior Managers of the Inditex Group in 2021 were as follows:
performance of his executive duties, from 1 February 2021
through 31 January 2022; (ii) Mr Óscar García Maceiras, as a
2021 director and for the performance of his executive duties, from 1
SENIOR MANAGEMENT December 2021, the date of economic effects of his
Remuneration 69,204 appointment, through 31 January 2022; and (iii) Mr Carlos
Crespo González, as a director and for the performance of his
Termination benefits 10,083
executive duties, from 1 February 2021 through 30 November
Total 79,287 2021, the date of economic effects of his resignation.
With regard to the long-term variable remuneration, included

The aforementioned remuneration for 2021 includes fixed
therein is the amount accrued for the first cycle (2019-2022) of
remuneration and both, the short-term and long-term variable
the 2019-2023 Long-Term Incentive Plan. The incentive accrued
remuneration accrued by the Senior Managers of the Group in
in 2021 by the executive directors in terms of this incentive was
office at 31 January 2022, as well as by those who have
6,921 thousand euros. In turn, the sum of 27,581 thousand euros
performed duties as senior managers at any time during the
was accrued by the Senior Managers. This incentive
reporting period, including the corresponding compensation.
materialised as follows:
The directors' remuneration for the 2021 financial year includes
fixed items of remuneration of directors in their capacity as • Executive directors: (i) an incentive in cash in the aggregate
such, as well as the short- and long-term fixed and variable gross amount of 1,760 thousand euros for the former
remuneration accrued by the former Executive Chairman, Mr Executive Chairman, 36 thousand euros for the incoming CEO,
Pablo Isla Álvarez de Tejera, the new CEO, Mr Óscar García and 1,099 thousand euros for the outgoing CEO; and, (ii) an
Maceiras, and the outgoing CEO, Mr Carlos Crespo González, incentive in shares equivalent to a total of 112,953 shares for
for the performance of their executive duties. In particular, it the former Executive Chairman, corresponding to the gross
includes: amount of 2,458 thousand euros, 1,552 shares for the
incoming CEO, corresponding to the gross amount of 34
thousand euros, and 70,499 shares for the outgoing CEO,
corresponding to a gross amount of 1,534 thousand euros.
73
• Senior Managers: (i) an incentive in cash in the aggregate The incentive in cash and in shares was delivered within the
gross amount of 13,472 thousand euros, and (ii) an incentive in month following the publication of the annual accounts for 2021.
shares equivalent to 648,398 shares, corresponding to the
gross amount of 14,109 thousand euros.
It bears mention that for the purposes of quantifying the part of

such incentive to be delivered in shares, the closing price of
Inditex share on the last business day of the week before the
board meeting when the board of directors assessed and
approved the level of target achievement for the first cycle of the
2019-2023 Plan was assessed and approved (i.e. 11 March
2022).
31. External auditors

In 2022 and 2021 the fees for financial audit and other services Furthermore, audit fees for services provided by auditors other
provided by the auditor of the Group’s annual accounts, Ernst & than the main auditor, Ernst & Young (Deloitte in 2021) in 2022
Young (Deloitte in 2021), or by any firms related to this auditor as amounted to 0.3 million euros (0.1 million euros in 2021).
a result of a relationship of control, common ownership or
common management, were as follows:
2022 2021
Audit services 6.7 7.3
Other assurance services 0.1 0.8
Total audit and similar services 6.8 8.1
Tax services 0.1 -
Other services - 0.2
Total professional services 6.9 8.3
32. Environment
Inditex has developed a flexible and integrated business model, At the year-end, Inditex has no environmental liabilities,
with a strong customer focus and a clear approach in expenses, assets, provisions or contingencies that might be
sustainability. In this regard, the bases of Inditex’s sustainability material with respect to its equity, financial position and profits
strategy (which includes both the environmental and social (losses). Climate change has been assessed as part of the
areas) is outlined in its Sustainability Policy, which sets out, estimates and judgements made in the preparation of the
among other aspects, the Group’s environmental principles, consolidated accounts (Note 2) and is not considered to have a
which are applied transversally across all its business areas and material impact thereupon.
throughout its entire value chain.
The Non-Financial Information Statement of the Group includes
These principles are embodied by three environmental information on Inditex’s Commitment to Sustainability mainly in
strategies: Global Energy Strategy, Global Water Strategy and the following sections: 5.3 Our products, 5.5 Environment, 5.6
Biodiversity Strategy, as well as the commitments in respect of Suppliers and 5.7 Communities, as well as information on the
forest products, set forth in the Forest Product Policy. risks and opportunities of climate change in section 6.3.4
Climate Change: risks and opportunities.
Inditex has diverse sustainability objectives such as the use of
100% renewable electricity at its own facilities, the use of
preferred fibres in its products (100% cotton and cellulosic fibres
in 2023 and 100% polyester and linen in 2025) and a 25%
reduction in water consumption in the supply chain by 2025,
among others.
74
33. Non-current assets held for sale
and other results
As a result of the Ukraine conflict, the Group halted operations in
Ukraine as of 24 February 2022 and in the Russian Federation 31/01/2023
as of 5 March 2022.
Fixed assets and other current assets 182
Deferred tax 12
a) Non-current assets held for sale Trade receivables and other current assets 22
Cash and cash equivalents 2
On 25 October 2022, the Group reached a preliminary
agreement to sell the business in the Russian Federation to the Trade creditors and other current liabilities (35)
Daher Group. At the date of preparation of these consolidated Total non-current assets held for sale 183
annual accounts, negotiations are being finalised, estimating
that the conditions of the final agreement will not differ
substantially from the agreement signed on 25 October 2022. Non-current assets that do not form part of the transaction were
fully impaired.
The agreement considers, through the sale of all of the shares of
the company Joint Stock Company New Fashion (former JSC
Zara CIS), the transfer of the assets and rights associated with
b) Other results
245 stores of the 514 that the Group had in Russia. Once the
sales agreement is completed, the transferred premises will Under Other results of the consolidated income statement, with
house points of sale of brands belonging to the Daher Group, an amount of 231 million, the impact that the stoppage of
totally unrelated to the Inditex Group. The agreement therefore operations in Ukraine and Russia has had for the Group in 2022
considers Inditex Group’s right to provide a franchise has been recognised, as well as the estimated cost associated
agreement to the Daher Group if new circumstances arise with the termination and settlement of the Group’s operations in
which, in Inditex’s opinion, allowed the return of the Group’s the Russian Federation.
brands to this market. The transaction is subject to the obtaining
of the relevant administrative authorisations from the Russian This amount mainly corresponds to personnel and lease
authorities, which at the date are in progress. expenses for a total of 129 million euros, the amortization and
disposal of non-current assets amounting to 82 million euros
The amount of the net assets classified as held for sale have and the reclassification of accumulated translation differences
been adjusted to their realisable value. The detail as 31 January amounting to 7 million euros as a consequence of the
2023, is as follows: termination of the Group's operations in Russia.
34. Events after the reporting period

Turkey is under the effects of the catastrophic earthquakes that impact on the Group's global supply chain is not relevant, and
have been occurring since February 6, 2023. Despite the fact both our and our supplier´s operations in the affected area tend
that some of the factories of the Turkish supplier cluster are to normalize.
concentrated in the area affected by the earthquakes, the
35. Explanation added for translation to English

These consolidated annual accounts are presented on the basis
of the regulatory financial reporting framework applicable to the
Group in Spain (see Note 2). Certain accounting practices
applied by the Group that conform with that regulatory
framework may not conform with other generally accepted
accounting principles and rules.
75
Appendix 1:
Composition of the Inditex Group
76
Effective %
Consolidation Reporting Line of
Company of Location Concept
method date business
ownership
Subsidiaries:
Industria De Diseño Textil, S.A.

Parent A Coruña - Spain Full Consol. 31-jan — Parent
(Inditex, S.A.)
Bershka Bsk España, S.A. 100.00% Barcelona - Spain Full Consol. 31-jan Bershka Retail sales
Bershka Cis Limited Liability
100.00% Moscow - Russia Full Consol. 31-dec Bershka Retail sales
Company
Bershka Commercial (Beijing) Co.
100.00% Beijing - China Full Consol. 31-dec Bershka Retail sales
Ltd.
Bershka Commercial (Shanghai) Co.,
100.00% Shanghai - China Full Consol. 31-dec Bershka Retail sales
Ltd.
Bershka Diseño, S.L. 100.00% Barcelona - Spain Full Consol. 31-jan Bershka Design
Bershka France, S.A.R.L. 100.00% Paris - France Full Consol. 31-jan Bershka Retail sales
Bershka Hong Kong, Ltd. 100.00% Hong Kong SAR Full Consol. 31-jan Bershka Retail sales
Bershka Korea, Ltd. 100.00% Seoul - South Korea Full Consol. 31-jan Bershka Retail sales
Bershka Logística, S.A. 100.00% Barcelona - Spain Full Consol. 31-jan Bershka Logistics
Bershka Polska, Sp. Z O.O. 100.00% Warsaw - Poland Full Consol. 31-jan Bershka Retail sales
Bershka Usa, Inc 100.00% New York - USA Full Consol. 31-jan Bershka Retail sales
Best Retail Kazakhstan, Llp 100.00% Almaty - Kazakhstan Full Consol. 31-dec Bershka Retail sales
Holding
Bske, Gmbh 100.00% Hamburg - Germany Full Consol. 31-jan Bershka
company
Itx Taiwan B.V. Bershka Taiwan
100.00% Taipei - Taiwan Full Consol. 31-jan Bershka Dormant
Branch
Kg Bershka Deutschland, B.V. & Co. 100.00% Hamburg - Germany Full Consol. 31-jan Bershka Retail sales
Limited Liability Company "Bk
100.00% Minsk - Belarus Full Consol. 31-dec Bershka Retail sales
Garments Blr"
Grupo Massimo Dutti, S.A. 100.00% Barcelona - Spain Full Consol. 31-jan Massimo Dutti Retail sales
Itx Taiwan B.V. Massimo Dutti Taiwan
100.00% Taipei - Taiwan Full Consol. 31-jan Massimo Dutti Dormant
Branch
Kg Massimo Dutti Deutschland, B.V.
100.00% Hamburg - Germany Full Consol. 31-jan Massimo Dutti Retail sales
& Co.
Limited Liability Company "Massimo
100.00% Minsk - Belarus Full Consol. 31-dec Massimo Dutti Retail sales
Dutti Blr"
Massimo Dutti Belux, S.A. 100.00% Bruges - Belgium Full Consol. 31-jan Massimo Dutti Retail sales
Massimo Dutti Commercial (Beijing)
100.00% Beijing - China Full Consol. 31-dec Massimo Dutti Retail sales
Co. Ltd.
Massimo Dutti Commercial
100.00% Shanghai - China Full Consol. 31-dec Massimo Dutti Retail sales
(Shanghai) Co. Ltd.
Holding
Massimo Dutti Deutschland, Gmbh 100.00% Hamburg - Germany Full Consol. 31-jan Massimo Dutti
company
Massimo Dutti Diseño, S.L. 100.00% Barcelona - Spain Full Consol. 31-jan Massimo Dutti Design
Massimo Dutti France, S.A.R.L. 100.00% Paris - France Full Consol. 31-jan Massimo Dutti Retail sales
Massimo Dutti Hong Kong, Ltd. 100.00% Hong Kong SAR Full Consol. 31-jan Massimo Dutti Retail sales
Massimo Dutti India Private Limited 51.00% Gurgaon - India Full Consol. 31-mar. Massimo Dutti Retail sales
Massimo Dutti Korea, Ltd. 100.00% Seoul - South Korea Full Consol. 31-jan Massimo Dutti Retail sales
Massimo Dutti Limited Liability
100.00% Moscow - Russia Full Consol. 31-dec Massimo Dutti Retail sales
Company
Massimo Dutti Logística, S.A. 100.00% Barcelona - Spain Full Consol. 31-jan Massimo Dutti Logistics
Massimo Dutti Macau Limitada 100.00% Macao SAR Full Consol. 31-dec Massimo Dutti Retail sales
Massimo Dutti Polska, Sp. Z O.O. 100.00% Warsaw - Poland Full Consol. 31-jan Massimo Dutti Retail sales
Massimo Dutti Uk, Ltd. 100.00% London - UK Full Consol. 31-jan Massimo Dutti Dormant
Massimo Dutti Usa, Inc. 100.00% New York - USA Full Consol. 31-jan Massimo Dutti Retail sales
Massimo Dutti, S.A. 100.00% A Coruña - Spain Full Consol. 31-jan Massimo Dutti Dormant
Master Retail Kazakhstan, Llp 100.00% Almaty - Kazakhstan Full Consol. 31-dec Massimo Dutti Retail sales
"Itx Albania" Shpk 100.00% Tirana - Albania Full Consol. 31-dec Multi-concept Retail sales
77
Effective %
ownership
"Itx Kosovo" L.L.C. 100.00% Pristina Full Consol. 31-dec Multi-concept Retail sales
Cdc Trading (Shanghai) Co. Ltd. 100.00% Shanghai - China Full Consol. 31-dec Multi-concept Buyer
Corporacion De Servicios Xxi, S.A.
100.00% Mexico City - Mexico Full Consol. 31-dec Multi-concept Services
De C.V.
Fashion Logistics Forwarders, S.A. 100.00% A Coruña - Spain Full Consol. 31-jan Multi-concept Logistics
Fashion Retail, S.A. 100.00% A Coruña - Spain Full Consol. 31-jan Multi-concept Retail sales
Fgi Gestión Mex, S.A. De C.V. 100.00% Mexico City - Mexico Full Consol. 31-dec Multi-concept Construction
G.Zara Uruguay, S.A. 100.00% Montevideo - Uruguay Full Consol. 31-jan Multi-concept Retail sales
Goa-Invest Deutschland, Gmbh 100.00% Hamburg - Germany Full Consol. 31-jan Multi-concept Construction
Goa-Invest, S.A. 100.00% A Coruña - Spain Full Consol. 31-jan Multi-concept Construction
Indipunt, S.L. 100.00% A Coruña - Spain Full Consol. 31-jan Multi-concept Logistics
Inditex Belgique S.A. 100.00% Brussels - Belgium Full Consol. 31-jan Multi-concept Retail sales
Inditex Ceská Republika, S.R.O. 100.00% Prague - Czech Republic Full Consol. 31-jan Multi-concept Retail sales
Inditex Danmark A/S 100.00% Copenhaguen - Denmark Full Consol. 31-jan Multi-concept Retail sales
Inditex France, S.A.R.L. 100.00% Paris - France Full Consol. 31-jan Multi-concept Dormant
Inditex Montenegro, D.O.O.
100.00% Podgorica - Montenegro Full Consol. 31-dec Multi-concept Retail sales
Podgorica
Inditex Norge As 100.00% Oslo - Norway Full Consol. 31-jan Multi-concept Retail sales
Inditex Österreich Gmbh 100.00% Vienna - Austria Full Consol. 31-jan Multi-concept Retail sales
Inditex Renovables, S.L. 100.00% A Coruña - Spain Full Consol. 31-jan Multi-concept Services
Inditex Romania, S.R.L. 100.00% Bucharest - Romania Full Consol. 31-dec Multi-concept Retail sales
Inditex Slovakia, S.R.O. 100.00% Bratislava - Slovakia Full Consol. 31-jan Multi-concept Retail sales
Inditex Ukraine Llc 100.00% Kiev - Ukraine Full Consol. 31-dec Multi-concept Retail sales
Holding
Inditex Usa, Llc 100.00% New York - USA Full Consol. 31-jan Multi-concept
company
Itx Asia Pacific Enterprise
100.00% Shanghai - China Full Consol. 31-dec Multi-concept Buyer
Management, Co., Ltd.
Sarajevo - Bosnia
Itx Bh D.O.O. 100.00% Full Consol. 31-dec Multi-concept Retail sales
Herzegovina
Itx Bulgaria Eood 100.00% Sofia - Bulgaria Full Consol. 31-dec Multi-concept Retail sales
Itx Canada, Ltd 100.00% Montreal - Canada Full Consol. 31-jan Multi-concept Retail sales
Itx Croatia, Ltd. 100.00% Zagreb - Croatia Full Consol. 31-jan Multi-concept Retail sales
Itx E-Commerce (Shanghai) Co., Ltd. 100.00% Shanghai - China Full Consol. 31-dec Multi-concept Retail sales
Financial
Itx Financien III, B.V. 100.00% Amsterdam - Netherlands Full Consol. 31-jan Multi-concept
services
Financial
Itx Financiën, B.V. 100.00% Amsterdam - Netherlands Full Consol. 31-jan Multi-concept
services
Itx Finland Oy 100.00% Helsinki - Finland Full Consol. 31-jan Multi-concept Retail sales
Itx Global Solutions Limited 100.00% Hong Kong SAR Full Consol. 31-jan Multi-concept Services
Itx Hellas Single Member S.A. 100.00% Athens - Greece Full Consol. 31-jan Multi-concept Retail sales
Itx Italia Srl 100.00% Milan - Italy Full Consol. 31-jan Multi-concept Retail sales
Itx Japan Corporation 100.00% Tokyo - Japan Full Consol. 31-jan Multi-concept Retail sales
Itx Korea Limited 100.00% Seoul - South Korea Full Consol. 31-jan Multi-concept Retail sales
Luxembourg -
Itx Luxembourg S.A. 100.00% Full Consol. 31-jan Multi-concept Retail sales
Luxembourg
Itx Magyarország Kft. 100.00% Budapest - Hungary Full Consol. 31-jan Multi-concept Retail sales
Itx Merken, B.V. 100.00% Amsterdam - Netherlands Full Consol. 31-jan Multi-concept Services
Itx Nederland Bv 100.00% Amsterdam - Netherlands Full Consol. 31-jan Multi-concept Retail sales
Itx Portugal - Confecções, S.A. 100.00% Lisbon - Portugal Full Consol. 31-jan Multi-concept Retail sales
Itx Re Designated Activity Company 100.00% Dublin - Ireland Full Consol. 31-jan Multi-concept Insurance
Itx Retail Ireland Limited 100.00% Dublin - Ireland Full Consol. 31-jan Multi-concept Retail sales
Itx Retail Mexico, S.A. De C.V. 100.00% Mexico City - Mexico Full Consol. 31-dec Multi-concept Retail sales
Itx Retail Suisse Sarl 100.00% Fribourg - Switzerland Full Consol. 31-jan Multi-concept Retail sales
Itx Rs Doo Beograd 100.00% Belgrade - Serbia Full Consol. 31-jan Multi-concept Retail sales
78
Effective %
ownership
Itx S, D.O.O 100.00% Ljubljana - Slovenia Full Consol. 31-jan Multi-concept Retail sales
Itx Services India Private Limited 100.00% Gurgaon - India Full Consol. 31-mar Multi-concept Buyer
Itx Sverige Ab 100.00% Stockholm - Sweden Full Consol. 31-jan Multi-concept Retail sales
Itx Taiwan B.V. Taiwan Branch 100.00% Taipei - Taiwan Full Consol. 31-jan Multi-concept Retail sales
Itx Trading, S.A. 100.00% Fribourg - Switzerland Full Consol. 31-jan Multi-concept Buyer
Financial
Itx Tryfin B.V. 100.00% Amsterdam - Netherlands Full Consol. 31-jan Multi-concept
services
Itx Turkey Perakende Ithalat Ihracat
100.00% Istanbul - Turkey Full Consol. 31-jan Multi-concept Retail sales
Ve Ticaret Limited Sirketi
Itx Uk Ltd. 100.00% London - UK Full Consol. 31-jan Multi-concept Retail sales
Itx Usa, Llc 100.00% New York - USA Full Consol. 31-jan Multi-concept Retail sales
Skopje - North Macedonia
Itxr Macedonia Dooel Skopje 100.00% Full Consol. 31-dec Multi-concept Retail sales
Rep.
Lelystad Platform, B.V. 100.00% Amsterdam - Netherlands Full Consol. 31-jan Multi-concept Logistics
Nueva Comercializadora Global Xxi,
100.00% Mexico City - Mexico Full Consol. 31-dec Multi-concept Logistics
S.A. De C.V.
Plataforma Logística Meco, S.A. 100.00% Madrid - Spain Full Consol. 31-jan Multi-concept Logistics
Zara Chile, S.A. 100.00% Santiago de Chile - Chile Full Consol. 31-dec Multi-concept Retail sales
Holding
Zara Holding II, B.V. 100.00% Amsterdam - Netherlands Full Consol. 31-jan Multi-concept
company
Holding
Zara Holding, B.V. 100.00% Amsterdam - Netherlands Full Consol. 31-jan Multi-concept
company
Limited Liability Company "Oysho
100.00% Minsk - Belarus Full Consol. 31-dec Oysho Retail sales
Blr"
Oysho Cis Limited Liability Company 100.00% Moscow - Russia Full Consol. 31-dec Oysho Retail sales
Oysho Commercial & Trading
100.00% Shanghai - China Full Consol. 31-dec Oysho Retail sales
(Shanghai) Co. Ltd.
Oysho Diseño, S.L. 100.00% Barcelona - Spain Full Consol. 31-jan Oysho Design
Oysho España, S.A. 100.00% Barcelona - Spain Full Consol. 31-jan Oysho Retail sales
Oysho France, S.A.R.L. 100.00% Paris - France Full Consol. 31-jan Oysho Retail sales
Oysho Hong Kong Limited 100.00% Hong Kong SAR Full Consol. 31-jan Oysho Retail sales
Oysho Kazakhstan, Llp 100.00% Almaty - Kazakhstan Full Consol. 31-dec Oysho Retail sales
Oysho Korea, Ltd. 100.00% Seoul - South Korea Full Consol. 31-jan Oysho Retail sales
Oysho Logística, S.A. 100.00% Barcelona - Spain Full Consol. 31-jan Oysho Logistics
Oysho Macau Limitada 100.00% Macao SAR Full Consol. 31-dec Oysho Retail sales
Oysho Polska, Sp. Z O.O. 100.00% Warsaw - Poland Full Consol. 31-jan Oysho Retail sales
Itx Taiwan B.V. Pull & Bear Taiwan
100.00% Taipei - Taiwan Full Consol. 31-jan Pull & Bear Dormant
Branch
Limited Liability Company "Pull And
100.00% Minsk - Belarus Full Consol. 31-dec Pull & Bear Retail sales
Bear Blr"
Holding
P&Be, Gmbh 100.00% Hamburg - Germany Full Consol. 31-jan Pull & Bear
company
Plataforma Cabanillas, S.A. 100.00% A Coruña - Spain Full Consol. 31-jan Pull & Bear Logistics
Pro Retail Kazakhstan, Llp 100.00% Almaty - Kazakhstan Full Consol. 31-dec Pull & Bear Retail sales
Pull & Bear Belgique, S.A. 100.00% Brussels - Belgium Full Consol. 31-jan Pull & Bear Retail sales
Pull & Bear Commercial (Beijing) Co.
100.00% Beijing - China Full Consol. 31-dec Pull & Bear Retail sales
Ltd.
Pull & Bear Deutschland, B.V. & Co.
100.00% Hamburg - Germany Full Consol. 31-jan Pull & Bear Retail sales
Kg
Pull & Bear Diseño, S.L. 100.00% A Coruña - Spain Full Consol. 31-jan Pull & Bear Design
Pull & Bear España, S.A. 100.00% A Coruña - Spain Full Consol. 31-jan Pull & Bear Retail sales
Pull & Bear France, S.A.R.L. 100.00% Paris - France Full Consol. 31-jan Pull & Bear Retail sales
Pull & Bear Korea, Ltd. 100.00% Seoul - South Korea Full Consol. 31-jan Pull & Bear Retail sales
Pull & Bear Logística, S.A. 100.00% A Coruña - Spain Full Consol. 31-jan Pull & Bear Logistics
Pull & Bear Polska, Sp. Z O.O. 100.00% Warsaw - Poland Full Consol. 31-jan Pull & Bear Retail sales
Pull And Bear Cis Limited Liability
100.00% Moscow - Russia Full Consol. 31-dec Pull & Bear Retail sales
Company
79
Effective %
ownership
Pull And Bear Hong Kong, Ltd. 100.00% Hong Kong SAR Full Consol. 31-jan Pull & Bear Retail sales
Limited Liability Company
100.00% Minsk - Belarus Full Consol. 31-dec Stradivarius Retail sales
"Stradivarius Blr"
Spanish Retail Kazakhstan, Llp 100.00% Almaty - Kazakhstan Full Consol. 31-dec Stradivarius Retail sales
Stradivarius Belgique, S.A. 100.00% Brussels - Belgium Full Consol. 31-jan Stradivarius Retail sales
Stradivarius Cis Limited Liability
100.00% Moscow - Russia Full Consol. 31-dec Stradivarius Retail sales
Company
Stradivarius Commercial (Shanghai)
100.00% Shanghai - China Full Consol. 31-dec Stradivarius Retail sales
Co. Ltd
Stradivarius Diseño, S.L. 100.00% Barcelona - Spain Full Consol. 31-jan Stradivarius Design
Stradivarius España, S.A. 100.00% Barcelona - Spain Full Consol. 31-jan Stradivarius Retail sales
Stradivarius France, S.A.R.L. 100.00% Paris - France Full Consol. 31-jan Stradivarius Retail sales
Stradivarius Hong Kong, Ltd. 100.00% Hong Kong SAR Full Consol. 31-jan Stradivarius Retail sales
Stradivarius Korea, Ltd. 100.00% Seoul - South Korea Full Consol. 31-jan Stradivarius Retail sales
Stradivarius Logística, S.A. 100.00% Barcelona - Spain Full Consol. 31-jan Stradivarius Logistics
Stradivarius Polska, Sp. Z O.O. 100.00% Warsaw - Poland Full Consol. 31-jan Stradivarius Retail sales
Uterqüe Giyim Ithalat Ihracat Ve
100.00% Istanbul - Turkey Full Consol. 31-jan Uterqüe Dormant
Ticaret Limited Sirketi
Uterqüe Kazakhstan Llp 100.00% Almaty - Kazakhstan Full Consol. 31-dec Uterqüe Dormant
Uterqüe Mexico, S.A. De C.V. 100.00% Mexico City - Mexico Full Consol. 31-dec Uterqüe Dormant
Uterqüe Polska Sp. Z O.O. 100.00% Warsaw - Poland Full Consol. 31-jan Uterqüe Dormant
Textile
Choolet, S.A. 100.00% A Coruña - Spain Full Consol. 31-jan Zara
Manufacturing
Comditel, S.A. 100.00% Barcelona - Spain Full Consol. 31-jan Zara Buyer
Textile
Confecciones Fios, S.A. 100.00% A Coruña - Spain Full Consol. 31-jan Zara
Manufacturing
Textile
Confecciones Goa, S.A. 100.00% A Coruña - Spain Full Consol. 31-jan Zara
Manufacturing
Textile
Denllo, S.A. 100.00% A Coruña - Spain Full Consol. 31-jan Zara
Manufacturing
Fsf New York, Llc. 100.00% New York - USA Full Consol. 31-jan Zara Real estate
Fsf Soho, Llc 100.00% New York - USA Full Consol. 31-jan Zara Real estate
Textile
Glencare, S.A. 100.00% A Coruña - Spain Full Consol. 31-jan Zara
Manufacturing
Inditex Australia Pty Ltd 100.00% Sydney - Australia Full Consol. 31-jan Zara Retail sales
Inditex Logistica, S.A. 100.00% A Coruña - Spain Full Consol. 31-jan Zara Logistics
Inditex Trent Retail India Private, Ltd. 51.00% Gurgaon - India Full Consol. 31-mar. Zara Retail sales
Inditex Vastgoed Korea, Ltd. 100.00% Seoul - South Korea Full Consol. 31-jan Zara Real estate
Inditex, S.A. 100.00% A Coruña - Spain Full Consol. 31-jan Zara Dormant
Itx Hong Kong Limited 100.00% Hong Kong SAR Full Consol. 31-jan Zara Retail sales
Holding
Itx Taiwan, B.V. 100.00% Amsterdam - Netherlands Full Consol. 31-jan Zara
company
Joint Stock Company New Fashion 100.00% Moscow - Russia Full Consol. 31-dec Zara Retail sales
Kg Zara Deutschland B.V. & Co. 100.00% Hamburg - Germany Full Consol. 31-jan Zara Retail sales
Lefties España, S.A. 100.00% A Coruña - Spain Full Consol. 31-jan Zara Real estate
Limited Liability Company "Zara Blr" 100.00% Minsk - Belarus Full Consol. 31-dec Zara Retail sales
Nikole Diseño, S.L. 100.00% A Coruña - Spain Full Consol. 31-jan Zara Design
Nikole, S.A. 100.00% A Coruña - Spain Full Consol. 31-jan Zara Buyer
Plataforma Europa, S.A. 100.00% Zaragoza - Spain Full Consol. 31-jan Zara Logistics
Plataforma Logística León, S.A. 100.00% León - Spain Full Consol. 31-jan Zara Logistics
Retail Group Kazakhstan, Llp 100.00% Almaty - Kazakhstan Full Consol. 31-dec Zara Retail sales
Sci Vastgoed Ferreol P03302 100.00% Paris - France Full Consol. 31-dec Zara Real estate
Sci Vastgoed France P03301 100.00% Paris - France Full Consol. 31-dec Zara Real estate
Sci Vastgoed General Leclerc
100.00% Paris - France Full Consol. 31-dec Zara Real estate
P03303
80
Effective %
ownership
Sci Vastgoed Nancy P03304 100.00% Paris - France Full Consol. 31-dec Zara Real estate
Snc Zara France Immobilière 100.00% Paris - France Full Consol. 31-dec Zara Real estate
Textile
Stear, S.A. 100.00% A Coruña - Spain Full Consol. 31-jan Zara
Manufacturing
Textile
Trisko, S.A. 100.00% A Coruña - Spain Full Consol. 31-jan Zara
Manufacturing
Zara Argentina, S.A. 100.00% Buenos Aires - Argentina Full Consol. 31-jan Zara Retail sales
Zara Brasil, Ltda. 100.00% Sao Paulo - Brazil Full Consol. 31-dec Zara Retail sales
Zara Commercial (Beijing) Co., Ltd 100.00% Beijing - China Full Consol. 31-dec Zara Retail sales
Zara Commercial (Shanghai) Co. Ltd. 100.00% Shanghai - China Full Consol. 31-dec Zara Retail sales
Holding
Zara Deutschland, Gmbh 100.00% Hamburg - Germany Full Consol. 31-jan Zara
company
Zara Diseño, S.L. 100.00% A Coruña - Spain Full Consol. 31-jan Zara Design
Zara España, S.A. 100.00% A Coruña - Spain Full Consol. 31-jan Zara Retail sales
Zara Fashion (Shanghai) Co., Ltd. 100.00% Shanghai - China Full Consol. 31-dec Zara Retail sales
Zara France, S.A.R.L. 100.00% Paris - France Full Consol. 31-jan Zara Retail sales
Zara Home Retail South Africa (Pty) Johannesburg - South
100.00% Full Consol. 31-jan Zara Home Retail sales
Ltd. Africa
Zara Logística, S.A. 100.00% A Coruña - Spain Full Consol. 31-jan Zara Logistics
Zara Macau Limitada 100.00% Macao SAR Full Consol. 31-dec Zara Retail sales
Holding
Zara Management, B.V. 100.00% Amsterdam - Netherlands Full Consol. 31-jan Zara
company
Holding
Zara Mexico, B.V. 100.00% Amsterdam - Netherlands Full Consol. 31-jan Zara
company
Zara Mexico, S.A. De C.V. 100.00% Mexico City - Mexico Full Consol. 31-dec Zara Retail sales
Zara Monaco, Sam. 100.00% Monte Carlo - Monaco Full Consol. 31-jan Zara Retail sales
Zara Polska, Sp. Z O.O. 100.00% Warsaw - Poland Full Consol. 31-jan Zara Retail sales
Zara Puerto Rico, Inc. 100.00% San Juan - Puerto Rico Full Consol. 31-jan Zara Retail sales
Zara Retail Korea, Co. Ltd. 80.00% Seoul - South Korea Full Consol. 31-jan Zara Retail sales
Zara Retail Nz Limited 100.00% Auckland - New Zealand Full Consol. 31-jan Zara Retail sales
Zara Retail South Africa (Proprietary), Johannesburg - South
90.00% Full Consol. 31-jan Zara Retail sales
Ltd. Africa
Zara Usa, Inc. 100.00% New York - USA Full Consol. 31-jan Zara Retail sales
Zara Vastgoed, B.V. 100.00% Amsterdam - Netherlands Full Consol. 31-jan Zara Real estate
Zara, S.A. 100.00% A Coruña - Spain Full Consol. 31-jan Zara Dormant
Zara, S.A. 100.00% Buenos Aires - Argentina Full Consol. 31-jan Zara Dormant
Textile
Zintura, S.A. 100.00% A Coruña - Spain Full Consol. 31-jan Zara
Manufacturing
Financial
Itx Finance Asia Limited 100.00% Hong Kong SAR Full Consol. 31-jan Zara
services
Itx Taiwan B.V. Zara Home Taiwan
100.00% Taipei - Taiwan Full Consol. 31-jan Zara Home Dormant
Branch
Limited Liability Company "Zara
100.00% Minsk - Belarus Full Consol. 31-dec Zara Home Retail sales
Home Blr"
Zara Home Australia Pty Limited 100.00% Sydney - Australia Full Consol. 31-jan Zara Home Retail sales
Zara Home Belgique, S.A. 100.00% Brussels - Belgium Full Consol. 31-jan Zara Home Retail sales
Zara Home Brasil Produtos Para O
100.00% Sao Paulo - Brazil Full Consol. 31-dec Zara Home Retail sales
Lar, Ltda.
Zara Home Cis Limited Liability
100.00% Moscow - Russia Full Consol. 31-dec Zara Home Retail sales
Company
Zara Home Commercial & Trading
100.00% Shanghai - China Full Consol. 31-dec Zara Home Retail sales
(Shanghai), Co. Ltd
Zara Home Deutschland, B.V. & Co.
100.00% Hamburg - Germany Full Consol. 31-jan Zara Home Retail sales
Kg
Zara Home Diseño, S.L. 100.00% A Coruña - Spain Full Consol. 31-jan Zara Home Design
Zara Home España, S.A. 100.00% A Coruña - Spain Full Consol. 31-jan Zara Home Retail sales
Zara Home France, S.A.R.L. 100.00% Paris - France Full Consol. 31-jan Zara Home Retail sales
81
Effective %
ownership
Zara Home Hong Kong Limited 100.00% Hong Kong SAR Full Consol. 31-jan Zara Home Dormant
Zara Home Kazakhstan, Llp 100.00% Almaty - Kazakhstan Full Consol. 31-dec Zara Home Retail sales
Zara Home Korea Limited 100.00% Seoul - South Korea Full Consol. 31-jan Zara Home Retail sales
Zara Home Logística, S.A. 100.00% A Coruña - Spain Full Consol. 31-jan Zara Home Logistics
Zara Home Macau Sociedade
100.00% Macao SAR Full Consol. 31-dec Zara Home Retail sales
Unipessoal Limitada
Zara Home Mexico, S.A. De C.V. 100.00% Mexico City - Mexico Full Consol. 31-dec Zara Home Retail sales
Zara Home Polska, Sp. Z.O.O. 100.00% Warsaw - Poland Full Consol. 31-jan Zara Home Retail sales
Zara Home Uk, Ltd. 100.00% London - UK Full Consol. 31-jan Zara Home Dormant
Holding
Zhe, Gmbh 100.00% Hamburg - Germany Full Consol. 31-jan Zara Home
company
Effective %
Company of Location Chain
ownership
Jointly contolled entities:
Sale of
Tempe, S.A. 50.00% Alicante - Spain Equity method 31-jan Multi-concept
footwear
Tempe México, S.A. de C.V. 50.00% Mexico City - Mexico Equity method 31-dec Multi-concept Dormant
Tempe Logística, S.A. 50.00% Alicante - Spain Equity method 31-jan Multi-concept Logistics
Tempe Diseño, S.L.U. 50.00% Alicante - Spain Equity method 31-jan Multi-concept Design
Sale of
Tempe Trading Asia Limited 50.00% Hong Kong - China Equity method 31-jan Multi-concept
footwear
Sale of
TMP Trading (Shanghai) Co. Ltd 50.00% Shanghai - China Equity method 31-dec Multi-concept
footwear
Tempe Giyim, Ltd. 50.00% Istanbul - Turkey Equity method 31-jan Multi-concept Dormant
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Consolidated Annual Accounts 2022

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Consolidated Annual Accounts 2022

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Translation of consolidated annual accounts originally issued in Spanish and prepared in

(Amounts in millions of euros) (Notes) 2022 2021

NET PROFIT ATTRIBUTABLE TO NON-CONTROLLING INTERESTS 17 7

NET PROFIT ATTRIBUTABLE TO THE PARENT 4,130 3,243

EARNINGS PER SHARE, euros (10) 1.327 1.042

(Amounts in millions of euros) (Notes) 2022 2021

Total comprehensive income for the year 4,257 3,380

Total comprehensive income attributable to:

(Amounts in millions of euros) (Notes) 31/01/2023 31/01/2022

EQUITY AND LIABILITIES

(Amounts in millions of euros) (Notes) 2022 2021

Cash flows from operating activities 6,674 6,754

Net increase in cash and cash equivalents (1,443) (408)

(Amounts in millions of euros) Equity attributable to the Parent

NOTES TO THE CONSOLIDATED

1. Activity and description of the Group

2. Basis for preparation

• Working capital: defined as inventories plus receivables minus

• The capacity to manage the financial risks to which the Group

• The positive net financial position and the existence of

• Assessment of counterparty credit risk of financial institutions

The remaining estimates, judgements and assumptions

• The consideration of the online business in the model of the

• The useful life of property, plant and equipment, intangible

• The fair value of certain assets, mainly financial instruments.

• The assumptions used in the actuarial calculation of liabilities

• The calculation of the provisions required for contingencies

3. Selected accounting policies

For business combinations any excess of the consideration

Acquisitions of equity interests in businesses subsequent to

• Income and expenses are translated to euros at the exchange

The differences arising from the application of these exchange

However, exchange differences arising from trade balances

vi) Financial statements in hyperinflationary

General price indexes of general acceptance in Argentina and

In relation to the conversion to presentation currency, a closing

viii) Changes in the scope of consolidation

Acquiring Company Acquired Company

b) Property, plant and equipment

The selling price of goods varies over the course of their

The amortised cost of a financial asset is the amount at which

The fair value of the instruments was calculated using valuation

The measurement methodology, based on the aforementioned

The CVA and the DVA are calculated by multiplying the

The determination of the fair value of the (“Plain Vanilla”) options

The determination of the fair value of the options is based on a

o) Leases The lease payments included in the liabilities comprise:

The leases recognised in which the Group acts as the lessee

• The historical experience and the business plans approved by

As mentioned above, the Group has a wide variety of lease

q) Income tax r) Current and non-current assets and liabilities

Deferred tax assets and liabilities are recognised in the

2022 2021 Gender

The detail of “Other operating expenses” is as follows:

7. Other losses and income, net

Following there is a description of the main cross put and call

a) Subsidiary domiciled in South Korea

b) Subsidiary domiciled in South Africa