Responsible Business in Inter Cars Group
17 April 2018 Responsible Business in Inter Cars Group
Letter from the President
Dear Madams and Sirs,
I have the pleasure of providing you with the first Corporate they increasingly look for on-demand solutions. Therefore, Responsibility report for Inter Cars Group, presenting our ap- we have developed the Motointegrator platform, striving proach and performance related to managing the economic, to be able to offer our services in the most integrated way social and environmental impact. possible soon. We also decided to invest in the development of the Rent a car (RAC) service, where the service companies In 2017, our revenues increased by 15.7% 2016, while the prof- associated in Inter Cars network will be able to offer courtesy it was 5.9% lower and at PLN 216,428 thousand. Inter Cars cars to their customers, and later the car rental. In two coun- distribution network enlarged, opening 62 new branches, so tries (Greece, Bulgaria), we have already implemented a new it now comprises as much as 507 sales outlets in 16 European catalogue for B2B customers and we will launch it in other countries at the end of the previous year. Our revenues countries soon. Simultaneously, to keep up with the changing reached a record level of PLN 6.908 billion, making us a leader technology, we have created a unit for vehicles powered in an of the independent vehicle parts' distribution market in alternative way (hybrid, electric etc.). Poland and second in Europe. We strive to ensure our business activity complies with the We are also proud to inform you that Inter Cars has been highest standards of environmental protection. Thanks to the accepted for the Stock Exchange Respect Index which empha- BIO SERVICE services, we promote the appropriate attitudes sizes our activity within responsible business. The Respect by encouraging our partners to clean the waste management Report on non-financial Index, an initiative of the Warsaw Stock Exchange, is the first area in their garages. Our offer will also soon include accesso- index of socially responsible listed companies in Eastern information of Inter Cars ries for electrical vehicles, and chargers for such cars will be and Central Europe. The investment appeal of the Respect located at our main offices and warehouses. S.A. and Inter Cars S.A. Index companies derives from the reporting standards they adopted the investor relations' level, corporate governance, Those assumptions would not be possible to achieve if it were Capital Group information governance, as well as the impact of factors on not for a strong, competent team of committed employees. the natural environment, society and economy. We create a friendly environment for sharing knowledge and implementing innovative business solutions, with the help of In 2017, our results were affected by a number of factors, in- our personnel and third-party stakeholders. We do not under- cluding the implementation of strategies adapted to particular estimate the challenges posed to our sellers by the changing sale segments, further international expansion and extended automotive market. product offer. We also moved the company’s main warehouse from Czosnów to a cutting-edge logistic centre in Zakroczym. As the new Management Board President, I wish to ensure In late 2017, significant optimisation of logistic costs related that our every business partner and employee feels able to thereto were noticeable. We also have ambitious objectives influence Inter Cars operations. Simultaneously, we will con- for an increased share of the market, with simultaneous tinue focusing on optimising key processes in the company stable profitability growth. This is why we keep optimising our and maintaining the spirit of competition, whilst maintaining logistic operations, analysing the product management meth- respect for fair play. Inter Cars will continue setting the trends od and implementing marketing changes. 2018 will be a year and standards in the automotive sector. In 2017, we adopted of important changes and process optimisation. We will also the Responsible Business Strategy of Inter Cars S.A. Capital implement new IT tools. Group. This report, opens a new chapter in our activity and Letter from the President 03 presenting the approach and results connected with our Our leading position is built by determining changes of direc- economic, social and environmental impact. I believe our pre- tion in the sector and presenting a pro-active attitude towards Who we are 04 vious achievements in this field and the ability to cooperate a responsible business in the automotive sector. To achieve efficiently will provide a sound basis for attaining the assumed the assumed growth, we must not only reinforce strong Market 21 objectives. areas, but also observe the market environment, introduce Workplace 30 necessary innovations and satisfy the requirements we face I warmly invite you to read the report and share your feedback as a socially responsible organization. on it. Every comment will provide important guidance for us. Environment 45 Our customers are ensured access to the highest quality About the report 52 products and services and the entrepreneurs cooperating with us can benefit from comprehensive support of their GRI content index 55 business development. Many challenges result from the new technology development. Vehicle repair and part replacement become an increasingly complex processes, requiring ever broader competences both from the mechanics and sellers. Maciej Oleksowicz Consumer behaviour changes, as they become more and Management Board President of Inter Cars more attached to the availability of any services online and
Letter from the President 03 Responsible Business in Inter Cars Group Responsible Business in Inter Cars Group
Who we are How do we operate?
We build a distribution network based on franchise How does Inter Cars Group operate? agreements with entrepreneurs (franchisees):
Inter Cars is the second largest distributor of automotive parts in Europe, and the third largest distributor of parts for commercial vehicles. The Company is eighth worldwide in its sector. The Company sells its prod- The ucts and services via 507 local distribution outlets. Manufacturer
Our customers include primarily garages, but also shops and Cars distribution network operates in 16 geographic markets individual customers. The products we sell come from approx. in Europe. The offer of products we distribute comprises of 1,600 suppliers from all over the world, and through the net- parts for passenger and commercial vehicles, motorcycles, as work of Inter Cars Group customers more than 500 thousand well as vehicle equipment, tyres, oils and accessories. recipients on almost all European markets. At present, Inter Inter Cars provides goods, brand, logistics, IT system and required know how [102-6] 5 +4 Group 507 Estonia NUMBER OF Latvia 14 +5 BRANCHES
Lithuania 16 +2 Franchised sells or supplies products in the name of Inter Cars Group and services customers 243 +23 branches on the local market Poland
28 +3 28 +3 the Czech 24 +2 Ukraine Republic Slovakia
5 +2 29 +6 Moldova 1 +1 Hungary Slovenia Inter Cars S.A. [102-1] is a key entity for the Group. Within Inter Cars Group, the following manufacturing 25 +3 Romania By means of it, we carry out our core business activities, i.e. companies operate: Feber Sp. z o.o. (manufacture of Croatia Bosnia and 61 +6 spare part sale. [102-4] By our subsidiaries, we are present trailers and semi-trailers) and Lauber Sp. z o.o. (vehicle Herzegovina not only in Poland, but also on 15 European markets (the parts regeneration), and also ILS Sp. z o.o., a company +0 Czech Republic, Slovakia, Lithuania, Latvia, Estonia, Ukraine, responsible for logistics and an operator of the European 4 Italy Bulgaria 22 +2 Romania, Croatia, Hungary, Bulgaria, Slovenia, Italy, Moldo- Logistic Centre in Zakroczym of key importance for the 1 +1 va, Greece, Bosnia and Herzegovina). Inter Cars S.A., with Group operations. Other important entities in Inter Cars its registered office in Warsaw [102-3] [102-5] is a public Group include Q-Service Truck z o.o. running a specialised company listed at the Stock Exchange since May 2004. garage and being an authorized distributor of Isuzu and Greece 1 +1 Inter Cars Marketing Services Sp. z o.o. responsible for marketing activities.
04 Who we are Who we are 05 Responsible Business in Inter Cars Group Responsible Business in Inter Cars Group
European market is Our business model highly fragmented Main Major Value Customer Customer partners activities proposal relations segments
Sale of 9 largest companies = EUR 12.6 billion, • Premium • •• Sale and support •• One Stop Shop •• Creating competitive •• Garages this is 8.5% share in AM* market. suppliers processes advantage •• Shops on innovation Inter Cars is the largest European public IAM** company •• Franchisees •• Inter Cars brand •• Individual •• Banks •• People Distribution customers
Selected entities channels •• Fleet customer belonging to — EUR 1 billion (value in billion EUR) Capital Groups •• Branches
Euro Car, Parts Sator, Kuhne Rhiag, Andrew LKQ 4.5 0.6 [102-45] The diagram presenting the Group structure (subsidiaries and affiliates of Page, Stahlgruber MEKO Inter Cars included in the consolidated financial statements as at 31 December 2017)
Inter On 31 December 2017, the following belonged to Inter Cars Capital Group: Cars 1.6
Wessels + Mueller, Trost WM 1.5
Inter Cars S.A. as the Parent company and 32 entities, including:
Alliance Automotive Group GPC 1.4
Autodistribution, Autodis Cora, Doyen 1.3 Group subsidiary companies indirect subsidiary 29 of Inter Cars S.A. 2 companies of Inter Cars S.A. Derendinger, Technomag, Remco, SAG 0.8 Moreover, the Group holds shares in one affiliated entity. Matik, Autonet Percentage share of the Group in the share capital Mekonomen, Consolidation Company name Seat Core activities method 31.12.2017 31.12.2016 Meca, Sorensen Mekonomen 0.6 og Balchen Parent company
FTZ Denmark A/S, Import and distribution of spare Nordic Not Not Hellanor A/S, Inter Cars S.A. Warsaw parts for passenger and commercial Complete 0.6 applicable applicable Inter-Team Forum vehicles
Direct subsidiaries Parts Alliance Uni-Select 0.3 Import and distribution of spare Ukraine, Inter Cars Ukraine parts for passenger and commercial Complete 100% 100% Chmielnicki vehicles Source: public information, websites, own estimates, approximate sums; Please note: the data is in billion EUR, sales data, closing forecast 2017. *AM – After Market = EUR 150 billion; this sum includes service and collision parts, tyres, oils, garage equipment Lauber Sp. z o.o. Słupsk Vehicle part regeneration Complete 100% 100% **IAM – Independent After Market ≈ 65% AM
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Percentage share Percentage share of the Group in the of the Group in the share capital Consolidation share capital Consolidation Company name Seat Core activities method 31.12.2017 31.12.2016 Company name Seat Core activities method 31.12.2017 31.12.2016
Import and distribution of spare Consulting and organization Inter Cars Cząstków of trainings and seminars in the Bulgaria, Sofia parts for passenger and commercial Complete 100% 100% Q-service Sp. z o.o. Complete 100% 100% Bulgaria Ltd. Mazowiecki scope of automotive services vehicles and automotive market Inter Cars Marketing Advertising, analysis of market Warsaw Complete 100% 100% The Czech Import and distribution of spare Services Sp. z o.o. and public opinion Inter Cars Česká Republic, parts for passenger and commercial Complete 100% 100% republika s.r.o. Prague vehicles ILS Sp. z o.o. Nadarzyn Logistic services Complete 100% 100% The manufacture of vehicles, trailers Feber Sp. z o.o. Sieradz Complete 100% 100% and semi-trailers Inter Cars Malta Malta Management of assets held Complete 100% 100% Holding Limited IC Development Developer services Warsaw Complete 100% 100% & Finance Sp. z o.o. and real property rental Q-service Truck Sale of delivery vehicles and for Warsaw Complete 100% 100% Sp. z o.o. lorries Import and distribution of spare Armatus sp. z o.o. Warsaw parts for passenger and commercial Complete 100% 100% Import and distribution of spare Slovenia, vehicles Inter Cars INT d.o.o. parts for passenger and commercial Complete 100% 100% Ljubljana vehicles Import and distribution of spare Inter Cars Slovenská Slovakia, parts for passenger and commercial Complete 100% 100% Import and distribution of spare republika s.r.o. Bratislava Estonia, vehicles Inter Cars Eesti OÜ parts for passenger and commercial Complete 100% 100% Tallinn vehicles Import and distribution of spare Inter Cars Lithuania, parts for passenger and commercial Complete 100% 100% Import and distribution of spare Lietuva UAB Vilnius Inter Cars Piese Moldova, vehicles parts for passenger and commercial Complete 100% 100% Auto s.r.l. Kiszyniów vehicles The Czech Republic, The company has not started its Import and distribution of spare JC Auto s.r.o. Complete 100% 100% Inter Cars Greece, Not Karvina- operating activity parts for passenger and commercial 100% - GREECE Ltd.* Athens applicable -Darkow vehicles
Import and distribution of spare Bosnia and Import and distribution of spare Belgium, Not JC Auto S.A. parts for passenger and commercial Complete 100% 100% Inter Cars d.o.o.** Herzegovina, parts for passenger and commercial 100% - Braine-l’Alleud applicable vehicles Sarajevo vehicles
Import and distribution of spare Inter Cars United Import and distribution of spare Inter Cars Hungary, Great Britain, Not parts for passenger and commercial Complete 100% 100% Kingdom – automotive parts for passenger and commercial 100% - Hungária Kft Budapest London applicable vehicles technology Ltd*** vehicles
Import and distribution of spare Inter Cars Italia s.r.l. Italy, Milan parts for passenger and commercial Complete 100% 100% Indirect subsidiaries (former JC Auto s.r.l.) vehicles Sale of spare parts and consulting Import and distribution of spare Inter Cars Malta Croatia, Malta services related to automotive Complete 100% 100% Inter Cars d.o.o. parts for passenger and commercial Complete 100% 100% Limited Zagreb services and automotive market vehicles Distribution of spare parts and real Import and distribution of spare Aurelia Auto d.o.o. Croatia Complete 100% 100% Inter Cars Romania, property hire parts for passenger and commercial Complete 100% 100% Romania s.r.l. Cluj-Napoca vehicles Affiliated companies Import and distribution of spare Inter Cars Cyprus, parts for passenger and commercial Complete 100% 100% Cyprus Limited Nicosia SMiOC FRENOPLAST Manufacture of materials and brake vehicles Szczytno -**** -**** 49% Bułhak i Cieślawski S.A. linings Import and distribution of spare Inspection and assessment services Inter Cars Latvija SIA Latvia, Riga parts for passenger and commercial Complete 100% 100% InterMeko Europa Of Ownership Warsaw of components, spare parts and 50% 50% vehicles Sp. z o.o. Titles accessories Import and distribution of spare Cleverlog-Autoteile Germany, parts for passenger and commercial Complete 100% 100% GmbH Berlin vehicles * The company started its operating activity in 3Q 2017 ** The company started its operating activity in 2Q 2017 *** The company has not started its operating activity **** On 6 February 2017, the Company sold shares in the affiliated company SMiOC FRENOPLAST Bułhak i Cieślawski S.A.
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Management Board Supervisory Board [102-18] Management Board structure and members Supervisory Board structure and members
SUPERVISORY Maciej Andrzej Oliszewski BOARD Oleksowicz CHAIRPERSON
MANAGEMENT BOARD PRESIDENT from 1.05.2017 former Management Board Member INDEPENDENT SUPERVISORY SUPERVISORY BOARD Tomasz Rusak Piotr Płoszajski BOARD MEMBER MEMBER
Robert Krzysztof Kierzek Soszyński INDEPENDENT SUPERVISORY SUPERVISORY BOARD Michał Marczak Jacek Klimczak BOARD MEMBER MANAGEMENT BOARD MEMBER DEPUTY PRESIDENT MANAGEMENT BOARD from 1.05.2017 DEPUTY PRESIDENT former Management Board President
Audit Committee The Audit Committee created in September 2017 operates at the Supervisory Board and was appointed to supervise the financial Krzysztof Tomáš reporting process, internal control system efficiency, internal audit and risk management, and to monitor financial audits. Oleksowicz Kaštil The Audit Committee comprises the following Members of Inter Cars S.A. Supervisory Board:
MANAGEMENT COMMITTEE MANAGEMENT Piotr Płoszajski BOARD MEMBER CHAIRPERSON BOARD MEMBER AND CO-FOUNDER
COMMITTEE Jacek Klimczak MEMBER
Piotr Wojciech Zamora Twaróg COMMITTEE Andrzej Oliszewski MEMBER
MANAGEMENT MANAGEMENT BOARD MEMBER BOARD MEMBER The detailed rights, tasks and rules of the Audit Committee operations are determined by the Rules of the Audit Committee of Inter Cars S.A. Supervisory Board, approved by the Supervisory Board.
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27 years of [102-7] Inter Cars Group development Inter Cars Group now — a leader in 1990 the sector of foundation of Inter Cars civil law partnership, opening of the first facility distribution to in Warsaw independent 2000 No. 1 start of expansion to other towns and cities customers on the market 2004 507 [102-2] Our offer comprises more than a million spare debut on the Warsaw Stock Exchange of Eastern and Central Europe, part types. Those are primarily products supplied by branches no. 2 on the European market, reputed and renowned suppliers, used in the so-called no. 8 in the world first installation, during vehicle manufacture. We also sell 2006 substitutes from less known manufacturers. The major the first billion PLN of revenues Across Europe, goal of our activity is to offer the highest quality products. including 264 abroad We understand, however, the needs of our customers who own older cars and are not able to spend more on them. 2012 Such an alternative is offered by private brands subject to launch of a Motointegrator Internet equally restrictive quality tests in Inter Meko laboratory. platform PLN 6.9 The wide range of products offered and the availability of spare parts in different price groups are factors distin- guishing us from other vehicle parts' suppliers. However, 2015 25th anniversary of the company billion our leading market position results primarily from the end customer type. We operate by means of various dis- tribution channels. Our products are supplied to garages, Net turnover garage and sale facilities, shops, as well as fleets and retail 2017 More than PLN 6.9 billion of revenues, with 39% customers. On the Polish market, 66% of our turnover is on international markets generated by the distribution of parts to garages and the garage-and-sale facilities. The offer of Inter Cars Group 1 million PLN 4.4 includes also regenerated parts. Number of the offered products and services billion
Market value of the shareholders' equity (as per the share price as at 29.12.2017)
The independent distribution in Poland is approx. 50–60% of the whole market in Poland. 92% of the Polish garages are independent. Cost structure Revenue streams This results primarily from the social wealth level, meaning the people select an inde- 92% pendent garage as a cheaper place to repair vehicles due to the price sensitivity. As can •• Distribution, logistics, marketing, •• Sales of automotive products from suppliers, training services, be seen above, the garages associated with a vehicle manufacturer, despite a limited people comprehensive company services (fleet) number of repair stations, record much higher turnover.
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Share of particular product types in Inter Cars Group sale Our strategy
Despite a continuous geographical expansion, Poland has for commercial vehicles and buses, amounting to 17%, and Inter Cars strategy for 2018 –2020 rests on three pillars: remained the key market for Inter Cars Group. The main third is the tyre market,amounting to 11%. They will be sector is the passenger vehicle parts market, amounting presented in a diagram. to 63% of the sale volume, the second largest is the parts 1
Tyres • Inter Cars Group development facilitates business 11% share growth of internal and external customers
Parts for commercial vehicles and buses Garage equipment 17% share 5% share
Motorcycles and parts 2 2% share • Inter Cars Group is a comprehensive supplier of products Parts for passenger Accessories and services for business and retail customers vehicles 0.5% share 63% share Other sale — services 1.4% share 3
Trailers — Feber • Company profitability retained at every management level 0.9% share which guarantees further dynamic growth in particular ISUZU vehicles sale sectors 0.1% share 2017 The strategy is carried out by all companies in the Group
Everything under one roof
The essence of our strategy is vide the garages with any required Wishing to offer services in the continuous strive to the one-stop- tools and equipment. Within our most integrated manner possible, shop model, or "everything under after-sales activities, we organise we invest in the development of one roof". This refers not only to training and offer comprehensive Rent A Car service to enable garag- continuous offer extension, but support, helping garages to oper- es associated in Inter Cars Group also to the development of partner ate correctly. By Motointegrator to offer courtesy cars to their cus- programmes being important and Motointegrator Flota projects, tomers, and later also car hire. added value for the key customer. we also forward drivers to our Besides selling vehicle parts and sales partners. equipment components, we pro-
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[102-11] Risk management Why do we also consider ESG risks Area: The stable organization growth results from a number of external workplace and in risk management employees and internal factors. In every sector of our activity, we try to identify and which of them both chances and threats on an ongoing basis, the materialisation of are important for us? which is likely to affect continuity of Inter Cars Group operations to a Observing the labour market and also considering our busi- significant degree and the ability to implement the assumed strate- ness objectives, an important risk likely to affect Inter Cars [103-2] Non-financial dimen- Group activity will be the availability of appropriate personnel gic objectives. and, consequently, recruitment opportunities. This also refers sion of risk management is to our business partners and customers. Our priority is to cre- highly important as it refers to ate grounds for promoting entrepreneurship and supporting Our financial results are Market education, as well as professional qualification development economic and social factors, as of personnel, responding to the needs of the changing labour determined by external well as those related to the nat- market in the sector in which we operate, e.g. by the "Młode factors, including: Loyalty of customers Kadry" initiative or creating attractive working conditions. translating into the number and value of orders ural environment, considered within the entire value chain. Regulatory Development of independent garages Area: they are the primary group of our customers facing an im- Changes in EU regulations concerning the automotive portant challenge concerning the necessity to adapt to the organizational market growing market requirements due to the degree of repair governance and complexity pose an important challenge for us and open up opportu- business ethics nities to access a target group of sole customers of vehicle Here we present selected ESG Changes in the structure of demand for spare parts manufacturers in terms of spare parts supply, and also resulting from changes in vehicle manufacture technology risks of key importance for by making technical information of vehicle manufacturers Maintaining transparency and ensuring the highest standards available to independent garages, on an equal basis with Inter Cars Group and sample of our business activity are important components of our Sales volume the authorised garages mitigating measures: organizational governance. Through intensive works devoted of vehicles and pre-owned vehicle import to implementing the so-called compliance programme, includ- Other regulatory aspects ing the Code of Conduct and Good Market Practices of Inter are likely to affect the Group's operations, concerning Cars Group, we prevent issues such as the risks related to aspects such as personal information protection, taxes, malpractice, including corruption and bribery or the conflicts business ethics, competition protection or capital market Internal of interest. regulations Apart from external factors, we keep observing the level of risk resulting from intra-organizational factors, including
Macroeconomic Business risk on the strategic level Area: Area:
Operating risk natural environment products and Macroeconomic situation protection customer relations determines the current and future purchasing power of Financial risk prospective customers in terms of buying vehicles and incurring the costs of their operation and repairs, based on Business continuity risk their business activity level and consequently the level of We understand that every business activity affects the natural The changing customers' preferences and regulations exert a environment which is why one of our areas of interest is significant influence on the core activity of Inter Cars Group employment and people's income Risks related to: limiting the potential adverse environmental impact in every — vehicle part sales. Responding to the changing needs, with social, employee, natural environment protection, human Macroeconomic situation in the countries where the Group value chain component while ensuring that we promote the a versatile product portfolio (e.g. quality, price, regenerated rights and anti-corruption aspects (referred to as ESG risks) operates environmentally-related awareness of our customers and products), the product availability, as well as testing the business partners. By implementing programmes like BIO product quality parameters (for private brand products), influence the spare parts market value and, consequently, SERVICE, monitoring changing regulatory requirements in we have an indirect influence on increased safety in vehicle the value of Group sales in those countries that area or, eventually improving aspects such as the energy traffic, minimising the risks related to the operation of vehicles performance of our buildings. We strive to minimise risk oc- of a limited fitness for use. ESG risks are connected with the environment expectations vis-a-vis our organization and can be expressed currence in the given areas. e.g. by social pressure, legal requirements or expectations towards the sector we operate in.
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What is our At present, our approach to risk management Corporate responsibility (CR) strategy is expressed in the following measures: approach to risk The response to the aforementioned development factors economic, social and natural environment. We have involved management in is also our review of measures and approach to corporate our key stakeholders in the process. 1. We identify risks and assess their responsibility management. In 2016, we started work on the [102-42] We have identified them, considering their impact on Inter Cars Group significance comprehensive corporate responsibility strategy for Inter us and our impact on them. The most important aspects they Cars Group, comprising of both the internal affairs of the or- reported provided precious input for the strategic directions ganization and the most important areas of our impact on the we finally adopted in 2017.
The system of internal control and risk management in the To assess the risks correctly, we regularly use Group and the parent company internal and external sources of information and is decentralised and maintained our processes are framed to ensure fast and [102-40] Our stakeholders based on the financial division efficient response if any sudden risk increase and other business units, includ- is observed. ing the operating division. In selected activity areas, we imple- mented the compliance system components, which include coun- teracting malpractice (e.g. corrup- 2. We respond adequately tion) and preventing conflicts of interests. In 2017, we initiated Spare Business activities to update risk matrix, clients — the preventive measures were part The appropriate assessment of a given risk's impact on discussed during strategic work- suppliers garages the organization enables to prioritise the situation ap- shops with the top management. propriately and initiate required measures. We are aware We will strive to improve the risk that all risk factors affect the value generated by us for management system further. our shareholders
Media Vocational schools
3. We monitor and report
All the measures related to risk management are monitored and reported appropriately. We ensure all the groups interested in a given risk factor are informed on an ongoing basis Public Employees administration
4. We initiate measures to mitigate emergence of new risks
Service and Shareholders equipment Thanks to the proper monitoring of risk factors, we The detailed information on providers are able not only to initiate measures in response to our approach to risk manage- the existing situations. Primarily, we wish to prevent ment can be found in the Man- new risk emergence by analysing data and responding agement Board report on the soon enough company activities for 2017.
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Our corporate responsibility strategy
1 Market
• We build our leading position by determining the way for changes in the sector and presenting a pro-active attitude towards a responsible business in the automotive sector. Market context: new trends, new
2 challenges
• Our customers have access to the highest quality products and services, and the entrepreneurs cooperating with us may benefit from a comprehensive support of The size of the spare parts market is a derivative of the vehicle sales. The their business development. number of passenger vehicles in Europe keeps increasing and it is esti- mated to reach 337 million by 2019. Also the average age of pre-owned 3 vehicles continues to increase, currently standing at 8 and a half years. The growing pre-owned vehicle market means the prospects are good for • We create friendly environment for sharing knowledge and implementing innovative business solutions, with the help of our personnel and third-party stakeholders. automotive product distribution on the secondary market. The European market value is estimated to reach EUR 150 billion, that's 35% of the value the vehicle manufacturers' sector. 4
• We create grounds for promoting entrepreneurship and supporting education, as well The growing age of the European vehi- Internet and on the other hand, they drivers are able to use the technology as development of professional qualifications for personnel, responding to the labour cle fleet means a continuous increase are more frequently deciding not to which not only provides them with market in this sector. in its operating intensity. Other factors own a car at all. Instead, they are ready extensive knowledge on the technical shaping the increase in the demand for to pay for the flexibility offered to them condition of their vehicle thanks to vehicle parts are also the elimination of by the increased availability of cars for diagnostic applications, but also helps to 5 barriers for pre-owned vehicle imports hire or the speed and comfort offered control the costs and search for the best and the absence of a single dominant by public transport with a single click of service options available then and there. • We strive to minimise the adverse environmental impact in every value chain component, brand. Moreover, the consumers' ex- their mobile. All this means significant changes in trying to improve the environmentally-related awareness of our customers and pectations regarding instantly available Undoubtedly, today's automotive vehicle users' behaviour and, conse- business partners. vehicles — both by means of hire and market is largely shaped by new quently, their expectations towards the passenger transport services — has technologies. In countries like the U.S. repair and sales-related services. Simul- increased. This will also increase the or Brazil, autonomous vehicles are no taneously, the increasingly common use demand for vehicle service repairs over 6 longer a scene from a science fiction of cutting-edge technologies for vehicle the upcoming years. future. According to consumer research, manufacture means a higher degree • Our prosocial activities are aimed at creating opportunities for young people's develop- Young consumers whose expectations the inhabitants of those countries trust of the required repair complexity. ment, for the disabled and at supporting automotive subjects. will be shaped by the global automotive the vehicles decision making more than Vehicles are becoming more and more market in the years to come have entire- their own. intelligent, while their users rely on tech- ly different expectations of the market nologies such as vehicle applications Nonetheless, before it becomes a large- to their parents. We do not speak here to an even greater degree. Drivers also scale phenomenon, the vehicles will 7 solely of the requirements concerning expect regular access to automotive keep evolving at an increasing pace. Its the technology or vehicle equipment. services online. All this generates new • Within our value chain, we engage in a continuous dialogue and cooperation in order to most important aspect seemingly being The approach to need of owning a car is challenges for repair service providers formulate common procedures for our key areas, based on the internal diversity of Inter the combination of all vehicle function- also changing. On the one hand, young who, to keep up with the click and drive Cars Group. alities until the point at which the driver consumers are increasingly prone to revolution pace, must ensure appropri- is able to control everything, thanks to a buying vehicles or spare parts over the ate equipment and competences. single operating system. Even today the
The strategy was adopted by Inter Cars Group, including the parent company. The internal diversification of Inter Cars Group makes particular companies involved in implementing the strategy to various degrees, initiating activities adequate to their scale, environment and operating character.
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Inter Cars Group — important market [201-1] player Financial results of Inter Cars Group in 2017 (thousand PLN) Inter Cars S.A. in Poland and Europe Revenues
The Inter Cars Group activities not indif- Net sales revenue 6,908,365 ferent to both the Polish economy and foreign economies we operate in. The income tax due for 2017 in relation to Other operating revenue 31,621 the entire Capital Group's operations was PLN 34 million. We are aware of the role we play in shaping local markets as a de- Operating expenses sirable employer and a strong partner for many smaller companies. [202-2] In Po- Operating activity expenses 6,613,936 land and most our European companies, virtually all of our employees in top man- agement positions come from the local Other operating expenses 31,586 market (90%), while the average annual value of the investment in human capital (training and language courses) incurred Financial expenses 40,473 by Inter Cars S.A. itself in the previous year was more than PLN 1,381. Payroll and benefits 234,119
Payments to investors 10,059
Payments to the state International tactical teams 222,922
The dynamic growth of Inter Cars Group on foreign markets requires us to adapt the corporate Community investments 2,568 structure to the new needs. This is why we introduced international work teams — called Tactical Teams (TT) — to it, responsible for various organization operations, including finance, IT, project management, logistics, product management and marketing.
TTs, reporting directly to the Management Board, solve current problems emerging "at the junction of departments" and ensure appropriate flow of information within the Group. Thanks to the international operations and the appropriately prepared budgets for own initiative implementation, TTs facilitate many processes in the companies, including the decision making.
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The operations of Inter Cars as a busi- services is decreasing importance for training, technical product training or Inter Cars S.A. ness partner are defined primarily by customers year on year. Of greater sig- business training, and then to enrol in it. our relations with independent garages. nificance, is the trust which the garages Moreover, there is also the knowledge — responsible Reinforcing their competitive advantage develop solely by providing the highest zone, with no need to log in. The Tech- business partner by a number of structured sales-related quality service and offering professional nical Guide tab is a catalogue of hand- activities is an inevitable component of advice to vehicle users. books for download containing practical our activities. information on mechanical practice and The training we offer covers all the repair of vehicle parts and components. We comprehend the The major challenge for the garages stages of service and repair process, significance of the way we today is the need to keep up with the starting from marketing components, Furthermore, the mechanics can use the operate in the market for the technological advances shaping contem- through customer service, to various Technical Help Desk, offering phone con- porary vehicles. The growing number levels of advancement. We strive to en- tacts with consultants who are ready to success of Inter Cars S.A. We of electronic systems or the changing sure Inter Cars training is primarily prac- provide details of the defect diagnostics understand our role much engine and component designs require tical, meaning it takes place in garages and repair methods, parts replacement car repair specialists to constantly im- and uses appropriate equipment. procedure and the rules for correct more broadly than solely prove their qualifications. This is why the installation of components in passenger Thanks to our Master Mechanik training for garage employees is such and light delivery vehicles. as a vehicle parts supplier. platform, the garage owners can select an important component for building a the most suitable training for their em- Our relations with other competitive advantage. ployees. The first step is a assessment market players are of great Expectations of garage customers keep of specialists' knowledge in a simple and importance for retaining a growing. A high quality of repair is the quick way. The second step, involves minimum requirement and the quality Master Mechanik, using gamification strong position, hence the of service, including such components components, enabling employees from reason why we continue to as the provision of exhaustive knowl- independent garages to build strong take the appropriate course edge, proven high competences of theoretical background. the garage workers, is more and more On the training website, one can search of action to retain and likely to affect the customers choice of for a programme best suited to the garage. Interestingly, the price of repair strengthen them. needs of a given garage from technical
For 16th time, we have organised a trade fair
On 22–24 September 2017, on the ground of PGE Narodowy Stadium another edition of the Expo of Spare Parts and Garage Equipment held by Inter Cars Group took place. This time as many as 230 exhibitors had the chance to present their new products.
The participants could e.g. visit the historical and contemporary garage, lorry exhibition, get to know the latest e-learning training for garage workers and owners or relax in the VIP zone conducive to business talks and opinion exchange. The separate hall housed Garage Equipment, offered by the leading manufacturers and suppliers of Inter Cars Group. [206-1] In 2017, towards any Inter Cars Group company (in Poland and in Europe) 0 there were no decisions issued declaring violation of any free competition rules The trade fair was accompanied by competitions and contests, including e.g. the final of Master Mechanik violations or antitrust practices. contest (more about the programme further on) or the tyre replacement competition. Anyone wishing to hone their skills could participate in training taking place in the conference centre and also in three American lorries adapted to holding lectures in them.
The sports emotions were offered by rally drivers during Inter Cars Motor Show, including: Wojtek Chuchała, Filip Nivette, Maciej Oleksowicz, Krzysztof Hołowczyc, Marko Palijana, Ralfs Sirmacis, Marek Wartałowicz, Mateusz Fijała, Paweł Trela, Aleksandra Fijał, Wojciech Goździewicz and Bartek Ostałowski.
24 Market Market 25 Responsible Business in Inter Cars Group Responsible Business in Inter Cars Group
[102-43] We listen to our customers
Our customers' opinion is an important development incentive for us. Customer satisfaction studies are carried out periodically, New technologies for greater availability once a year, for a default group, considering both garage owners and workers. The survey is conducted over the phone and, if requested explicitly by the customer, it can be carried in greater depth with a visit from our worker's to the customer. Noticing the changing expectations of vehicle users, and also the chal- lenge posed to the market by new technologies. We decided not only to approach the new reality, but also co-create it proactively.
In the survey conducted in 2017, more than 90% of respondents had a favourable We identified the new Group development direction, namely improved opinion on the communication with Inter Cars S.A. We record also improving understanding of the individual customer's needs by supporting garag- results with respect to order placement and problem solving. The overall 89% assessment of the cooperation with Inter Cars S.A. is more than 89% es in relation to the communication with their service customers. We of favourable opinions. launched many projects which will enable us to adapt to the growing ex- pectations in the field of flexibility and availability of automotive services.
Furthermore, once a quarter we carry out a mystery custom- The areas studied in this way include primarily the quality er study. This study refers to selected sale outlets and takes of service and cooperation with IC Headquarters and local Towards the individual customer place both by the auditor's visit and in the form of a phone branches, competence of service and settlement depart- conversation. This way we check the service level, defining ments, handling orders and complaints, ways to place and Motointegrator search engine for garag- Soon, drivers' profiles will be launched increasingly important for drivers. There the most important areas for improvement. process them and goods' delivery routes. es and automotive services implements to facilitate comprehensive vehicle man- have also been efforts to implement Thanks to regular studies, we can follow price changes and the long term development vision of agement further still. This functionality an e-calendar which will improve the trends, identify and indicate any alarming decreases. Inter Cars as the product not only con- will offer users access to the history of platforms function even further. nects drivers with garages, but is also services and vehicle repairs completed, Since Motointegrator was separated a tool for generating sales for entities archive of invoices or receipts, special as an independent search engine for cooperating with the company. offers or notices of upcoming visits to services and garages, the platform has the workshop. The number of repair services recorded a monthly increase of approx. where a visit can be arranged via For garages, Motointegrator is a ready- 10% in the users' interest. The platform Inter Cars S.A. — an important say in the public debate Motointegrator.com has grown steadily, made, easy to operate promotional tool is multilingual and will be implemented with close to 6,300 by the end of 2017. which they can use to attract more cus- gradually in all relevant markets. Our Motointegrator continues to extend the tomers. Every garage registered on the ambition is to create the largest garage garage database and the opportunities platform receives a customised page and automotive service database in [102-12] [102-13] Inter Cars S.A. is involved actively in the offered to the garages and drivers. where it can publish information on the Europe. Even now, Motointegrator has offer and other special offers in an easy enjoyed a growing popularity in Bulgaria activities of Stowarzyszenie Dystrybutorów i Producentów The key benefits of Motointegrator.com and clear way. The Car Workshop Zone and Lithuania and in early 2018 it will be Części Motoryzacyjnych (SDCM) [Association of Automotive service from the drivers' perspective enables users not only to edit profiles implemented in the Croatian market. Parts Distributors and Manufacturers], a member of the include rapid search for a service and but also to monitor the statistics of European Federation of the Automotive Aftermarket Distributors garage, efficient visit arrangement and visits to the garage page on Motointe- FIGIEFA, and from 2016 also a member of CLEPA, the only the ability to read opinions of other grator or opinions added by customers. European organization representing the interests of automotive garage customers. Motointegrator is Thanks to the ability to arrange cus- parts manufactures. In connection with the cooperation also a database of knowledge for vehicle tomers' visits, the garages can facilitate between SDCM and CLEPA, the Association deals also with the owners. The website contains automo- some of the customer service process. aspects of manufacturing plants' activity related to pollution tive guides and descriptions of services This, according to studies, is becoming emission, technical regulations, sector competitiveness or offered by the garages. broadly-taken innovation.
For more information on SDCM activities, see www.sdcm.pl.
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Towards facilitating sales processes Our requirements towards suppliers Cooperation and dialogue
All ordered products are certified and meet the specific Our suppliers are treated as partners. We are open to standards applicable in Europe. The basic requirement that dialogue, as well as exchange of knowledge and experience. Universal sales application — a shared we impose on our suppliers is the necessity to provide com- We offer training visits to our suppliers, and benefit from the tool for garages, drivers and dealers prehensive technical documentation of products that needs similar events they offer. We look for solutions to facilitate our to be provided along with the delivery. This may seem obvious cooperation together. but it is sometimes crucial in ensuring a smooth order proces- We have combine various customer groups and improve The special work mode, or Assisted Service Mode, was cre- Discussions have resulted in the launch of the delivery advice sing. The document verification procedure is carried out on customer experience, in 2016 we launched the Universal Sales ated for sales teams and it enables the implemention of the note system. It has reduced the vehicle waiting time for an ongoing basis during the process of delivery preparation Application project. This is another step towards a modernisa- omnichannel strategy. The application runs on any device with unloading and minimised its duration. Knowing in advance for warehouse reception. Any deviations of the supplier are tion of operating activities of Inter Cars Group towards e-com- any operating system with a modern Internet browser. The the goods and their quantity that will be delivered, the central reported immediately to them. merce. This is a fully scalable sales platform for all customer entire project has exerted a particularly favourable impact on warehouses are able to more effectively prepare for the un- groups, including B2B, B2B2C and B2C. Moreover, the tool will the processes of simultaneous cooperation with many third- loading of the vehicles, which should also mean reduced work support internal users' integration, including a sales teams -party software providers, using agile software development intensity at the delivery stream reception. and call centre workers, offering access to an interactive pro- methods and collaboration with foreign specialists. We have also implemented an electronic document flow which duct catalogue to all of them. Eventually, this implementation will create the system of sales not only enables us to eliminate paper versions, but also accel- In late 2017, we reached the readiness of the Universal Sales and customer service in a omnichannel model, which entails erates the very process of preparing the delivery for reception. Application at the MVP (Minimum Viable Product) stage. The complete integration of online sales with sales-related ope- platform has already been implemented in the Greek and rations. Simultaneously, we have also developed the Master Bulgarian market, and work has started to launch it in other Data Management system which will enable us to improve the countries. The first assessments, collected both from internal quality of data used by the product catalogue. users and the customers, are highly positive. Its user-friendly Order placement process optimisation design and functional solutions facilitate the process of part (SAS tool) identification and ordering.
One of important projects supporting the strategic objective of Inter Cars Group, i.e. profitability building, is optimisation of the order placement process by implementing advanced changes in SAS at the turn of 2017. State-of-the art software analyses the best purchase scenarios, maximising profit resulting from purchase discounts, and also consider the logistic costs related to the goods' Impact management in the whole delivery chain purchase, reception and storage. Thanks to improvements during the order placement, many variables [102-9] Inter Cars Group cooperates with approx. 1,600 suppliers from Europe (Germany, France, Spain will be considered which will allow cost effectiveness to increase. and Poland) and from the Far East. Those are primarily suppliers of vehicle parts, workshop clothing and Implementation of this new solution will enable even greater garage equipment. Inter Cars Group delivery chain covers every part of the process, from the supplier's automation and will offer greater control of optimum stock level plant to the end customer, i.e. the garage. creation. The new system will also help to use the opportunities offered by suppliers more efficiently.
The implementation of that project was another step, following the sales forecasting system implementation, carried out with SAS in 2013. At present, there have been works to improve the tools 3. Warehouse transfer possessed. Concurrently, two analytical projects have also been 1. Goods' collection from to branch warehouses carried out to improve order generating effectiveness and optimise the manufacturing plant/ goods' distribution process in regional warehouses. supplier's warehouse
4. Customer order processing and delivery 2. Transport to the central warehouse of Inter Cars Group
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Workplace Code of Conduct is divided into the following areas: External relations What does it mean to "work at Inter Cars"? Clients State Treasury and public authorities According to the most recent labour efficiency study carried out by the HayGroup Institute, more than 80% of our workers appreciate teamwork and understand the relationship between the work they do and the corpo- Business partners Receiving or offering rate strategy. Importantly, an equally high percentage appreciate the high material advantage quality services and products offered to our customers. This means our workers are satisfied with their work, knowing their effort translates directly Media Protection of information into the customer value. As much as 88% of our workers declare that they and personal data have all the resources necessary for efficient performance of their work, confidentiality whereas 63% claim their lead manager supports their career development. Competitors Intellectual property protection
[102-16] At Inter Cars Group, we under- To ensure those rules are respected at • The rules in the Code are a foundation stand our success is a result of all of our every stage and under any circumstanc- of the compliance programme imple- employees' commitment. The proof of es, in 2017 we introduced the Code of mented in Inter Cars Group and apply to our appreciation of our people is the Conduct and Good Market Practices all workers and co-workers, regardless Capital market players fact that many of us have worked at In- of Inter Cars Group. of the form of their cooperation with ter Cars since the company's inception. Inter Cars Group. • The Code is a set of rules and values We create a positive work environment important for Inter Cars Group which • Inter Cars Group managers, irrespec- together, on shared values like our we try to implement every day in our tive of their level and managed area, passion, entrepreneurship, integrity, business practice and internal relations. should always be a role model for all openness and trust. Both in employing employees, co-workers and business people and managing them, we follow • The Code is in force in all areas of Inter partners, and should offer assistance Internal relations Environmental protection strict rules, as we know it is the only Cars Group (including the parent entity and advice regarding any doubts related way to achieve our ambitious business Inter Cars S.A.). We strive to ensure the to the application of the Code. objectives set every year. rules included in the Code are followed also by our partners, including but not limited to franchisees. Employees and Reduction of adverse natural co-workers environment impact
Workplace safety
Equal opportunities and equal treatment
30 Workplace Workplace 31 Responsible Business in Inter Cars Group Responsible Business in Inter Cars Group
The Code of Conduct is also a document preserving such Safe at Work Coalition values as ensuring equal opportunities for all workers, regard- less of their gender, age, race, ideology, health, trade union In 2017, Inter Cars S.A. joined the Safe at Work membership, seniority and position, appearance or sexual ori- Coalition. The Coalition was established in 2014, To ensure all our values are understood, followed and protected correctly in entation. Those rules refer both to the recruitment, evaluation following the initiative of several companies in dif- practice, we have created e-mail address: [email protected], where and promotion processes, as well as the opportunities offered ferent sectors. Its objective is to promote safety you can ask questions and report irregularities (a whistleblowing system). We within Inter Cars Group. Moreover, we strive to promote the culture in the workplace among employees and ensure comprehensive protection of a whistleblower who reports negative attitude of tolerance and openness, as well as opposing the employers, primarily through education on the behaviour, abuse and other irregularities in good faith. We believe such an spread of ideas damaging human dignity, religious feelings or applicable standards and procedures, good prac- approach will enable us to identify and eliminate conduct violating the rules in ideology. [406-1] In 2017, no discrimination incident was report- tices and information on the benefits of imple- the Code efficiently. ed in the parent company and other companies in the Group. menting high safety standards in the workplace. The complete text of the Code of Conduct is available on our corporate website Within this initiative, we co-create a platform for at http://inwestor.intercars.com.pl/ in the Corporate governance tab. exchanging knowledge and experience related to workplace safety, offering a valuable support Our values: entrepreneurship, passion and tool to our customers, primarily small and and commitment, partnership medium-size garages. Thanks to the activities initiated by us, they can use the specialist exper- In our organization, we also respect hu- The related supporting activities include: attitude of tolerance and openness, tise, ask questions or check how to carry out the man rights. We respect employee rights we treat everyone fairly, regardless of We understand that the human capital management process • description of the Management by business activity more safely. with regard to labour law regulations. their gender, age, race, ideology, health, Objectives system — combining the starts from looking for employees and hiring them. This is why The Code of Conduct comprises of a set trade union membership, seniority management systems with company we assess the candidates in a reliable way based on substan- of basic rules related to human capital and position, appearance and sexual results, employees results, employee tive criteria. Next, we apply clear and fair work assessment management processes in our organi- orientation. periodic assessment, incentives and and career promotion rules. We notify of the opportunities zation, including ensuring dignified and base pay; Moreover, because of the specific offered to our workers in a transparent and open way. We received an award in HR Innovator competition in 2016 for friendly work conditions, guaranteeing features of the sector, we make every one such initiative. We won the main prize for companies with stable and safe employment and the • career map; Moreover, we know that in order to retain the best workers, we effort to ensure safe workplace for all the Polish capital for Autostrada Rozwoju (Development High- availability of social benefits for all must constantly demonstrate a proactive approach to human • employee assessment system. workers by minimising the risks related way) project. Our innovative programme was aimed at the man- staff. The master documents governing resources management. This is why we have gone one step to the performance of tasks entrusted agers and sales teams, based on gamification components. employment in Inter Cars Group, adopt- We are committed to providing our further and in our Code of Conduct we also defined the obli- to them. The conduct in this area is ed in the parent company and other employees with a working environment gations of Inter Cars Group as a modern employer, ready to In 2017, we were awarded a certificate of the Highest Quality governed by the new OH&S and Envi- implement international standards and good practices in the companies in the Group include the HR free from discrimination, mobbing, HR by Polskie Stowarzyszenie Zarządzania Kadrami (PSZK, Pol- ronment Protection Policy, adopted area of human capital management. Our innovative approach Policy of Inter Cars and Remunera- humiliation, interference with privacy, ish HR Management Association). The certificate was given for in 2017, implemented throughout is expressed through focusing on enabling a harmonious com- tion Policy. abuse of authority. We respect equal the HR policy distinct from other organizations, trendsetting Inter Cars Group, including the parent opportunity and equal treatment rules, bination of professional duties and family life. We also support in human resources management and promoting high stand- company. We attach great importance referring both to the process of re- employees in pursuing their individual passions and initiatives. ards in the HR sector in Poland. to all actual and prospective threats cruitment, assessment and promotion, and try to respond to them immediately as well as the access to opportunities and appropriately. offered by the Group. We promote the [102-8] Total number of Inter Cars employees
Inter Cars Group Inter Cars S.A.
Women Men Total Women Men Total In 2017, no irregularities were reported in any Inter Cars Group company and in the parent company Inter Cars S.A. Employed for 0 [205-3] In 2017, not a single case of corruption or abuse was reported 1 211 355 566 116 121 237 a specified period irregularities in any Inter Cars Group company. Employed for an 2 608 1,923 2,531 99 153 252 unspecified period
Total 819 2,278 3,097 215 274 489
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Inter Cars Group Inter Cars S.A.
Total number of employees Women Men Total Women Men Total (full time equivalent) by age groups: < 30 30–50 > 50 Total
1 Full-time 777 2,237 3,013 207 258 465 Number of employees 1,094 1,817 186 3,097 (full time equivalent) 2 Part-time 42 42 84 8 16 24 Number of new 477 581 53 1,111 employee hire Total 819 2,278 3,097 215 274 489
Inter Cars Group Percentage of new 43.60% 31.98% 28.49% 35.87% employee hire
Inter Cars Group Inter Cars S.A. Number of employees 181 277 31 489 (full time equivalent) Women Men Total Women Men Total Number of new employed based on a 77 58 7 142 1 66 127 193 28 50 78 employee hire contract of mandate
employed based on Inter Cars S.A. Percentage of new 2 0 0 0 0 0 0 42.54% 20.94% 22.58% 29.04% a specific task contract employee hire
employed based on 3 0 0 0 0 0 0 internship agreement
4 self-employed 5 30 35 9 162 173
supervised workers 5 and/or seasonal 1 1 2 0 0 0 [102-41] In Inter Cars Group, there are no employees covered with collective agreements. workers
Total 72 158 230 37 212 251
[401-1] Total number of new employee hires, quits and employee turnover Total number of by age groups, gender and region employee resignations (full time equivalent) by: Women Men Total
Number of employees 819 2,278 3,097 Women Men Total (full time equivalent)
Number of employees Number of employee resignations 819 2,278 3,097 169 647 816 (full time equivalent) (full time equivalent) Number of new 275 836 1,111 Percentage of employee employee hire Inter Cars Group 20.63% 28.40% 26.35% resignations Percentage of new employee
Inter Cars Group 33.58% 36.70% 35.87% hire (full time equivalent) Number of employees 215 274 489 (full time equivalent) Number of employees 215 274 489 (full time equivalent) Number of employee resignations 11 24 35 Number of new (full time equivalent) 56 86 142 employee hire
Inter Cars S.A. Percentage of employee Percentage of new employee 5.12% 8.76% 7.16% Inter Cars S.A. 26.05% 31.39% 29.04% resignations hire (full time equivalent)
34 Workplace Workplace 35 Responsible Business in Inter Cars Group Responsible Business in Inter Cars Group
Total number of employee resignations (full time equivalent) Hire and retain the best by age groups: < 30 30–50 > 50 Total
Number of employees 1,094 1,817 186 3,097 project is one of the flagship activities of Inter Cars (full time equivalent) "Młode Kadry" Group, beginning in 2011 it is aimed at young people. It consists in coop- Number of employee resignations (full time equiva- 381 379 35 795 eration with schools all over Poland and abroad in relation to supporting lent) in a given age group the education of future car mechanics as well as cutting-age talent
Inter Cars Group Percentage of employee sourcing. In this programme, we provide the schools with high-tech 34.83% 20.86% 18.82% 25.67% resignations equipment for repairing and diagnosing vehicle defects. Our partners Number of employees include major manufacturers of spare parts and workshop equipment. 181 277 31 489 (full time equivalent) Every equipment supplier provides schools with training and the neces- Number of employee sary educational materials. The training sessions are cyclical, with the cy- resignations (full time equiva- 16 17 2 35 lent) in a given age group cle comprising of at least 10 sessions a year. By December 2017, the total
Inter Cars S.A. value of equipment donated to schools was about PLN 2 million. Percentage of employee 8.84% 6.14% 6.45% 7.16% resignations
The main objective of the Group when tomers. During holidays, outstanding students compete in a virtual garage performing such initiatives is to pop- students take internships in Białystok which not only checks their knowledge ularise the mechanic profession and Group where they get acquainted with and skills, but also examines how quick- [202-1] Both in the parent company and in other Group companies, the pay level of the standard entry level improve the prestige of professional work in this branch. ly they are able to complete the task qualifications. By supporting contests, allocated to them. employees complies with the legal requirements in force in a given country in this respect. Moreover, Białystok Group offers the practices and internships for the best students and teachers the ability to Subsequent stages eventually led to ten students, the "Młode Kadry" pro- visit Inter Cars trade fair where they can finalists who competed in real life. Finally, gramme is a platform that is facilitating see the opportunities offered by the the three best participants competed for the beginning of young people's careers automotive sector themselves. Schools the main prize in the international com- and providing an additional incentive Ratio of the entry level pay to the minimum pay participate actively in competitions petition. The winner of Young Car Me- to learn. In 2017, a representative of organised for students by Inter Cars. chanic went for a trip to the Elring plant Activity venue (country) Women Men our franchisee, Group Branch Director Białystok Group also provides the in Stuttgart. Additionally, all competitors in Białystok Branch, Marek Sulima, Poland 1.35 1.29 schools with teaching materials, charts, received access keys to the full version of received a Medal of the Commission of catalogues and leaflets and supports a Car Mechanic Simulator game. Slovakia 1.80 1.80 National Education from the Minister of them with its extensive experience. Bosnia and Herzegovina 4.09 5.58 National Education. This support has been offered for Bulgaria 1.76 2.72 This is a prestigious distinction awarded five years. for special contributions in education, the Czech Republic 1.10 1.37 including but not limited to teaching, ed- In 2017, within the "Młode Kadry" pro- Estonia 0.99 1.38 ucational and care activities, works with gramme, we organised a competition Greece 1.28 1.10 young people and teachers, education called Young Car Mechanic aimed at and training. students from 19 secondary schools. Croatia 1.00 1.00 The major objective was to discover The distinction handed to Marek Hungary 1.40 1.48 young talents in the field of vehicle Sulima was awarded for creating the mechanical works. Italy 1.01 1.03 opportunities to educate students and Lithuania 1.37 1.63 teachers, including but not limited to From the participants' perspective, the improving their theoretical and practical competition is attractive because work Latvia 1.33 1.33 knowledge. Students may participate in simulator enables them to test their Moldova 4.61 5.18 young personnel training and in training skills in conditions resembling those in the workshop. At the first stage, the Romania 1.66 1.86 organised by Białystok Group for cus-
Ukraine 2.81 3.13
Slovenia 1.39 1.55
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and a training Each school received pack worth Total invested 19 equipment worth in the programme:
schools have participated PLN 30 in the programme so far PLN 100 thousand PLN 2 thousand million
School Voivodship City Street The competition is highly popular in Poland and becomes Mechanic 2017 will participate in the next edition of more and more important on other markets where Inter Young Car Mechanic in 2018. The total value of prizes for ZESPÓŁ SZKÓŁ NR 1 (SCHOOL COMPLEX NO. 1) Mazovia Piaseczno Szpitalna 10 Cars Group is present. We have already been informed that three best places in the International Young Car Mechanic CENTRUM KSZTAŁCENIA PRAKTYCZNEGO garage owners employ more and more students participat- 2018 Final is PLN 100,000. All the participants of the Cuiavia and Pomerania Grudziądz Czarnieckiego 5/7 (PRACTICAL EDUCATION CENTRE) ing in "Młode Kadry" project. International Final will also be invited to visit Elring plant in Stuttgart and Porsche Museum, and they may expect a ZESPÓŁ SZKÓŁ BUDOWLANYCH Students from schools in Poland, Latvia, Estonia, Croatia Lubusz Gorzów Wielkopolski Okrzei 42 number of surprises. (CONSTRUCTION SCHOOL COMPLEX) and Lithuania who won the country finals of Young Car ZESPÓŁ SZKÓŁ PONADGIMNAZJALNYCH NR 22 Łódź Łódź Przybyszewskiego 73/75 (SECONDARY SCHOOL COMPLEX NO. 22)
Al. Marszałka ZESPÓŁ SZKÓŁ NR 6 (SCHOOL COMPLEX NO. 6) Silesia Tychy Młode Kadry — Schools Piłsudskiego 10
CENTRUM KSZTAŁCENIA ZAWODOWEGO I USTAWICZNEGO Silesia Częstochowa Przechodnia 11/15 (VOCATIONAL AND LIFELONG EDUCATION CENTRE)
ZESPÓŁ SZKÓŁ SAMOCHODOWYCH Lesser Poland Nowy Sącz Tadeusza Rejtana 18 (VEHICLE SCHOOL COMPLEX)
ZESPÓŁ SZKÓŁ MECHANICZNYCH CENTRUM KSZTAŁCENIA PRAKTYCZNEGO NR 2 IM. ŚW. JÓZEFA Władysława Podlasie Białystok (ST. JOSEPH MECHANICAL SCHOOL COMPLEX PRACTICAL Broniewskiego 14 EDUCATION CENTRE NO. 2)
Grudziądz CENTRUM KSZTAŁCENIA PRAKTYCZNEGO Mazovia Siedlce Konarskiego 9 Białystok (PRACTICAL EDUCATION CENTRE)
ZESPÓŁ SZKÓŁ ZAWODOWYCH NR 1 Bydgoszcz Mazovia Nowy Dwór Mazowiecki Górska (VOCATIONAL SCHOOL COMPLEX NO. 1)
Gorzów ZESPÓŁ SZKÓŁ MECHANICZNYCH NR 1 Lesser Poland Kraków Al. Mickiewicza 5 Wielkopolski Nowy Dwór (MECHANICAL SCHOOL COMPLEX NO. 1) Mazowiecki ZESPÓŁ SZKÓŁ SAMOCHODOWYCH Siedlce Cuiavia and Pomerania Bydgoszcz Powstańców Wlkp. 63 Śrem (VEHICLE SCHOOL COMPLEX) IN BYDGOSZCZ Piaseczno ZESPÓŁ SZKÓŁ SAMOCHODOWYCH Mazovia Radom 25 czerwca 66 (VEHICLE SCHOOL COMPLEX) Łódź ZESPÓŁ SZKÓŁ IM. ARMII KRAJOWEJ W JEDLICZU Subcarpathia Jedlicze Tysiąclecia 15 Radom (ARMIA KRAJOWA SCHOOL COMPLEX IN JEDLICZE) Lublin ZESPÓŁ SZKÓŁ MECHANICZNYCH Opole Opole Osmańczyka 22 (MECHANICAL SCHOOL COMPLEX)
ZESPÓŁ SZKÓŁ SAMOCHODOWYCH IM. STANISŁAWA SYROCZYŃSKIEGO (STANISŁAW SYROCZYŃSKI VEHICLE Lublin Lublin Długosza 10a Częstochowa Opole SCHOOL COMPLEX) ZESPÓŁ SZKÓŁ POLITECHNICZNYCH W ŚREMIE Greater Poland Śrem Ks. J. Popiełuszki 30 (TECHNICAL SCHOOL COMPLEX IN ŚREM)
Tychy Kraków ZESPÓŁ SZKÓŁ MECHANICZNYCH IM. MIKOŁAJA KOPERNIKA (MIKOŁAJ KOPERNIK MECHANICAL Lower Silesia Świdnica Sikorskiego 41 SCHOOL COMPLEX) Jedlicze Nowy Sącz ZESPÓŁ SZKÓŁ NR 2 (NO. 2 SCHOOL COMPLEX) Lower Silesia Wrocław Borowska 105 IN WROCŁAW
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Space for development Autostrada Rozwoju
At Inter Cars Group, we believe that the individ- (Development Highway) ual development of our employees translates — results directly into company results. Therefore, we are committed to ensuring opportunities for them to pursue their passions and face new challeng- es. The best example is the Autostrada Rozwoju The users are most active in the carried morning — before first customers (Development Highway) programme come in and the day is out in 2016. just starting.
This project, created primarily for participant, going through an adventure dealers, achieved its goal to combine in the game world, served customers, 77% knowledge of nearly 1 million products sold products and tested their From 2200 users 77% completed offered by Inter Cars with sales skills knowledge on the standards applicable all the tasks available on the exercises in one platform. to them. The platform verified both key platform. components simultaneously, namely Based on the results and very good the sales competence level and the feedback from Autostrada participants knowledge of products, processes in 2016, the company decided to follow or the current offers. This enabled a % up the project and use Autostrada in the 80 diagnosis of the needs of particular process of introducing new employees. 80% of the platform users sales force employees and led to the hold the active status. Every month close to 100 new people creation of individual development log into the platform and use the knowl- paths for every participant. edge it provided. In 2017, by combining In the second half of 2018, there are Autostrada Rozwoju with the projects plans to refresh the platform design, of School for Sales Representatives and offer a new storyline for the compe- Dealers, a comprehensive competence Every day, the game has about tence game and adapt its functionality development programme was created. 400 participants. to the new project for the Sales Teams. It takes the sales division employees It will uniquely combine the opportunity from the basic knowledge stage of their to develop competences by providing duties to individual skill improvement. online training and classroom training. Consequently, dealers can easily access advanced technical training led both Every year, our employees also have a During the day, the users by internal coaches and by suppliers of chance to receive feedback on their de- spend approx. 8 minutes Inter Cars Group. velopment in our organization. [404-3] on the platform. In 2017, 65% of employees of companies Apart from access to knowledge of covered with the common HR manage- internal products and processes or ment system (Inter Cars S.A., ICMS, ILS) current offers, the dealers received participated in annual assessments an incentive mechanism based on based on a single pattern, regardless of Close to 20 million educational solutions well-known from role-playing their position. The assessment process- tasks have been carried out. games or scenario games, adapted to es comprised of 714 people altogether, their individual needs. with 464 participants, both our own This was done via the competence role- and our partners' employees. Within play game, with seven required sales the whole Inter Cars Group, we continue competences embedded, including developing an approach to the uniform Among users, we have approx. prospecting or needs analysis. Every assessment process. 500 sales representatives. 73% of them have completed 100% tasks available on the platform.
40 Workplace Workplace 41 Responsible Business in Inter Cars Group Responsible Business in Inter Cars Group
[404-1] Total hours of training by gender Our social involvement
Women Men Total According to the corporate responsibility strategy of Inter Cars Group, we wish to create grounds for promoting entrepreneurship and supporting Total hours 4,526 17,400 21,926 education and professional qualification development of personnel, re- of training by gender sponding to the needs of the labour market in this sector.
Number of employees The strategy adopted by the Manage- strategy, we plan the evaluation and Within the adopted strategy, we commit (values identical to the data 819 2,278 3,097 ment Board indicates priority areas, verification of "Młode Kadry" project, to drawing up and launching social in- from GRI 102-8) specific initiatives and measures (KPIs) to determine the target shape and geo- volvement programmes focused on the as well as people responsible for the graphical reach as well as further steps key directions, i.e. the development of Average number of hours implementation/supervision of the area. towards its complete development. young people and the disabled, support 6 8 7 of automotive themes, including road of training by gender One of our flagship programmes is Our prosocial activities aim to create safety, technical staff development, as "Młode Kadry" project (see Chapter 3. 3.2 development opportunities for young well as promotion of sports activity. Hire and retain the best), Young Car Me- people, for the disabled and support chanic and training sessions in coope- automotive subjects. ration with garages. Within the adopted
[404-1] The average number of hours of training per year per Group employee is approx 7 hours. Why not use the jogging trend to help those in need? The Motointegra- tor Running Team club, founded in 2015, associates workers passionate about running. In 2017, the MI club members covered close to 60,000 The training in both soft and hard skill area is organised based on the needs using reports put together following the annual employee assessment. What is more, every manager may send their employee to thematic training depending kilometres in total. on the area they work in. Club membership allows Inter Cars months, club members ran more than 10 nych Marzeń", Fundacja “Kochaj Życie”, employees to pursue their sporting thousand kilometres altogether. Fundacja Dzieciom “Zdążyć z Pomocą”. passion and supports a healthy life- How does Motointegrator Running These are not the only sporting events style. However, these are not the only Team help those in need? The runners' at Inter Cars Group. In 2017, the sixth benefits. Every kilometre covered, both A Hotbed of Ideas and Innovation achievements are traced on a dedicated edition of Inter Cars President Cup during workout and official runs, provi- platform in the Endomondo application Football Competition was held. In the des real help for those in need. In 2017, and then every covered kilometre is final, the teams from Romania and the Every Inter Cars Group employee can submit their idea to the project Motointegrator Running Team donated converted into PLN 1. 100% of funds branch group Glob Cars met. The Ro- PLN 57,274.03 to charities to support management system. IMPO, acting in line with Inter Cars Group val- collected in this way are transferred manian team ended victorious for the treatment of over a dozen people rece- to collected are transferred to one of fourth time, winning 5:2. ues, developed and handles the process of implementing bottom-up ving charity care. the cooperating charities. In 2017, PLN employee ideas and initiatives. Every submission is subject to thorough Right from the beggining, the club had 57,274.03 was collected and transferred analysis, complementing and assessment in terms of needs as well as about 80 members. In the initial three to charities such as Fundacja "Spełnio- possibilities to run a given project. The decision is made by a leader of a given area in which the project is supposed to be implemented. "The paramount objective is to present the essence of In 2017, nearly 2,000 applications were examined. This allowed The implementation of this idea required combined efforts in Inter Cars. We are a company with Polish roots, but we the internal complaint handling process to be improved. As a the fields of advertising, legal services and customer service operate also in many European countries. The fact that Robert Kierzek result of this one our employees noticed, in December 2016, in all locations. The culmination of the project was the training those teams come here and play with Inter Cars logo Management Board that while handling customer complaints it would be prefera- that began in March 2017. This was designed for employees on their chests shows that we are a truly international Deputy President ” ble to consider additional costs incurred by our customers in serving customers when a complaint is lodged. community. We do not only work together, but are also Inter Cars connection to the damaged part identification. able to have great time together." “
42 Workplace Workplace 43 Responsible Business in Inter Cars Group Responsible Business in Inter Cars Group
Environment Spare parts market — response to the challenge of resource use limitation
One of the basic pillars of our activity is the awareness of participating in the market offering a challenge, not only immense potential. Taking the leading position in the market of spare parts distribution obliges us not only to follow the rules of responsible monitoring, regarding how our activity impacts the environment; but also to set new standards in this To improve road safety respect and to be a role model for the other participants.
Close to 43.5% of all accident casualties in Poland are the "unprotected" traffic participants, meaning pedestrians, cyclists and motorcyclists. The Odblaskowi.pl campaign, organised for The master document specifying the promoting the industrial regeneration The increasingly popular idea of a circu- eight years, is to improve their safety by promoting positive approach of the Group and the parent of a worn part instead of buying a new lar economy is engrained in the DNA of habits, e.g. wearing reflectors which are offered by us during company to the environmental protec- one, is a direct response to the problem Inter Cars Group. numerous events organised in various parts of Poland. We are tion aspects is the Code of Conduct and of resource depletion and extensive However, we perceive our role in pro- particularly committed to raising awareness among children and their Good Market Practices of Inter Cars waste production. moting recycling and multiple use of re- parents, which is why we organise, as a part of our campaign, school Group. The Code also provides also sources more broadly than just offering competitions like "Zebra w mieście" ("Zebra in the city"), which is examples of required behaviour, e.g. products "restored" for use. Another gaining more and more popularity. waste disposal solely to appropriate phenomenon shaping the automotive containers, limiting paper use, pro- The Odblaskowi.pl campaign is supported by famous people every market include the changing expecta- moting eco-friendly attitudes among year. Until now, the group of Odblaskowi.pl Ambassadors included e.g. tions of consumers who decide to rent customers and partners. Stoch, Grzegorz Krychowiak, Dawid Wolny, Krzysztof Ignaczak, Adam 200,000 vehicles or use car sharing services Kornacki, Marcin Daniec, Grzegorz Kosok, Filip Bobek, Anna Dydzik, The number of vehicles in Europe and more and more frequently. This inspires dr Mateusz Grzesiak, Krzysztof Ziemiec, Jakub Bączek, Robert Heisig, worldwide keeps growing and there are pieces us to invest in new solutions. This line of Grzegorz Hyży and Kajetan Kajetanowicz. no signs this trend will stop in the years thinking is illustrated by an intense de- to come. This is undoubtedly one of the velopment of Rent a Car service which In 2017, within the Odblaskowi.pl campaign, more than a dozen key challenges, both in terms of infra- will initially be implemented within educational events were organised, with the bands given to children In 2017, Inter Cars Group sold 200,000 structure and ecology, faced by today's services offered by Inter Cars Group as by a mascot called Reflector Owl (Sowa Odblaskowa). pieces of regenerated parts on all of cities. The operation model of a com- a courtesy car rental and will gradually the markets we operate in, with 65% pany belonging to Inter Cars Group, i.e. become an independent entity in the of them coming from the Lauber plant. Lauber Sp. z o.o. with its seat in Słupsk, on-demand service market.
44 Workplace Environment 45 Responsible Business in Inter Cars Group Responsible Business in Inter Cars Group
Rent a car Business case in waste management One of key projects included in Inter Cars Group develop- ment strategy for 2018–2020 is the launch of Rent a Car ser- vice. Within this project, in 2016 we started construction of Conscious waste management is a foundation of our care about the a vehicle park which can be used by the garages cooperating environment, with its framework determined by the OH&S and Environ- with us. In late 2017, there were more than 800 cars delivered to the garages in Poland. The programme keeps developing ment Protection Policy in Inter Cars Group. We strive to encourage also dynamically. Even today, the target customers in many garag- our partners to do the same. Within BIO SERVICE services, the cooper- es can rent a car either as a courtesy car or just as a car for ating garages are offered the opportunity to organise a comprehensive rent on favourable terms. garage waste collection in accordance with the applicable regulations Why is the Rent a Car project so important for us? This is our response to the growing needs of customers, both the governing the process. We encourage an ethos of managing waste creat- fleet and individual ones. Courtesy cars become a market ed by everyday activity in a conscious way, in compliance with the stand- standard. The benefits of investing in such activities include not only expansion of the scope of services offered and ards. Thanks to the BIO SERVICE, garages not only improve their image the higher service standard. We believe that this will also among customers but also increase work safety. The offer can be used by increase our competitive advantage and exert a favourable impact on the turnover and profitability of garages cooper- both garages associated within Inter Cars network, and ones cooperating ating with us. In the long-term perspective, we want Rent a with other suppliers and independent garages. Car to become a separate business and Inter Cars Group to lead the market of those services in Poland. We assume this will give us the opportunity to develop our business in new The everyday garage operations exchanged by the garages for the The garages which decide to establish segments, including B2B or road assistance, or in the area of generate various types of waste, with Premia Cash loyalty programme (a direct cooperation with Inter Cars and comprehensive services for insurers. a significant part hazardous to the card enabling them to collect funds for sign an agreement with BIO SERVICE environment. This could include waste buying parts via Inter Cars). We have receive a special container with a cover We plan to cooperate with 120 garages at the end of 2018, oil, oil and air filters, brake fluids and also launched a collection of waste tyres for collecting waste batteries, handling using approx. 1,200 cars. Among the garages joining the Rent anti-freeze liquids, pressure containers, from garages who buy new tyres from and removal of full containers directly a Car programme, we implement the procedures required detergents, plastic components, waste Inter Cars. from the garage. After a full container to handle those services, and also internal vehicle booking fluorescent lamps and electronic de- has been collected, they receive a Waste system. We expect that the courtesy car network will have Additionally, we repair and clean oil sep- vices, batteries. Some of the generated Transfer Note, confirming the waste was grown to 1,600 at the end of 2019, and the one of cooperat- arators and sedimentation tanks. We waste can be recycled and recovered. disposed of legally. ing garages to at least 200. Moreover, our goal is to achieve also offer the rental of working clothes approx. 15% share in the Polish assistance market by 2020. BIO SERVICE provides the garage own- for garage owners with the option of We wish to offer the garages the cut- At the consecutive development phase, we intend to actively ers with access to specialists in the field clothing laundry, maintenance, collec- ting-edge standards of waste manage- enter the market of car rental to consumers. The develop- of environmental protection, supports tion and delivery. In the near future ment services which is why BIO SERVICE ment of Rent a Car services will be accompanied by active them during the required formalities we plan to start collection of catalytic uses the specialised Inter Cars logistics search for opportunities to implement car sharing services related to waste management, provides converters, DPFs and lambda probes. for that purpose. An example of a that will complement the business model related to vehicle containers for waste collection and service which can be bought by garages The programme is managed via a dedi- rental, basing on garages cooperating with Inter Cars Group. organises removal with a specialised by the agency of ILS is the collection of cated BS BIO online platform where the tank trucks for oil as well as rigid trucks waste oil. Thanks to investment in the car rental area, we wish to BIO SERVICE programme participant with a lift for transporting other garage ensure the garages access to courtesy cars for affordable communicates with logistic operators, A kilogram of waste oil is enough for waste. Moreover, contrary to other prices, and also to create the opportunity to generate extra service providers and Inter Cars. 5 million litres of water to be considered companies offering these services, BIO margin for the cooperating garages. The target customers undrinkable. SERVICE helps to prepare the basic doc- Furthermore, to encourage the high- will have access to the courtesy cars for affordable prices uments related to waste management. est number of garages to dispose of Among 350 thousand tonnes of waste and also to the cars for hire in the future. This is why we initi- waste combined with simultaneous mineral lubrication oil is used every year, ate the required activities today to ensure the future position An initiative offered within the BIO development of Inter Cars network, we one half is constituted of engine oils. This of Inter Cars among key providers of such services in Poland. SERVICE development is the collection offer special waste management terms is why we offer our customers convenient of waste batteries which may be and conditions to our new partners. collection of that hazardous waste.
46 Environment Environment 47 Responsible Business in Inter Cars Group Responsible Business in Inter Cars Group
2015 582 t of scrap batteries 3 t of waste oil
Looking for efficiency at every step 2016 2,000 t of scrap batteries 435 t of waste oil At Inter Cars Group, we keep looking for new solutions to help increase the efficiency of our activities and optimise use of resources. An impor- tant milestone in this area is the development of the European Logistics 2,201 t of scrap batteries 483 t of waste oil and Development Centre in Zakroczym, the main distribution ware- house of Inter Cars Group. This enabled us to consolidate the space by 2017 10,472 t waste tyres opening a single central warehouse, increasing the logistics area and improving the efficiency by using cutting–edge sorters and warehouse systems. Consequently, the logistics operation costs — concerning long- [306-2] Waste by type and disposal method in Inter Cars Group companies term profitability — were optimised.
Inter Cars Group Inter Cars S.A. The ILS European Logistics and Develop- product logistics, including tyres, ment Centre, was opened in 2017. It co- batteries and oils. Thanks to the new Waste weight [Mg] Waste weight [Mg] Total weight of vers 15 ha, with a total warehouse area warehousing system, it will be possible hazardous and non- non-hazardous non-hazardous of 55,000 m2 and a convey or system 11 to deliver directly from suppliers to the hazardous waste by hazardous waste hazardous waste disposal method waste waste km long. This is the only warehouse in medium-sized warehouses, omitting the automotive sector in Europe, equip- central logistics. ped with numerous solutions promoting Reuse 0.05 0 0 0 We also keep looking for solutions environmental protection, besides aiming to increase energy-efficiency of building cost efficiency. Recycling 8,102.81 272,237.65 498.17 0.78 our facilities, e.g. LED system installa- Such components as energy-efficient tion, replacement of boilers with con- lighting system, smart heat control densing ones or modernisation of heat Composting 0 0 0 0 systems, cutting-edge sorters, water pumps to reach energy class A. treatment plant, optimised waste Recycling (including In connection with the recommen- 9.92 17.32 0 0 management or fully electronic ware- energy recovery) dations of the energy audit carried house operation documents make the Incineration out in 2017 (the audit according to 1,966.0 0.70 0 0 European Logistics and Development (or use as fuel) PLN-EN16247 standard covered Inter Centre in Zakroczym a benchmark Cars S.A. and ILS Sp. z o.o.), we plan Introduction into warehouse in Europe. Furthermore, 0 0 0 0 many additional modernisations in deep wells thanks to the expansion design, we can several locations. We know that 42–73% optimise many logistic processes which Landfill storage 61.07 4.20 0 0 of the total energy consumption is will remove some of the burden from spent on heating. Therefore, we plan to the warehouse workers and reduce install cutting-edge condensing boilers Plant storage 39.94 34.93 0 0 the number of errors during the goods' in Krakow and Rzeszów. We also wish release from the warehouse. to increase the efficiency of the heating Other 0 1.00 0 0 Inter Cars Group prepares to open system and heat exchangers due to three medium-sized logistic centres hydraulic balancing. Total 10,179.79 272,295.80 498.17 0.78 of key importance for optimising bulk
48 Environment Environment 49 Responsible Business in Inter Cars Group Responsible Business in Inter Cars Group
[302-1] Energy consumption within the organization [302-3] Energy intensity
Feber
Energy intensity Values Unit
Total consumption of energy Denominator — total energy from non-renewable sources Values (MWh) 1067 MWh (own or purchased) by source type consumption (GJ, MWh)
Divider — net sale of prod- 65,581,600 PLN coal 0 ucts and services for 2017
Energy intensity ratio 499 PLN/pc. natural gas 74,941.64
fuel oil 674,062.60 Lauber
Energy diesel oil 556,119.58 intensity Values Unit
Denominator — total energy 267.705 MWh Total consumption 1,305,123.82 consumption (GJ, MWh)
Divider — Total number of employees — as of 133 people 22 December 2017
Energy intensity ratio 2.01 MWh/person Total energy consumption produced Values (MWh) internally or purchased, including:
electricity 15,596.29 [302-4] Reduction of energy consumption
heat (including steam consumption, Feber 3,636.23 cooling energy consumption) Activities towards Amount of reductions in energy consumption achieved energy conservation as a result of conservation initiatives (GJ/MWh) Total consumption 19,180.89 Replacement of traditional fluorescent lamps with 1.16 LED ones
Replacement of transformer 4.19 welders with inverter ones Total energy consumption
in the organization 1,324,304.71 MWh Total 5.35 based on the formula
50 Environment Environment 51 Responsible Business in Inter Cars Group Responsible Business in Inter Cars Group
Opinions of external stakeholders
To develop the report and the corpo- porate involvement in young people's Among the most serious challenges About the report rate responsibility strategy of Inter Cars education. which the company needs to face, the Group, we carried out three dialogue stakeholders indicated obtaining and The most important expectations of sessions with 28 representatives of retaining qualified workers. Particular stakeholders vis-a-vis the activities our key stakeholders, i.e. business and attention was also paid to the need to in the corporate social responsibility social partners, media, local authorities continue cooperation with local techni- — approach to area include strategic and group-wide and institutions. cal school graduates in the region and approach to performing tasks in the ensuring attractive, satisfactory employ- Stakeholders who participated in the responsible business area, transparent ment in local companies for them. dialogue sessions perceive Inter Cars and detailed communication of their content definition Group as a responsible company de- results and continued dialogue, as well serving the title of a leader creating high as responding to the needs of particular [102-43, 102-44, 102-46, 102-47, 102-50, 102-52, 102-53, 103-1, 101, 102-56, 103-3] standards on the market and stress cor- stakeholders' groups. We have the pleasure of presenting the first corporate responsibility report of Inter Cars Group, for 2017. The document was prepared based Final aspects on the international reporting standard for non-financial data, i.e. Global Reporting Initiative (GRI Standards). The themes identified via the survey and dialogue sessions were verified and made more precise during workshops with the managers. The following list of final problems was then created.
The document was developed in wise. In the period covered within the considered the expectations of the rep- accordance with the regulatory require- report, no significant changes related to resentatives of key internal and external ments on disclosing non-financial infor- the size, structure, ownership form or stakeholders in the corporate social re- Aspects of the area: Aspects of the area: mation, imposed on the public interest delivery chain were reported. sponsibility area by means of employee entities by the amended Accounting Act. surveys and dialogue sessions. MARKET PEOPLE Determining the content, we analysed Inter Cars Capital Group was covered e.g. press publications in the reported (important inside and outside (important inside with the regulatory obligation on the period, topics covered by internal the organization) the organization) consolidated level. communication, current business The report describes Inter Cars Group strategy of the Group, as well as topics • Increased availability of products and services, • Attracting and retaining young talents activities from 1 January to 31 Decem- important in non-financial reporting for B2C development • Internal communication, transparency ber 2017, unless it is indicated other- the automotive sector. Moreover, we • Readiness for market changes and business • Facilitating cooperation with people of differing development; tracing trends and innovations competences • Expansion on international markets (Inter Cars Group Opinions of our employees • Creating opportunities for learning and development as a market maker) (ability to trace trends and innovative solutions) • Entrepreneurship enhancement (supporting local enter- Employee surveys were filled in by 236 The most important topics for achieving • Enhancing innovation (building internal innovative prise in their business development, planning succession, workers from 15 countries where Inter business objectives of the company, ac- ecosystem) Cars Group is present. As many as 81% cording to Inter Cars Group employees, practical business skills) • Supporting energy, passion and pro-active attitudes of respondents were employees and were improvement of customer service • Ensuring top customer service quality co-workers of Inter Cars or a subsid- quality (70%), human capital develop- • Facing age diversity and generation changes • Adopting quality standards for branches/garages iary. Only 19% of surveys were filled ment and talent management (64%), in by employees and co-workers of development of innovative products Inter Cars Group Distributors and the and services (62%), organizational cul- Aspects of the area: Aspects of the area: Distributors themselves. ture based on values and ethics (36%), retaining current and employing new As illustrated by the survey, the Group DELIVERY CHAIN SOCIETY employees (34%), responsible delivery representatives believe that the compa- (important inside and outside (important inside and outside chain management (31%) as well as ny is successful in the area of corporate the organization) the organization) transparent and responsible communi- social responsibility, though there are cation on products and services (31%). some themes and areas requiring more • Waste removal • Employee involvement in social initiatives attention. According to respondents, the essence of responsible business is • Increased product efficiency • Partner and customer involvement in social initiatives primarily about care of employees. • Logistic efficiency
• Supplier relations management 52 About the report About the report 53 Responsible Business in Inter Cars Group Responsible Business in Inter Cars Group
The above final problems translated directly into the reported GRI content index GRI topics, included in the GRI Content Index. In the report, we described in detail all key topics, presenting both the approach Core compliance option (Core) to managing them, and the indexes corresponding to them. [102-54, 102-55] The significance assessment is reviewed regularly (annually) within the internal verification process. Required on Included in Index no. Indicator title CORE level the report? Report page The numerical data in the report comes from internal re- porting systems. All of them were verified before publication. Nonetheless, we did not use support of an external auditor. Reporting concept and basis
For more information on our relationships with stakeholders, see the "Who we are" chapter. 101 Reporting concept and basis CORE 52
The report does not omit any information on the expected events or matters being the subject of pending negotiations due Profile indicators to their adverse impact on the market situation of the entity.
Organization profile Please send any questions related to this report to:
102-1 Organization name CORE 5
102-2 Activities, brands, products and/or services CORE 12
102-3 Location of headquarters CORE 5
102-4 Location of operations CORE 5
102-5 Ownership and legal form CORE 5
102-6 Markets served CORE 4
Aleksandra Pawłowska 102-7 Scale of the organization CORE 13 • Head Office Manager [email protected] • 102-8 Information on employees and other workers CORE 34 • landline: +48 22 714 19 16
102-9 Supply chain description CORE 28
Significant changes to the organization (ownership size, 102-10 CORE n/a structure, form) and its supply chain in the report period
102-11 Precautionary principle or approach CORE 16
102-12 External initiatives CORE 26
102-13 Membership of associations CORE 26
54 About the report GRI content index 55 Responsible Business in Inter Cars Group Responsible Business in Inter Cars Group
Required on Included in Required on Included in Index no. Indicator title CORE level the report? Report page Index no. Indicator title CORE level the report? Report page
Strategy 102-50 Reporting period CORE 52
102-14 Statement from senior decision-maker CORE 3 102-51 Date of most recent report CORE n/a
Ethics and integrity 102-52 Reporting cycle CORE 52
102-16 Values, principles, standards and norms of behaviour CORE 30 102-53 Contact point for questions regarding the report CORE 52
Claims or report prepared in accordance with the Governance 102-54 CORE 55 GRI Standards in the Core or Comprehensive option
102-18 Governance structure CORE 7, 10 102-55 GRI content Index CORE 55
Stakeholder engagement 102-56 External assurance CORE 52
102-40 List of stakeholder CORE 19 Management Approach
102-41 Collective bargaining agreements CORE 35 103-1 Explanation of the material topic and its boundary CORE 52
102-42 Identifying and selecting stakeholders with whom to engage CORE 19 103-2 The management approach and its components CORE 17
102-43 Approach to stakeholder engagement CORE 26, 52 103-3 Evaluation of the management approach CORE 52
102-44 Key topics and concerns raised CORE 52 THEMATIC INDICATORS
Reporting Practice Economic indicators:
102-45 Entities included in the consolidated financial statements CORE 7 Economic results
Direct economic value generated and distributed (included 102-46 Defining report content and topic boundaries CORE 52 revenues, operating expenses, payroll, donations and other 201-1 23 investments for the community, non-distributed profits and 102-47 List of material topics CORE 52 reimbursements to capital owners and government institutions)
Restatements of information (e.g. mergers, acquisitions, Market presence 102-48 change of a year base period, activity type, measurement CORE n/a methods) Ratio of standard entry level wage by gender compared to 202-1 36 local minimum wage 102-49 Changes in reporting CORE n/a Percentage of local community representatives on higher 202-2 22 management positions
56 GRI content index GRI content index 57 Responsible Business in Inter Cars Group Responsible Business in Inter Cars Group
Inter Cars S.A. Group, pursuant to the amended Accounting Act, is subject to the reporting obligation on an consolidated level. Required on Included in The policies, procedures and results related to the business activity, presented in this report, refer to the whole Group unless Index no. Indicator title CORE level the report? Report page it is indicated otherwise.
Anti-corruption Requirements of the Accounting Act related to non-financial data disclosure 205-3 Confirmed incidents of corruption and actions taken 32
Business model description Who we are Our business model Distortion of competition
Legal actions for anti-competitive behaviour, anti-trust and Risk management 206-1 25 monopoly practices Description of managing risks Who we are identified as material What is our approach to risk Environmental topics: management in Inter Cars Group
What it means to work at Inter Cars Energy Description of policies, due diligence procedures and results related to Workplace Hire and retain the best 302-1 Energy consumption within the organization, incl. source type 50 the entity operations with respect to employee topics Autostrada Rozwoju 302-3 Energy intensity 51 (Development Highway)
Description of policies, due diligence 302-4 Reduction of energy intensity 51 procedures and results related to Environment the entity operations with respect to environment topics Sewage and waste Description of policies, due diligence procedures and results related to Workplace What it means to work at Inter Cars 306-2 Waste by type and disposal method 48 the entity operations with respect to anti-corruption topics
Description of policies, due diligence Social topics: procedures and results related to the entity operations with respect to Employment human rights topics Workplace What it means to work at Inter Cars The human rights are defined by us as the right to protect privacy, freedom 401-1 New employee hires and employee turnover 35 from humiliating practices, right to non-discrimination
Training and education Description of policies, due diligence procedures and results related to Workplace Our social involvement the entity operations with respect to 404-1 Average hours of training per year per employee 42 social topics
Ratio of employees receiving regular performance and career 404-3 40 development reviews, by gender and employment category
Non-discrimination Glossary
406-1 Incidents of discrimination and corrective actions taken 33 • Inter Cars S.A. Capital Group — Inter Cars Group, Group • Inter Cars S.A. — Inter Cars
58 GRI content index 59 Responsible Business in Inter Cars Group
www.intercars.com.pl