5. We are driven by engagement

«Because we are convinced that our our profitable and sustainable growth and sustainability go hand in hand.»

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5.1. CSR MANAGEMENT

MILESTONES

  • Approval of the new 2019-2020 CSR Plan.
  • Celebration of the first CSR Workshops in the US, Mexico, Brazil, India and China.
  • Signatory of the Spanish Network of the Global Compact.

LINES OF INITIATIVE UNDERTAKEN IN 2018

  • Global rollout of the CSR Workshops. + info
  • Formulation of a new 2019-2020 CSR Plan. + info
  • Definition of a community work model in line with the guidelines approved by the CSR Committee in December 2017.
  • Implementation of a work methodology designed to accompany the group’s growth.
  • Review and analysis of the CSR indicators.

LINES OF INITIATIVE IDENTIFIED FOR 2019

  • Incorporation of non-financial indicators into each facility’s management plan.
  • Start-up of the Caminando hacia el futuro (Walking towards the future) programme in Mexico under the umbrella of the strategic alliance with Save the Children.
  • Provision of training to all employees on how to combat corruption and bribery and on environmental awareness.

CROSS-GROUP CSR COMMITTEE

Member Area
Javier Álvarez Human Resources
Lorea Aristizabal Corporate Development
Gonzalo Ceberio Quality & Environment
Iker Hernández Internal Control and Risk Management
Susana Molinuevo CSR & Compliance
Mikel Orbegozo Sales
Irache Pardo Supply Chain
Angel Zalduegui Internal Audit

5.2 CUSTOMERS

Our customers acknowledge the value we add for them

+ info

We are close to triple certification at many of our manufacturing facilities

Certifications IATF ISO 14001 OHSAS 18001
Europe* 40 40 100% 39 98% 30 75%
North America 14 14 100% 9 64% 0 0%
Brazil 12 12 100% 12 100% 3 25%
Asia (India & China) 21 15 71% 8 38% 8 38%
Total 87 81 93% 68 78% 41 47%
*The Europe region includes the factories located in Morocco and Russia.

The company wants its customers to see it as a partner thanks to its comprehensive, innovative and competitive offering.

METAL STAMPING AND TUBE FORMING

  • EUROPE: The CIE Norma factory, located in Spain’s Basque region, inaugurated its second common fuel rail line. In 2020 it will have three fully operational lines devoted to this product, making it a benchmark supplier of this product at the European level (high and low pressure injection systems).
  • MEXICO: Traction in the supply of stamped and welded parts for the TESLA Model 3 from the CIE Nugar factory.
  • INDIA: Start of construction of a new stamping factory in Kahne featuring automated processes.

FORGING

  • NORTH AMERICA: HYUNDAI has contracted the forging factory in Celaya to make two new crankshafts for delivery in Monterrey (Mexico) and Alabama (US).
  • BRAZIL: Launch of a new line in the CIE Autoforjas factory for strategic products (tulips and CV joint housings) for NTN and NEXTEER, customers expected to deliver substantial growth.

ALUMINIUM

  • GLOBAL: Successful launch of a ladder frame for the Ford DRAGON engine for manufacture in three different regions: Europa, North America and South America.
  • EUROPE: RENAULT awarded business to CIE Matricon (Romania), specifically to make filter holders using aluminium injection technology for electric vehicles fitted with the 5AQ engine.

MACHINING

EUROPE
  • The company’s French factory, CIE Compiegne, successfully completed the industrialisation of the first fuel injection rail for petrol engines.
  • CIE Recytec (Basque region, Spain) was awarded a new project encompassing a range of transmission system parts for BORGWARNER, featuring new technology such as laser welding between plastic and metal parts and double frequency induction heating.

PLASTICS

EUROPE
  • Acquisition by CIE Plasfil (Portugal) of a new plastic injection press featuring full-electric technology designed to deliver enhanced processes while ensuring better energy efficiency. This investment covers all parts that require low clamp tonnage.
  • Launch at CIE Orbelan (Basque region, Spain) of new plastic moulds featuring heat-and-cool moulding technology for SEAT door grips. These moulds eliminate visible plastic weld lines, improving the aesthetics of decorative parts.

ROOF SYSTEMS: ADVANCED COMFORT SYSTEMS (ACS)

  • Order for the largest panoramic sun roof on the market from RENAULT; the roof is designed for assembly bearing a higher load, comprised of sheet glass and a side impact structure.
  • Order for an ultra-flat glass roof for ASTON MARTIN. This product is a fixed glass roof with an electric shade, based on modular architecture, which fits in the smallest frame ever made.

5.3 THE TEAM

We hire efficient talent and we take care of our professionals’ health and safety

EMPLOYMENT AT CIE AUTOMOTIVE [102-7, 405-1]

2016 2017 2018
No. of employees 20,926 22,899 23,262
Europe
Spain
Germany
Czech Republic
France
Portugal
Romania
Italy
Slovakia
Lithuania
Russia
United Kingdom
Morocco
6,034
2,501
857
853
394
257
317
249
226
172
58
101
49
6,221
2,548
808
876
395
285
321
254
245
197
107
97
88
6,240
2,602
834
794
371
330
328
280
243
231
111
75
41
North America
Mexico
USA
Guatemala
4,711
4,101
599
11
6,142
4,680
1,459
3
6,224
4,545
1,678
1
Brazil 3,010 3,574 3,652
Asia
India
China
United Arab Emirates
7,171
6,449
721
1
6,962
6,271
691
0
7,146
6,391
755
0
Fixed/indefinite contracts, % 80% 78% 82%
Average fixed/indefinite contracts, % 77% 79% 80%
Temporary contracts, % 20% 22% 18%
Average temporary contracts, % 23% 21% 20%
Female employees, % 14% 16% 16%
Female hires, % 18% 18% 25%
Employees with some form of disability, % 1.5% 1.5% 1.6%
Employees covered by collective bargaining agreements, % 63% 63% 62%

WORKFORCE BREAKDOWN BY JOB CATEGORY AND GENDER

2018
Executives
Men
Women
758
690
68
University graduates
Men
Women
6.055
5.063
992
Skilled workers
Men
Women
16,449
13,707
2,742
TOTAL 23,262
Total men
Total women
19,460
3,802

GENDER PAY GAP AND AVERAGE ANNUAL SALARIES BY REGION

Pay gap Salaries in €
Men Women
ASIA (India & China) 133% 7,282 9,703
NORTH AMERICA 85% 13,245 11,220
BRAZIL 70% 7,168 5,008
EUROPE* 59% 34,793 20,574
CIE AUTOMOTIVE 87% 15,641 13,532
*The Europe region includes the factories located in Morocco and Russia.

PROGRAMMES FOR UPGRADING EMPLOYEE SKILLS

Training hours Employees trained Average hours of training per year per employee
2018 698,970 20,491 34.1

HEALTH AND SAFETY

2018
No. of employees 23,262
Lost-time injuries 517
Fatalities 0
Injury frequency rate 9.1
Accident severity rate 0.2

5.4 INVESTORS

MILESTONES

  • Added to the IBEX-35.
  • Exit from Dominion via the distribution of a special dividend of over €400 million.
  • Payment of a record-high cash dividend of €0.31/share.

Lines of initiative undertaken in 2018

  • Implementation of the suggestions derived from the Analyst Satisfaction Survey conducted in November 2017.
  • Expansion of IR presence in international cities.
  • Communication of new guidance for 2020 under the Business Plan.
  • Communication of the exit from Dominion.
  • Updates on the sector and macroeconomic situation.

LINES OF INITIATIVE IDENTIFIED FOR 2019

  • Additional reinforcement in key international cities and first-time presence in new cities.
  • Mastery of new CRM tool.
  • Knowledge Management Project designed to optimise interactions with investors.
  • Standardisation of periodical stock market reports for internal distribution.

OWNERSHIP STRUCTURE

Gráfico

ANNUAL CHANGE IN SHAREHOLDER STRUCTURE

Shareholder 2018
ACEK Desarrollo y Gestión Industrial, S.L. 14.9%
Antonio María Pradera Jáuregui 10.0%
Corporación Financiera Alba, S.A. 10.1%
Elidoza Promoción de Empresas, S.L. 10.0%
Mahindra&Mahindra, Ltd. 7.4%
Addvalia Capital, S.A. 5.0%&
Alantra Asset Management, SGIIC, S.A. 3.5%
Total core shareholders 60.9%
Own shares 0.0%
Members of the Board of Directors 1.4%
Free float 37.7%

TREND IN ANALYSTS’ CONSENSUS TARGET PRICE

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5.5 INNOVATION AND TECHNOLOGY

Emissions, digitalisation, mobility and electrification rank among the main challenges facing the sector

CIE Automotive has a roadmap for investing in R&D projects articulated around the prevailing sector challenges

  • Electric vehicles:
    • End-to-end refrigeration systems for engines and generators.
    • Multi-material systems for battery housing and lids.
  • Active chassis systems:
    • Active suspension systems.
    • Transmission systems based on road conditions.
  • Reducing vehicle weight:
    • Hybrid structures and multi-material joining systems.
    • Rotary forging.
    • Multi-axial forging.
  • Fuel and emissions:
    • Higher pressures injection systems.
    • Twin injection systems.

5.6 SUPPLIERS

[102-9, 102-10, 103-1, 103-2, 103-3, 201-1]

New supplier portal launched to facilitate end-to-end management

Lines of initiative undertaken in 2018

  • Launch of the European Supplier Portal as an open communication channel that facilitates equal opportunities.
  • Global, in-person and online training on CSR matters for buyer teams.
  • Development and implementation of Industry 4.0 tools applicable to the supply chain with a view to delivering more nimble and effective management that ultimately translates into cost streamlining.
  • Collaboration with suppliers and universities on Industry 4.0 projects designed to enhance the supply chain.
  • Standardisation of the global requirement to embed ESG criteria into audits of suppliers of productive material.

Lines of initiative identified for 2019

  • Consolidation of the supplier portal worldwide.
  • Work plan with productive material suppliers for the definition of environmental requirements.
  • Development of an environmental collaboration project incubator with suppliers.
  • Rollout of the ‘CIE Automotive and its supply chain’ project to educate suppliers about what is expected of them on the CSR front, accompanied by an assistance programme.
  • Audits following specific ESG criteria of the top five suppliers to every European factory and the factories in North America and Brazil.

Supply chain management

Some 90.4% of the company’s suppliers are local firms [204-1].

By sourcing from suppliers located close to its manufacturing facilities, CIE Automotive generates wealth in local communities, reduces logistics and tariff costs and mitigates exchange rate risk. As a result, 90.4% of CIE Automotive’s suppliers, responsible for 79.3% of product and service purchases in 2018, are local firms.

LOCAL SUPPLIERS, %

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5.7 ENVIRONMENTAL MANAGEMENT

[102-11, 103-1, 103-2, 103-3]

Gráfico

Our products’ environmental footprint is shrinking

Lines of initiative undertaken in 2018

  • Closing in on triple certification at all factories.

    GLOBAL CERTIFICATION MAP

    Certifications IATF ISO 14001 OHSAS 18001
    Europe* 40 40 100% 39 98% 30 75%
    North America 14 14 100% 9 64% 0 0%
    Brazil 12 12 100% 12 100% 3 25%
    Asia (India & China) 21 15 71% 8 38% 8 38%
    Total 87 81 93% 68 78% 41 47%
    *The Europe region includes the factories located in Morocco and Russia.
  • Development of advanced calculations of the environmental footprint of the company’s products.
  • Calculation of the cost of emissions.

5.8 COMMUNITY

[102-13, 103-1, 103-2, 103-3, 203-2, 413-1, 415-1]

We embarked on our first strategic alliance at the corporate community work level

MILESTONES IN 2018

  • Execution of an agreement with Save the Children under which the company will participate in the Caminando hacia el futuro programme. + info
  • Membership of Forética’s Social Impact Cluster.
  • Growth of 100% in community work donations.
  • Growth of 13% in employee participation and of 31% in beneficiaries of community work programmes.

LINES OF INITIATIVE UNDERTAKEN IN 2018

  • Definition of a community work model in line with the guidelines approved by the CSR Committee in December 2017.
  • Growth in employee participation in volunteering activities.
  • Continued fine-tuning of the contribution to the community.

LINES OF INITIATIVE IDENTIFIED FOR 2019

  • Start-up of the Caminando hacia el futuro (Walking towards the future) programme in Mexico under the umbrella of the strategic alliance with Save the Children.
  • Extending the growth in community work in terms of: the number of projects; employee participation; and the number of beneficiaries.

VALUE GENERATED AND DISTRIBUTED [201-1]

COMMUNITY WORK Total Euro No. of employees who participated No. of work hours devoted
EUROPE* 372,000 1,144 764
NORTH AMERICA 75,067 74 7,731
BRAZIL 39,606 11 1,221
ASIA 328,961 1,474 21,744
TOTAL 816,334 2,703 31,460
*The Europe region includes the factories located in Morocco and Russia.