ANNUAL REPORT 2018 PROLOGUE

FOR EACH EURO WE RECEIVE IN PUBLIC SUBSIDIES, THREE EUROS LOOKING AT 2018 ARE PAID BACK IN SOCIAL INVESTMENT INCLUDING TAXATION As we move through 2019 and start to look with interest at our prospects for 2019, it is also time for us to present our 2018 annual report and underline the things which seem most relevant to us amongst most important management data for the year.

A special mention for our managing director Iñigo Oyarzabal, who left us half way through the year, passing away suddenly (which was a terrible blow to all of us), and whose departure And if we put faces to the people employed, we meant reorganising the whole management team, reassigning can proudly say that a very high percentage of them roles and responsibilities. (81%) are people with disabilities and who can be classified as having major and special needs of As in previous years, we have to say that 2018 was good year support. Iñaki Alkorta in which our objective was not particularly growth in itself, but, President of GUREAK rather, growing in a controlled way (with 155 new employment Put like that it all sounds like a business “project” opportunities) and consolidating the developments of previous which was created more than 40 years ago, but that four years in which our workforce had grown by no fewer project, that idea, is very much alive today, very much than 1,500 people, a sign of our commitment to workers and involved with its models and the current situation of employees. the productive economy, and uses intelligence and perseverance to make sure that what we do is useful We have become used to very high figures, but that should not for people with some type of disability, particularly lead us to underestimate the weight of our commitment to and for people with intellectual disabilities, who face responsibility within the small geographical area we cover, and even greater difficulties. in which around 6,000 people are involved in GUREAK’s work, training and occupational programmes on a daily basis. It is worth seeing and celebrating the efforts and collaboration which these almost 6,000 people We should add that these social achievements are still being contribute every day using their abilities, rather than obtained within an excellent financial-economic balance, their disabilities; we all have to offer performance with annual profits which enable us to continue to invest in when we are provided with the most appropriate AROUND 6,000 PEOPLE improving our equipment and means of production (16 million resources. CONTRIBUTE DAILY TO Euros of investment in 2018) without placing our organisation’s GUREAK’S VARIOUS future at risk because of debt; for each Euro we receive in My personal congratulations to everyone of the WORK, TRAINING public subsidies, three Euros are paid back in social investment people who have given their best work to make sure AND OCCUPATIONAL including taxation. We believe that this investment is just the this company continues to fulfil its mission. PROGRAMMES way to deal with future uncertainties which are doubtless many and of diverse nature. CONGRATULATIONS! INTRODUCTION

GUREAK is a Basque business group which creates and THE COMPANY HAS MANAGED manages steady work opportunities for people with disabilities, TO CONSOLIDATE A SOCIAL- mainly for people with intellectual disabilities, in . Since LABOUR INCLUSION BUSINESS its creation in 1975 the company has managed to consolidate MODEL WHICH IS A referent a social-labour inclusion business model which is referent in in social labour inclusion social labour inclusion throughout Europe. THROUGHOUT EUROPE GUREAK’s objective is to offer adapted work opportunities in a personalised way to a highly professional, competitive context. It also plays a role in each person’s development by providing orientation and training and designing personalised itineraries.

The company is structured in four divisions: Industrial, Services, Marketing and Itinerary. This last division is in charge of orienting and planning people’s itineraries in order to offer individual opportunities with regard to training, occupation and employment at GUREAK and in the ordinary market.

Nowadays GUREAK has a team of more than 5,800 people, 83% of whom have some form of disability, and it competes in the industrial, services and marketing sectors.

WATCH IT PLAYS A ROLE IN EACH CORPORATIVE PERSON’S DEVELOPMENT BY PROVIDING ORIENTATION AND VIDEO TRAINING AND DESIGNING PERSONALISED ITINERARIES HIGHLIGHTS FROM 2018

GUREAK, NEW MEMBER OF WORKABILITY INTERNATIONAL GUREAK has become part of Workability International, a network of companies and NEW MANAGEMENT TEAM FIRM COMMITMENT organizations whose aim is the social-labour TO PREVENTION The new team is committed to continuity integration of people with disabilities all Coordination, integration and awareness and reinforces itself by achieving greater over the world. Jon Ander Arzallus, the are the main objectives of GUREAK’s presence in industry, a director of director of innovation at GUREAK, has new strategy with regard to prevention. Marketing and Communication, as well as been named a member of the board of Although occupational risk prevention GUREAK managers in Araba and Navarre. directors. Forming part of this association is already part of the company’s culture, The new team’s mission, after Iñigo allows GUREAK to create networks with the management has made a firm Oyarzabal’s unexpected death, is to companies of the same type, finding out commitment to coordinating, making continue working for people, and about advances in other countries at first visible, increasing awareness and making especially for people with the greatest hand and sharing experiences and ideas sure that the culture of prevention reaches need of support. The new management for moving forward and setting up new everybody at GUREAK. A new team has team takes on responsibility for keeping projects. This network reinforces GUREAK’s been formed and has set up numerous GUREAK’s mission in force and continuing positioning as a business model for social- initiatives and campaigns throughout the to work for excellence, simplicity and labour inclusion throughout Europe. competitiveness in its management. year, for example with regard to preventing consumption and with regard to security. PEOPLE

83% 5.817 people with disabilities (4.807) PEOPLE 4.949 IN TOTAL work 868 Occupational service

155+ NEW incorporations ORDINARY EMPLOYMENT IN 2018 Employment with Support and Pauso Berriak programmes 81% 54 new hirings People with major needs of support 95 people move to ordinary employment

Evolution of personnel (1981-2018) 5.817 5.662 2018 6.000 5.119 2017 4.688 2016 4.282 2015 5.000 2014

4.000 2.655 2000 3.000 1.117 2.000 1991 311 1.000 1981

0 PEOPLE

PEOPLE IN EACH GEOGRAPHICAL AREA +150.000 Donostialdea hours of TRAINING 1.8492.391 OARSOALDEA 1,9 million Euros 653 of investment in DEBAgoiena ADAPTING JOB POSITIONS 526 BIDASOA behea 524 TOLOSA PERSONNEL EMPLOYABILITY 417 CHARACTERISTICS 1.010 1.580 DEBAbarrena Intellectual disability (27 %) 367 355 394 Mental illness (22 %) 327 318 Physical disability (26 %) 1.541 1.292 283 Sensory disability (7 %) 327 236 No disability (17 %) UROLA kosta

176 251 DISTRIBUTION BY GENDER UROLA garaia WOMEN (39 %) MEN (61 %) 215 UROLA erdia 2.290 3.527 180

2013 2014 2015 2016 2017 2018 ARABA DISTRIBUTION 1.050 606 303 Promotion (without changing occupational scheme). BY AGE NAVARRA Transfer from GUREAK to ordinary employment. Under 30 (10 %) Transfer from occupational to employment. 182 Between 30 and 55 (72 %) Voluntary change of activity. 4.161 OTROS Over 55 (18 %) 63 FINANCIAL DATA

GUREAK CONSOLIDATED ANNUAL ACCOUNTS Dec 31st 2018 / Before taxes / Expressed in thousands of € SOCIAL RETURN EXPENSES 2016 2017 2018 VARIATION % 1. Procurement and external expenses 119.130 158.608 157.781 -827 -0,52% 2. Personnel expenses 96.853 107.700 115.431 7.731 7,18% 2.a. Personnel without disablement certification 23.331 25.848 28.463 2.615 10,12% 2.b. Personnel with disablement certification 51.978 58.126 62.169 4.043 6,96% Personnel in occupational activity 2.159 2.021 1.919 -102 -5,05%

2.c. Social insurance 20.489 22.517 23.581 1.064 4,73% GUREAK’s 2.d. Other social expenses 1.055 1.209 1.218 9 0,74% total income: 3. Depreciation and amortization 6.053 7.280 7.938 658 9,04% 146,24 4. Other operational expenses 11.958 13.572 13.226 -346 -2,55% million € TOTAL EXPENSES 233.994 287.160 294.376 7.216 2,51% Institutional funding INCOME 2016 2017 2018 VARIATION % received by GUREAK: 1. Trading result (sales) 200.670 248.331 250.799 2.468 0,99% 47,7 2.a. Intermediated sales 42.142 70.959 67.606 -3.353 -4,73% million € 2.b. Own sales 158.528 177.372 183.193 5.821 3,28% 2. Other operational income 42.112 46.433 49.478 3.045 6,56% 2.a. Subsidy from Gipuzkoa regional government 6.776 6.593 6.740 147 2,23% 2.b. Subsidy from Lanbide (Basque government) 14.791 17.858 19.464 1.606 8,99% 2.c Other income 4.096 3.768 3.729 -39 -1,04% 2.d. Social insurance incentives 16.449 18.214 19.545 1.331 7,31% Subsidies: Salaries 79.970.000,00 € TOTAL INCOME 242.782 294.764 300.277 5.513,00 1,87% Lanbide 19.539.000,00 € Taxes 48.449.774,00 € DFG covenant 6.740.000,00 € FINANCIAL RESULT (Before taxes) 8.788 7.604 5.901 -1.703 -22,40% 1 Social Security savings UECA and others 1.926.000,00 € 14.142.520,00 € Social Security savings 19.545.000,00 € Non-contributory pensions 3.682.408,80 € INVESTMENT EVOLUTION Expressed in thousands of € 1 Profesional Activity Support Unit. TANGIBLE FIXED ASSETS 2016 2017 2018 Real estate and properties 6.733 6.184 8.573 Real estate of a technical nature and other tangible fixed assets 6.661 7.065 7.920 SELF-FINANCIATION REAL ESTATE INVESTMENT THROUGH SALES Real estate and properties - 1.155 2 Intangible fixed assets - - 143 80 %

TOTAL INVESTMENTS 13.394 13.249 16.638 divisions gureakindustrial.com 17 PRODUCTION PLANTS

AUTOMOtion ENERGY MOBILITY SMART HOME health Data in € REDEFINING SECTORS RENEWING AND BEING Geographical sales distribution The Industrial division The reorganisation of the sectors has been AWARDED CERTIFICATION % has been reorganized 2016 2017 2018 the result of reflection and consensus. We The Industrial division, thanks to the (2017-2018) structurally and strategically. continue to focus on selective growth, work whole team’s work, has managed to Gipuzkoa 11.637 14.542 14.711 +1,2 % With the appointment in networks and seeking alliances in each adapt to the new IATF norm specific to España 61.558 64.856 59.337 -8,5 % of Asier Vitoria as the of our priority sectors. Our main objective the automobile sector, and has set itself Exportación 17.092 24.034 28.899 +20,2 % general manager of is still to carry out projects which involve the objective of achieving certification GUREAK, Andoni Rekondo work activities and which enable us to create in this respect in all production and TOTAL 90.288 103.433 102.991 -0,4 % has become manager the greatest possible number of career technology plants during 2019. Follow- opportunities, preferably for people who of industrial workshops up work has also been carried out on need the greatest amount of support. ISO 9001:2015 and ISO 14001:2015 and Gaizka Iriarte is now certifications, and with the latter a new manager of Industrial NEW INDUSTRIAL HUB certification has been achieved for the Services. Strategically, IN plant in Donostia. A new development the division’s preferential After acquiring the factory which had has been taking the first steps to obtain sectors have been redefined belonged to the now extinct Candy OHSAS 18.001 certification. So GUREAK in order to improve the domestic appliances factory, GUREAK Industrial continues to commit to commercial process and started the first phase of the works which quality, the environment and safety in + production processes and for staff as establish a global vision will create the new Bergara industrial hub. During this initial phase 5,500 m2 have one of the essential criteria in day-to-day of the market. In financial management. CPE AKADEMI OPENS terms the year saw been set up, all with a modern design and adapted to enable the workforce to Within the new installations in Bergara an an increase in exports INNOVATION AND be autonomous.The cable processing area has been prepared for dual training and a slow-down in the automotive assembly line in has been PRODUCTIVITY PRIZE in cutting, stripping and setting cables automobile market during up and working to full capacity since FOR THE VALEO GROUP for people with disabilities. The Industrial the second semester. September, 2018, with 100 people on the VALEO declared GUREAK to be its division, with assistance from Itinerary, production line and a further 24 making best partner and awarded it the prize has created an area with all the necessary prototypes and identifying opportunities for “Innovation and Proposals for equipment for providing quality training. for improving customers’ designs. Improvement, 2018”. During the last five During the first half of 2018 the teaching years GUREAK Industrial has been able and training material has been organised, ACTIVITIES to make more than 450 proposals testing the abilities and adequacy for for technical improvements, and has employment of the 24 people who have • Wiring launched three patents in collaboration been transferred to cutting, stripping and • Electronics with customers. This reinforces GUREAK setting. During the second half of the year • Plastic Injection Moulding Industrial’s position in the market and the first official course started with four is a valuable tool for guaranteeing • Setting-up + Assembly people. competitiveness and employment in the organization. divisions gureakzerbitzuak.com

SERVICES FOR CHARITY CANTEENS This year catering services have been The Services division has kept offered for the first time at various charity canteens in Gipuzkoa thanks stable with changes to reductions to commercial agreements with in operative margins. The ITSASONDO SERVICE associations such as Emaus, Caritas, STATIONS CEAR Euskadi and Fundacion Arrats. gradual growth on the Central Kitchen’s activity stands out, so Since last April GUREAK has managed Due to the varying places of origin and the Itsasondo service station. culinary tastes of the users it has been does the increase in contracts Through a partnership with Repsol, necessary to adapt the food planning for people with major needs for the Services division redesigned the and contact new suppliers; for example, support in Catering. Likewise, area and added a shop and a small suppliers of halal meat. In a short period cafeteria. The station will be open 365 of time the Services division has become Cleaning continues to be the days a year and eight people work a point of reference in the sector and most important activity in the there, all of them with some type of managed to achieve all of its specific division, employing 678 people. disability. objectives. At a strategic level, steps are still ESNATZEN PROGRAMME ELECTRIC MACHINERY being taken in all activities in our Esnatzen is an innovation project In gardening, petrol-fuelled machinery + commitment to use ecological in the public health area involved is slowly being replaced with electric- products and sustainable with integrating a team of people powered machinery. The advantages of EGOKITUZ IN THE CENTRAL KITCHEN machinery, and a joint effort has with major needs of support in the latter are numerous as, in addition to old people’s homes to carry out creating less acoustic and environmental Thanks to work carried out by Egokituz been made to define projects room service. This project achieves pollution, they are also easy to use for (GUREAK’s employment opportunity which best match the GUREAK a double objective, enabling the the people in the Occupational Service. and processes adaptation department), model. social-labour inclusion of people with At present we have a leaf blower, a people with major needs of support have needs for greater support and also lawnmower and an electric weeding been taken on in different roles in the improving service given to people, machine in our gardening department, Central Kitchen. Work has mostly been on freeing auxiliary workers from tasks as well as an electric car and a van which systematization of the catering activity. not directly connected with taking runs on liquefied petroleum gas. care of people. The project has been Improvements in organisation were carried ACTIVITIES made operative in Sanmarkosene and out, along with standardisation in the six people have taken part. Esnatzen material and drinks storerooms, and a • Food and health is being very positively received and tool was developed to assist in their • Vending the creation of further employment management. • Gardening opportunities is foreseen for the • Cleaning and laundry future. • Site management • Auxiliary and assistance services divisions gureakmarketing.com

offer. This new contract will make it possible to guarantee the post delivery service’s sustainability; currently it employs 80 people, of whom 18 have special needs of watch video GUREAK Marketing had support. positive results and activity increased thanks to the GROWTH OF THE CONTACT consolidation of CENTER AND Document its position as a supplier of Processing integral marketing services. The Contact Center’s activity GROWTH IN logistic The emphasis is still on has also increased due to the SERVICES consolidation of the back-office offering customers integral Work on logistics has increased service for Vueling, which has solutions and multi-channel considerably thanks to the new consolidated 27 employment communications services. warehouse at and the opportunities during 2018. The An example of this new project carried out in Catalonia with Document Processing unit staff positioning is the work the Asproseat group. On the one increased by 27% in 2018. In hand, the new 2,700 m2 warehouse addition to that, there was close carried out for Donostia City has capacity for 3,000 pallets and collaboration with the Itinerary Council on the management a double dock for loading and division with regard to training + of the city’s calendar, in paper unloading in a swift, direct way. and with Egokituz in adapting and digital formats, and On the one hand, the alliance with employment opportunities and production processes. ARTIFICIAL SIGHT the communication service Asproseat makes GUREAK Marketing in Catalonia a “totally social 3PL Consequently, growth in document At the Goyeneche workshop in Donostia three new for IMH (the machine tool logistics operator”. During 2018 a processing has enabled us to create assembly lines were set up with artificial vision more jobs for people with greater institute). Personnel grew by total of 5,300 pallets were managed, systems for automatic verification of products such 72% in Errenteria and 28% in needs of support. 33 employees and 65% of as cards and envelopes. By recording the whole Barcelona. them are people with major process this technology makes it possible to outline needs of support. the positions which involve sensitive data such as NEW CONTRACT WITH health records. In addition to that, it enables people CORREOS with greater needs of support to work on the line, Last September a contract with Correos was signed by the Urbanpost ensuring product quality and that the requisites ACTIVITIES company. GUREAK Marketing is part agreed with customers are met. This technology of that company, owning 14% of it, enabled us to employ five new workers on each of • Relational marketing along with a further five companies. the three lines installed and it’s a major advance • Digital transformation The objective is to consolidate our in mailing work. • E-commerce volume of postage in the distribution and logistics business unit in order to • BPO make customers a more competitive divisions gureakitinerary.com

AUKERABILITY AND GAZTEABILITY IMPROVING CARE GENERAL MARKET AUKERABILITY (50% co- FOR PEOPLE WITH Developing access for people with financed by the European Social Fund and 25% TEA-ASPERGER disabilities to the ordinary market is one of GUREAK’s primary objectives: by Gipuzkoa Provincial Itinerary brings together Itinerary has set up a Government) has as its ensuring that more and more all the programmes, project, in collaboration with principal objective seeking people obtain positions in ordinary out new markets for niches in policies and resources Specialisterne and Gautena, to acquire knowledge and companies and guaranteeing that which to create employment those positions enable them to lead needed to guarantee methodology to help detect for people with disability. enriching professional lives. Other In 2018 41 new job posts individual Itineraries the special characteristics of initiatives included specialised training were managed, with 48 and to increase workers people with autism spectrum for people in the work environment placements in ordinary disorder (ASD) Asperger and, employability and users’ of people with disabilities employed surroundings. therefore, help them to carry satisfaction. Itinerary’s in ordinary companies. The objective The GAZTEABILITY out an optimum itinerary. executive role was is for the environment to enable the programme finalised in There was a pilot scheme TRAINING professional trainer so that he/she 2018 and it provided almost reinforced, promoting with 12 people in which • MANAGING KEY POSITIONS can clear up doubts and examine 40 people with disabilities outstanding professionals methods based on tools such under the age of 30 to go Major investment was carried out reflections with ease. Between ECA in the division to the on placements to ordinary as Lego Hangout, Proyecto in training people with disabilities (Empleo con Apoyo – “employment executive strategy forums Scrum, office automation to cover various crucial positions companies. In addition with assistance”) and the Pauso to finding out about new and practical IT applications in the organization. Investment in each business. In this Berriak programme, launched by activities and acquiring skills was made in purpose-designed way Itinerary shares (testing web, error detection, GUREAK and Atzegi, 54 jobs have and knowledge, at least four training to enable more than algorithms, orders, etc) been achieved in ordinary positions, of these people have been decision areas about our 40 people with disabilities were used. In addition to in line with the tendency of previous given contracts at the end of commitment to typology in positions which involve internalising these new years. Of these contracts 76% were for their placements exceptionally long learning of products and services orientation resources, during people with major needs for support. as this affects the team the pilot phase 9 people were curves. of workers required, taken on in new jobs. • BRIDGES FROM OCCUPATIONAL SERVICE avoiding the need for OCCUPATIONAL SERVICE TO In 2018 51 people were in difficult posts. This also EMPLOYMENT employment, which made it helps us to foresee The itineraries which build new possible to take more people on training resources, bridges towards employment in in the Occupational Service. The activities such as hospitality and Occupational Service has begun to adapt processes and marketing. Until now this training work in the Marketing Document the environment, had been used mostly in the Processing area. Furthermore, conditions, etc., industrial sector, but we foresee service has been consolidated in always orienting that it can be expanded to cover non-structured areas and times such them towards all types of activity. as breaks, dining rooms, etc. The Zabala Social Lab model has also GUREAK’s mission. been completely implemented. www.gureak.com