Responsible Business in Inter Cars Group

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.

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