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“25 years building the dream” SOCIETY. ETHICS. ENVIRONMENT. SUPPLIERS. EMPLOYEES. OUR CUSTOMERS. SHAREHOLDERS. RESULTS. LOOKING FORWARD. MILESTONES. CIE IN NUMBERS. Contents Fostering progress Quality Corporate Governance Strengthening our commitments Facing challenges together Managing diversity Striving for excellence Creating value Meeting expectations New 2025 Strategic Plan 2021 Highlights Key metrics Statement Coordinates Future “25 years building the dream” SOCIETY. ETHICS ENVIRONMENT. SUPPLIERS. EMPLOYEES. OUR CUSTOMERS. SHAREHOLDERS. RESULTS. LOOKING FORWARD. MILESTONES. CIE IN NUMBERS. Contents Fostering progress Quality Corporate Governance Strengthening our commitments Facing challenges together Managing diversity Striving for excellence Creating value Meeting expectations New 2025 Strategic Plan 2021 Highlights Key metrics Statement Coordinates Future
AntónPradera Jesús MªHerrera Read letter Chairmanand CEO's statement “25 yearsbuildingthe dream” Chairman AntónPradera Jesús MªHerrera Reas letter “25 yearsbuildingthe dream” Chief ExecutiveOfficer Chairman

CHAIRMAN AND CEO'S STATEMENT

Dear friends of CIE Automotive:

In 2021 we marked 25 years building the dream that began in 1996, when a group of investors came up with the idea of creating a Spanish industrial conglomerate in the automotive service industry. A dream we have been forging over the years with the integration or more than 100 companies and the construction of new factories to yield what is today a global and multi-technology group with close to 25,000 employees across 18 countries and a market cap of €3.5 billion. As we look back on the road taken, we feel tremendous pride, but also fresh ambition. Our minds and efforts remain fixed on the road ahead. Throughout the pages of this year’s Annual Report we want to tell you about CIE Automotive’s new dreams and how we worked in 2021 to achieve them.

CIE Automotive turned a new page in 2021 with the publication of its new 2025 Strategic Plan. That plan is our response to the profound and dizzying transformation taking hold in society and the automotive industry, change that has also shifted our paradigm as a company, nudging us to reformulate our Mission, Vision and Values, among other things.

"We managed to unlock net profit growth of 44% to €267.5 million."

By executing our 2025 Strategic Plan, which we unveiled in June during our first Capital Markets Day, we strive to become a group that generates €1 billion of EBITDA and €500 million of net profit from 2025. To achieve our ambitions, we plan to work on matters such as vehicle electrification and comfort, on the implementation of Industry 4.0 and on international expansion, without ever losing sight of the importance of cash generation that permits organic and M&A-led growth.

However, our aspirations go far beyond earnings metrics: we want to continue to zero in on excellence by definitively integrating environmental, social and governance (ESG) criteria into our management. Rest assured that these are not empty words or a list of good intentions. Our ESG Strategic Plan 2025, published last November, establishes close to 80 KPIs that will clearly and tangibly monitor the progress we make along the four key lines of initiative we have set for ourselves: CIE culture, ethical commitment, eco-efficiency and active listening.

Already in 2021 we took our first steps towards achieving all these milestones, in spite of the complexity of the prevailing environment.

Just when we thought we had seen it all with the onset of the pandemic in 2020, the sharp rebound in demand following the lockdowns sparked severe friction across global supply chains, raw material scarcity and inflation, a collapse in shipping and an escalation in energy prices in 2021. In the automotive industry, that situation was exacerbated by the shortage of chips, vital to making cars. As a result of all those malfunctions, vehicle production amounted to 77 million, up 3.4% from 2020 but way below the mark set in 2019, when the world made 89 million vehicles.

But nothing knocks CIE Automotive of course. Despite the weak sector growth, our (constant-currency) revenue growth was 12 points above that of the market, at €3.27 billion, and our net profit increased 44% to €267.5 million. That healthy performance was unlocked by a job well done by our teams in all our regions and drove our EBITDA and EBIT margins to 17.6% and 12.3%, respectively. Our most sincere thanks to all of the people who participated in this feat.

CIE Automotive’s outstanding results in the midst of the health and economic crisis evidence not only how hard we have worked but also highlight the merit of the strategy deployed, thanks to which cash from operations topped 65% of EBITDA and we deleveraged by €200 million. Above all, however, they confirm the solvency of a business model that has once again demonstrated its ability to tackle crises and come out the other end all the stronger.

Our customer diversification, across a broad range of original equipment makers (OEMs) and Tier-1 suppliers, enabled us to make up for the drop in demand from some customers with orders placed by others. Our mastery of different technologies made it possible to offer a range of solutions for a given part and to work in markets at different stages of vehicle electrification. Thanks to our global presence and local approach, we were able to offset the lethargy encountered in some markets by tapping into the greater dynamism observed in others, while at the same time benefitting from our proximity to local suppliers to overcome the global logistics issues, control costs, purchase high-quality services and side step the supply chain disruption. Our decentralised management enabled us to fine-tune our strategy for each region’s specific circumstances. And the integration of ESG standards has not only turned us into a more responsible company, it has left us better prepared to tackle the risks associated with consumers’ new sensitivities and made us more attractive to customers and investors.

"On the ESG front, it is worth highlighting the newly-created Diversity, Equality and Inclusion Committee; measurement of our environmental footprint in Europe, Mexico and Brazil; formulation of the first dedicated climate risk map; sustainability initiatives in the supply chain (92.3% of suppliers local); our first ever Capital Markets Day; and our tax contribution to society of €391 million."

Allow me, then, to name a few of our achievements on the ESG front, as signatories of the Global Compact and an organisation committed to the United Nations Sustainable Development Goals. We set up a Diversity, Equality and Inclusion Committee, with which we aim to create a stronger sense of belonging and inclusion on the part of everyone working at the group, no matter where in the world. We measured our corporate environmental footprint in Europe, Mexico and Brazil. We formulated the group’s first environmental risk map. We lifted the sustainability of our purchasing footprint, with 92.3% of our suppliers qualifying as local. We held our first ever Capital Markets Day, marking a fresh milestone in our thrust to make our strategy and management more transparent. And we contributed to society and its development by paying €391 million of tax contribution.

We would like to take advantage of this introduction to acknowledge the commitment of our entire team, of all the people whose daily efforts are making CIE a better place to work, who with their small gestures are helping to protect and improve our surroundings. We would also like to thank our customers for the trust they continue to place in us at this time of tremendous uncertainty, and our suppliers for their collaborative spirit and their readiness to align with our goal of making vehicles that are safer and more comfortable and efficient. Lastly, we would like to express our gratitude to our shareholders and investors, who were rewarded with a 24% share price gain this year. We believe, however, that the market has yet to price in our fantastic results and bright expectations.

We couldn’t possibly end this letter without a heartfelt mention of two people who left us in 2021: Goizalde Egaña, who was Vice-Chairwoman of our Board of Directors, and Amable Martínez-Conde, founder and honorary chairman of Autometal. Their legacy and example will remain an inspiration for us.

Thanks to everything we have learned from them, and from each and every one of the people who have participated in building the CIE Automotive dream in the last 25 years, we are feeling strong and ready to conquer the future. 2021 marked the start of CIE Automotive’s tomorrow. Come share it with us.

Antón Pradera | Chairman

Jesús Mª Herrera | Chief Executive Officer

Key metrics CIE in numbers Key metrics CIE innumbers
Revenue EBITDA margin Net profit Net financial debt/EBITDA* Netfinancialdebt 2.37x +14,9% €1,394.9M Cash flowfromoperations €367.0M 17.6% €267.5M VS2020 +44% VS2020 +2.6pp. VS2020 -12.5% OFEBITDA 67% IN2020 3.59x +11.5 pp. above the market atconstant exchange rate (*) Both the net financial debt and EBITDA figures include 50% of the SAMAP JV Revenue EBITDA margin Net profit Net financial debt/EBITDA* Netfinancialdebt 2.37x +14,9% €1,394.9M Cash flowfromoperations €367.0M 17,6% €267.5M VS2020 +44% VS2020 +2.6pp. VS2020 -12.5% OFEBITDA 67% IN2020 3.59x +11.5 pp. above the market atconstant exchange rate (*) Both the net financial debt and EBITDAfigures include 50% of the SAMAP JV
77.1 million vehiclesproduced worldwide vs Factoryclosures Semiconductorcrisis Shipping disruptionand inflation Risinglabour costs Raw materialand energyprice inflation VS2020 +3.4% VS2019 -13.4% Market 77.1 millionvehiclesproducedworldwide vs Factoryclosures Semiconductorcrisis Shipping disruptionand inflation Risinglabour costs Raw materialand energyprice inflation VS2020 +3.4% VS2019 -13.4% Market
2021 Highlights Milestones 2021 Highlights Milestones
June May April November October July September 2021 January Rollout of the ESG dashboardPayment of an interim dividendfrom 2020 profits of €30.6 million Passing of Goizalde Egaña, Vice-Chairwoman of the Board of DirectorsStart of the liquidity agreement, which will benefit the company's shareholders Annual General MeetingMetalcastello enters electric vehicle segmentFarewell to Amable Martínez-Conde Elustondo, founder of CIE Autometal Payment of a 2020 supplementary dividend of €30.6 million Consolidation of the engineering and environmental areas to make inroads in eco-design 2020 Annual Report placed third on Informe Reporta's reporting quality ranking Publication of the ESG Strategic Plan 2025Arrangement/renewal in 2H21 of €216 million of additional financing facilities linked to ESG criteria Presentation of the 2025 Strategic Plan during the company’s first ever Capital Markets DayPublication of the company’s first Tax Contribution ReportArrangement/renewal in 1H21 of a number of financing facilities/rollovers framed by ESG criteria totalling €168 million 2021 June May April November October July September January Rollout of the ESG dashboardPayment of an interim dividend from 2020 profits of €30.6 million Passing of Goizalde Egaña, Vice-Chairwoman of the Board of DirectorsStart of the liquidity agreement, which will benefit the company's shareholders Annual General MeetingMetalcastello enters electric vehicle segmentFarewell to Amable Martínez-Conde Elustondo, founder of CIE Autometal Presentation of the 2025 Strategic Plan during the company’s first ever Capital Markets DayPublication of the company’s first Tax Contribution ReportArrangement/renewal in 1H21 of a number of financing facilities/rollovers framed by ESG criteria totalling €168 million Payment of a 2020 supplementary dividend of €30.6 million Consolidation of the engineering and environmental areas to make inroads in eco-design 2020 Annual Report placed third on Informe Reporta's reporting quality ranking Publication of the ESG Strategic Plan 2025Arrangement/renewal in 2H21 of €216 million of additional financing facilities linked to ESG criteria
New 2025 Strategic Plan Looking forward In 2021 CIE Automotive embarked on the rollout of a comprehensive strategy designed to respond to the key sector trends and the needs and concerns of its stakeholders: its 2025 Strategic Plan. That five-year plan defines the lines of initiative and targets to be pursued in all areas of its business and fully integrates environmental, social and governance (ESG) aspects into the company’s everyday operations. New 2025 Strategic Plan Lookingforward In 2021 CIE Automotive embarked on the rollout of a comprehensive strategy designed to respond to the key sector trends and the needs and concerns of its stakeholders: its 2025 Strategic Plan. That five-year plan defines the lines of initiative and targets to be pursued in all areas of its business and fully integrates environmental, social and governance (ESG) aspects into the company’s everyday operations.
≈ +20pp ≈ 2% ≈ 65% >19% €1.0bn Revenuegrowth EBITDAmargin Capex Corporatetax payments EBITDA-to-operating-cash CIE AUTOMOTIVE’S COMMITMENTS Strategic Plan of annualrevenue conversion ratio in 5 years in 2025 abovemarket growth ≈ +20pp ≈ 2% ≈ 65% >19% €1.0bn Revenuegrowth EBITDAmargin Capex Corporatetax payments EBITDA-to-operating-cash CIE AUTOMOTIVE’S COMMITMENTS Strategic Plan abovemarket growth of annualrevenue conversionratio in 2025 in 5 years
KEY OPERATIONAL LINESOF THE 2025 STRATEGIC PLAN KEY ESG LINES OF THE 2025 STRATEGIC PLAN Ethical commitment Active listening Eco-efficiency CIE culture Industry 4.0 Internationalization Comfort Electrification November 2021 June 2021 KEYOPERATIONALLINES OFTHE 2025STRATEGICPLAN KEY ESG LINES OFTHE 2025STRATEGICPLAN Ethical commitment CIE culture Active listening Eco-efficiency Industry 4.0 Internationalization Comfort Electrification November 2021 June 2021
Meeting expectations Results 2021 was the year of recovery after the pandemic: CIE Automotive’s net profit amounted to €267.5 million, which is higher than the pre-Covid levels of 2019 (in constant currency terms), despite lower vehicle production volumes and market malfunctions. The keys to this exceptional performance lie with the business model and tireless focus on cash generation, paving the way for deleveraging and organic growth. Meeting expectations Results 2021 was the year of recovery after the pandemic: CIE Automotive’s net profit amounted to €267.5 million, which is higher than the pre-Covid levels of 2019 (in constant currency terms), despite lower vehicle production volumes and market malfunctions. The keys to this exceptional performance lie with the business model and tireless focus on cash generation, paving the way for deleveraging and organic growth.
677M 618M 290M 3,269M 131M 601M 614M 338M FORGING MACHINING IRON CASTING PLASTIC METAL STAMPING AND TUBE FORMING ROOF SYSTEMS ALUMINIUM DIE CASTING Revenue mixby technology 21% 19% 18% 10% 9% 19% 4% Total € € € € € € € € 3,269M 677M 618M 290M 131M 601M 614M 338M FORGING MACHINING IRON CASTING PLASTIC METAL STAMPING AND TUBE FORMING ROOF SYSTEMS ALUMINIUMDIE CASTING Revenue mixby technology 21% 19% 18% 10% 9% 19% 4% Total € € € € € € € €
North America Brazil Europe MCIE Europe Asia China India 216M 13.6 21.0 873M 22.3 17.6 837M 440M 8.4 12.7 8.9 16.1 440M 14.7 18.0 464M 9.5 14.0 Performanceby region Revenue Revenue EBITDA Margin Revenue Revenue EBITDA Margin EBIT Margin EBITDA Margin EBIT Margin EBITDA Margin EBIT Margin Revenue EBITDA Margin EBIT Margin EBIT Margin % % € % % € % % € % % € % % € Revenue EBITDA Margin EBIT Margin % % € North America Brazil Europe MCIE Europe Asia China India 216M 837M 837M 440M 440M 464M Performanceby region Revenue Revenue Revenue Revenue € € € € € Revenue €
Creating value Shareholders CIE Automotive’s share price gained 24% in 2021 to end the year at €27.36 per share. Despite that healthy gain, the share price continues to be dragged down by investors’ lack of discernment when it comes to the automotive sector. The share price still fails to fully reflect the company's outstanding interim results, its ambitious strategic targets or the payout of one-third of its profits in dividends. In this complex scenario, the company stepped up its market communication effort and in June, it organised its first Capital Markets Day. Creating value Shareholders CIE Automotive’s share price gained 24% in 2021 to end the year at €27.36 per share. Despite that healthy gain, the share price continues to be dragged down by investors’ lack of discernment when it comes to the automotive sector. The share price still fails to fully reflect the company's outstanding interim results, its ambitious strategic targets or the payout of one-third of its profits in dividends. In this complex scenario, the company stepped up its market communication effort and in June, it organised its first Capital Markets Day.
Share priceperformance €61.3 1 st 25 MILLION CAPITALMARKETS DAY 24% SHAREPRICE GAIN CONFERENCES& ROADSHOWS 10 AWARDS Paid outin dividends receivedby theIR Department Share price performance FEB JAN MAR APR MAI JUN JUL AUG SEP OCT NOV DEC 4035302520151050-5-10 IBEX 35 CIE Automotive +24% +25% +7% Share priceperformance €61.3 1 st 25 MILLION CAPITAL MARKETS DAY 24% SHAREPRICE GAIN CONFERENCES& ROADSHOWS 10 AWARDS Paid out in dividends received bythe IR Department Share price performance FEB JAN MAR APR MAI JUN JUL AUG SEP OCT NOV DEC 35302520151050-5-10 +24% +25% +7% IBEX 35 STOXX Europe 600 Automobiles & Parts CIE Automotive
Striving for excellence Our customers CIE Automotive strives to offer its customers multi-technology and flexible solutions that help satisfy their unfolding demands. In 2021 the company increased its market share and improved its positioning in the electric vehicle segment with new products. As a result, a high percentage of the new order intake in 2021 corresponds to new-energy vehicles. Striving for excellence Ourcustomers CIE Automotive strives to offer its customers multi-technology and flexible solutions that help satisfy their unfolding demands. In 2021 the company increased its market share and improved its positioning in the electric vehicle segment with new products. As a result, a high percentage of the new order intake in 2021 corresponds to new-energy vehicles.
>80 CUSTOMERS 85 FACTORIES >7,000 SKUs between OEMsand TIER-1 suppliers with triple certification between OEMs and TIER-1 Main customers >80 CUSTOMERS 85 FACTORIES >7,000 SKUs between OEMs and TIER-1 suppliers between OEMs and TIER-1 with triple certification Main customers
Managing diversity Employees Over the past 25 years, CIE Automotive has demonstrated its ability to integrate people with different nationalities, cultures, values and skills. In 2021, it gave its diversity management a new boost with the creation of a Corporate Diversity Committee with the ultimate goal of fostering a sense of belonging and inclusion among the nearly 25,000 people who work at the group. In tandem, it remained strategically committed to international talent, relaunching its Ulysses programme despite the pandemic. Managing diversity Employees Over the past 25 years, CIE Automotive has demonstrated its ability to integrate people with different nationalities, cultures, values and skills. In 2021, it gave its diversity management a new boost with the creation of a Corporate Diversity Committee with the ultimate goal of fostering a sense of belonging and inclusion among the nearly 25,000 people who work at the group. In tandem, it remained strategically committed to international talent, relaunching its Ulysses programme despite the pandemic.
Employmentby region 696,806 HOURSOF TRAINING International exchange programme: Ulysses 24,472 EMPLOYEES New Diversity, Equality and Inclusion Committee >€18M over 2020 in 18 countries +18% EMPLOYEE SUPPORT 28% 35% 11% 26% 6,379 6,960 2,662 8,471 North America Brazil Europe Asia Employment by region 24,472 Total Employmentby region 696,806 HOURSOF TRAINING International exchange programme: Ulysses 24,472 EMPLOYEES New Diversity, Equality and Inclusion Committee >€18M over 2020 in 18 countries +18% EMPLOYEESUPPORT 28% 35% 11% 26% 6,379 6,960 2,662 8,471 North America Brazil Europe Asia Employment by region 24,472 Total
Facing challenges together Suppliers The supply chain was key to the group’s ability to deliver its overall corporate targets in 2021. Just when it seemed as if the worst consequences of the pandemic were behind us, stockouts, raw material and parts price increases and inflationary pressure on shipping and energy costs put CIE Automotive’s procurement model to the test. That model proved its worth in the most adverse of circumstances by enabling cost control, the purchase of quality services and, most importantly, uninterrupted supplies. All of which while embracing ESG criteria. Facing challenges together Suppliers The supply chain was key to the group’s ability to deliver its overall corporate targets in 2021. Just when it seemed as if the worst consequences of the pandemic were behind us, stockouts, raw material and parts price increases and inflationary pressure on shipping and energy costs put CIE Automotive’s procurement model to the test. That model proved its worth in the most adverse of circumstances by enabling cost control, the purchase of quality services and, most importantly, uninterrupted supplies. All of which while embracing ESG criteria.
ESG RISK MATRIX for your supply chain Start of the process for ISO 20400 Sustainable CERTIFICATION +€2.3 420 92.3% BILLION QUALITYAUDITS SUPPLIERS spent on PURCHASES are LOCAL ESG RISK MATRIX for your supply chain Start of the process for ISO 20400 Sustainable CERTIFICATION +€2.3 420 92.3% BILLION QUALITY AUDITS SUPPLIERS spent on PURCHASES are LOCAL
Strengthening our commitments Environment CIE Automotive has embarked on its journey to climate neutrality, measuring its environmental footprint in Europe, Mexico and Brazil. That step is the starting point for quantifying the environmental milestones contemplated in the 2025 Strategic Plan and broader progress towards climate neutrality. Strengthening our commitments Environment CIE Automotive has embarked on its journey to climate neutrality, measuring its environmental footprint in Europe, Mexico and Brazil. That step is the starting point for quantifying the environmental milestones contemplated in the 2025 Strategic Plan and broader progress towards climate neutrality.
Environmentalindicators ENVIRONMENTALFOOTPRINT RECYCLING CLEAN ENERGY RISKMAP COSTOF EMISSIONS Use of recycledraw materials Clean energy contracting andself-generation with photovoltaic panels Elaborationof the firstclimate risk map Calculationin Europe, Mexicoand Brazil Calculation in relation toadded value CO 2 WATER WASTERECOVERED 504,237.95 1,598,876.18 369,072.25 TONNES(Scopes 1 and 2) M 3 TONNES Environmentalindicators ENVIRONMENTAL FOOTPRINT RECYCLING CLEAN ENERGY RISK MAP COST OF EMISSIONS Use of recycledraw materials Clean energy contractingand self-generation withphotovoltaic panels Elaboration of thefirst climate risk map Calculation in Europe,Mexico and Brazil Calculation in relationto added value CO 2 WATER WASTERECOVERED 504,237.95 1,598,876.18 369,072.25 TONNES(Scopes 1 and 2) M 3 TONNES
Fostering progress Society As a member of the main automotive parts associations and platforms, CIE Automotive is playing a part in the definition of the mobility of tomorrow and contributing to the creation of a national strategy for the sector, taking advantage of the opportunity implied by the Next Generation EU funds. In addition to upholding the sector’s interests, the company contributes to the progress of society by paying taxes and lending its support for a range of community projects in collaboration with its employees. Fostering progress Society As a member of the main automotive parts associations and platforms, CIE Automotive is playing a part in the definition of the mobility of tomorrow and contributing to the creation of a national strategy for the sector, taking advantage of the opportunity implied by the Next Generation EU funds. In addition to upholding the sector’s interests, the company contributes to the progress of society by paying taxes and lending its support for a range of community projects in collaboration with its employees.
>€1 €54.3 PARTNERSHIPS MILLION MILLION COLLABORATION to define the mobilityof tomorrow in socialcontribution (+25%) paid inCorporate Income Tax on 3 M2Fprojects >€1 €54.3 PARTNERSHIPS MILLION MILLION COLLABORATION to define the mobilityof tomorrow in socialcontribution (+25%) paid inCorporate Income Tax on 3 M2Fprojects
Quality Corporate Governance Ethics CIE Automotive articulates its activities around ethics and transparency. To ensure everything it does is absolutely lawful, in 2021 it continued to implement its Compliance Model in new countries, likewise broadening the scope of its related training courses. In addition, it made changes in its Board of Directors in order to render it more independent and diverse. Fostering progress Ethics CIE Automotive articulates its activities around ethics and transparency. To ensure everything it does is absolutely lawful, in 2021 it continued to implement its Compliance Model in new countries, likewise broadening the scope of its related training courses. In addition, it made changes in its Board of Directors in order to render it more independent and diverse.
to 6,200 600 NEW COMPLIANCE AND CRIMINAL RISK Prevention Policy PEOPLE TRAINED Code of Conduct trainingprovided globally: on criminal liabilityand the preventionof corruption people onlineand the rest, in person. to 6,200 600 NEW COMPLIANCEAND CRIMINAL RISK Prevention Policy PEOPLE TRAINED Code of Conducttraining providedglobally: on criminal liabilityand the preventionof corruption people onlineand the rest, in person.