Use this logo for reductions only, do not print magenta. Do not reduce this logo more than 30%. Magenta indicates the clear area, nothing should print in this space.You may reduce the logo to 20% without the tag and strap lines.Color of Wood Block Motif critical match to Pantone 1805.Letters print Pantone Process Black.

ANNUAL REPORTAPRIL 1, 2014–MARCH 31, 2015

“We belong to a wider family“

— ARTISAN PARTNERSISTER SILVIA ARANHA, INDIA

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MESSAGE FROM OUR CEOPAMELA A. RAFFENSBERGER

As the world’s oldest — and one of its largest — fair trade organizations, we have been pioneers in a global movement for nearly 70 years. I am proud that every product and every purchase we have made has been rooted in the principles of fair trade — fair prices, advance payments, long-term relationships, design collaboration and environmental responsibility — giving people around the world a chance for a better life.

I want to thank our staff, volunteers and artisan partners around the world who, together with our customers, helped us achieve $27.6 million in sales over the past year. The impact of this success has been felt by more than 20,000 makers in over 30 countries — people who, because they had work, were able to feed their families, send their children to school and obtain adequate housing and medical care. It has been a remarkable journey from those first few pieces of embroidery our founder, Edna Ruth Byler, sold from the trunk of her car in 1946.

Today, we remain focused on our mission of creating opportunities for artisans in developing countries to earn income by bringing their products and stories to our markets through long-term fair trading relationships. To fulfill this mission in a substantive way, we must position ourselves for success in an increasingly competitive retail environment with a growing social consciousness. As part of a new strategic plan, we are undertaking some exciting initiatives to keep this legacy moving forward, from customer research, trend insights and product development to an enhanced shopping experience and a digital strategy that encompasses advertising and social media.

While we incorporate new technology and information into the way we do business, people are still the reason why we do business. Our long-term relationships are the very heart of our work; it was our commitment to artisans and their well-being

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that drove a collaboration to refurbish two West Bank olive wood workshops this past fall. Significant upgrades to lighting and ventilation reduced health and safety risks for the woodworkers of the Al-Atrash workshop. In a region rife with political unrest, where daily life can be dangerous, the vastly improved working conditions created momentum and enthusiasm among this group of makers, resulting in new product designs and samples.

A small investment brought light to a dark place, one example of the hundreds of stories of hope we heard this year. We thank you for your support as we continue the journey to alleviate poverty for people around the world.

On behalf of the Ten Thousand Villages Board of Directors I present the following financial statements as our annual report for fiscal year ending 2015.

Warm regards,

Pamela A. RaffensbergerChief Executive Officer

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MICHAEL AL-ATRASH HAND-CARVES OLIVE WOOD NATIVITY PIECES IN HIS REFURBISHED WORKSHOP,

WEST BANK

Our MissionTo create opportunities for artisans

in developing countries to earn income by bringing their products and stories

to our markets through long-term, fair trading relationships.

For Year EndedMarch 31, 2015

For Year EndedMarch 31, 2014

SALESRetail Stores $14,800,698 $14,907,091Contract 7,252,267 7,300,576Alliance 2,191,108 2,351,081E-Commerce 1,930,042 1,633,948Festival Sales 648,025 706,419Rug Sales 466,600 599,376Other 376,729 ________ 363,549 ________Total Sales $27,665,469 $27,862,040

COST OF GOODS SOLD Purchases $7,565,570 $8,762,200Importing and Other Costs 1,117,675 1,311,025(Increase) Decrease in Ending Inventory 963,457 ________ (948,141) ________Total Cost of Goods Sold $9,646,702 $9,125,084

GROSS MARGIN $18,018,767 $18,736,956GROSS MARGIN % OF SALES 65% 67%

EXPENSESWarehouse $2,865,907 $3,412,874E-Commerce 1,354,509 1,110,933Sales, Merchandising & Marketing 2,672,440 2,535,267Retail Stores 9,420,321 9,381,471Administration 3,422,454 ________ 3,330,520 ________Total Expenses $19,735,631 $19,771,065

NET OTHER INCOME/(EXPENSE) $(24,003) $277,865

NET INCOME $(1,740,867) $(756,244)

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STATEMENT OF INCOME AND EXPENSE

BALANCE SHEETSAs of

March 31, 2015As of

March 31, 2014ASSETSCash $71,470 $438,151 Accounts Receivable 596,748 661,813 Inventory 7,421,398 8,384,854 Prepaid Expenses and Deposits 737,212 765,437 Advances to Artisans 1,282,977 1,533,424 Long-term Receivables 232,557 77,057 Equipment and Vehicles 755,238 1,014,423 Land and Buildings 9,841,027 1,843,740 Insurance Reserve Fund 442,861 ________ 396,690 ________ Total Assets $21,381,488 $15,115,589

LIABILITIESAccounts Payable and Accruals $3,624,179 $3,497,446 Long-Term Notes and Payables 9,091,999 ________ 1,211,966 ________Total Liabilities $12,716,178 $4,709,412

EQUITY $8,665,310 $10,406,177 Total Liabilities plus Equity $21,381,488 $15,115,589

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BALANCE SHEETS

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06 07 08 09 10 11 12 13 14 15

YEAR ENDING (MARCH)

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ANNUAL SALES HISTORY

ANNUAL SALES HISTORY

TotalPercentChange

FY 2006 20,135,080 25.2%

FY 2007 23,487,984 16.7%

FY 2008 25,513,297 8.6%

FY 2009 23,948,726 -6.1%

FY 2010 23,406,395 -2.3%

FY 2011 24,976,821 6.7%

FY 2012 27,730,248 11%

FY 2013 27,655,233 -0.3%

FY 2014 27,862,040 0.5%

FY 2015 27,665,467 0.0%

Combined US & Canada Sales $40,000,000Combined US & Canada Purchases $12,000,000

Ten Thousand Villages Canada is incorporated separately as a nonprofit organization and is operationally and financially

independent from Ten Thousand Villages in the U.S.

U.S. AND CANADA FY15 Figures in U. S. Dollars

PURCHASES BY COUNTRY For Year Ended March 31CRAFTS FY2015 FY2014India $1,503,593 $1,850,132Peru 678,758 775,637Bangladesh 674,762 734,228Pakistan 563,269 700,071Nepal 416,446 456,332Philippines 381,232 460,141Kenya 378,204 524,495Indonesia 366,688 406,790Vietnam 333,531 446,886West Bank 174,099 204,889Colombia 120,155 109,350Guatemala 114,751 160,364Ecuador 100,417 117,572Haiti 85,721 132,968Ghana 80,110 84,437Cambodia 78,569 75,023Burkina Faso 68,882 104,854Uganda 68,881 74,567Egypt 68,048 75,593Niger 55,207 44,635Chile 52,037 71,301Mexico 47,903 58,878Cameroon 43,974 60,537Bolivia 36,029 52,803Laos 35,025 27,980Zimbabwe 32,327 17,925El Salvador 31,003 32,513South Africa 29,948 44,579Ethiopia 25,296 24,371Tanzania 24,184 23,484Nicaragua 21,398 35,980Israel 20,816 13,295Honduras 14,500 17,313Thailand 2,543 4,552DR Congo 0 2,132

Coffee, Tea, Chocolate $390,637 $399,093Music, Books and Miscellaneous 219,983 155,840Stores and Other Supplies 226,644 ________ 180,660 ________TOTAL PURCHASES $7,565,570 $8,762,200

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PURCHASES BY COUNTRY For Year Ended March 31

FOOD AND OTHER PRODUCTS

PURCHASES BY REGION For Year Ended March 31FY2015 FY2014

South Asia $3,158,070 $3,740,763Latin America/Caribbean 1,302,672 1,564,679East Asia 1,197,588 1,421,372Other 837,264 735,593Africa 807,013 1,006,016Middle East 262,963 ________ 293,777 ________TOTAL PURCHASE $7,565,570 $8,762,200

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PURCHASES BY REGION For Year Ended March 31

2015 PURCHASES BY REGION

“Our art signifies our dreams, our hopes.”

—ARTISAN PARTNER KOMMALY CHANTHAVONG, LAOS

SOUTH ASIA 42%

LATIN AMERICA/

CARIBBEAN 17%

OTHER 11%

EAST ASIA 16%

MIDDLE EAST 3%

AFRICA 11%

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