Fashion at affordable prices for over 170 years

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1 Fashion at affordable prices for over 170 years Many C&A products are certified according to OEKO-TEX Standard 100 In 1841 Clemens and August Brenninkmeijer came up with the idea of offering good quality fashion products to a wide customer-base at affordable prices. This idea was, and still is so successful, that the two-man business that started back then in Sneek in the Netherlands, has now become one of Europe's leading fashion companies. Every day more than two million people in 20 countries go into the almost 1,600 C&A stores, of which in Germany alone there are 500. The company is still family-owned and employs over 37,500 people. C&A products have something for everyone - women, men, children, the old, young, big and small. Fashionable maternity wear, sportswear and leisurewear can also be found in the stores as can XXL fashion. The product ranges cover hip and trendy to classic elegance. And it goes without saying that many of the items meet the humanecological requirements of the OEKO-TEX Standard 100. Always with a finger on the pulse of the times The aim of C&A has always been to offer fashion trends to a wide public for exceptional valuefor-money. That this business idea has now been operating with outstanding success for over 170 years, shows that C&A still understands how to meet people's needs. According to company spokesperson Thorsten Rolfes, "We have always had our finger on the pulse of the times. This has also been necessary in order to ensure our success over the long term." He is also aware, however, that the role of C&A has changed over time. "Today the fashion business is much more complex and faster-moving than previously and added to this, we have to combine ecology and economy more closely than ever before, whilst still appealing to the tastes of as many customers as possible." In fact C&A has repeatedly played its part in making fashion trends socially acceptable. We only have to think back to the 1950s and 1960s when bikinis and mini skirts were decried as scandalous. However, C&A welcomed these trends with open arms and made their own characteristic mark on the look of this era. C&A offers fashion for the whole family and in the two European centres in Brussels and Düsseldorf, about 450 purchasers, designers, trend scouts and stylists are working to meet the wide range of fashion requirements. About 900 suppliers in 40 countries around the globe supply C&A with their products. This illustrates the global aspect of modern textile retailing and at the same time demonstrates companies' increasing responsibility for the people and the environment in their countries of manufacture. Responsibility for people and the environment C&A is aware of this responsibility and it is now firmly embedded in its business thinking and management structures. The company therefore views the areas of product safety, environmental protection, energy conservation and the improvement of production and working conditions as 1 / 8

2 further opportunities where it can comply with these responsibilities. "C&A does not only sell clothing. The company also assumes responsibility for the people who produce the textiles for us, for our employees who come into contact with them as well as for the customers who wear them. This responsibility requires a clear strategy", says Thorsten Rolfes summing up. As part of this strategy, and under the motto of "We C&Are", the company has developed a wide range of activities, measures and standards. In this regard the principle of sustainability has a crucial role to play at C&A and it underpins all corporate structures, processes and decisions. The in-house Sustainable Business Development (SBD) department was set up specifically for this purpose and is responsible for coordinating all activities in this area. The Head of SBD, Phil Chamberlain, is convinced that this corporate philosophy is on the right track. "Over the last few years C&A has further consolidated the principle of sustainability throughout the company. In order to further demonstrate this conviction externally, we use all the influence we have to improve environmental and working conditions along the textile chain." Product safety Even at the very outset of the company over 170 years ago, the C&A founders placed great emphasis on the quality of their products. This still holds true today. All items, from the fibre to the product, are subject to many test and safety measures. This is all coordinated by the globallyoperating quality assurance department which either inspects the fit, processing and safety of the textiles itself or has them inspected by prestigious external institutes. In addition, nearly all items sold at C&A which are worn next to the skin such as underwear and sleepwear, as well as baby and children's clothing, meet the strict human-ecological requirements of OEKO-TEX Standard 100. As part of the globally recognised and highly-regarded testing and certification system, the "Confidence in Textiles" label first and foremost certifies to end-users that textile products are harmless to health in relation to possible pollution through harmful substances and, according to company spokesperson Rolfes, this makes a crucial contribution to the quality standards at C&A: "We use the OEKO-TEX Standard 100 certification to demonstrate our reliability to our customers, since collections with this label always comply with the highest safety standards." Environmental protection Protecting the environment has been very important for C&A for many years. In 1989 the company set up the "Environment" working group which championed causes such as waste avoidance, recycling and energy conservation. In 1995 the Code of Conduct for goods deliveries was developed which specifies compliance to both social and ecological standards. In 1999 the C&A environmental management was certified according to the ISO standard and in 2007 the company set up the inter-departmental Environmental Working Group. Finally in 2010 all environmentally-relevant activities were integrated into the aforementioned Sustainable Business Development (SBD) department. These were all important steps on C&A's path to active and sustainable environmental protection. 2 / 8

3 One of the cornerstones of C&A's environmental protection is the company's long-term commitment to sustainably cultivated organic cotton, since conventional methods of cultivating cotton consume considerable quantities of limited natural resources, such as water and require large amounts of artificial fertilisers and pesticides. By switching to certified organic cultivation methods, these hazardous substances no longer need to be used. Furthermore, organic cultivation methods improve the water supply and lead to a higher carbon sequestration of soil, which in turn reduces the amount of CO2 released to the atmosphere. Since 2005 in conjunction with the not-for-profit organisation Textile Exchange and the Shell Foundation, C&A has been developing a project in India where the focus is to expand the cultivation and usage of organic cotton. The objective of the project was to develop a sustainable textile value chain that could then eventually be transferred to other regions of the world. In 2007 the European Executive Board of C&A decided on a long-term strategy to expand the use of organic cotton. In order to increase consumer awareness of this new product range and of organic cotton itself, C&A has developed a wide range of organic cotton clothing for men, women and children. The introduction of the new collection was supported by an organic campaign in the media and by corresponding in-store merchandise displays. The fact that organic cotton products were on sale at the same prices as products made of conventional cotton was, and still is, particularly appealing to customers. Sales revenues from the C&A organic collections continue to rise steadily. In 2010 the company sold 26 million clothing items made from organic cotton which meant that in that year alone certified organic cotton made up 10% of the entire C&A cotton collection. In 2011 over 30 million organic cotton products were sold and in 2012 this number will have more than doubled at over 60 million. The stated objective is that in 2020 all C&A cotton should originate from sustainable cultivation. In addition to organic cotton there are many other areas where C&A is also committed to the environment. For example, under the aegis of the Global Social Compliance Program (GSCP), an organisation founded in 1995 with the aim of improving the working and environmental conditions in the production of goods, C&A has been collaborating with globally operating textile companies in order to develop a standardised environmental guideline for the entire production chain. Its objective is to enable a better control of water consumption and treatment, CO2 emissions, waste avoidance and the use of harmful substances. In conjunction with other companies in the sector, C&A has also committed to reduce the introduction of hazardous chemicals to zero by A wide range of measures such as optimising logistics in the transportation of goods from the Far East to the stores, energy conservation (e.g. the use of electricity generated from hydroelectric power or the switch to more energy-efficient lighting systems in the stores) and recycling (e.g. carrier bags made of organic cotton) are all testament to C&A's comprehensive commitment to environmental protection. The company also documents its detailed ecological and social commitment as part of its regularly published Sustainability Report. The latest full report can be downloaded from the C&A website at Social Responsibility 3 / 8

4 Treating others with honesty and fairness is the fundamental principle underlying business operations at C&A. This is the "blanket clause" against which C&A measures its actions and also those of its partners. Given that C&A has most of its clothing produced in the Far East, the company is dependent on the reliability and trust of its suppliers. Trust is good but control is better. This is why in 1995 C&A drew up its Code of Conduct which defines clear ethical, social and ecological standards. It forms the basis of all its business relationships. Compliance with the code is controlled by SOCAM (Service Organisation for Compliance Audit Management) which was set up in 1996 and which, with its constantly growing team of auditors, exercises controls on the local manufacturers contracted by C&A. The auditors can, when required, also point out any risks and safety shortcomings in the workplace and make local workers aware of these through relevant training sessions. C&A also requires its suppliers to comply with statutory minimum wage legislation and rigorously rejects any form of child labour. As a result of these measures C&A has already been successful in improving the working, production and environmental conditions in many places in the countries of manufacture. However, the company is still very much aware that there is still much to be improved, yet the path adopted is on the right track. At C&A people have always been at its heart. "As a family company with a long tradition, we think in generations and not in quarters. For us it is continuity that counts in all relationships, be they in the supply chain, with employees and with our customers. Therefore our fundamental principle far exceeds short-term strategies. We are convinced that over the long term as a company, these strategies, which far exceed pure financial reports, will only be of benefit to us" explains Thorsten Rolfes. Contact C&A Mode GmbH & Co. KG Wanheimer Straße Düsseldorf Germany Phone: service@cunda.de Internet: 4 / 8

5 One idea still prevails the company history of C&A C&A as a term in a fashion business is familiar to whole generations of people but only very few of them know what these two letters symbolise. In 1841, in Sneek in the Netherlands, the brothers Clemens and August Brenninkmeijer from Mettingen in Westphalia founded their company "C&A Brenninkmeijer" to sell textile products. The initials of the first names of the founders still form the company logo which is still in family ownership today. 20 years after the company was founded they implemented their revolutionary idea, on which today's business success of C&A is based, by opening a store in which they offered affordable and good-quality, industrially-produced ready-towear clothes to a wide customer base. This was completely new as at that time clothing was still tailor-made and correspondingly expensive. They also set the benchmarks in the growing fashion retail trade by introducing standard sizes and offering customer-friendly options to exchange goods. The idea was so well accepted that the number of stores in the Netherlands grew steadily. In 1911 the heirs of Clemens and August Brenninkmeijer ventured beyond the Dutch border for the first time and opened the first German store in Berlin. Further stores were then opened in the UK, Belgium, France and other European countries. Today has C&A about 1,600 stores in 20 European countries and employs over 37,500 people. Germany has 500 stores making it the largest market, followed by the Netherlands, Austria, Belgium, Spain and France. Recently C&A has opened stores in Italy, Romania, Croatia and Serbia. Outside of Europe the family business is represented in the growth markets of China, Brazil and Mexico but these sister companies operate independently from C&A Europe. C&A is the partner for the "Texolotl" campaign Texolotl is the name of the cartoon figure which OEKO-TEX has created to celebrate its 20 year anniversary - as a mascot for safe textile purchases. The fashion retailer C&A is the partner supporting the market introduction of the cute little Texolotl with a cross-media, international sales promotion campaign which underlines yet again its sense of responsibility for safe, high-quality textile products. The aim is to make children between the ages of five and nine years old aware early of clothing and textiles which are tested for harmful substances and which are harmless to health and to introduce this knowledge to families in a playful way. The campaign started on 15 October 2012 in Germany, Austria, Switzerland and the Netherlands and as from 15 March 2013 it will also be launched in France, Spain, Belgium and Turkey. Located in the children's departments of C&A stores are dispenser boxes packed full with the first interactive "Texolotl" magazine which can be taken away free-of-charge. The children's magazine contains exciting stories, a cheerful poster and entertaining games. 5 / 8

6 C&A as a term in the fashion business is familiar to whole generations of people as for more than 170 years, C&A has been synonymous fashionable, affordable, high-quality collections for a wide customer-base. In addition to its almost 1,600 stores in Europe, the company also sells its products via the C&A Online Shop which is becoming more and more popular with younger customers. In 1841, in Sneek in the Netherlands, the two brothers Clemens and August Brenninkmeijer founded their company "C&A Brenninkmeijer" to sell textile products. The initials of the first names of the founders still form the company logo which is still in family ownership today. With its almost 1,600 stores, C&A is now a familiar image on the high streets of many European cities. Every day more than two million people go into the C&A stores. This is not surprising as the fashion company meets all the fashion needs of its customers ranging from hip and trendy to classic elegance. 6 / 8

7 With its own 11 exclusive own brands, C&A can offer its customers 90 different product groups, which include more than 4,500 different models and a total of about 75,000 different designs in a wide selection of ready-to-wear sizes. These figures illustrate the strengths of C&A, namely that each and every individual customer can find something that suits and fits them. C&A baby and children's clothing meet the strict meet the human ecology requirements of OEKO- TEX Standard 100. As part of the globally recognised and highly-regarded testing and certification system, the "Confidence in Textiles" label first and foremost certifies to end-users that textile products are harmless to health in relation to possible pollution through harmful substances. 7 / 8

8 About OEKO-TEX With 25 years of experience, OEKO-TEX leads the world in empowering and enabling consumers and companies to protect our planet by making responsible decisions. OEKO-TEX provides standardised solutions which optimise customers manufacturing processes and help deliver high quality, more sustainable products. All of the products within the OEKO-TEX portfolio are used to strengthen our customers systems, processes or products and, ultimately, they help create more sustainable companies.to date, 10,000 manufacturers, brands, and retailers in almost 100 countries are working with OEKO-TEX to ensure that their products are tested for potentially harmful substances and millions of consumers around the world look for OEKO-TEX labels before making buying decisions. OEKO-TEX certified products and suppliers can be located in the OEKO-TEX Online Buying Guide at Connect with OEKO-TEX on Facebook, on LinkedIn, and on Twitter. 8 / 8