INDITEX : Annual ReportEnglish, PDF, 25.14MB

INDITEX ANNUAL REPORT 2021

Inditex Annual Report 2021

Index
STATEMENT MADE ABOUT THE CONTENTS OF THE FINANCIAL ANNUAL REPORT	................5
AUDIT REPORT ON CONSOLIDATED ANNUAL ACCOUNTS.........................................................	7
CONSOLIDATED ANNUAL ACCOUNTS .......................................................................................	16
Consolidated income statement.............................................................................................	17
Consolidated statement of comprehensive income..............................................................	19
Consolidated Balance Sheet ...................................................................................................	21
Consolidated statement of cash flows ...................................................................................	23
Consolidated statement of changes in equity........................................................................	25
Notes to the consolidated annual accounts of the Inditex Group .......................................	27
1. Activity and description of the Group .....................................................................................	34
2. Selected accounting policies ..................................................................................................	37
2.1. Basis of consolidation ......................................................................................................	37
2.2. Accounting policies ..........................................................................................................	41
3. Net Sales ..................................................................................................................................	61
4. Cost of sales.............................................................................................................................	62
5. Operating expenses.................................................................................................................	63
6. Other losses and income, net .................................................................................................	64
7. Amortisation and depreciation ...............................................................................................	65
8. Financial results.......................................................................................................................	66
9. Earnings per share...................................................................................................................	67
10. Segment reporting.................................................................................................................	68
10.1. Geographical reporting ..................................................................................................	69
11. Trade and other receivables.................................................................................................	70
12. Inventories.............................................................................................................................	71
13. Property, plant and equipment ............................................................................................	72
14. Other intangible assets .........................................................................................................	74
15. Leases ....................................................................................................................................	76
15.1 Right of Use Assets .........................................................................................................	76
15.2 Lease liabilities ................................................................................................................	77
15.3 Other information............................................................................................................	77
16. Goodwill .................................................................................................................................	78
17. Financial investments ...........................................................................................................	79

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Inditex Annual Report 2021

18. Other non-current assets......................................................................................................	80
19. Trade and other payables .....................................................................................................	81
20.	Net financial position ............................................................................................................	82
21.	Provisions...............................................................................................................................	84
22.	Other non-current liabilities .................................................................................................	85
23. Equity .....................................................................................................................................	86
24. Income taxes .........................................................................................................................	88
25. Financial risk management policy and financial instruments ............................................	92
26. Employee benefits...............................................................................................................	100
27.	Jointly controlled entities ...................................................................................................	102
28.	Proposed distribution of the profit of the Parent...............................................................	104
29. Remuneration of the Board of Directors and related party transactions ........................	105
30.	External auditors .................................................................................................................	112
31. Environment ........................................................................................................................	113
32.	Events after the reporting period .......................................................................................	114
33.	Explanation added for translation to English.....................................................................	114
Appendix 1: Composition of the Inditex Group..................................................................	115
INTEGRATED DIRECTORS' REPORT ........................................................................................	121
Consolidated Directors' Report............................................................................................	122
Independent Verification Report .........................................................................................	142
Inditex Group's Statement on Non-Financial Information................................................	146
1. Executive Chairman's statement..........................................................................................	147
2. CEO's statement ....................................................................................................................	150
3. Get to know Inditex ...............................................................................................................	153
3.1. Global footprint and key data ........................................................................................	154
3.2. Milestones in 2021.........................................................................................................	155
3.3 Inditex in figures, key indicators ....................................................................................	156
3.4. Acknowledgements........................................................................................................	162
3.5. Retail formats .................................................................................................................	165
4. Transforming with a unique model........................................................................................	173
4.1. Our strategy and growth model, the fuel for transformation.......................................	174
4.2. Sustainability, the basis for transformation..................................................................	181
4.3. Innovation, vital for transformation...............................................................................	196

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Inditex Annual Report 2021

4.4. Collaboration, the essence of transformation ..............................................................	207
5. Collaborating to have a positive impact ...............................................................................	228
5.1. Collaborating with our people, the engine of that transformation ..............................	229
5.2. Collaborating with our customers, the force driving transformation ..........................	275
5.3. Collaborating with our shareholders, allies in transformation ....................................	281
5.4. Collaborating to transform through sustainable management of our products ........	284
5.5. Collaborating so our suppliers grow..............................................................................	327
5.6. Collaborating to safeguard the planet...........................................................................	370
5.7. Collaborating to generate value in the community ......................................................	398
5.8. Fiscal responsibility and transparency..........................................................................	419
5.9. Good governance, corporate ethical culture and solid compliance architecture ......	427
5.10. Responsible risk management....................................................................................	464
6. Reporting principles and indicators......................................................................................	510
6.1. Additional indicators ......................................................................................................	511
6.2. Reporting principles .......................................................................................................	532
Report on Internal Control Systems (ICFR) .........................................................................	594
Annual Corporate Governance Report (ACGR) ....................................................................	597
Annual Report on Remuneration (ARR)................................................................................	765

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STATEMENT MADE ABOUT THE CONTENTS OF THE FINANCIAL ANNUAL REPORT