Dear friends of CIE Automotive:

We ended 2024 surer than ever about our ability to overcome challenging business environments. Against the backdrop of global automotive industry contraction and transformation, marked by major decarbonisation and sustainability challenges, at CIE Automotive we continued to advance towards the ambitious commitments set down in our 2025 Strategic Plan. For us, it is a privilege to share our key achievements in 2024 and the enabling strategies in this year’s Annual Report.

Despite the macroeconomic, regulatory and geopolitical uncertainty, which led to a 1% contraction in global sector production, CIE Automotive managed to lift its revenue to €3.96 billion and post a record profit of €325.7 million, underpinned by margin expansion (specifically an EBITDA margin of 18.4%), disciplined investments and our sound financial and tax policies.

Our strong performance in 2024 cements our position as one of the sector’s most profitable players and evidences our ability to generate value in a sustained and balanced manner. As a result, although the mature and emerging automotive markets fared differently in 2024, at CIE Automotive we were able to post similar – double digit – EBITDA margins in all of our geographic operating regions: Europe (17.5%), North America (18.8%), Brazil (19.8%) and Asia (18.5%).

We are advancing on our strategy, delivering on our commitments and raising our limits

These achievements are by no means random. They are the product of a robust business model which combines geographical, customer and technological diversification with ironclad financial discipline and decentralised management so as to adapt for the idiosyncrasies of each market, with all decisions framed by strict environmental, social and governance (ESG) standards.

Under this model, our priority in 2024 was to convert two-thirds (66%) of our EBITDA into cash, allowing us to reduce our adjusted net debt to €987.5 million, 1.34 times our EBITDA, a record low for us.

Throughout the year, we continued to advance on our key operating lines: electrification, international expansion, industry 4.0 and comfort. This holistic approach enabled us to meet our targets for the year and places us in an ideal position for tackling the challenges that lie in store.

Keeping a close eye on the trends that are shaping the sector, in 2024, we acquired AKT Plásticos, a firm specialised in thermoplastic injection moulding that reinforces our position in plastic injection technology, essential for electric vehicles by facilitating the manufacture of lighter parts.

In parallel, we continued to advance on our key ESG lines of initiative: CIE culture, ethical commitment, eco-efficiency and active listening, which we have translated into clear targets with well-defined deadlines. We are pleased to tell you that, thanks to the progress made in 2024, we have been honoured with Merco’s ESG Responsibility Seal.

Our mission, vision, and values reflect over 25 years of commitment to quality, innovation, and sustainability

Among the advances made, I would like to highlight the reduction of our environmental footprint, underpinned by decarbonisation projects, rationalised use of energy and the integration of eco-design criteria into our products. Validation of our climate targets by the Science Based Targets initiative (SBTi) further endorses our environmental strategy, which was also borne out by achievement of B scores for climate change and water management in our 2024 CDP assessment.

Innovation has been essential to reduce our environmental impact but also to encourage sustainable mobility, unlocking technology solutions that are helping our customers to adapt for the energy transition. Indeed, almost 15% of our revenues were generated by environmentally-sustainable lines and over 80% by parts and systems that are suitable for all kinds of vehicles. Our RDI effort was acknowledged in the form of the Vodafone DEIA Innovation Sariak award for leadership in technological innovation.

These achievements would not have been possible without the support of our stakeholders.

The impetus to keep growing comes from our shareholders and their support for our strategy. In exchange for their loyalty and true to our commitment to pay out out one-third of our net profit to investors, we distributed nearly €108 million in dividends in 2024.

The impact of our activities is evident in our business communities. Aside from the economic progress implied by the jobs we create, the goods and services we purchase from suppliers and the taxes we pay – €507 million in 2024 -, last year, we earmarked close to €1 million to community investment programmes.

However, the real engine here at CIE Automotive is our global team of more than 24,000 professionals. We want to thank them all sincerely for their talent, hard work and dedication in overcoming the challenges we face.

The situation is not easy but after this year of achievements, we feel ready to tackle whatever new challenges the future holds in store. Today, I can assure you that we will deliver the targets set down in our 2025 Strategic Plan and continue to strengthen our business, innovating and collaborating with our stakeholders to assume new challenges. We will continue to advance without limits.

Thank you to every one for making it possible,

Antón Pradera | CHAIRMAN

Jesús Mª Herrera | CEO