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Annual Report for 2012 to be submitted by the Board of Directors of El Corte Inglés, S.A. for approval by the shareholders at the Annual General Meeting called for 25 August 2013.

© 2013 El Corte Inglés, S.A.Hermosilla, 112. 28009 Madridwww.elcorteingles.es 201

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2012Annual Report

Design:Tau Diseño

Production:El Corte Inglés, S.A.

Prepress:Espacio y Punto, S.A.

Printing:Sodegraf, S.A.

2012 Annual Report

1

2El Corte Inglés Castellana store (Madrid).

3

Part IOperating report of El Corte Inglés and its business group 12

Economic information 13

Economic analysis 14Revenue 14Consolidated profit 15Investments 16

Review by business line 18El Corte Inglés department stores 18Hipercor hypermarkets 23Bricor DIY 24Convenience stores: Supercor, Supercor Exprés and Opencor 26Sfera 28Óptica 2000 29Viajes El Corte Inglés Group 30El Corte Inglés IT Group: Informática El Corte Inglés, Investrónica and Telecor 32Insurance Group: Centro de Seguros y Servicios and Seguros El Corte Inglés 36Finance: Financiera El Corte Inglés 38

Corporate social responsibility 41

Commercial dimension 44Our business model 44Our customers 45Our products and services 48Our suppliers 51

Environment 53

Social aspect 58Our team 58The community and the surroundings 66Ramón Areces Foundation 70

Presentation Financial highlights of the consolidated Group 4

Contribution to national income 5

Board of Directors 7

Chairman’s Report 8

Part IILegal documentation 74

El Corte Inglés consolidated Group 75

Independent auditors’ report 76

2012 consolidated financial statements 78Consolidated balance sheet 78

Consolidated income statement 80

Consolidated statement of changes in equity 81

Consolidated statement of cash flows 84

Notes to the consolidated financial statements for the year ended 28 February 2013 87

2012 consolidated directors’ report 132

El Corte Inglés, S.A. . 135

Independent auditors’ report 136

2012 financial statements 138

Balance sheet 138

Income statement 140

Statement of changes in equity 141

Statement of cash flows 144

Notes to the financial statements for the year ended 28 February 2013 147

2012 directors’ report 188

Proposed distribution of profit 190

Certificate 191

Contents

4

Financial highlights of the consolidated Group

2012 2011

Share capital 486.86 486.86

Shareholders’ equity 7,391.57 7,450.23

Revenue 14,552.45 15,777.75

Gross profit from operations (EBITDA) 734.88 826.33

Profit from operations (EBIT) 336.40 328.20

Profit before tax 175.69 191.32

Consolidated net profit 171.51 209.99

Cash flow 676.64 715.32

Investments 570.40 870.76

Amounts in millions of euros.

5

In 2012 the El Corte Inglés Group companies’

contribution to national income was EUR 3,269

million, the breakdown being as follows:

Millions of euros %

Employees 2,460.47 75.3

- Remuneration 1,768.84

- Employee benefit costs 691.63

Company 338.52 10.3

Shareholders 33.76 1.0

State, autonomous community, and local councils 436.44 13.4

TOTAL 3,269.19 100.0

Contribution to national income

Shareholders1.0%

Company10.3%

Estate, Autonomous Community, and Local Councils 13.4%

Employees75.3%

Contribution to National Income

Board of Directors 7

Chairman

Isidoro Álvarez Álvarez

Directors

Juan Manuel de Mingo y Contreras*

Leopoldo del Nogal Ropero

Dimas Gimeno Álvarez

Juan Hermoso Armada

Florencio Lasaga Munárriz

Carlos Martínez Echavarría

Cartera Mancor, S.L. represented by Paloma García Peña

Corporación Ceslar, S.L.represented by Carlota Areces Galán

Secretary

F. José Soriano Atencia

Board of Directors

(*) Deceased 14 July 2013.

8

Chairman’s Report


Dear shareholders,

On behalf of the Board of Directors of El Corte Inglés, I welcome you to this general

meeting and thank you for your attendance in your dual capacity as shareholders

and employees of the Group. It is our task here to analyse the results of last year, which

spanned the period from 1 March 2012 to 28 February 2013.

To open my presentation, I should point out that the period has been marked by

the general economic recession and by the confluence of factors themselves highly

detrimental to Spanish household consumption. We are now in our fifth consecutive

year of slumping retail sales volumes.

The El Corte Inglés Group has operated in such a complex scenario with the following

results:

Consolidated revenue at 28 February stood at EUR 14,552.45 million, representing

a 7.8% fall on 2011.

Net profit amounted to EUR 171.5 million, down 18.3% on 2011.

Added to these aggregates are the following figures: EBITDA of EUR 734.88 million;

cash flows of EUR 676.64 million; shareholders’ equity of EUR 7,391.57 million;

contribution to national income of EUR 3,269 million; and investments of EUR 570

million.

By line of business, El Corte Inglés obtained a sales volume of EUR 8,542 million

–down 7.3%– and a net profit of EUR 264.5 million.

Viajes El Corte Inglés ranked second with sales of EUR 2,238 million –down 7.7%–

and net profit of EUR 41 million. At 2012 year-end, it had 599 agencies, 506 in Spain

and 93 abroad.

Hipercor achieved a volume of business of EUR 1,867 million, which represents

a decrease of 11.7% and profit of EUR 4.48 million.

The technology companies (Informática El Corte Inglés, Investrónica and Telecor)

earned revenue of EUR 700 million -down 4.4%- and net profit of EUR 38 million.

The Supercor and Supercor Exprés convenience stores made sales amounting to

EUR 423 million, representing an increase of 5.1%. Opencor’s sales reached EUR 244

million after reducing the number of stores as part of the restructuring and resource

streamlining programme for these retail formats.

Sfera increased sales by 9.4% to reach EUR 135 million and net profit of EUR 10 million.

It currently has 88 stores, 20 of which are located abroad, with its operations in Mexico

of particular importance.

10

Óptica 2000, the chain specialising in vision and hearing health, ended the year with

revenue of EUR 77 million –down 2.7% on 2011– and a net profit of EUR 4.6 million.

Bricor’s sales reached EUR 80 million –down 22.6%– but net profit improved on 2011.

In 2012 Bricor stores were incorporated into El Corte Inglés and Hipercor stores.

The insurance group increased activity to reach EUR 155 million, which represents

an increase of 7.4%, and net profit of EUR 37 million.

Revenue for Financiera El Corte Inglés amounted to EUR 168.41 million, representing

a net profit of EUR 43 million.

Noteworthy events in the year include:

• Sustaining the strength of the department store as a retail format. Not only does

El Corte Inglés contribute 58.7% to the Group’s consolidated revenue, but it also

remains the leading European department store.

• Bolstering employment, which enabled us to end 2012 with a total workforce of

96,678 employees, 94% of which had an indefinite-term employment contract.

• Completing expansion works at the Castellana store in Madrid, which saw it

consolidated as an exceptional sales space and emblem of innovation. Certain of its

most novel offerings and stores, such as Gourmet Experience, are being rolled out

at other stores with excellent acceptance by our customers.

• Lastly, the opening of two new El Corte Inglés and Hipercor stores, one in Córdoba

and the other in the Puerto Venecia shopping centre (Zaragoza), as well as a Hipercor

store and El Corte Inglés outlet in Badajoz.

Dear shareholders,

Spain’s economic reality is well-known. As a company, our domestic operations

cannot evade its effects and we must continue making efforts in management to

overcome the difficulties.

Our Group is facing the new challenges with its time-tested determination and

striving for innovation, renewal and ongoing improvement.

We are streamlining management in purchasing with three fundamental objectives:

improving supply sources, establishing greater discipline to decrease excess

merchandise and improving margins. This enables us to continue to match our

pricing policy to market demands.

As both an obligation and desire, we are looking to buttress e-commerce based on

the current strength of our platform, which has become a benchmark with more

than 3.5 million registered uses, 30 specialist stores and 137 million visits, reflecting

annual growth of 11.6%.


And we believe that there are new, highly attractive areas for business, such as the

development of shopping tourism. Coupling the fact that Spain is the second most

visited European country with the significant competitive advantages that we boast,

it is easy to see that there is vast room for growth in shopping tourism. This type of

tourism, which generates significant revenue in other surrounding countries, is still

minor in Spain.

Lastly, my fellow shareholders, we remain steadfast in our innovation efforts and

are constantly developing new offerings. This drive has led us to create and introduce

new brands and product categories and to pioneer different areas of activity with

renovated services tailored to our customers. And most importantly, our Group

remains true to its values and strengths, retains its market share and stands as

a benchmark for Spanish consumers.

As both shareholders and employees, I would like to thank you for your valuable

contribution. You are all participants in the constant efforts made in managing,

developing and improving resources to make the Company more efficient.

Regardless of the market’s behaviour, we strive to continue developing innovative

offerings and cultivate all business areas.

To meet these goals, I look to all of you, to all our professional teams, to the

contribution of our suppliers and to the trust of our customers.

I encourage you to continue facing the current difficulties with dedication,

imagination and endeavour. And I encourage you to maintain the great identity

markers of El Corte Inglés – quality, service, a wide range of offerings, firm guarantees

and innovation.

All that remains for me is to ask for your approval of the Management of the Board

and the Financial Statements for 2012-2013.

Many thanks,

Isidoro Álvarez Álvarez

Part I

Operating report of El Corte Inglés and its business group

Economic information 13

Corporate social responsibility 41

12

Economic information Economic analysis 14

Review by business line 18

13

14

Economic analysis

This section details the revenue and consolidated profit

obtained by the El Corte Inglés Group based on the

contribution of each of the main lines of business and

the investments made in 2012.

Revenue

Format % Share 2012 2011 % Change 12/11

El Corte Inglés department stores 58.7 8,541.74 9,211.96 (7.3)

Hipercor hypermarkets 12.8 1,866.84 2,114.14 (11.7)

Bricor DIY 0.6 80.07 103.40 (22.6)

Supercor & Sup. Exprés supermarkets 2.9 422.84 402.21 5.1

Opencor convenience stores 1.7 244.20 337.96 (27.7)

Sfera 0.9 135.40 123.77 9.4

Óptica 2000 0.5 77.26 79.38 (2.7)

Viajes El Corte Inglés Group 15.4 2,238.47 2,425.80 (7.7)

El Corte Inglés IT Group 4.8 699.67 732.18 (4.4)

Insurance Group 1.1 154.82 144.21 7.4

Other lines of business 0.6 91.14 102.74 (11.3)

TOTAL 100.0 14,552.45 15,777.75 (7.8)

Amounts in millions of euros.

Consolidated revenue totalled EUR 14,552 million in

2012 (year ended 28 February 2012), down 7.8% on

2011. The economic situation and general uncertainty

had a notable effect on consumer spending, as

reflected in the Group’s results.

Against this backdrop, the retail industry was affected

by shrinking household expenditure, the new taxation

framework and, most particularly, by the increase and

reclassification of VAT rates. These circumstances led

to a drop in average purchase spend, a move towards

lower-priced products and a reduction in margins.

As regards the El Corte Inglés Group as a whole,

the three business lines that made the greatest

contribution to consolidated revenue continued to

be department stores, hypermarkets and travel

agencies, which together account for 87% of the

business volume. Large department stores held up

strongly as a commercial format, achieving revenue

of EUR 8,542 million.

ECONOMIC INFORMATION Economic analysis 15

16,356 16,41315,778

2009 2010 2011 2012

14,552

Revenue 2012: 14,552.45 mIllIons of Euros

The Group’s consolidated revenue over the last four

years has been as follows:

Consolidated profit

The contribution to consolidated profit of the Group’s

lines of business was as follows:

Format % Share 2012 2011 % Change 12/11

El Corte Inglés department stores 66.0 264.52 297.94 (11.2)

Hipercor hypermarkets 1.1 4.48 35.91 (87.5)

Bricor DIY (3.9) (15.54) (18.91) 17.8

Supercor & Sup. Exprés supermarkets (1.8) (7.03) (9.40) 25.2

Opencor convenience stores (5.0) (20.14) (14.92) (35.0)

Sfera 2.5 10.05 1.89 >100

Óptica 2000 1.1 4.59 5.18 (11.4)

Viajes El Corte Inglés Group 10.3 41.34 53.87 (23.3)

El Corte Inglés IT Group 9.4 37.80 41.87 (9.7)

Insurance Group 9.3 37.34 34.81 7.3

Finance: Financiera El Corte Inglés 10.6 42.56 29.55 44.0

Other business lines 0.2 0.68 5.62 (87.9)

Consolidation adjustments and eliminations (229.14) (253.43) 9.6

CONSOLIDATED PROFIT 171.51 209.99 (18.3)

PROFIT ATTRIBUTABLE TO NON-CONTROLLING INTERESTS (0.99) 0.20 (*)

PROFIT FOR THE YEAR ATTRIBUTABLE TO THE PARENT 170.52 210.19 (18.9)

Amounts in millions of euros.(*) Change not representative.

Revenue / mIllIons of Euros

16

The Group’s consolidated profit for 2012 (year ended 28

February 2013) stood at EUR 171.5 million, down 18.3%

on 2011.

The Board of Directors of El Corte Inglés, S.A., as the

Parent, will propose to the shareholders at the Annual

General Meeting payment out of profit of a dividend

equal to 10% of the par value of each existing share

entitled to receive it. The provisional calculation of the

proposed dividend payment is as follows:

Thousands of euros

Dividend payable 42,728

Voluntary reserves 217,966

PROFIT OF EL CORTE INGLÉS, S.A. 260,694

Following this distribution of profit of El Corte Inglés, S.A.,

the consolidated Group’s shareholders’ equity is

as follows:

Thousands of euros

Share capital 486,864

Reserves and other 6,861,978

TOTAL 7,348,842

Investments

In 2012 the consolidated Group invested a total of EUR

570.40 million, the detail being as follows:

Thousands of euros

Property, plant and equipment 459.80

Intangible assets 83.78

Non-current financial assets 26.82

Investments 2012: 570.40 mIllIons of Euros

El Corte Inglés store in the Marineda City shopping centre (A Coruña).

ECONOMIC INFORMATION Economic analysis 17

The investments in property, plant and equipment were

as follows:

Thousands of euros

Land and buildings 22.52

Machinery, fixtures and tools 33.17

Furniture 36.42

Computer hardware 25.95

Property, plant and equipment in the course of construction 341.75

Most of these investments relate to the commitments

acquired and the projects initiated in prior years

in relation to the opening of new stores of the Group’s

various business lines, and to refurbishment and

renovation work carried out at existing stores.

In 2012 two stores were opened with a joint El Corte

Inglés and Hipercor, one in Córdoba and the other

located in the Puerto Venecia shopping centre in

Zaragoza. A new store was also opened in the El Faro

shopping centre in Badajoz that includes the Hipercor

and El Corte Inglés Outlet formats.

Refurbishment and renovation work was also begun

at the Castellana and Goya stores, both in Madrid, and

at the Bahía Sur store in Cádiz.

Mention must also be made of the opening of Bricor

stores at various El Corte Inglés and Hipercor stores.

18

Following is a review of the business performance in

2012 of each of the Group’s current business lines and

sales formats.

El Corte Inglés department stores

The department store format maintained its strength

as a business model and remains the most significant

line in the Group taken as a whole with a contribution

to consolidated revenue of 58.7%. Despite the fall-off in

consumption and the difficulties facing the business,

revenue for 2012 stood at EUR 8,542 million, with net

profit of EUR 265 million.

The appeal of the commercial offering, the ability to

adapt to cater to customers with varying tastes and

economic possibilities, and the ongoing improvements

made to management systems have made it possible to

overcome the difficulties present in the retail industry

without losing sight of our commitment to quality,

range and guarantees.

In Portugal, as in the Spanish market, major

endeavours were undertaken to lower prices combined

with the launch of numerous promotion campaigns

aimed at making the customer’s purchase decision

easier. The adverse economic situation took its toll

on sales, which led to changes in the management

of virtually all areas -from stock control to energy

consumption-, which made it possible to make

significant cost adjustments and savings.

Commercial offering

El Corte Inglés is characterised by its wide-ranging and

varied commercial offering, which is constantly being

updated and adapted to the latest market demands. We

bring in new items in all areas: fashion and accessories,

technology, sport, culture and art, decoration, food,

catering, customer service, assistance to tourists, etc.

This spirit of renewal includes the introduction of new

labels and the launch of new products such as the

Gloria Ortiz and Emidio Tucci proprietary perfume

brands in the perfumery area, or the new Black

Collection, also by Emidio Tucci, for men’s fashion.

El Corte Inglés is an enormous shop window to

which new brands are added each year, the common

denominator of which is quality and innovation.

Noteworthy in this regard is the recent inclusion of

labels such as Vince Camuto, Steve Maden, Ugg or Liu

Jo in the fashion accessory area; Cimento and Stroili

in the jewellery department; or Michael Kors, Karen

Millen or Police in the bijoux jewellery section.

Also in the area of fashion -in which El Corte Inglés

is perceived as a benchmark due to the considerable

range of available brands- there were other new

developments which include the inclusion of the

Rachel Roy brand exclusively at El Corte Inglés. In the

autumn Couchel, a proprietary brand of special-size

clothing for women that produces modern high quality

designs at a fair price, was included.

Of equal note was the creation, by the designer Juanjo

Oliva, of a special collection for Elogy, an El Corte

Inglés exclusive label. Through this initiative the style

of a prestigious fashion designer is made available to

the public at affordable prices.

New technologies, e-commerce and the digital

environment continue to capture our interest. The

El Corte Inglés website has been consolidated in order

to offer an improved online purchasing experience

with new tools such as the recently rolled out PayPal

payment method. The last quarter of 2012 also saw

actions with brands such as Spotify for the sale of

cards to subscribe to its music streaming system;

with Filmotech for the start-up of the largest Spanish-

language online video club; and with Wuaki.tv for the

distribution of Hollywood films over the internet.

A multichannel platform was launched that includes

both the in-store service and the new digital internet

products on the dedicated website www.bodamas.com that offers everything that the bride and groom and

their guests might need for the ceremony, reception,

review by business line

Review by business line 19EConomIC InformATIon

20

El Corte Inglés department stores Revenue in 2012: 8,541.74 mIllIons of Euros

wedding list or honeymoon. One of the new features

of this website is that it groups together around

1,800 companies, many of them SMEs, which add an

extensive and varied range of commercial and service

offerings to those already provided by El Corte Inglés.

We have continued to develop commercial formats

that enjoy the support of our customers such as the

Gourmet Experience, a concept that melds the quality

tapas experience with the sale of gourmet products.

In autumn, and boasting spectacular views over

Madrid’s Gran Vía, we inaugurated our fourth Gourmet

Experience at the Callao store. Various establishments

have also seen the installation of Health and Beauty

areas where the latest treatments and advances relating

to health and beauty are offered. The Art section at

the Castellana store in Madrid has also extended its

experience as a contemporary art gallery to Barcelona

and Marbella.

We pay special attention to the foreign tourists who

visit our stores, making a series of additional services

available to them, such as managing VAT refunds,

sending goods to their hotels or countries of origin,

and information in various languages.

Promotional campaigns

The overall economic situation affected the

promotional campaigns carried out in 2012, offering

high quality products at very competitive prices.

Payment facilities have also been made more freely

available, with various financing or deferred-payment

actions so that the customers can acquire the products

or services that they want.

The digital environment is strengthened as a

communications tool and as a channel to carry out

promotional campaigns. In addition to the campaigns

launched on the Group web pages, in 2012 the

presence of El Corte Inglés in the social networks

increased, where we maintain a continuous and open

dialogue with customers and society in general, across

platforms such as Facebook or Twitter. El Corte Inglés

is the only Spanish company to feature in the Top 10

of the “talented brands,” according to the Facebook IQ

study conducted by New York University.

In terms of advertising, the Company once more

demonstrated its capacity for high visibility with the

launch of the Emidio Tucci Black Collection in October

2012.

It also had the backing of familiar faces such as

the Australian actress Naomi Watts, who filmed the

El Corte Inglés Christmas TV commercial under

the orders of director Juan Antonio Bayona, or the

Spanish actress Maribel Verdú who starred in the sales

campaign adverts.

Internet commerce

The El Corte Inglés website continues to be

an e-commerce benchmark with close to

137 million visits, up 11.6% on 2011. It also

has over 3.5 million registered users and

30 stores adapted to all types of customers

with varying economic possibilities.


El Corte Inglés department stores: 86 (*)

In spain: 84

In Portugal: 2Lisbon and Vila Nova de Gaia - Oporto

ANDALUSIAAlgeciras, Cádiz, Córdoba (2), El Ejido, Granada, Jaén, Linares, Malaga (2), Marbella (2), Mijas, San Fernando, San Juan de Aznalfarache and Seville (3)

ARAGóNZaragoza (3)

ASTURIASAvilés, Oviedo (2) and Gijón

CANTABRIASantander

CASTILLA- LA MANCHAAlbacete, Guadalajara and Talavera de la Reina

CASTILLA Y LEóNBurgos, León, Salamanca and Valladolid (2)

CATALONIABarcelona (5), Cornellà, Sabadell and Tarragona

VALENCIA AUTONOMOUS COMMUNITYAlicante, Castellón de la Plana, Elche and Valencia (4)

ExTREMADURABadajoz

GALICIAA Coruña (2), Santiago de Compostela and Vigo

BALEARIC ISLANDSPalma de Mallorca (2)

CANARY ISLANDSLas Palmas de Gran Canaria (2) and Santa Cruz de Tenerife (2)

MADRIDAlcorcón, Getafe, Leganés (2), Madrid (11) and Pozuelo de Alarcón

NAVARREPamplona

BASqUE COUNTRY Bilbao (2), Eibar and Vitoria

REGION OF MURCIA Cartagena and Murcia (2)

El Corte Inglés department stores | Hipercor hypermarkets

Hipercor hypermarkets: 42 (*)

ANDALUSIAAlgeciras, Cádiz, Córdoba, El Ejido, Granada, Huelva, Jerez, Málaga, Marbella, Mijas, San Juan de Aznalfarache and Sevilla (2)

ARAGóNZaragoza (2)

ASTURIASAvilés, Gijón and Oviedo

CANTABRIASantander

CASTILLA- LA MANCHAGuadalajara

CASTILLA Y LEóNBurgos and Valladolid

CATALONIABarcelona, Cornellà and Girona

VALENCIA AUTONOMOUS COMMUNITYElche and Valencia

ExTREMADURABadajoz

GALICIA

A Coruña and Santiago de Compostela

CANARY ISLANDS Las Palmas de Gran Canaria

MADRID Alcalá de Henares, Alcorcón, Arroyomolinos, Getafe, Leganés, Madrid (4) and Pozuelo de Alarcón

REGION OF MURCIA Murcia

(*) Data at 28 February 2013.

4 | 24 | 3 1 | 1 4

1

3 | 28 | 3

2 7 | 23 | 1

16 | 10

5 | 2

1 | 12

18 | 13

4 | 1

3 | 1

22

Hiper specialist

Hipercor has become a “hyper specialist”

that expands its range of customer services

in the areas of automotive, electronics

and DIY. As regards the first of these

areas, the presence of the Motortown

proprietary brand has been increased for

the automotive world and accessories,

which complements the workshop for

cars and motorcycles which is in the same

establishment.

The electronics and DIY sections

have an extensive commercial

offering that differentiates them from

other competitors. A number of the

hypermarkets also include Bricor stores,

thereby enriching the DIY commercial and

services offering.

Hipercor in the Puerto Venecia shopping centre (Zaragoza).

ECONOMIC INFORMATION Review by business line 23

Hipercor hypermarkets

The Hipercor hypermarket chain obtained revenue

of EUR 1,867 million, down 11.7% on 2011, with

profit of EUR 4.48 million. This performance was

affected mainly by the economic situation and

falling consumption. In any case, the chain has

made headway with its plan to optimise internal

management which has led to an improved inventory

system, a reduced inventory and cost savings. This has

been accompanied by an organisational change that

provides for a better distribution of the workload.

In 2012 three new Hipercor stores were opened: one

in Cordoba in May, one in Badajoz in September and

one in Zaragoza in October, the latter two are located

in the El Faro and Puerto Venecia shopping centres,

respectively. Also, significant renovation work was

undertaken at the Campo de las Naciones and Vista

Alegre hypermarkets, both in Madrid.

The three stores opened in the year continue the

hypermarket philosophy of offering an extensive

selection of products to set them apart from the

competitors, and have adopted a new store model

with a more modern, easy and enjoyable structure for

consumers. This new approach, which will be adapted

gradually to the rest of the chain, locates all fresh

produce in the centre of the store, which stands out as

a result of its high quality and very competitive prices

and which is reviewed on an ongoing basis, in line with

the new strategy adopted by the Group.

In 2012 we launched a new policy that enables us to

offer the same quality and service as always but at

lower prices in order to help families in the prevailing

circumstances. This has been achieved by permanently

reviewing the 5,000 most frequently demanded

products to ensure that they may always be purchased

at our stores at all times at highly competitive prices.

This price list is checked weekly in relation to fresh

produce and every two weeks in the grocery, drugstore

and perfumery areas.

This drop in prices was also helped by the new

purchasing policy that attempts to go to the origin of

the product by reducing the number of middlemen.

As part of our policy of constant innovation, in some

of our fishmongers sea water has started being used

for better preservation and maintenance of the natural

properties of the products. Also in our fruit and

vegetable section, the “zero kilometre” concept has

started to be implemented which promotes the sale of

fresh fruit and vegetables harvested on the day and in

locations close to the store.

The textile section has seen changes to the

arrangement of the garments in order to allow for

better presentation and visualisation. These are basic

articles, of good quality and taste, with highly attractive

prices.

As regards our promotional policy, a new system of

bonuses has been created that allow families to plan

their shopping and obtain major savings.

Hipercor hypermarkets Revenue in 2012: 1,866.84 mIllIons of Euros

ALIMENTACIÓN DROGUERÍA PERFUMERÍA

24

Bricor DIY

Bricor, the chain specialising in DIY, interior

decoration, gardening and kitchen and bathroom

projects, achieved revenue of EUR 80 million, down

22.6% on 2011. The decrease mainly arose as a result

of the recession in the construction industry which has

affected all the related subsectors.

Brico incurred a loss of EUR 15.5 million, although an

improvement was observed compared with 2011 due

to the cost saving and management efficiency policies.

The immediate returns obtained with the new urban

DIY format developed in 2012 also had an impact

through the opening of Bricor stores inside El Corte

Inglés and Hipercor establishments.

As a result of this new retail concept, Bricor has

eight urban stores in addition to the existing eight

superstores in 2011. The new format enables the

flagship’s growth strategy to be adapted to the new

market dynamics, thus satisfying the demands of

customers seeking household DIY solutions at the

best possible price and without having to travel to the

outskirts of the city.

Bricor focused its endeavours on offering a wide range

of products and services while maintaining a policy of

very competitive prices. For the new urban stores, an

assortment of products was selected to respond to local

demands, offering up to 12,000 product references

of leading Spanish and international brands. Based

on a survey conducted among customers of the new

stores, the most highly appreciated features are the

wide range of our offering and the possibility for

customers to choose between carrying out the project

or household refurbishment themselves or getting our

trained professionals to do it, either fully or partially.

This is one of the Bricor chain’s differentiating factors.

Moreover, for customers preferring a wider range of

options, Bricor’s major stores offer more than 45,000

references.

Over 80% of the articles sold by the chain are from

Spanish suppliers. The good relationship enjoyed with

our suppliers has led to the performance of a series

of joint actions, culminating in 2013 in a marketing

campaign to boost the DIY industry in the Spanish

market.

Another of Bricor’s distinguishing features is its

active environmental policy which is supported by

numerous campaigns to raise public awareness.

One such campaign is the “Perform your own energy

efficiency audit” which, under the slogan Save money!

Sustainability benefits you!, aims to show customers

how to economise in areas such as lighting, heating

and energy.

As a result of its capacity to offer customers the

best brands and services, Bricor received the Best

Commercial Practices Award based on manufacturer-

customer collaboration, awarded by the Hardware

and DIY Committee of the Spanish Association for

Commercial Codification (AECOC), which brings

together more than 1,000 industrial and distribution

companies.

Bricor DIY Revenue in 2012: 80.07 mIllIons of Euros


Brico Stores: 16 (*)

In spain: 14

ANDALUSIA: 4 GALICIA: 1

CATALONIA: 1 MADRID: 7

VALENCIA AUTONOMOUS COMMUNITY: 1

In Portugal: 2


Customer training

One of Bricor’s distinguishing features is its

commitment to training. In addition to the

environmental awareness campaigns, the

chain also offers customers a variety of training

programmes in DIY techniques. All in all

more than 200 training videos are available

(downloadable using Quick Response (QR)

Codes) illustrating how to approach DIY and

how to choose the appropriate product for

each project.

26

Convenience stores

• Supermarkets: Supercor and Supercor Exprés

• Convenience stores: Opencor

In 2012 the Group progressed with the reorganisation

and optimisation of resources of the convenience

store formats in the food and mass consumer sector

(Supercor, Supercor Exprés and Opencor), a change

which was initiated in 2011 in line with new consumer

habits and the boom in the convenience channel. This

strategy was further enhanced by the deregulation of

commercial opening hours in various autonomous

communities which led to the conversion of certain

Opencor stores to the Supercor Exprés format, thus

enabling greater adaptation to local requirements,

while taking advantage of the Group’s synergies and

achieving greater efficiency at each store.

In line with strategy to achieve better use of the Group’s

resources, the convenience stores have strengthened

their position as the collection point for customers

purchasing goods online from the El Corte Inglés

website. In 2012 new training courses were also

provided for personnel in various areas, especially for

shop managers.

Conceived with shopping speed and efficiency in mind,

in 2011 Supercor Exprés stores were introduced with an

offering covering food and fresh products, household

and perfumery products, as well as the press and, in

certain cases, telephone recharging. Apart from leading

brands, Supercor Exprés also offers numerous Group

proprietary brands such as El Corte Inglés, Aliada,

Veckia and Special Line. The chain’s opening hours

from 9 a.m. to midnight provide customers with the

maximum flexibility in order to meet their consumer

requirements.

Supercor is a larger store format mainly offering

fresh produce and a wide variety of products and

brands able to satisfy any consumer demands. The

quality of the fresh products offered, the presence

of professionals behind the counter and the offering

which includes around 21,000 different references set

this chain apart. As in the case of Supercor Exprés, this

store format benefitted from the new pricing strategy

implemented by the Group in 2012 for food and mass

consumption products, offering highly competitive

prices for the same quality and service.

supercor and supercor Exprés Revenue in 2012: 422.84 mIllIons of Euros

The Opencor chain of convenience stores is subject

to legislation establishing opening hours of at least 18

hours a day with an offering ranging from food to gift

and leisure articles, the press, etc. Where permitted

under local legislation, the conversion of Opencor

stores into Supercor Exprés format resulted in a

decrease in the number of Opencor stores, which

affected revenue and results. In addition, the lower

level of business activity during the store conversions

also had a detrimental impact on the volume of sales

achieved by Supercor Exprés.

In this context, Supercor increased its sales per square

metre, improved productivity and continued to save

costs, which enabled it to close the year with revenue of

EUR 423 million, up 5.1% on 2011. Opencor reduced its

level of commercial activity due to the decrease in the

number of establishments, as a result of which revenue

amounted to EUR 244 million, down 27.7% on 2011.

Supercor Exprés at C/ Condesa de Venaditos, 5 (Madrid).


opencor Revenue in 2012: 244.20 mIllIons of Euros

Convenience Stores: 238 (*)

ANDALUSIA: 49 ExTREMADURA: 1

ARAGóN: 3 GALICIA: 15

ASTURIAS: 9 BALEARIC ISLANDS: 2

CANTABRIA: 1 CANARY ISLANDS: 12

CASTILLA-LA MANCHA: 2 MADRID: 71

CASTILLA Y LEóN: 3 NAVARRE: 1

CATALONIA: 29 BASqUE COUNTRY: 2


REGION OF MURCIA: 3


28

Sfera

In 2012 the Sfera fashion and accessories chain

performed well, achieving revenue of EUR 238.4 million,

up 14.7% on 2011. Its contribution to the Group’s

consolidated revenue amounted to EUR 135 million.

These figures confirm the change in strategy embarked

upon in the two previous years which in 2012 helped the

Group obtain net profit of EUR 10 million.

Noteworthy among the measures undertaken to achieve

this result is the improvement in goods management,

which has improved margins and reduced surpluses.

Sfera has maintained its sales policy of offering

competitive prices, reduced operating costs and

advanced with its strategy to define a global brand which

encompasses the various product lines targeting women,

men and children.

Also a marked improvement was achieved in its

collections, placing particular emphasis on the

refinement of garment styling, launching new fashion

collections and the ongoing quest for new trends and

styles.

Sfera continued with its store refurbishment plan which

affected a total of 24 establishments and 57 corners in

2012.

Noteworthy at international level was the growth in sales

in Mexico, where Sfera currently has 14 stores and plans

to open at least 6 more points of sale in 2013.

At 2012 year-end the fashion and accessories chain

comprised a total of 88 stores, 20 of which are outside

Spain. Sfera is also found in all the El Corte Inglés stores.

In terms of communication and advertising, Sfera

strengthened its social network presence by providing

permanent information on the new developments and

collections at stores, in addition to announcements of

exclusive promotional activities.

Sfera stores in Spain and Portugal: 71 (*)

In spain: 68

ANDALUSIA: 15 GALICIA: 6

ARAGóN: 1 BALEARIC ISLANDS: 1

CASTILLA-LA MANCHA: 4 CANARY ISLANDS: 2

CASTILLA Y LEóN: 7 MADRID: 15

CATALONIA: 3 MELILLA: 1


BASqUE COUNTRY: 1

ExTREMADURA: 2 REGION OF MURCIA: 4

In Portugal: 3


sfera Revenue in 2012: 135.40 mIllIons of Euros


óptica 2000

Óptica 2000, the chain of stores specialising in vision

and hearing products, achieved revenue of EUR 77

million in 2012, a reduction of 2.7% on 2011. Óptica

2000 obtained net profit of EUR 4.6 million, down

11.4% on 2011.

In 2012 Óptica 2000’s actions were mainly focused

on areas such as goods management, the renewal of

products, the incorporation of new models and the

implementation of cutting-edge technologies at new

points of sale. Progress was made in the management

of stock with a view to achieving greater product

turnover and offering the most innovative models and

the latest fashion designs.

The basic product line has also been renewed to offer

even lower prices and to increase monofocal and high-

range progressive lens quality.

Certain of the Group’s own-brands, such as Gloria Ortiz

and Emidio Tucci, launched new frame models in line

with the latest fashion trends.

In 2013 Óptica 2000 will launch its new IT system

which will permit more efficient access to information

and the optimisation of patient’s medical and

healthcare data, as well as enhancing the possibilities

offered by access to a comprehensive catalogue of

ophthalmic lenses designed to meet the individual

needs of each patient.

Training remains one of the priorities of the chain,

which offers both online and on-site courses, the latter

developed in cooperation with the manufacturers.

There are also cooperation agreements with the

Universidad Politécnica de Catalunya and the

Universidad of Tarrasa.

Other relevant agreements include those reached

with reputable ophthalmic centres such as the Clínica

Baviera and the Clínica Barraquer.

At 2012 year-end, Óptica 2000 had 109 establishments.

Óptica 2000 Stores: 109 (*)

In spain: 107

ANDALUSIA: 23 ExTREMADURA: 1

ARAGóN: 4 GALICIA: 4

ASTURIAS: 3 BALEARIC ISLANDS: 2

CANTABRIA: 1 CANARY ISLANDS: 3

CASTILLA-LA MANCHA: 3 MADRID: 19

CASTILLA Y LEóN: 5 NAVARRE: 1

CATALONIA: 20 BASqUE COUNTRY : 4


REGION OF MURCIA: 4

In Portugal: 2


Óptica 2000 Revenue in 2012: 77.26 mIllIons of Euros

Optometry and audiology clinics

A new system has been implemented in

prescription clinics for presenting optotypes

which involve the use of polarised LED screens,

offering both greater transparency in eye tests

and enhanced patient comfort.

Óptica 2000 installed new topography models at six

stores permitting precise corneal analysis. These

instruments and the related services offered not only

place Óptica 2000 at the cutting edge of technology

but also set us apart from our competitors.

In addition, mention should be made of

tympanometer installed in 38 of the stores

providing audiology services. This instrument

makes it possible to measure the resistance to

the transmission of sound from the outer to the

inner ear.

30

Viajes El Corte Inglés Group

In 2012, the Spanish and foreign companies that

compose the Viajes El Corte Inglés Group generated

revenue amounting to EUR 2,238 million, down 7.7%

on 2011. Net profit stood at EUR 41 million.

The effect of the economic crisis on consumption has

had a very significant impact on domestic tourism,

giving rise to a dramatic decrease in activity in both

domestic and foreign travel. This led to a temporary

change in our working hours in January in line with

the trend observed in the industry.

The management model of Viajes El Corte Inglés is

based on personalised attention aimed at meeting

the individual business and holiday travel needs of

each customer, . For this purpose, it offers a carefully

selected, extensive range of tourist products and

services which enables the ongoing creation of value

for all customers.

Viajes El Corte Inglés is the exclusive distributor of

the products of its wholesaler Tourmundial, which

prepares a holiday product tailored to the market’s

needs. As a retailer, Viajes El Corte Inglés offers the

end customer both its extensive network of offices and

all the typical products and services of a travel agency

with the guarantee and quality that characterise

the Group.

The Business Division, the leading agency in

corporate customer services, specialises in both

large companies and SMEs. The Company’s aim is to

provide its customers with the best services, reducing

their travel costs based on the advice of our agents

and the consulting department. Businesses are

also provided with global services and information

from an integrated perspective and, to this end, we

have entered into various international cooperation

agreements.

Viajes El Corte Inglés is also specialised in the

planning and organisation of congresses, conventions

and incentive trips through a team of professionals

specialised in integral event management, including

the planning, organisation and implementation of

institutional, corporate, sporting and cultural events.

The most recent events in which Viajes El Corte

Inglés participated include the 2012 UEFA European

Championship hosted by Poland and Ukraine, the

2012 UEFA Europa League Final held in Bucharest,

the 2012 World Handball Championships hosted

by various Spanish cities and the World Junior

Championships in Athletics held in Barcelona. Also

noteworthy were the 2nd National Conference of

Executives held in Valencia and the International

Union of Biochemistry and Molecular Biology congress

which took place in Seville.

Viajes El Corte Inglés also has alternative sales

channels through which it provides customers with a

broad range of services. These channels include remote

sales, both tele-sales and online sales through its

website, which allow the Company to offer a balanced

service distribution system tailored to our customers’

needs.

The promotional initiatives undertaken by Viajes

El Corte Inglés aim to encourage customers to make

Viajes El Corte Inglés Group Revenues in 2012: 2,238.47 mIllIons of Euros


advance holiday reservations for specific product or

seasonal campaigns such as the Semana del Crucero

(Cruise Week), Crucilandia (Cruiseland), Nieve

(Snow), A Viajar Verano (summer deals) or Mes del

Circuito(Circuit Tour Month). Also worth mentioning

are its campaigns offering specific products such

as Viajes para Mayores de 55 años (Holidays for

the over 55s) and Turismo Social (Social Tourism),

complemented by the sale of IMSERSO package

holidays through Viajes El Corte Inglés.

In addition, in cooperation with important operators,

the Company undertakes campaigns to promote family

tourism in theme parks such as Disneyland® Resort

Paris, PortAventura, the City of Arts and Sciences and

Walt Disney World® Resort Florida.

An extensive office network

Viajes El Corte Inglés has an extensive office

network both in Spain and abroad. In 2012, 15

new branch offices were opened, including one in

Panamá, the first in this country. At 2012 year-

end, there were a total of 506 branch offices in

Spain and 93 abroad.

Viajes El Corte Inglés branch office in Santiago de Chile.

32

Informática El Corte Inglés Group: Informática El Corte Inglés, Investrónica and Telecor

The information and communications technology area

of the El Corte Inglés Group comprises Informática

El Corte Inglés, Investrónica and Telecor. In 2012

aggregate revenue of EUR 700 million was obtained,

down 4.4%. Profit amounted to EUR 38 million, down

9.7% on 2011.

Informática El Corte Inglés

Informática El Corte Inglés is characterised for

adapting its proposals for the information technology

industry to the ever-changing market, offering its

services to both public bodies and private companies.

In 2012 it has strengthened its cloud computing service

offering and integrated workstation management. In

this regard, of particular note is the initiative to migrate

46,000 users of an autonomous community which have

ceased to use installed office technology software in

favour of cloud services.

Other noteworthy projects include the management

of the workstation support of another autonomous

community and the software maintenance of an

important European Union agency.

A smart city project in Latin America should also be

noted, which involves the launch of an integrated

security and emergency solution to anticipate and

manage any kind of incident, including weather-

related catastrophes.

In addition, numerous projects were developed for

various Spanish multinationals which made it possible

to upload business cooperation, videoconference,

telepresence, warehousing, incident and request

management systems, inter alia, to the cloud. These

projects represent an important advance in the

company’s cooperation and communication systems.

In the finance industry, the Group has implemented

systems for the digitisation of documentary archives

of important entities located in Spain and abroad.

In 2012 a Mobility Centre of Excellence was created

to unite the offering of applications and experience

in mobile technology.

Informática El Corte Inglés has launched a new

business portal to improve communication with

its customers located in Spain and abroad, and it

organised the VI Document and Workflow Technology

Forum in Madrid where customers share their

experiences and manufacturers present the latest

innovations.

Informática El Corte Inglés Group Revenue in 2012: 699.67 mIllIons of Euros


Certificates and acknowledgements

Informática El Corte Inglés software developers were awarded the Capability Maturity

Model Integration (CMMI) Level 5 maturity certificate, which is the highest possible level

and has only been awarded to eleven other companies in Spain.

Informática El Corte Inglés guarantees its customers good IT governance practices in

accordance with the guiding principles provided under ISO 38500. It also guarantees

the security of credit card payments with its ConexFlow solution, which obtained

international Payment Application Data Security Standard (PA-DSS) certification in 2012.

IT developers have recognised the role played by Informática El Corte Inglés as a

distribution channel for and integrator of their solutions with numerous mentions and

awards, the most noteworthy of which included the Advanced Data Center Architecture

Specialisation awarded by Cisco, Hitachi’s Enterprise Storage Solutions Partner award,

and its recognition as Best Performance Reseller by Fujitsu. Informática El Corte Inglés

also received the award for the Best Document Management Solution from the magazine

Byte TI for its Invesdoc Gallery Suite.

34

Investrónica

In 2012 Investrónica entered the ultrabook business

with is new range Inves Duna Slim with Windows 8.

This category of laptops is designed to offer improved

performance and enhance user mobility.

The Invesgenia division has been working on a new

engineering project to develop intelligent lockers for

public spaces equipped with a sturdy security system

ideally suited for shopping or crowded areas.

New Ultrabook by Inves Duna Slim.


As for the intelligent signage business line, Inves has

presented a new videowall solution (screens combined

to form a single image) of unparalleled quality

specifically designed to circulate advertising messages.

At Venditalia 2012, Europe’s main vending trade fair,

Inves presented a new concept in intelligent automatic

vending machines, Inves Ventia, providing solutions

which include both the sale of high-end products and

services such as the rental of e-goods (films, software,

music, e-books, etc.)

Telecor

Telecor, the Group company specialising in the

marketing of telecommunications products and

services, has made a considerable effort to adapt to

changes in this sector. The most significant changes

include the withdrawal of handset subsidies by mobile

phone operators; portability within 24 hours; the

launch of convergent fixed and mobile telephone

and ADSL offers; the mainstreaming of virtual mobile

operators; and the increase in the number of unlocked

handsets.

The chain has points of sale in certain Group shopping

centres, as well as its own Telecor establishments and

various distribution channels.

Telecor’s telecommunications offering is a

multioperator, applying at all times impartiality

and independence criteria vis-à-vis the operators

and manufacturers with which it works. Telecor has

agreements with all the mobile, virtual and landline

operators in Spain.

36

Insurance Group: Centro de Seguros y Servicios, and Seguros El Corte Inglés

The El Corte Inglés Group operates in the Spanish

and Portuguese insurance industries through two

companies: Centro de Seguros y Servicios (insurance

broker) and Seguros El Corte Inglés (insurance

company which operates in the life and accident

insurance lines and manages pension funds).

The aggregate revenue in 2012 totalled EUR 155

million, 7.4% more than in 2011. Its contribution

to consolidated profit was EUR 37 million, up 7.3%

on 2011.

Centro de Seguros y Servicios

In 2012 Centro de Seguros y Servicios continued to

expand, opening five new branches to take the total

number of centres to 105, most of which are located

in El Corte Inglés department stores.

It also continued to extend its offering of insurance

policies, including most notably new insurance

policies in the automotive, life and healthcare lines,

in cooperation with some of the most prestigious

insurance companies. Centro de Seguros y Servicios

also began to market exclusive insurance policies for

El Corte Inglés customers.

The insurance broker website was completely

overhauled to promote to Group’s multichannel service

(www.seguros.elcorteingles.es) converting it into a real

online centre for insurance sales, advisory services and

assistance. New customer communication channels

were also launched via Facebook and Twitter and

the telephone sale and customer service activity was

enhanced, most notably with the launch of accident

insurance designed specifically for this channel.

In fulfilment of our commitment to quality and service,

after-sales services were reinforced for theft, damage,

extension of cover lines of insurance for goods sold in

our shopping centres.

Insurance Group Revenue in 2012: 154.82 mIllIons of Euros

El Corte Inglés Seguros Correduría website.


In 2012 various promotional campaigns were launched

offering significant discounts, benefits and gift draws in

the whole range of insurance policies being sold. These

campaigns include most notably Mes Superseguro

(SuperInsurance Month), Aniversario Fantástico

(Fantastic Anniversary), 8 Tickets de Oro (Eight Gold

Vouchers), Pitágoras (Pythagoras), Tres Grandes Deseos

(Three Important Wishes), etc.

105Centro de Seguros y Servicios branches

200.6 mIllIons of Euros

Pension plan assets under management


Premiums accrued in 2012

Seguros El Corte Inglés

Noteworthy among the commercial activities in

2012 were the complete renewal of the range of

individual life insurance products with Vida Esencial,

Vida Garantía and Vida Integral, the launch of a new

individual accident insurance policy Garantía Triple

and the opening of four new sales branches.

The premiums accrued in 2012 amounted to EUR

125.4 million (up 7.7% on 2011), of which EUR 92.9

million related to life insurance and EUR 32.5 million

to accident insurance. This growth is a result of the

positive performance of the new products, especially

in life insurance, most particularly in individual life

insurance. Sound performances were also noted in net

profit, with growth of 11.7%, and the capital adequacy

margin, with a 20.7% increase in eligible capital.

Once again this year, all of the pension plans under

management obtained positive returns. Pension plan

assets under management, including the assured

saving plans, reached EUR 200.6 million, up 19% on

2011.

38

Finance: Financiera El Corte Inglés

In 2012 Financiera El Corte Inglés carried on its activity

in line with the changes in consumption and the sales

at Group companies.

Goods and services acquired by customers through the

use of the card issued by the company amounted to

EUR 4,826 million, down 8.9% on 2011.

Financing granted to customers through the “Personal

Payment Formula” amounted to EUR 1,389 million,

down 13.1% on 2011, and the number of contracts

signed was 2.1 million.

Total financing granted to customers in 2012 through

the Group’s payment methods amounted to EUR 6,664

million, down 9.5% on 2011.

Revenue from all sources totalled EUR 168.41

million and net profit amounted to EUR 43 million, a

significant increase on 2011. Shareholders’ equity at

2012 year-end stood at EUR 426.5 million.

The positive result recognised in 2012 was basically

a result of stable non-performing loans ratios, the

decrease in finance costs and the adjustments in

interest rates.

At 31 December 2012, there were more than 10.5

million El Corte Inglés charge cards.

In addition, on 22 June 2012, Financiera El Corte Inglés

received authorisation from the Tax Management

Department of the Spanish Tax Authorities to operate

as a cooperating entity in the reimbursement of VAT

on goods acquired under the regime for travellers from

third countries.


Total revenue in 2012

6,663.84 mIllIons of Euros

Financing granted to customers


El Corte Inglés store in the Puerto Venecia shopping centre (Zaragoza).

el corte inglés castellana store...

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