KSPG AG Dear Readers

Responsibility. Sustainability. Success.

Sustainability Report 2015 Our mission Editorial

We take responsibility . By maintaining a constant focus on environmental protection, using raw materials economically , and offering products that cut CO2 emissions. By making KSPG AG Dear readers,

internationally competitive, This is the 2015 sustainability report of KSPG AG’s Executive Board: Peter KSPG AG, the Rheinmetall Group’s mobility initiatives, and all our corporate activities Sebastian Krause, specialist. It aims to show you the form our create measurable added value for our Horst Binnig, and Dr. Peter Merten generating profits, and creating corporate social responsibility takes across company, the environment, our employees, all business units and to demonstrate our and society. awareness of the consequences of our an environment that is conducive actions. More specifically, it means that we will con- tinue to develop our portfolio of sustainable With a history dating back over 100 years, products in the future and position them to growth . By being more than we have succeeded in making our brands – successfully on the market. That we will Kolbenschmidt, Pierburg, and Motorservice aim to be even more careful in our use of – major players in their respective markets. raw materials and energy. That we are keen just an employer to our global In our eyes, however, this leading position to remain a strong, attractive, and reliable does not simply deliver economic success employer for our workforce. And that we but also brings with it a certain obligation. will strengthen our social commitment and workforce, also providing them On the left, you can see our mission state- be guided to an even greater extent by our ment for sustainability. It starts with the corporate compliance and corporate govern- following words: We take responsibility. As ance principles. with a home and a family . we see it, this means aiming to ensure that our products and services, our projects and We look forward to moving into the future together, along a path that is both responsi- And by acting sustainably – ble and successful. day in, day out.

Peter Sebastian Krause Horst Binnig Dr. Peter Merten

KSPG AG Executive Board

2 3 Three strong brands KSPG – THE SYSTEM PARTNER FOR DEVELOPING TOMORROW’S ENGINE TECHNOLOGY

KSPG AG is the parent company of Rheinmetall’s Automotive sector. As a global supplier to the automotive industry, we manufacture air supply and emission control products, pistons, engine blocks, and plain bearings. We are already developing drivetrain solutions for the future, carrying out research into mobility trends, and taking downsizing and emission control to the next level. We combine the strong, well-established brands Kolbenschmidt, Pierburg, and Motorservice under one roof, which gives us the unique system expertise required to take a holistic approach to current and future mobility issues.

Under the Kolbenschmidt brand, KSPG pro- Under the Pierburg brand, KSPG develops and KSPG’s Motorservice brand serves the duces and develops top-quality components produces mechatronic systems and compo- automotive aftermarket. Motorservice is the for all kinds of vehicles and engines – from nents for drive concepts. Our focus lies on service- and customer-focused specialist large and small bore pistons to engine blocks cutting emissions and fuel consumption while for the global sale of engine and system and plain bearings. Kolbenschmidt always also optimizing performance and reducing components. The breadth and depth of our provides its customers with the perfect weight. This is achieved using products such product portfolio is truly unique. We pay solution for their needs. Its top priority is to as solenoid valves, actuators, valve trains, greater attention to the challenges facing our ensure continuous improvement based on our and oil/water/vacuum pumps for cars, com- customers than any other sales specialist. detailed knowledge of product requirements mercial vehicles, and offroad applications. We Regardless of the problem, our unique com- and design, and our outstanding material are passionate about coping with challenges mitment to problem solving always gives our know-how. Kolbenschmidt benefits from the in collaboration with our customers. We take customers excellent planning security. The solidity and attractiveness of a long-standing a “can do” approach and offer our customers main characteristic of Motorservice besides company. Our relationships with customers solutions that are more flexible and more its outstanding level of dedication is customer thrive on our exceptional reliability and the robust than the market standard. Pierburg proximity. This is also reflected in our fairness trust generated by all our business dealings. is all about making anything possible. Our and numerous close business partnerships. technical expertise enables us to achieve the Last but not least, our professional staff are project goals we have set ourselves. We do highly knowledgeable. so through inventiveness and an innovative spirit, but without losing the human touch.

4 5 Three strong brands Coolant pumps Variable valve control Product portfolio Residual heat, parking heaters, cooling system KSPG offers a comprehensive port- Engine blocks folio of products for the automotive Electric air industry. We also make components for Bushings for industrial applications such as large chargers bore pistons for ships, power houses, tailgates and locomotives, and plain bearings for virtually all plant and mechanical engineering applications. Pistons

Structural components Cylinder heads Lightweight Engine plain bearings Bushings for shock absorbers Exhaust-gas recirculation Bearings for seat adjustments and doors Secondary-air systems

Bearings for active Oil pumps engine hoods Bushings for Actuators Electrical, mechanical, variable Pedestrian safety system injection pumps Solenoid valves Vacuum pumps For coolant, oil, and vacuum applications and turbo recirculation valves

1909 1928 1960 2014 Bernhard Pierburg founds The first Solex carburetor In Neuss, Pierburg opens 1970 1989 2011 Kolbenschmidt becomes the steel trading partner- from Gebr. Pierburg OHG is Europe’s most state-of-the-art. First exhaust-gas Start of oil and water Range extender the world’s first series ship Gebr. Pierburg OHG installed in the engine of R&D center for the reduction recirculation valves (EGR) pump production by for electric vehicles supplier of automotive in Berlin. the Hanomag P 2/10. of pollutant emissions. developed by Pierburg. Pierburg. developed. diesel steel pistons .

History

1910 1927 1948 1963 1998 2000 2012 Karl Schmidt establishes The aluminum-silicon alloy Kolbenschmidt New plant for plain Kolbenschmidt and Pierburg The aftermarket businesses Internationalization a smelting plant for alumi- Alusil developed by Karl develops the bearings commissioned merge to form the Rheinmetall of Pierburg and Kolben- increases, especially in num and aluminum alloys Schmidt starts enjoying ring-belt piston. in St. Leon-Rot . Group’s Automotive sector – schmidt merge. Mexico, China, and Europe. in Heilbronn. widespread popularity in the Kolbenschmidt Pierburg AG . automotive industry.

6 7 Environmental responsibility WE FOCUS ON SOLUTIONS THAT HELP THE ENVIRONMENT AND CONSERVE RESOURCES

For decades, KSPG AG has been a recog- Our goal is less CO² nized technology partner of auto manufac- Our responsibility toward the environment, turers for reducing the emissions and fuel which we have anchored in our environmental consumption of passenger car and com- policy, obliges us to develop products that are mercial vehicle engines. Increasingly scarce economical in their consumption of energy fossil fuel resources worldwide, the already and natural resources. Cutting CO² emissions tangible changes in the global climate and, plays a key role for us in this respect. We last but not least, demographic changes already offer auto manufacturers a whole make it vital to revise and rethink mobility range of products that significantly reduce concepts. Key strategies include improving CO² emissions – and actively support them the efficiency of conventional internal-com- in their efforts to meet the Europe-wide fleet bustion engines and developing alternative consumption target of 95 grams of CO² emis- drive solutions based on renewable forms sions per kilometer by 2020. In the future, of energy. too, we will be devoting a large part of our research and development work to products In its further development of alternative drive- that minimize the CO² emissions of tomor- trains for passenger cars and commercial ve- row’s vehicles. hicles, KSPG is primarily focusing on vehicle –7 g CO /km drivetrain technology. In addition to products ² for conventional vehicles with internal-combustion engines, we also develop systems for hybrid vehicles and vehicles powered by electric batteries or fuel cells. Our products for coolant-based thermal management and our heat pumps help improve the efficiency Variable valve control of electric vehicles and significantly extend the range of vehicles powered by electric batteries.

–3 g CO²/km

–3 g CO²/km Lowering CO² emissions with KSPG products Tribological system starting from a mid-range vehicle with a gasoline engine and basic emissions of 138 g of CO²/km in the NEDC (New European Driving Cycle)

–2 g Variable mechanical and CO²/km electrical coolant pump –2 g CO²/km

Electric low-pressure –1 g exhaust-gas recirculation CO /km ² Lightweight construction

Variable oil pump

8 9 Environmental responsibility Aluminum Steel Tin Magnesium (excl. Pierburg) Environmental projects 284 443 1,727 Our company’s environmental commitment is also demonstrated by the large number of Lead PTFE/PVDF Energy management Aluminum alloys environmental projects implemented at our 355 117 plants worldwide. A few examples from the Environmental protection and the associated past year are provided below. economical use of energy has been part and Copper alloys parcel of KSPG’s corporate governance for 16,743 Papenburg years. Our energy management system cre- Thanks to two environmental projects, ates the conditions for consciously controlling Copper the plain bearings plant in Papenburg will our energy consumption and, by doing so, in future achieve annual savings of over continuously improving our energy-related 9,460 1.2 million kilowatt hours of energy. The 3,826 performance. Its main objectives are to boost 100 t waste heat from the compressor plants will energy efficiency and to cut energy consump- 69,417 in future be recovered and compressed air tion, CO emissions, and energy costs. consumption has been reduced through ² Water consumption in m³ Neckarsulm various optimization measures. The total Use of raw materials In 2014, the plants in Neckarsulm alone investment amounts to over ₠85,000 . invested ₠242,669 in 25 environmental Energy consumption CO² equivalent We are committed to responsible raw materi- protection projects . One such project in MWh in metr. t als management. As a manufacturing compa- involved optimizing the heat supply at the Electricity ny, this means it is particularly important that plant of KS Aluminium-Technologie (now KS Neuss we carefully plan our use of the raw materials HUAYU AluTech). This saved 818,064 kilowatt The focus during construction of the new we need and that we use limited resources hours of energy. The ₠140,000 invested in Pierburg plant “Niederrhein” was on 229,189 economically and efficiently. optimizing process cooling at the same plant sustainability aspects. The building meets the 938,721 is saving a further 200,000 kilowatt hours of requirements of the EnEV (German Energy energy per year. Switching the type of lights Saving Ordinance) for new buildings with 10,000 m³ used – from HQL to LED – has saved around more than 25% to spare and has been 270,000 kilowatt hours of energy. Together, awarded a silver certificate from the DGNB all the environmental measures implemented (German Sustainable Building Council). 496,728 Waste at the Neckarsulm headquarters have saved Environmentally responsible use of materials, in metr. t 3.2 million kilowatt hours of energy and and effective recovery of heat in the com- Gas For disposal 19,167 cut CO ² emissions by 1,442 metric tons . pressed air system and waste heat from the This corresponds to a financial benefit of foundry’s furnaces have made a major 48,672 Waste ₠390,231 per year. contribution to this excellent result.

For recycling management 36,996 Waste is unavoidable for a 194,687 manufacturing company – and District heating KSPG is no exception. For both 1,000 metr. t 8,429 environmental and economic reasons, however, we endeavor St. Leon-Rot 42,671 to minimize waste and maximize Over ₠120,000 has been invested in environ- recycling. Thionville, Frankreich mental protection projects at the bearings Fuel oil The majority of the plastic packaging used in plant in St. Leon-Rot. For example, a new 4,350 production operations will in future be exhaust-air purification system has been reused. The climate control systems no longer installed that filters metallic dust particles 14,404 use the environmentally harmful coolant R22. even more effectively and further reduces In order to achieve our environmental objectives, we have In France, too, compressed air consumption emissions. The internal recycling ratio for Diesel Environmental introduced environmental management systems at our has been reduced and a heat recovery system aluminum waste has also been improved to 2,473 production companies in Germany and other countries certification has been installed for the compressors. as high as 70%. This quantity can now be 8,189 and certified these to the internationally recognized melted down in-house and external remelting environmental standard ISO 14001. Six of our sites also has no longer been required since 2014. Over 10,000 MWh TIFIED already have an energy management system certified to R 100,000 kWh of electrical energy per year is E

ISO 50001. Thanks to the training and information C being saved through numerous measures

provided by our committed environmental team, there is E Takwe, Indien such as lowering the base load during

ISO 14001T

D I

F E an excellent level of environmental awareness throughout I A cutting-edge wastewater treatment plant compressed air generation and reducing the the workforce. has been installed at the Takwe production amount of compressed air used. facility.

10 11 Economic responsibility SUSTAINABLE BUSINESS SUCCESS – IN OUR OWN INTEREST AND THAT OF OUR PARTNERS

Despite their different objectives, our stake- KSPG adds value Distribution of value added holders have one thing in common – KSPG’s In 2014, the Group’s total operating perfor- The majority (75%) of the value added gen- long-term business success is in their inter- mance improved by 8% to €2,581 million. erated in 2014 was spent on our employees est. Healthy value creation is particularly After deducting the cost of materials, other in- in the form of wages, salaries, and social important in this respect. put, and amortization and depreciation total- security/pension expenses. Our shareholder ing €1,817 million, the value added amounted received 9% in dividends and the Treasury to €764 million, which was 7% higher than in 6% in taxes. Interest payments to our lenders the previous year. As in the previous year, this accounted for 3%. The remaining 8% is avail- value added represented 30% of the Group’s able to finance the company’s future growth. total operating performance.

Input ₠1,706 million

Group’s total operating performance Employees ₠2,581 million (wages, salaries, social security payments) ₠570 million (75%) on milli ₠111 ation A mortization and depreci Treasury (taxes) ₠46 million (6%) Value added ₠764 million Lenders (interest payments) ₠21 million (3%)

Shareholder (dividend) ₠67 million (9%)

Company ₠60 million (8%)

12 13 Ökonomische Verantwortung Investments to Research and development in € million Sales growth and R&D ratio Sales harness market 145 149 in € million 2,448 6% 6% Total workforce € improved profitability 2,262 opportunities KSPG enjoyed considerable € KSPG AG makes targeted invest- market success in 2014. Sales for R&D employees Operating margin the fiscal year were 8% up on the ments in segments that offer 8% 2013: 992 (8%) (before special items) 2014: 988 (8%) previous year even though global in % growth opportunities, boost 8.0 production of cars and light com- 7.5 profitability long term, improve mercial vehicles rose by only 3%. 7.0 international competitiveness, The operating result (EBIT) grew and safeguard technological ex- even more strongly, increasing pertise in its areas of business. 2013 2014 by 16%. The operating margin for 2014 was 7.5%, following 7.0% in Technology and the previous year, and we are ex- Net investments in € million pecting to achieve our long-term Net investment ratio product developments target margin of 8% in the current 2015 fiscal year. Our customers are looking to develop increasingly green 2013 2014 Long-term target margin 2014 158 and efficient vehicles. Our products have been making 6% a valuable contribution to this for a number of years. In addition to the necessary research and development Operating result (before special items) in € million activities, our engineers are also working on systems for

184 142 alternative drive concepts. We invest some 6% of sales in 158 2013 6% € maintaining and expanding our diverse know-how. €

2013 2014 KSPG is Awards international 2013 2014 The awards we have received KSPG AG employed 11,838 people in Germany

in recent years prove that KSPG and other countries in 2014. The internation- 59% 41% customers and the industry alization of our business resulted in us being employed outside Germany employed appreciate our products and represented in 15 different countries on four in Germany our work philosophy. This year, continents in 2014 (including joint ventures), KS Kolbenschmidt GmbH was with around 59% of our workforce employed Sound financial Total assets in € million presented with Caterpillar’s Gold outside Germany. strength Quality Award and the German 1,859 1,954 Steel Federation’s Steel Innova- With an equity ratio of over 40%, tion Award. The Pierburg plant € KSPG has the financial security € in Ústí nad Labem in the Czech to ensure the Group’s continued Republic has won two awards Satisfied business success. – the General Motors Supplier Quality Excellence Award in customers 2014 and PSA Peugeot Citroën’s MS € € Best Plant Award in 2015. Our MS KS Equity In interviews with 192 potential 86% Equity KS PG €1 million €812 million commitment to the labor market and existing Motorservice custom- 90% 84% 89% €795 million 89% PG 43% 42% has also been recognized. This ers, market research company fo- 90% … is highly 94% year, KS ATAG TRIMET Guss rum! examined how the Motorser- reliable €10 million MS GmbH in Harzgerode received an vice (MS), Kolbenschmidt (KS), and … has a very 91% KS 90% € award from the Federal Ministry Pierburg (PG) brands are regarded good overall PG image / reputation of Economics for the international on the market. It considers scores … delivers €100 million recruitment of skilled workers. of over 80% to be above-average. high € quality

2013 2014

14 15 Social responsibility OUR EMPLOYEES ARE OUR NUMBER ONE ASSET

Regardless of their age or how long they Work-life balance have been working for KSPG, our corporate A happy home life helps ensure professional culture is aimed at ensuring that all employ- success. Many employees are keen to achieve ees can make the most of their personal a better balance between work and family/ qualities, capabilities, qualifications, and personal commitments through more flexible commitment so as to help achieve the com- working hours. We consider it important to pany’s goals. help them do so with a family-friendly HR policy that includes working hours models with working weeks of varying lengths and a number of different part-time arrangements that enable time to be divided up more flexibly and thus provide a degree of individual freedom. KSPG also gives parents a helping hand with a kids’ vacation program. In addition to this, the KSPG companies in Germany offer the possibility of extended parental leave. Employees worldwide

1,066 7,027 North America Europe 1,099 Asia

2,310 South America Age pyramid Germany and other countries, excluding interns and apprentices

65 + 37 0.3% 60 – 64 554 4.9% 55 – 59 1,149 10.2% 50 – 54 1,478 13.2% 45 – 49 1,541 13.7% 40 – 44 1,496 13.3% 35 – 39 1,541 13.7% 30 – 35 1,628 14.5% 25 – 29 1,280 11.4% 20 – 24 516 4.6% Average age: 41.83 – 19 13 0.1% (Germany: 44.88 – other countries: 39.77)

16 17 Social responsibility Number of further Other training measures 71 1,419 in total ion of disabled Employees on parental leave ort sta rop ff P Germany General P 5 ro .8 p 332 le ma % o ma le r fe 78 t Female .5 i 9% 1% o Apprentices .4 n 1 2 o The workforce f Further training

p a We are committed to developing young Employeesr on parental leave t - t i talent and offer the 5.8% of our permanent % Germany m in Germany 2 of staff . e

4,811 workforce who are still training a secure and s

Female t s employees a

The fact that there is no typical f positive start to their professional lives along A strong company needs well-trained staff.

in Germany

r 3

t Specialist

KSPG employee is a good thing. . with excellent prospects. Our employees can rely on our support – be n

5 Male o

% 1,016

Our company thrives on the it through external training, special develop-

diversity of its workforce. We t Number of ongoing extra-curricular ment programs or the “Rheinmetall Kolleg” -

do everything in our power to i training projects: 49 corporate program.

32 10

ensure that all members of the n

r Male

KSPG family can put their specific o Apprentices in Germany p

r strengths to good use and are P 5.8% of permanent workforce both challenged and encouraged 5,928 days by us. 32 10 1.43 days per employee bleic h1 6 Fweemra 5%5% ge M a Employee turnover le 8 Germany 5 %

Total Arrivals 240 Departures C % o 5 o 6 p Intrapreneur-Award l . a e i r d t u s Spending on health-related c u In addition to the standard improvement a d measures in Germany ti In on strategy, Rheinmetall has this year also €330,000 Spending 2 409 396 2% 3% € Comm. 1 introduced a Group-wide international intrapreneur competition that encourages staff to € € on health suggest new products and business ideas. € € € The employee who submits the best sugges- € management € € tion in 2016 can choose between ₠7,500 in € € € From information events on cash and a share in the profits generated by € € € nutrition and giving up smok- the new product. Rheinmetall is making avail- € € € ing to organized runs, beach able up to ₠250,000 in start-up capital. € volleyball games, tai chi courses, € € € and autogenic training – our 40 Periods of absence € € health-related initiatives and € € Suggestion system € courses demonstrate how impor- and illness € Suggested improvements € € tant our employees’ health is to Our business success is partly the result of Germany After lengthy absences, it’s often difficult to € € us. We spent over ₠330,000 on improvements suggested by our employees Suggestions reintegrate into the workplace. We therefore € this in 2014. that save KSPG hundreds of thousands of submitted Suggestions Amounts € look for individual solutions for all returning euros year in, year out. 3,120 implemented paid 2,038 €280,896 employees so that they can resume their € € careers at KSPG. One example from the bearings plant in St. € €

Leon-Rot demonstrates that the benefits € € are not restricted to the company and the € € € Periods of absence employees making the suggestion, but € Germany, in hours € € Periods of illness, total often also extend to the environment. Since € Total Germany, in hours € € 1,779,365 Total employees at the plant suggested using € € 1,462,428 a pH-neutral bio rust remover instead of € 10 suggestions ce € n ce € e n aggressive sulfuric or hydrochloric acid, the € s % e b 0 s € a % 9 b 0 € f a proportion of treated parts that are damaged € 9 o €1,000 f 2013 513,245 s o € d has fallen significantly and the plant has also s €

o € d

i e saved itself €104,000.

r €

p €10,000 d

i 2014

2013 i

a P P €

2014 396,330

18 19 Corporate governance

INTEGRITY AND FAIRNESS Strong guidelines

All employees – from the Executive Board, directors, and ARE OUR GUIDING PRINCIPLES managers to non-managerial production and administra- Exports in safe hands tive staff – are obliged to follow mandatory guidelines. These include: We check the EU’s export lists and national // Code of Conduct regulations to see whether the export of our products and engineering drawings is per- // Principles of Social Responsibility mitted. Some of our products are subject to // Corporate Compliance Guidelines a blocking and release process. This ensures that products listed by the BAFA (Federal // Guideline on Environmental Protection Office for Economics and Export Control) are // Guideline on Energy Policy only delivered once a release or export li- cense has been issued. Engineering drawings // Guidelines on Export Control Laws of Other Countries are also subject to authorization management // Information Security Policy and they, too, are only issued in line with a // Corporate Directive Company Security fixed release process. // Policy on Handling Gifts, Entertainment KSPG AG’s reputation, its business and Invitations to Events success, and the trust of customers, // Antitrust Compliance Policy shareholders, business partners, // Social Media Guideline employees, and the public in the company do not solely depend on the // Position Paper on Demographic Management quality of products and services, but Code of Conduct also on good corporate governance. We firmly believe in sustainable cor- Rheinmetall’s Code of Conduct – which is porate governance and are committed mandatory for all KSPG companies world- to values and guidelines ensuring wide – sets out the principles of our corpo- that our conduct is characterized by rate social responsibility. It was agreed by a sense of responsibility, integrity, DCGK Rheinmetall AG and the European Workers’ § respect, and fairness. The company is § Council in 2003. Respecting human rights, fair an honest, loyal, and reliable partner § working conditions, and employees’ freedom for its stakeholders. of association are key aspects of this code.

In order to make employees at all German Corporate levels in the hierarchy more aware of compliance risks, we offer numerous Governance Code seminars and workshops that are also aimed at specific functions such as The German Corporate Governance Code buyers or sales staff. Legislation and (DCGK) is intended for listed companies and key regulations are explained at these aims to ensure good corporate governance. events and further details are supplied. Our parent company Rheinmetall is commit- Case studies are used to provide prac- ted to the DCGK and publishes an annual tical tips on how our employees should compliance statement. Maximum transpar- Controlling the behave in their daily working lives. In ency is vital here, too. If any point of the code addition to this face-to-face training, is not adhered to, Rheinmetall indicates the controllers which also offers a practical forum for reasons in the compliance statement. With discussions, KSPG provides interactive one exception, all points of the DCGK are KSPG AG’s compliance department reports online programs. The special com- currently complied with. to Rheinmetall AG’s corporate compliance pliance awareness training not only organization, which in turn reports to the covers general compliance issues, but Executive Board of Rheinmetall AG. Rhein- above all matters relating to corruption metall AG’s Supervisory Board monitors the prevention, export control, and anti- Executive Board’s adherence to the rules of trust and competition law. corporate governance and compliance.

20 21 Corporate citizenship

Donations Donations ₠ 362,950 The aim of our donations is to bring about positive social REGIONAL ROOTS AND PROMISING developments. We therefore specifically support projects and initiatives in the areas of culture, science, education, and sport and become involved in regional aid projects. Sponsorship YOUNG TALENT ARE VITAL FOR AN ₠ 512,350 INTERNATIONAL GROUP Pfiffigunde, Diakonie Stetten e. V., Social natural disaster in Hiroshima, etc.

RWTH Aachen University – endowment professorship, association for promotion Education of science and humanities at Tongji and research University in China, Roland Berger Foundation – scholarships, etc.

Association for promotion of science Many KSPG companies are steeped Sponsorship and humanities, education scholarships, in tradition. They have long-standing Membership subscriptions DGFP (German Society for Personnel links and firm roots in their respective As we see it, corporate citizenship Management), etc. regions – this is where customers, not only means making our mark Funding for Berlin-based NAWGL (DIN employees, and business partners on the regions around our plants Other Standards Committee Rolling Bearings live. Our social commitment extends in our role as a local employer. charitable and Plain Bearings), Bonum Commune beyond company premises. Achieving wide-ranging social pro- causes gress is important, too, including Foundation, Helmbund School, etc. We are particularly committed to involvement in sporting activities. education and culture, and also From small running events to large- support local social projects and scale competitive sports, our spon- Kolbenschmidt Arena (naming right), charitable organizations. Decisions sorship activities also demonstrate Heilbronner Falken, Neckarsulmer Sport-Union, Memberships about which projects to support are our ties with the region. Neusser HV, Adler Mannheim, Team AutoArenA, made by the management of the Patrick Assenheimer (ADAC GT Masters), and associations respective companies or by the Stimme Firmenlauf, Firmenpuls Lauf Neuss, Executive Board of KSPG AG, because Formula Student, etc. We belong to a number of societies and associations the various locations have very because we are keen to help shape regional and global different needs. processes with a strong network. KSPG AG has a strong voice – representing its own interests on those of its Cooperation with universities stakeholders – in the VDA, VDMA, REFA Federal Associa- One contribution we can make to tion, DGFP, Südwestmetall Employers’ Association, and society is investing in education and VDI. ensuring talented young individuals receive the support they need through close cooperation with prestigious Sites worldwide At home including joint ventures universities. We achieve this by financing professorships – in disci- worldwide Spain Italy United Kingdom France Germany Czech Republic Turkey plines such as mechatronic systems for combustion engines at RWTH Aachen With over 40 sites

Number of universities/colleges with which KSPG cooperates University or lightweight components, across the globe, we automotive power-plant engineering, combine an inter- and vehicle engine technology at national setup with Japan Holding Kolbenschmidt Pierburg Motorservice 1 17 5 2 Shanghai’s Tongji University – by regional roots. implementing joint future-focused China United studies and projects, by financing States scholarships or by offering other India financial, personnel or knowl- Mexico edge-based support to universities and Brazil KSPG works closely with students. RWTH Aachen University.

22 23 KSPG AG Karl-Schmidt-Straße 74172 Neckarsulm Germany www.kspg.com

A Rheinmetall Company

Contact Annemarie Köhler Koordination Corporate Social Responsibility [email protected] Phone: +49 (0)7132 33-22 99 Fax: +49 (0)7132 33-5 22 99

The purpose of this report on corporate social responsibility at KSPG AG is to tell external and internal stakeholders about the focal points of our sustainable corporate governance. The report can be requested via the e-mail address [email protected].

Unless otherwise indicated, reports, facts, and figures relate to 2014. The report’s content was selected to reflect the key sustainability issues – environment, economy, employees, and society.

KSPG AG’s next sustainability report will be published in 2017.