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El Corte Ingls, S.A.

Espacio y Punto, S.A.



2012 Annual Report

Sodegraf, S.A.

Annual Report

Annual Report for 2012 to be submitted by

2013 El Corte Ingls, S.A. the Board of Directors of El Corte Ingls, S.A.
Hermosilla, 112. 28009 Madrid for approval by the shareholders at the Annual
www.elcorteingles.es General Meeting called for 25 August 2013.
Annual Report

El Corte Ingls Castellana store (Madrid).

Financial highlights of the consolidated Group 4
Contribution to national income 5
Board of Directors 7
Chairmans Report 8

Part I Part II
Operating report Legal documentation 74
of El Corte Ingls
and its business group 12 El Corte Ingls consolidated Group 75

Economic information 13 Independent auditors report 76

Economic analysis 14 2012 consolidated financial statements 78

Revenue 14 Consolidated balance sheet 78
Consolidated profit 15 Consolidated income statement 80
Investments 16 Consolidated statement of changes in equity 81
Review by business line 18 Consolidated statement of cash flows 84
El Corte Ingls department stores 18 Notes to the consolidated
Hipercor hypermarkets 23 financial statements for the year
ended 28 February 2013 87
Bricor DIY 24
Convenience stores: 2012 consolidated directors report 132
Supercor, Supercor Exprs and Opencor 26
Sfera 28 El Corte Ingls, S.A. . 135
ptica 2000 29 Independent auditors report 136
Viajes El Corte Ingls Group 30 2012 financial statements 138
El Corte Ingls IT Group:
Informtica El Corte Ingls, Investrnica Balance sheet 138
and Telecor 32 Income statement 140
Insurance Group: Centro de Seguros y Servicios
Statement of changes in equity 141
and Seguros El Corte Ingls 36
Finance: Financiera El Corte Ingls 38 Statement of cash flows 144
Notes to the financial statements
Corporate social responsibility 41 for the year ended 28 February 2013 147
Commercial dimension 44 2012 directors report 188
Our business model 44 Proposed distribution of profit 190
Our customers 45
Our products and services 48 Certificate 191
Our suppliers 51
Environment 53
Social aspect 58
Our team 58
The community and the surroundings 66
Ramn Areces Foundation 70

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.

Contribution to national income

In 2012 the El Corte Ingls 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



and Local


Board of Directors

Chairman Directors

Isidoro lvarez lvarez Juan Manuel de Mingo y Contreras*

Leopoldo del Nogal Ropero

Dimas Gimeno lvarez

Juan Hermoso Armada

Florencio Lasaga Munrriz

Carlos Martnez Echavarra

Cartera Mancor, S.L.

represented by Paloma Garca Pea

Corporacin Ceslar, S.L.

represented by Carlota Areces Galn


F. Jos Soriano Atencia

(*) Deceased 14 July 2013.

Board of Directors 7
Chairmans Report

Dear shareholders,

On behalf of the Board of Directors of El Corte Ingls, 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 Ingls Group has operated in such a complex scenario with the following

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

By line of business, El Corte Ingls obtained a sales volume of EUR 8,542 million
down 7.3% and a net profit of EUR 264.5 million.

Viajes El Corte Ingls 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 (Informtica El Corte Ingls, Investrnica and Telecor)

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

The Supercor and Supercor Exprs convenience stores made sales amounting to
EUR 423 million, representing an increase of 5.1%. Opencors 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.

Chairmans Report 9
ptica 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.

Bricors sales reached EUR 80 million down 22.6% but net profit improved on 2011.
In 2012 Bricor stores were incorporated into El Corte Ingls 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 Ingls 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 Ingls contribute 58.7% to the Groups 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 Ingls and Hipercor stores, one in Crdoba
and the other in the Puerto Venecia shopping centre (Zaragoza), as well as a Hipercor
store and El Corte Ingls outlet in Badajoz.

Dear shareholders,

Spains 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 markets 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 Ingls 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 lvarez lvarez

Chairmans Report 11
Part I
Operating report
of El Corte Ingls
and its business group

Economic information 13
Corporate social responsibility 41

Economic information
Economic analysis 14
Review by business line 18

Economic analysis

This section details the revenue and consolidated profit

obtained by the El Corte Ingls Group based on the
contribution of each of the main lines of business and
the investments made in 2012.


Format % Share 2012 2011 % Change 12/11

El Corte Ingls 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. Exprs 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
ptica 2000 0.5 77.26 79.38 (2.7)
Viajes El Corte Ingls Group 15.4 2,238.47 2,425.80 (7.7)
El Corte Ingls 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 Against this backdrop, the retail industry was affected
2012 (year ended 28 February 2012), down 7.8% on by shrinking household expenditure, the new taxation
2011. The economic situation and general uncertainty framework and, most particularly, by the increase and
had a notable effect on consumer spending, as reclassification of VAT rates. These circumstances led
reflected in the Groups results. to a drop in average purchase spend, a move towards
lower-priced products and a reduction in margins.

As regards the El Corte Ingls 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.

Revenue 2012: 14,552.45 millions of euros

The Groups consolidated revenue over the last four Revenue / millions of euros
years has been as follows:

16,356 16,413 15,778


Consolidated profit
2009 2010 2011 2012
The contribution to consolidated profit of the Groups
lines of business was as follows:

Format % Share 2012 2011 % Change 12/11

El Corte Ingls 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. Exprs 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
ptica 2000 1.1 4.59 5.18 (11.4)
Viajes El Corte Ingls Group 10.3 41.34 53.87 (23.3)
El Corte Ingls IT Group 9.4 37.80 41.87 (9.7)
Insurance Group 9.3 37.34 34.81 7.3
Finance: Financiera El Corte Ingls 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)



the parent 170.52 210.19 (18.9)
Amounts in millions of euros.
(*) Change not representative.

ECONOMIC INFORMATION Economic analysis 15

Investments 2012: 570.40 millions of euros

The Groups consolidated profit for 2012 (year ended 28 Investments

February 2013) stood at EUR 171.5 million, down 18.3%
on 2011. In 2012 the consolidated Group invested a total of EUR
570.40 million, the detail being as follows:
The Board of Directors of El Corte Ingls, S.A., as the
Parent, will propose to the shareholders at the Annual Thousands of euros
General Meeting payment out of profit of a dividend
equal to 10% of the par value of each existing share Property, plant and equipment 459.80
entitled to receive it. The provisional calculation of the Intangible assets 83.78
proposed dividend payment is as follows: Non-current financial assets 26.82

Thousands of euros

Dividend payable 42,728

Voluntary reserves 217,966

EL CORTE INGLS, S.A. 260,694

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

the consolidated Groups shareholders equity is
as follows:

Thousands of euros

Share capital 486,864

Reserves and other 6,861,978

total 7,348,842

El Corte Ingls store in the Marineda City shopping centre (A Corua).

The investments in property, plant and equipment were various business lines, and to refurbishment and
as follows: renovation work carried out at existing stores.

Thousands of euros In 2012 two stores were opened with a joint El Corte
Ingls and Hipercor, one in Crdoba and the other
Land and buildings 22.52 located in the Puerto Venecia shopping centre in
Machinery, fixtures and tools 33.17 Zaragoza. A new store was also opened in the El Faro
Furniture 36.42 shopping centre in Badajoz that includes the Hipercor
and El Corte Ingls Outlet formats.
Computer hardware 25.95
Property, plant and equipment in
Refurbishment and renovation work was also begun
the course of construction 341.75
at the Castellana and Goya stores, both in Madrid, and
at the Baha Sur store in Cdiz.
Most of these investments relate to the commitments
acquired and the projects initiated in prior years Mention must also be made of the opening of Bricor
in relation to the opening of new stores of the Groups stores at various El Corte Ingls and Hipercor stores.

ECONOMIC INFORMATION Economic analysis 17

Review by business line

Following is a review of the business performance in Gloria Ortiz and Emidio Tucci proprietary perfume
2012 of each of the Groups current business lines and brands in the perfumery area, or the new Black
sales formats. Collection, also by Emidio Tucci, for mens fashion.
El Corte Ingls is an enormous shop window to
El Corte Ingls department stores which new brands are added each year, the common
denominator of which is quality and innovation.
The department store format maintained its strength Noteworthy in this regard is the recent inclusion of
as a business model and remains the most significant labels such as Vince Camuto, Steve Maden, Ugg or Liu
line in the Group taken as a whole with a contribution Jo in the fashion accessory area; Cimento and Stroili
to consolidated revenue of 58.7%. Despite the fall-off in in the jewellery department; or Michael Kors, Karen
consumption and the difficulties facing the business, Millen or Police in the bijoux jewellery section.
revenue for 2012 stood at EUR 8,542 million, with net
profit of EUR 265 million. Also in the area of fashion -in which El Corte Ingls
is perceived as a benchmark due to the considerable
The appeal of the commercial offering, the ability to range of available brands- there were other new
adapt to cater to customers with varying tastes and developments which include the inclusion of the
economic possibilities, and the ongoing improvements Rachel Roy brand exclusively at El Corte Ingls. In the
made to management systems have made it possible to autumn Couchel, a proprietary brand of special-size
overcome the difficulties present in the retail industry clothing for women that produces modern high quality
without losing sight of our commitment to quality, designs at a fair price, was included.
range and guarantees.
Of equal note was the creation, by the designer Juanjo
In Portugal, as in the Spanish market, major Oliva, of a special collection for Elogy, an El Corte
endeavours were undertaken to lower prices combined Ingls exclusive label. Through this initiative the style
with the launch of numerous promotion campaigns of a prestigious fashion designer is made available to
aimed at making the customers purchase decision the public at affordable prices.
easier. The adverse economic situation took its toll
on sales, which led to changes in the management New technologies, e-commerce and the digital
of virtually all areas -from stock control to energy environment continue to capture our interest. The
consumption-, which made it possible to make El Corte Ingls website has been consolidated in order
significant cost adjustments and savings. 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
Commercial offering actions with brands such as Spotify for the sale of
cards to subscribe to its music streaming system;
El Corte Ingls is characterised by its wide-ranging and with Filmotech for the start-up of the largest Spanish-
varied commercial offering, which is constantly being language online video club; and with Wuaki.tv for the
updated and adapted to the latest market demands. We distribution of Hollywood films over the internet.
bring in new items in all areas: fashion and accessories,
technology, sport, culture and art, decoration, food, A multichannel platform was launched that includes
catering, customer service, assistance to tourists, etc. both the in-store service and the new digital internet
products on the dedicated website www.bodamas.com
This spirit of renewal includes the introduction of new that offers everything that the bride and groom and
labels and the launch of new products such as the their guests might need for the ceremony, reception,

ECONOMIC INFORMATION Review by business line 19
El Corte Ingls 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 Ingls.

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
Madrids Gran Va, we inaugurated our fourth Gourmet
Experience at the Callao store. Various establishments
have also seen the installation of Health and Beauty platforms such as Facebook or Twitter. El Corte Ingls
areas where the latest treatments and advances relating is the only Spanish company to feature in the Top 10
to health and beauty are offered. The Art section at of the talented brands, according to the Facebook IQ
the Castellana store in Madrid has also extended its study conducted by New York University.
experience as a contemporary art gallery to Barcelona
and Marbella. In terms of advertising, the Company once more
demonstrated its capacity for high visibility with the
We pay special attention to the foreign tourists who launch of the Emidio Tucci Black Collection in October
visit our stores, making a series of additional services 2012.
available to them, such as managing VAT refunds,
sending goods to their hotels or countries of origin, It also had the backing of familiar faces such as
and information in various languages. the Australian actress Naomi Watts, who filmed the
El Corte Ingls Christmas TV commercial under
the orders of director Juan Antonio Bayona, or the
Promotional campaigns Spanish actress Maribel Verd who starred in the sales
campaign adverts.
The overall economic situation affected the
promotional campaigns carried out in 2012, offering
high quality products at very competitive prices. Internet commerce
Payment facilities have also been made more freely
available, with various financing or deferred-payment The El Corte Ingls website continues to be
actions so that the customers can acquire the products an e-commerce benchmark with close to
or services that they want. 137 million visits, up 11.6% on 2011. It also
has over 3.5 million registered users and
The digital environment is strengthened as a 30 stores adapted to all types of customers
communications tool and as a channel to carry out with varying economic possibilities.
promotional campaigns. In addition to the campaigns
launched on the Group web pages, in 2012 the
presence of El Corte Ingls in the social networks
increased, where we maintain a continuous and open
dialogue with customers and society in general, across

El Corte Ingls department stores | Hipercor hypermarkets

4|2 1

5|2 8|3

16 | 10

2 3|1 7|2 2

El Corte Ingls department stores: 86 (*)

In Spain: 84
18 | 13
AndaluSIa Castilla y Len CanarY ISLANDS
Algeciras, Cdiz, Burgos, Len, Las Palmas de
Crdoba (2), El Ejido, Salamanca and Gran Canaria (2)
Granada, Jan, Valladolid (2) and Santa Cruz de
Linares, Malaga (2), Tenerife (2)
Marbella (2), Mijas, Barcelona (5), Madrid
San Fernando, Cornell, Sabadell Alcorcn, Getafe,
San Juan de and Tarragona Legans (2),
4|1 Aznalfarache Madrid (11) and
and Seville (3) Pozuelo de Alarcn
Aragn community NavarrE
Zaragoza (3) Alicante, Castelln Pamplona
Asturias de la Plana, Elche Basque
and Valencia (4) Country
Avils, Oviedo (2)
and Gijn Extremadura Bilbao (2), Eibar
Cantabria Badajoz and Vitoria
Santander Galicia REGION
A Corua (2), OF Murcia
La Mancha Santiago de Cartagena
Albacete, Compostela and Murcia (2)
Guadalajara and Vigo
and Talavera de Balearic islands
la Reina Palma de Mallorca (2)

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

Hipercor hypermarkets: 42 (*)

AndaluSIa Castilla- Galicia

Algeciras, Cdiz, La Mancha A Corua
Crdoba, El Ejido, Guadalajara and Santiago de
Granada, Huelva, Compostela
Castilla y Len
Jerez, Mlaga, Canary Islands
Burgos and Valladolid
Marbella, Mijas,
Las Palmas de Gran
San Juan de CatalONIA
Aznalfarache and Barcelona, Cornell
Sevilla (2) and Girona Madrid
Alcal de Henares,
Aragn Valencia Alcorcn,
Zaragoza (2) Autonomous Arroyomolinos,
Community Getafe, Legans,
Elche and Valencia Madrid (4) and
Avils, Gijn Pozuelo de Alarcn
and Oviedo extremadura
Cantabria Badajoz
OF Murcia
Santander Murcia

(*) Data at 28 February 2013.

ECONOMIC INFORMATION Review by business line 21

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

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).

Hipercor hypermarkets
Revenue in 2012: 1,866.84 millions of euros

Hipercor hypermarkets This drop in prices was also helped by the new
purchasing policy that attempts to go to the origin of
The Hipercor hypermarket chain obtained revenue the product by reducing the number of middlemen.
of EUR 1,867 million, down 11.7% on 2011, with
profit of EUR 4.48 million. This performance was As part of our policy of constant innovation, in some
affected mainly by the economic situation and of our fishmongers sea water has started being used
falling consumption. In any case, the chain has for better preservation and maintenance of the natural
made headway with its plan to optimise internal properties of the products. Also in our fruit and
management which has led to an improved inventory vegetable section, the zero kilometre concept has
system, a reduced inventory and cost savings. This has started to be implemented which promotes the sale of
been accompanied by an organisational change that fresh fruit and vegetables harvested on the day and in
provides for a better distribution of the workload. locations close to the store.

In 2012 three new Hipercor stores were opened: one The textile section has seen changes to the
in Cordoba in May, one in Badajoz in September and arrangement of the garments in order to allow for
one in Zaragoza in October, the latter two are located better presentation and visualisation. These are basic
in the El Faro and Puerto Venecia shopping centres, articles, of good quality and taste, with highly attractive
respectively. Also, significant renovation work was prices.
undertaken at the Campo de las Naciones and Vista
Alegre hypermarkets, both in Madrid. As regards our promotional policy, a new system of
bonuses has been created that allow families to plan
The three stores opened in the year continue the their shopping and obtain major savings.
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.

ECONOMIC INFORMATION Review by business line 23

Bricor DIY
Revenue in 2012: 80.07 millions of euros

Bricor DIY Over 80% of the articles sold by the chain are from
Spanish suppliers. The good relationship enjoyed with
Bricor, the chain specialising in DIY, interior our suppliers has led to the performance of a series
decoration, gardening and kitchen and bathroom of joint actions, culminating in 2013 in a marketing
projects, achieved revenue of EUR 80 million, down campaign to boost the DIY industry in the Spanish
22.6% on 2011. The decrease mainly arose as a result market.
of the recession in the construction industry which has
affected all the related subsectors. Another of Bricors distinguishing features is its
active environmental policy which is supported by
Brico incurred a loss of EUR 15.5 million, although an numerous campaigns to raise public awareness.
improvement was observed compared with 2011 due One such campaign is the Perform your own energy
to the cost saving and management efficiency policies. efficiency audit which, under the slogan Save money!
The immediate returns obtained with the new urban Sustainability benefits you!, aims to show customers
DIY format developed in 2012 also had an impact how to economise in areas such as lighting, heating
through the opening of Bricor stores inside El Corte and energy.
Ingls and Hipercor establishments.
As a result of its capacity to offer customers the
As a result of this new retail concept, Bricor has best brands and services, Bricor received the Best
eight urban stores in addition to the existing eight Commercial Practices Award based on manufacturer-
superstores in 2011. The new format enables the customer collaboration, awarded by the Hardware
flagships growth strategy to be adapted to the new and DIY Committee of the Spanish Association for
market dynamics, thus satisfying the demands of Commercial Codification (AECOC), which brings
customers seeking household DIY solutions at the together more than 1,000 industrial and distribution
best possible price and without having to travel to the companies.
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 chains differentiating factors.
Moreover, for customers preferring a wider range of
options, Bricors major stores offer more than 45,000

Customer training

One of Bricors 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)
Brico Stores: 16 (*)
Codes) illustrating how to approach DIY and
In Spain: 14
how to choose the appropriate product for
AndaluSIa: 4 galicia: 1 each project.

CatalONIA: 1 madrid: 7

Valencia Autonomous
Community: 1

In Portugal: 2
(*) Data at 28 February 2013.

ECONOMIC INFORMATION Review by business line 25

Supercor and Supercor Exprs
Revenue in 2012: 422.84 millions of euros

Convenience stores

Supermarkets: Supercor and

Supercor Exprs
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 Exprs 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 Exprs format, thus
enabling greater adaptation to local requirements,
while taking advantage of the Groups synergies and
achieving greater efficiency at each store.

In line with strategy to achieve better use of the Groups

resources, the convenience stores have strengthened Supercor is a larger store format mainly offering
their position as the collection point for customers fresh produce and a wide variety of products and
purchasing goods online from the El Corte Ingls brands able to satisfy any consumer demands. The
website. In 2012 new training courses were also quality of the fresh products offered, the presence
provided for personnel in various areas, especially for of professionals behind the counter and the offering
shop managers. which includes around 21,000 different references set
this chain apart. As in the case of Supercor Exprs, this
Conceived with shopping speed and efficiency in mind, store format benefitted from the new pricing strategy
in 2011 Supercor Exprs stores were introduced with an implemented by the Group in 2012 for food and mass
offering covering food and fresh products, household consumption products, offering highly competitive
and perfumery products, as well as the press and, in prices for the same quality and service.
certain cases, telephone recharging. Apart from leading
brands, Supercor Exprs also offers numerous Group
proprietary brands such as El Corte Ingls, Aliada,
Veckia and Special Line. The chains opening hours
from 9 a.m. to midnight provide customers with the
maximum flexibility in order to meet their consumer

Revenue in 2012: 244.20 millions of euros

The Opencor chain of convenience stores is subject Convenience Stores: 238 (*)
to legislation establishing opening hours of at least 18
hours a day with an offering ranging from food to gift AndaluSIa: 49 extremadura: 1

and leisure articles, the press, etc. Where permitted Aragn: 3 Galicia: 15
under local legislation, the conversion of Opencor
Asturias: 9 Balearic Islands: 2
stores into Supercor Exprs format resulted in a
decrease in the number of Opencor stores, which Cantabria: 1 Canary Islands: 12
affected revenue and results. In addition, the lower
Castilla-La Mancha: 2 Madrid: 71
level of business activity during the store conversions
also had a detrimental impact on the volume of sales Castilla y Len: 3 navarre: 1
achieved by Supercor Exprs. CatalONIA: 29 Basque Country: 2

In this context, Supercor increased its sales per square Valencia Autonomous RegiOn OF Murcia: 3
Community: 35
metre, improved productivity and continued to save
(*) Data at 28 February 2013.
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 Exprs at C/ Condesa de Venaditos, 5 (Madrid).

ECONOMIC INFORMATION Review by business line 27

Revenue in 2012: 135.40 millions of euros

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 Groups
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 In terms of communication and advertising, Sfera
styles. strengthened its social network presence by providing
permanent information on the new developments and
Sfera continued with its store refurbishment plan which collections at stores, in addition to announcements of
affected a total of 24 establishments and 57 corners in exclusive promotional activities.
Sfera stores in Spain and Portugal: 71 (*)
Noteworthy at international level was the growth in sales In Spain: 68
in Mexico, where Sfera currently has 14 stores and plans
to open at least 6 more points of sale in 2013. AndaluSIa: 15 Galicia: 6

Aragn: 1 Balearic Islands: 1

At 2012 year-end the fashion and accessories chain
comprised a total of 88 stores, 20 of which are outside Castilla-La Mancha: 4 Canary IslanDS: 2
Spain. Sfera is also found in all the El Corte Ingls stores. Castilla y Len: 7 Madrid: 15

CatalONIA: 3 melilla: 1

Valencia Autonomous Basque Country: 1

Community: 6
extremadura: 2 Region of Murcia: 4

In Portugal: 3
(*) Data at 28 February 2013.

ptica 2000
Revenue in 2012: 77.26 millions of euros

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

ptica 2000, the chain of stores specialising in vision ptica 2000 Stores: 109 (*)
and hearing products, achieved revenue of EUR 77 In Spain: 107
million in 2012, a reduction of 2.7% on 2011. ptica
2000 obtained net profit of EUR 4.6 million, down AndaluSIa: 23 extremadura: 1
11.4% on 2011. Aragn: 4 Galicia: 4

In 2012 ptica 2000s actions were mainly focused ASTURIAS: 3 Balearic Islands: 2
on areas such as goods management, the renewal of CANTABRIA: 1 Canary Islands: 3
products, the incorporation of new models and the
Castilla-La Mancha: 3 Madrid: 19
implementation of cutting-edge technologies at new
points of sale. Progress was made in the management Castilla y Len: 5 NAVARRE: 1
of stock with a view to achieving greater product
CatalONIA: 20 Basque Country : 4
turnover and offering the most innovative models and
the latest fashion designs. Valencia Autonomous RegiOn OF Murcia: 4
Community: 10

The basic product line has also been renewed to offer In Portugal: 2
even lower prices and to increase monofocal and high-
(*) Data at 28 February 2013.
range progressive lens quality.

Certain of the Groups own-brands, such as Gloria Ortiz

and Emidio Tucci, launched new frame models in line Optometry and audiology clinics
with the latest fashion trends.
A new system has been implemented in
In 2013 ptica 2000 will launch its new IT system prescription clinics for presenting optotypes
which will permit more efficient access to information which involve the use of polarised LED screens,
and the optimisation of patients medical and offering both greater transparency in eye tests
healthcare data, as well as enhancing the possibilities
and enhanced patient comfort.
offered by access to a comprehensive catalogue of
ophthalmic lenses designed to meet the individual ptica 2000 installed new topography models at six
needs of each patient. stores permitting precise corneal analysis. These
instruments and the related services offered not only
Training remains one of the priorities of the chain,
place ptica 2000 at the cutting edge of technology
which offers both online and on-site courses, the latter
developed in cooperation with the manufacturers. but also set us apart from our competitors.
There are also cooperation agreements with the
In addition, mention should be made of
Universidad Politcnica de Catalunya and the
tympanometer installed in 38 of the stores
Universidad of Tarrasa.
providing audiology services. This instrument
Other relevant agreements include those reached makes it possible to measure the resistance to
with reputable ophthalmic centres such as the Clnica the transmission of sound from the outer to the
Baviera and the Clnica Barraquer. inner ear.

ECONOMIC INFORMATION Review by business line 29

iajes El Corte Ingls Group
Revenues in 2012: 2,238.47 millions of euros

Viajes El Corte Ingls Group

In 2012, the Spanish and foreign companies that
compose the Viajes El Corte Ingls 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 Ingls 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 and incentive trips through a team of professionals
selected, extensive range of tourist products and specialised in integral event management, including
services which enables the ongoing creation of value the planning, organisation and implementation of
for all customers. institutional, corporate, sporting and cultural events.

Viajes El Corte Ingls is the exclusive distributor of The most recent events in which Viajes El Corte
the products of its wholesaler Tourmundial, which Ingls participated include the 2012 UEFA European
prepares a holiday product tailored to the markets Championship hosted by Poland and Ukraine, the
needs. As a retailer, Viajes El Corte Ingls offers the 2012 UEFA Europa League Final held in Bucharest,
end customer both its extensive network of offices and the 2012 World Handball Championships hosted
all the typical products and services of a travel agency by various Spanish cities and the World Junior
with the guarantee and quality that characterise Championships in Athletics held in Barcelona. Also
the Group. noteworthy were the 2nd National Conference of
Executives held in Valencia and the International
The Business Division, the leading agency in Union of Biochemistry and Molecular Biology congress
corporate customer services, specialises in both which took place in Seville.
large companies and SMEs. The Companys aim is to
provide its customers with the best services, reducing Viajes El Corte Ingls also has alternative sales
their travel costs based on the advice of our agents channels through which it provides customers with a
and the consulting department. Businesses are broad range of services. These channels include remote
also provided with global services and information sales, both tele-sales and online sales through its
from an integrated perspective and, to this end, we website, which allow the Company to offer a balanced
have entered into various international cooperation service distribution system tailored to our customers
agreements. needs.

Viajes El Corte Ingls is also specialised in the The promotional initiatives undertaken by Viajes
planning and organisation of congresses, conventions El Corte Ingls aim to encourage customers to make

advance holiday reservations for specific product or An extensive office network
seasonal campaigns such as the Semana del Crucero
(Cruise Week), Crucilandia (Cruiseland), Nieve Viajes El Corte Ingls has an extensive office
(Snow), A Viajar Verano (summer deals) or Mes del network both in Spain and abroad. In 2012, 15
Circuito(Circuit Tour Month). Also worth mentioning new branch offices were opened, including one in
are its campaigns offering specific products such Panam, the first in this country. At 2012 year-
as Viajes para Mayores de 55 aos (Holidays for end, there were a total of 506 branch offices in
the over 55s) and Turismo Social (Social Tourism), Spain and 93 abroad.
complemented by the sale of IMSERSO package
holidays through Viajes El Corte Ingls.

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.

Viajes El Corte Ingls branch office in Santiago de Chile.

ECONOMIC INFORMATION Review by business line 31

Informtica El Corte Ingls Group
Revenue in 2012: 699.67 millions of euros

Informtica El Corte Ingls Group: management systems, inter alia, to the cloud. These
Informtica El Corte Ingls, projects represent an important advance in the
Investrnica and Telecor companys cooperation and communication systems.

In the finance industry, the Group has implemented

The information and communications technology area systems for the digitisation of documentary archives
of the El Corte Ingls Group comprises Informtica of important entities located in Spain and abroad.
El Corte Ingls, Investrnica and Telecor. In 2012
aggregate revenue of EUR 700 million was obtained, In 2012 a Mobility Centre of Excellence was created
down 4.4%. Profit amounted to EUR 38 million, down to unite the offering of applications and experience
9.7% on 2011. in mobile technology.

Informtica El Corte Ingls has launched a new

Informtica El Corte Ingls business portal to improve communication with
its customers located in Spain and abroad, and it
Informtica El Corte Ingls is characterised for organised the VI Document and Workflow Technology
adapting its proposals for the information technology Forum in Madrid where customers share their
industry to the ever-changing market, offering its experiences and manufacturers present the latest
services to both public bodies and private companies. innovations.
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

Certificates and acknowledgements

Informtica El Corte Ingls 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.

Informtica El Corte Ingls 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 Informtica El Corte Ingls 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, Hitachis Enterprise Storage Solutions Partner award,
and its recognition as Best Performance Reseller by Fujitsu. Informtica El Corte Ingls
also received the award for the Best Document Management Solution from the magazine
Byte TI for its Invesdoc Gallery Suite.

ECONOMIC INFORMATION Review by business line 33


In 2012 Investrnica 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, Europes 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, 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

The chain has points of sale in certain Group shopping

centres, as well as its own Telecor establishments and
various distribution channels.

Telecors telecommunications offering is a

multioperator, applying at all times impartiality
and independence criteria vis--vis the operators
and manufacturers with which it works. Telecor has
agreements with all the mobile, virtual and landline
operators in Spain.

ECONOMIC INFORMATION Review by business line 35

Insurance Group
Revenue in 2012: 154.82 millions of euros

Insurance Group: It also continued to extend its offering of insurance

Centro de Seguros y Servicios, policies, including most notably new insurance
and Seguros El Corte Ingls policies in the automotive, life and healthcare lines,
in cooperation with some of the most prestigious
insurance companies. Centro de Seguros y Servicios
The El Corte Ingls Group operates in the Spanish also began to market exclusive insurance policies for
and Portuguese insurance industries through two El Corte Ingls customers.
companies: Centro de Seguros y Servicios (insurance
broker) and Seguros El Corte Ingls (insurance The insurance broker website was completely
company which operates in the life and accident overhauled to promote to Groups multichannel service
insurance lines and manages pension funds). (www.seguros.elcorteingles.es) converting it into a real
online centre for insurance sales, advisory services and
The aggregate revenue in 2012 totalled EUR 155 assistance. New customer communication channels
million, 7.4% more than in 2011. Its contribution were also launched via Facebook and Twitter and
to consolidated profit was EUR 37 million, up 7.3% the telephone sale and customer service activity was
on 2011. enhanced, most notably with the launch of accident
insurance designed specifically for this channel.

Centro de Seguros y Servicios In fulfilment of our commitment to quality and service,

after-sales services were reinforced for theft, damage,
In 2012 Centro de Seguros y Servicios continued to extension of cover lines of insurance for goods sold in
expand, opening five new branches to take the total our shopping centres.
number of centres to 105, most of which are located
in El Corte Ingls department stores.

El Corte Ingls Seguros Corredura website.

In 2012 various promotional campaigns were launched Seguros El Corte Ingls
offering significant discounts, benefits and gift draws in
the whole range of insurance policies being sold. These Noteworthy among the commercial activities in
campaigns include most notably Mes Superseguro 2012 were the complete renewal of the range of
(SuperInsurance Month), Aniversario Fantstico individual life insurance products with Vida Esencial,
(Fantastic Anniversary), 8 Tickets de Oro (Eight Gold Vida Garanta and Vida Integral, the launch of a new
Vouchers), Pitgoras (Pythagoras), Tres Grandes Deseos individual accident insurance policy Garanta Triple
(Three Important Wishes), etc. and the opening of four new sales branches.

The premiums accrued in 2012 amounted to EUR

105 125.4 million (up 7.7% on 2011), of which EUR 92.9

million related to life insurance and EUR 32.5 million
Centro de Seguros y Servicios branches
to accident insurance. This growth is a result of the

positive performance of the new products, especially
millions of euros in life insurance, most particularly in individual life
Pension plan assets under management insurance. Sound performances were also noted in net
profit, with growth of 11.7%, and the capital adequacy

125.4 millions of euros

margin, with a 20.7% increase in eligible capital.

Premiums accrued in 2012

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

ECONOMIC INFORMATION Review by business line 37

Finance: Financiera El Corte Ingls In addition, on 22 June 2012, Financiera El Corte Ingls
received authorisation from the Tax Management
In 2012 Financiera El Corte Ingls carried on its activity Department of the Spanish Tax Authorities to operate
in line with the changes in consumption and the sales as a cooperating entity in the reimbursement of VAT
at Group companies. on goods acquired under the regime for travellers from
third countries.
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.
168.41 millions of euros

Total revenue in 2012

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 millions of euros

signed was 2.1 million. Financing granted to customers

Total financing granted to customers in 2012 through

the Groups 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 Ingls charge cards.

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

ECONOMIC INFORMATION Review by business line 39