Annual report Contents 2012Multi-technology in a global market
Key figures 2
Letter to shareholders 4 The audio report, consolidated financial statements, management report and leadership corporate governance report for 2012 are all available for download at the development R&Dguaranteemore Identity and commitments 8 excellence guarantee quality service company´s website: powermanagementleader International footprint 10 vision design new industry design managecomfort www.cieautomotive.com/inversores/index.php growthmanagemetexcelllence success leader guarantee Global organisational structure 12 safetysafety autosales visionexcellence power service growth success leadershipcomfort guarantee guaranteemore 2012 in review 14 leadershipdevelopment R&D design design successsafety excellence guarantee quality service automotive leadership innovation excellence ingeniería industry new quality leader excellence new Key milestones in 2012 17 excellence management service
annual report 2012 more power vision comfort engineering design new industry design manage lea d le comfort er ader engineering service design managemetexcelllence future growth sales leader guarantee auto success record auto R&D
safety development Business performance 18 sales sales mangementengine comfort R&D more power excellence service leader quality safety more visión success automotive leadershipcomfort crecimiento guarantee vision design Quality 27 safety automotive leadership management design innovation excellence R&D successingeniería industry quality automotive new excellence new more power development sales excellence service engineering more comfort engineering lea design d le er ader R&D 30 engineering auto service safety future managementsales auto record vision managementdesing development R&D sales engine comfort R&D more leader more power engineering quality service more CIE Automotive comfort automotive R&D Professionals 36 auto investigación liderazgo vision service mission leader Coordination, content, design y production: quality leadership comfort safety R&D future management excellence excellence aautomotive auto development guarantee excellence DQ Asociados. Photos: CIE Automotive archive. qualitysales more power leadeguaranteer excellence sales leader development record engine service Sustainability 40 auto engineering service engineering safety design growth engineering vision managementdesing sales sucess automotive comfortmore power service engineering management service Corporate governance 44 R&D leader success liderazgo R&D auto investigación sales leader service mission vision research qualityengine lead safety er quality leadership quality engine comfort excellence safety research calidadfuture mission excellence manage auto development guarantee excellence comfort sales design development leader leadeguaranteer excellence safety power leader record engine service Share price performance in 2012 54 service engineering engineeringexcellence design growth management R&D engineering engineering leader comfort power service salessales innovation sucess management automotive engine excellence vision development design R&D leaderservice success comfort Directory 58 vision leader safety research qualityengine quality engine research comfort mission manage managementsuccess design development more auto comfortsafety power servicio guarantee power managementengineeringexcellence safety design power R&D engineering quality innovation engine excellenceinnovation vision development design leader comfort success safety managementinnovaciónmore auto guarantee power mission safetysafety design excellencequalityleader Annual report
2012Multi-technology in a global market
leadershipdevelopmentguaranteeR&D more excellence guarantee quality service managementleader power vision new industry design managecomfort growthmanagemetdesignexcelllence leader guarantee success safety autosales excellence safetypower service visión success leadershipcomfort crecimiento guarantee design safety automotive leadership design innovation excellence successingeniería industry new quality excellence new excellence more service comfort engineering lea design d le er ader engineering service future managementsales auto record development R&D sales engine comfort R&D more leader quality vision automotive more aautomotivemanagement R&D safetyauto engineeringmore power development sales vision managementdesing
comfortmore power service engineering R&D auto investigación liderazgo service mission leader quality leadership comfort excellence safety calidadfuture excellence auto development guarantee excellence sales leadeguaranteer excellence leader record engine service service engineering design growth engineering leader salessales sucess management automotive R&D leaderservice success quality vision leader safety research qualityengine engine mission research comfort development manage comfortsafetydesign power servicio managementengineeringexcellence power R&D engineering engine excellenceinnovation vision development design comfort success managementinnovaciónmore auto safetysafety guarantee power design excellencequalityleader Annual report Contents 2012Multi-technology in a global market
Key figures 2
Letter to shareholders 4 The audio report, consolidated financial statements, management report and leadership corporate governance report for 2012 are all available for download at the development R&Dguaranteemore Identity and commitments 8 excellence guarantee quality service company´s website: powermanagementleader International footprint 10 vision design new industry design managecomfort www.cieautomotive.com/inversores/index.php growthmanagemetexcelllence success leader guarantee Global organisational structure 12 safetysafety autosales visionexcellence power service growth success leadershipcomfort guarantee guaranteemore 2012 in review 14 leadershipdevelopment R&D design design successsafety excellence guarantee quality service automotive leadership innovation excellence ingeniería industry new quality leader excellence new Key milestones in 2012 17 excellence management service
annual report 2012 more power vision comfort engineering design new industry design manage lea d le comfort er ader engineering service design managemetexcelllence future growth sales leader guarantee auto success record auto R&D
safety development Business performance 18 sales sales mangementengine comfort R&D more power excellence service leader quality safety more visión success automotive leadershipcomfort crecimiento guarantee vision design Quality 27 safety automotive leadership management design innovation excellence R&D successingeniería industry quality automotive new excellence new more power development sales excellence service engineering more comfort engineering lea design d le er ader R&D 30 engineering auto service safety future managementsales auto record vision managementdesing development R&D sales engine comfort R&D more leader more power engineering quality service more CIE Automotive comfort automotive R&D Professionals 36 auto investigación liderazgo vision service mission leader Coordination, content, design y production: quality leadership comfort safety R&D future management excellence excellence aautomotive auto development guarantee excellence DQ Asociados. Photos: CIE Automotive archive. qualitysales more power leadeguaranteer excellence sales leader development record engine service Sustainability 40 auto engineering service engineering safety design growth engineering vision managementdesing sales sucess automotive comfortmore power service engineering management service Corporate governance 44 R&D leader success liderazgo R&D auto investigación sales leader service mission vision research qualityengine lead safety er quality leadership quality engine comfort excellence safety research calidadfuture mission excellence manage auto development guarantee excellence comfort sales design development leader leadeguaranteer excellence safety power leader record engine service Share price performance in 2012 54 service engineering engineeringexcellence design growth management R&D engineering engineering leader comfort power service salessales innovation sucess management automotive engine excellence vision development design R&D leaderservice success comfort Directory 58 vision leader safety research qualityengine quality engine research comfort mission manage managementsuccess design development more auto comfortsafety power servicio guarantee power managementengineeringexcellence safety design power R&D engineering quality innovation engine excellenceinnovation vision development design leader comfort success safety managementinnovaciónmore auto guarantee power mission safetysafety design excellencequalityleader
CIE Automotive Annual report 2012 3 Key figures Letter to shareholdersIdentity & Internationalcommitments Global footprint organisational 2012 in structurereviewKey milestonesBusiness in 2012 Qualityperformance R&D ProfessionalsSustainability Corporate Share governance price performanceDirectory in 2012
Key figures
Financial data *(€, millions)
2008 2009 2010 2011 2012 Revenue* 1,455.3 1,149.0 1,591.1 1,839.7 1,645.7 EBITDA* 180.6 116.4 193.9 234.1 224.1 EBIT* 103.7 52.7 112.1 144.9 141.4 Net profit* 53.8 11. 1 41.4 60.6 61.0 Earnings per share (€) 0.47 0.10 0.37 0.54 0.57 Equity* 254.8 289.1 354.1 525.5 507.8 Employees 13,333 11,991 12,352 14,335 16,284
Stock market data (at 31/12/2012)
Number of shares Share price (€ per share) Market capitalisation (€) 114,000,000 5.20 592,800,000 4 CIE Automotive Annual report 2012 CIE Automotive Annual report 2012 5 Key figures Letter to shareholdersIdentity & Internationalcommitments Global footprint organisational 2012 in structurereviewKey milestonesBusiness in 2012 Qualityperformance R&D ProfessionalsSustainability Corporate Sharegovernance price performanceDirectory in 2012
Letter to shareholders
Dear shareholder, production of forged crankshafts, one intact and continue to dovetail to Despite being marked by uncertainty of the Group’s highest-potential core perfection with the management, and change, 2012 was the year in products. quality, innovation and efficiency which CIE Automotive completed criteria that lie at the heart of CIE its best cycle of transformation (in We also acquired Century Plastic Automotive’s business. terms of scale and quality), having Ilc in the US last year. This deal has streamlined its structure to emerge as strategic value, thanks to the target’s We are offering the market better a unique sector player. ability to manufacture top quality products all the time and we are assemblies using plastic injection proud to say that we strive continually We have created an integrated moulding and thermal shaping to make sure they are the most organisation. Our procedures are technology, as well as great symbolic innovative out there. To this end we simple and robust. Our central value, giving CIE Automotive a have developed and will continue to structure has been pared back to the foothold in Detroit, the heart of the US develop strategic and global products minimum expression, minimising risk car industry and the gateway for new that satisfy the specific needs that while leveraging our best practices projects at our Mexican plants. the market is arduously demanding. and know-how across the firm globally. Product development that necessarily In line with our stated strategy, as in entails innovation. Thanks to our manufacturing flexibility, prior years we continued to increase the bedrock of the company’s our emerging market presence. Our CIE Automotive’s R&D effort focused management model, coupled with strategic priorities going forward on two fronts in 2012: (i) making our ability to adapt to an increasingly include India, Brazil, Mexico and vehicles lighter weight; and (ii) unpredictable environment, CIE Russia. We will leverage the strength cutting emissions, in line with the Automotive generated record net profit of the Group’s capital structure to sustainability values that dictate the of €61 million in 2012, despite a year- expand CIE Automotive’s presence in company’s industrial activity and with on-year decline in revenue of 7%. This these regions; indeed, M&A activity a view to reducing the environmental earnings performance provides fresh is part of our plans for delivering footprint of the Group’s manufacturing evidence of the virtues of our business continued business expansion, operations and products. strategy and the adaptive measures including double-digit earnings taken in 2012, which unlocked growth. This product strategy remains a key earnings growth in all business lines. driver of CIE Automotive’s business Growth was not the only driver of our growth. The forged crankshaft The Asian market continued to grow earnings momentum and quality in provides a great case study in global in 2012, accounting for 50% of global 2012: continual improvement across product leadership. The CIE Galfor production. China alone is expected our current portfolio of companies also plant, CIE Automotive’s global to make almost 19 million cars in played a role. Delivery of enhanced centre of excellence in crankshaft 2013. Eyeing these prospects, CIE profitability requires financially production, increased annual output Automotive achieved a dual objective efficient and productive factories first by one million parts to 3.2 million in with the acquisition of China’s and foremost. 2012. This means that one in every Nanjing Automotive Forging in 2012: five cars assembled in Europe last (i) consolidation of its presence in The fact is that the industry’s nuts and year is fitted with a part made at this one of the world’s fastest-growing bolts, the prevailing winds, despite factory and, by extension, a part made markets; and (ii) the start-up in Asia of the capricious environment, remain by CIE Automotive. 6 CIE Automotive Annual report 2012
In parallel, in Lithuania, CIE LT Forge, management and earnings momentum Management , having obtained official certification at our most recent – and best- quality for its first crankshaft, launched performing – business line: Dominion. quality, its debut line of forging presses This organisation focused strategically for production of this product. In on geographic expansion in 2012, innovation and addition, as already mentioned, the albeit exclusively on the higher-margin heart Group acquired Nanjing Forging in markets, underpinning revenue last China, and also started construction year of €139 million. Dominion has eficciency work at Forjas de Celaya in Mexico, emerged as CIE Automotive’s second the greenfield forged crankshaft largest earnings contributor, having criteria factory being built to cater to the contributed €15 million of adjusted that lie at the heart of CIE NAFTA market. EBITDA in 2012. Automotive’s business Another good example of the Group’s The start-up of operations in Peru, efficiency success in high-potential core products with the Lima-based business already in 2012 can be found in the electric reaching breakeven in 2012, setting steering field: the start-up of the the stage for reasonable growth in innovation CIE Matic plant in Mexico gave this 2013, and the presence cemented product family a global boost. in Brazil, following expansion in management Minas Gerais, Bahía and Sergipe, In terms of innovation, however, it consolidate our presence as global would be remiss not to highlight the player in this market.
The biofuel market continues to complement the Group’s heritage CIE Automotive Annual report 2012 7 Key figures Letter to shareholdersIdentity & Internationalcommitments Global footprint organisational 2012 in structurereviewKey milestonesBusiness in 2012 Qualityperformance R&D ProfessionalsSustainability Corporate Sharegovernance price performanceDirectory in 2012
automotive business. However, the mission is to build, shape and continue Automotive set the foundations challenging regulatory situation to expand the finest management for growth in the years to come, coupled with operating uncertainty team, prioritising the management and positioning the company ideally to means that the company intends to promotion of talent at every level. take advantage of the opportunities keep this business low profile for the afforded by the prevailing times. time being. Management plans to We are a global company with a continue to search for sustainable growth calling. We are financially In short, we are ready for whatever efficiency and productivity, focusing sound. Above all, we are a profitable the future holds. exclusively on the sale of biodiesel Group, even in times as challenging and its production from recycled oils. as these.
Having said all of this, here at CIE we Presence, growth, efficiency, financial are well aware that neither the best strength and innovation are the products, nor the most intricate and factors that set CIE Automotive apart astute business strategy nor the most and enable consistent delivery of the Antón Pradera Jesús María Herrera compelling businesses are possible targets we set ourselves. Chairman CEO without people. Thanks to the approach taken on Our team of HR experts is crucial quality, innovation, cost-cutting and to integrating the executives at the the provision of worldwide service companies acquired by the Group from global platforms, in 2012 CIE into the CIE Automotive culture. Their 8 CIE Automotive Annual report 2012
Identity and commitments
Mission Vision
We are an international industrial group We aim to be a benchmark industrial group specialised in managing high value-added specialised in managing high value-added processes: processes. • We have applied this concept so as to become We aim to be: a supplier of components and subassemblies • A benchmark for quality, technology, design to the global automotive market, using and procurement. complementary technologies and a range of • Excellent in management. associated processes. • An exemplary sustainable business. • We apply this concept to management in general, with an integrated vision of all phases of the value chain in industries with Values attractive long-term growth prospects, such as biofuels and information and communications Orientation towards internal and external technology. customers with a service-based attitude. We are growing steadily and profitably with Respect for people, their initiative, creativity, the aim of becoming a benchmark partner by innovativeness, participation and teamwork. meeting our customers’ needs through innovative, Capacity to attain goals and create value. competitive, end-to-end high value-added Positive attitude to change and continuous solutions. improvement. We seek excellence through the following Responsibility and integrity, and a commitment to commitments: a job well done. • Continuous improvement of processes and efficient management. • Encouraging participation, involvement and motivated teamwork in a pleasant, safe work environment. • Transparency and integrity in everything we do. • Environmental respect. CIE Automotive Annual report 2012 9 Key figures Letter to shareholdersIdentity & Internationalcommitments Global footprint organisational 2012 in structurereviewKey milestonesBusiness in 2012 Qualityperformance R&D ProfessionalsSustainability Corporate Share governance price performanceDirectory in 2012 10 CIE Automotive Annual report 2012
International footprint
NAFTA Head office Sales-technical office MEXICO Technology centre R&D: 1 centre Dominion: 8 offices CIE Automotive plant Aluminium: 1 plant RS Automotive plant Machining: 2 plants US Biofuels Metal work: 5 plants Sales: 1 office Dominion Plastics: 1 plant Plastics: 2 plants RS Automotive: 1 plant
AMERICAS 9,826 8,521 727.6 704.8
2 011 2012 2 011 2012 Employees Revenue (€, millions)
CENTRAL AMERICA SOUTH AMERICA GUATEMALA BRAZIL CHILE Bionor: 1 plant R&D: 1 centre Dominion: 1 office Forging: 1 plant Casting: 1 plant PERU Machining: 2 plants Dominion: 1 office Metal work: 3 plants Plastics: 4 plants Dominion: 3 offices CIE Automotive Annual report 2012 11 Key figures Letter to shareholdersIdentity & Internationalcommitments Global footprint organisational 2012 in structurereviewKey milestonesBusiness in 2012 Qualityperformance R&D ProfessionalsSustainability Corporate Share governance price performanceDirectory in 2012
CENTRAL AND EASTERN EUROPE AFRICA CZECH REPUBLIC ROMANIA MOROCCO Machining: 3 plants Aluminium: 1 plant Plastics: 1 plant Metal work: 2 plants RS Automotive: 1 plant
Plastics: 1 plant RUSSIA ASIA LITHUANIA Machining: 1 plant CHINA Forging: 1 plant Metal work: 1 plant Machining: 1 plant Plastics: 2 plants Metal work: 1 plant DAC: 1 plant Plastics: 1 plant Forging: 1 plant RS Automotive: 1 plant
EUROPE 1,093.9 5,626 908.4 4,992
2 011 2012 2 011 2012 Employees Revenue (€, millions)
ASIA 32.5 832 798 18.2
2 011 2012 2 011 2012 Employees Revenue (€, millions)
WESTERN EUROPE SPAIN PORTUGAL Headquarters: 1 office Bionor: 2 plants R&D: 1 centre R&D: 1 centre Dominion: 20 offices Plastics: 2 plants Aluminium: 4 plants Forging: 3 plants FRANCE GERMANY Machining: 12 plants Sales: 1 office Sales: 1 office Metal work: 3 plants Machining: 1 plant Plastics: 1 plant RS Automotive: 1 plant ITALY RS Automotive: 1 plant Sales: 1 office 12 CIE Automotive Annual report 2012
Global organisational structure
Mikel Barandiarán Greg Avsharian
Mark Simon
Iñigo Unzaga
Óscar González
Ignacio Martínez-Conde Barrasa
Fernando Mearim Alexandre Colomar Valdir Pereira Silva Xabier Sainz CIE Automotive Annual report 2012 13 Key figures Letter to shareholdersIdentity & Internationalcommitments Global footprint organisational 2012 in structurereviewKey milestonesBusiness in 2012 Qualityperformance R&D ProfessionalsSustainability Corporate Share governance price performanceDirectory in 2012
Antón Pradera Jesús Mª Herrera Ignacio Artázcoz Aitor Zazpe
Justino Unamuno
Ander Arenaza
Jaume Raventós
Vyacheslav Malev
Pan Xiaoyuan Amable Pedro Martínez-Conde Echegaray Barrasa 14 CIE Automotive Annual report 2012
2012 in review
Profitability, sustainability and future
CIE Automotive demonstrated in 2012 that its strategy and commitment to continued value creation, even in highly adverse economic circumstances, are unwavering, stable and sustainable. Underpinned by this steadfastness, in 2012 the company obtained net profit of €61 million, year-on-year growth of 0.7%.
The greater significance of this figure 2012 was marked by the ongoing same philosophy of rigour and lies with the implication that CIE slump in vehicle production in certain solemnity. Automotive has been able to adapt, markets and a slowdown in the defend its competitiveness and the markets that had been driving growth The management improvements sustainability of its business in a until now, such as Brazil, during the and productivity gains achieved in complex economic environment, first half of the year. CIE Automotive all business units drove earnings boosting margins in all regions thanks proved capable of reacting swiftly to equilibrium all year long, marked by to values such as management the adverse market circumstances, notable momentum in Europe and excellence and the flexibility of the streamlining its production and Mexico and breakeven in Asia. In Group’s multi-technology model, setting the foundations for its new the second half of the year, when despite the fact that revenue was business plan with a view to tackling net profit rose by 11% year-on-year, lower than in prior years. the next five-year period with the revenue regained traction, ending the CIE Automotive Annual report 2012 15 Key figures Letter to shareholdersIdentity & Internationalcommitments Global footprint organisational 2012 in structurereviewKey milestonesBusiness in 2012 Qualityperformance R&D ProfessionalsSustainability Corporate Share governance price performanceDirectory in 2012
17 countriesAt year-end CIE Automotive´s footprint At year-end in Europe, extended to 17 countries in Europe, CIE Automotive Americas and Asia the Americas and Asia
year at €1.65 billion, while EBITDA amounted to €132.1 million, remained The Group’s Brazilian subsidiary also amounted to €224.1 million. in the double digits, at 10.1%. signed a joint venture agreement with China’s Donghua Automotive CIE Automotive’s growth trajectory and Industrial in 2012, giving Autometal an profit expansion continue therefore at The Group was active on the equity interest in Nanjing Automotive a double-digit pace, reaching optimal M&A front in 2012 Forging Co. Ltd. The main purpose of volume and EBITDA levels in 2012 that Last year CIE Automotive extended agreement is to develop and make left record net profits. the growth strategy initiated in 2011, automotive parts using stamp forging underpinned by a healthy opening and complementary technologies and, position, reduced leverage and a cash particularly, to develop and make Automotive: high asset balance of around €500 million. crankshafts, a product in which the returns Group has built an extensive track Despite the topline contraction, Spurred by a proactive margin record at its European facilities. CIE Automotive defended its expansion policy and a decisive EBITDA margin year-on-year in commitment to bringing new Lastly, CIE Automotive is in the its core business line. Revenue, companies into the fold, the Group midst of developing a greenfield hot which suffered the whims of completed several acquisitions in the forging plant in Mexico that will a market in which production course of 2012. also specialise in the manufacture performances remained uneven of forged crankshafts, in response to across CIE Automotive’s operating Through its subsidiary Autometal, strong global demand for this product markets, totalled €1.31 billion in the S.A., CIE Automotive acquired family, particularly in the NAFTA automotive business, while EBITDA a controlling interest in Century market, and leveraging the scarcity of amounted to €207 million. Plastics llc in the US. This target is suppliers. located in Detroit, the heart of the Thanks to the management and US automotive industry. It makes The commitment is to start mass productivity enhancements rolled car parts using plastic injection production of crankshafts at the new out throughout the year, the margin moulding and thermal shaping factory in August 2014, to which end implied by EBIT for the year, which technology. plant construction will begin in the 16 CIE Automotive Annual report 2012
The Group in figures earnings (€ millions) Dominion quality continues to to surpasssurpass all expectations in terms of Revenue Dominionearnings quality and the 1,839.7
scale of the projects won and executed 1,645.7 1,591.1 1,455.3 1,277.6 scale 1,149.0
city of Celaya, where the Group has another three companies, in the first quarter of 2013. 2007 2008 2009 2010 2 011 2012
Biofuels: streamlining in search of profitability The regulatory uncertainty affecting this sector, shaped by successive changes in the rules for using and making biofuels, EBITDA prompted the Group’s decision to focus exclusively on the
production and sale of biodiesel made from recycled oils and to 234.1 224.1 abandon the manufacture of biofuels from virgin oils, including the 193.3 180.6
raw material (Jatropha curcas) plantation project. 157.4 116.4 Revenue in this division amounted to €198.9 million, while EBITDA totalled €3.9 million and net profit was €0.3 million.
Dominion: another year evidencing the fact that it is a 2007 2008 2009 2010 2 011 2012 profitable and sustainable business with a future In its second full year as a core component of the Group’s business operations, Dominion continued to demonstrate that it is a Net profit profitable business with a sustainable future and the potential to become a crucial part of CIE Automotive’s earnings configuration. 61.0 60.6 53.8
The positive trend sustained in 2011 continued throughout 2012: 50.7
revenue rose by 8.1%, with growth in Latin America offsetting the 41.4 slowdown in Spain. Particularly noteworthy was the performance in Brazil and the start-up of service provision in Peru. 11.1 Dominion’s earnings performance in 2012 continued to be marked by sustained growth, in line with that of prior years. The unit’s revenues of €139 million translated into growth of 37.8% in 2007 2008 2009 2010 2 011 2012 adjusted EBITDA to €15 million. CIE Automotive Annual report 2012 17 Key figures Letter to shareholdersIdentity & Internationalcommitments Global footprint organisational 2012 in structurereviewKey milestonesBusiness in 2012 Qualityperformance R&D ProfessionalsSustainability Corporate Share governance price performanceDirectory in 2012
Key milestones in 2012
Integration of Portugal’s Apolo Industrial and Century Plastics, Dominion executes its ‘Partial Blue, a company devoted to the respectively. re-equipping of Hospital Escuela, colour painting of plastic body Hospital San Felipe, Hospital parts. Project for the development and Mario Catarino Rivas, Hospital start-up of a greenfield hot forging Leonardo Martínez and Hospital Launch of the crankshaft plant in Celaya, Mexico. del Tórax for modernisation manufacturing line at CIE Galfor purposes’ project in Honduras. (Spain). Century Plastic chosen best supplier of the year by Chrysler. Autometal named best supplier in Launch of machined steering Brazil in 2012 by GM for its quality, system production at CIE Matic Autoforjas and Autometal Taubaté service, technology and pricing. (Mexico). start up new connecting rod production line for Volkswagen. Inauguration of the Weingarten line at CIE LT Forge (Lithuania). CIE Avtocom completes its first metal project in Russia. CIE Durametal (Brazil) acknowledged for its ‘Operational Dominion executes its Excellence in Logistics’ by ‘Technological upgrade of hydro- Mercedes. meteorological observation and civil protection equipment in CIE Gameko (Spain) awarded the Honduras’ project. National Workplace Health and Safety Trophy (DIPLOOS 2011 Dominion signs a mobile telephony prize) with honourable mention. maintenance agreement with Telefónica-Vivo (Brazil). CIE Plasfil and CIE Apolo Blue (Portugal) acknowledged by the Portuguese environmental authorities and the national employers’ association for best ISO 14001 practices.
CIE Automotive’s footprint in China and the US expanded with two joint ventures between Autometal and Donghua Automotive 18 CIE Automotive Annual report 2012
Business performance
Automotive Effectiveness and profitability in the market’s toughest year
The automotive market experienced were therefore shaped by a market one of its toughest years in recent that was virtually flat in Brazil, history in 2012, although the Group’s offset by buoyant growth in NAFTA, operating markets posted uneven particularly the US (production: +17%). performances. The Mexican operations experienced The European market contracted by strong growth, tapped new business 6% year-on-year in 2012. Despite opportunities and delivered very strong this, the Group’s results in this region margins, all of which easily offset the were excellent, with EBITDA at the adverse impact of the cancellation of a European plants increasing by almost sizeable order in the middle of 2011. 15% to optimum profitability levels for an adverse environment. Faced with this environment, CIE Automotive reacted by introducing Last year confirmed a trend that management and productivity CIE Automotive had been observing measures in all its markets which and reacting to: Russia and Asia drove substantial margin expansion, are rapidly emerging as the growth demonstrating the company’s ability to engines of the future. The Group tackle the prevailing economic turmoil has focused strategically on these and the virtues of its multi-technology regions, acquiring companies platform which, combined, are and implementing operational translating into sustained growth. improvements, with a view to building up a leadership position in these Despite the slump in revenue, the markets, emulating the strategy that company defended its double-digit has proven successful in Europe and EBITDA (15.8%) and net profit (10.1%) Latin America. margins, in line with 2011 levels. The automotive parts segment remains the CIE Automotive encountered the most backbone of the company’s business, unique environment in Latin America. delivering revenue of €1.31 billion and The situation in Brazil, one of the EBIT of €132.1 million in 2012. sector’s driving forces in recent years, became more challenging, hit hard by the significant decline in the truck- making market as well as various Production line streamlining delays and model switches by certain Last year management worked to fine- OEMs. The results of the Group’s tune and streamline work processes at subsidiary in the Americas, Autometal, all its plants. An analysis of the most CIE Automotive Annual report 2012 19 Key figures Letter to shareholdersIdentity & Internationalcommitments Global footprint organisational 2012 in structurereviewKey milestonesBusiness in 2012 Qualityperformance R&D ProfessionalsSustainability Corporate Sharegovernance price performanceDirectory in 2012
profitable processes and products expected to reach annual production Under the terms of the agreement, revealed which are sustainable and levels of one million units in 2013; Autometal has injected CNY140 where action needed to be taken. meanwhile these plants are beginning million (approximately €17 million) to supply other OEMs such as Honda of equity into Nanjing Automotive Certain plants in Europe started up with this product family. Forging Co. Ltd., giving it control new production lines. This was the over the Asian venture with a 50% case at CIE Galfor, which inaugurated shareholding. its fourth crankshaft production line in Growth in the fastest-growing December 2011. Having invested €7 regions In 2012 Nanjing Forging generated million, annual production increased In addition to the extensive factory revenue of around CNY290 million by one million parts to 3.2 million in fine-tuning work performed in 2012, (equivalent to €34 million) and EBITDA 2012, which meant that one in every the Group completed two acquisitions of CNY31.3 million (approximately five cars assembled in Europe last last year. Both deals were concluded €3.7 million). year carries inside a part made at by Autometal S.A. and both extend the this factory. CIE LT Forge, meanwhile, Group’s presence in two of the most The second transaction entailed having obtained official certification important and fast-growing regions: the acquisition, again by Autometal for its first crankshaft, launched its NAFTA and Asia. S.A., of US firm Century Plastic Ilc, a first Weingarten line last year. company devoted to the manufacture The first transaction entails a joint of top quality assemblies for the Measures were also taken at several venture with China’s Donghua automotive industry using plastic plants on the other side of the Atlantic Automotive Industrial Co. with the injection moulding technology. The in 2012. In Mexico, CIE Matic took the goal of developing and making Group acquired a 65% shareholding specialisation route, devoting itself to automotive parts using stamp forging for USD23.5 million (€18.7 million) the manufacture of steering systems, and complementary technologies. and the seller granted the buyer a call while CIE Autoforjas and Autometal The alliance is designed to deliver option on the remaining 35% interest. Taubaté, both in Brazil, began to enhanced crankshaft production. CIE mass produce connecting rods for Automotive’s track record in making Located in Detroit (Michigan), Century Volkswagen. This project dates this product has already made it the Plastic llc generated USD68.6 million back two years. Both companies are benchmark supplier in Europe. (equivalent to €53.3 million) of revenue
plant enhancement streamling management Management enhancement measures and plant streamlining enabled the Group to defend margins in 2012, despite the decline in margins revenue 20 CIE Automotive Annual report 2012
in 2012. This company specialises in finishings on plastic parts, marks an the production of interior vehicle parts important milestone and boost for the including central consoles, steering Western European plastic operations. columns and seats, among other products. Its core customers include The integration of CIE Apolo Blue, OEMs of the scale of General Motors, as well as adding a sizeable number Volkswagen, Chrysler, Nissan, Ford as of new customers, is allowing the well as Tier-1 suppliers such as Magna. Group to enhance the product range marketed to its own customers in this Lastly, CIE Apolo Blue was fully market thanks to the ability to offer the integrated into the Group in 2012. The direct provision of finishing services, Portuguese company, which is devoted thereby enhancing its relative market primarily to decorative surface positioning and differentiation.
The automotive unit in figures EBITDA (€ millions) 221.9 207.0 191 191 156 1,396.1 1,308.5 1,323 1,158 120 1,057 969
2007 2008 2009 2010 2 011 2012 2007 2008 2009 2010 2 011 2012
US and China acquisitionsThe Group´s solid cash position enabledcomfortably it to comfortably undertake acquisitions in the US and China solid cashposition CIE Automotive Annual report 2012 21 Key figures Letter to shareholdersIdentity & Internationalcommitments Global footprint organisational 2012 in structurereviewKey milestonesBusiness in 2012 Qualityperformance R&D ProfessionalsSustainability Corporate Share governance price performanceDirectory in 2012 22 CIE Automotive Annual report 2012
Technology
ForGING AluminiUM Country Plants Country Plants Spain 2 Spain 4 Czech Rep. 1 Romania 1 Lithuania 1 Mexico 1 Brazil 1 Employees 1,037 China 1 Employees 1,615 MACHINING STAMPING Country Plants Country Plants Spain 12 Spain 3 France 1 Czech Rep. 2 Czech Rep. 3 Mexico 5 Mexico 2 Brazil 3 Brazil 2 China 1 Russia 1 Russia 1 Employees 1,994 Employees 4,554 Roofing systems PlAstic Country Plants Country Plants Spain 1 Spain 1 France 1 Portugal 2 Romania 1 Czech Rep. 1 China 1 Brazil 4 Employees 444 Mexico 1 US 2 CASTING Morocco 1 Russia 1 Country Plants China 1 Brazil 1 Employees 3,386 Employees 532 CIE Automotive Annual report 2012 23 Key figures Letter to shareholdersIdentity & Internationalcommitments Global footprint organisational 2012 in structurereviewKey milestonesBusiness in 2012 Qualityperformance R&D ProfessionalsSustainability Corporate Share governance price performanceDirectory in 2012
Products
Engine and powertrain Exterior/interior trim Assemblies Assemblies
Central console Fluid management: oil and water pumps Cupholders Components of Components of Engines: crankshafts, crank-cases, engine- Exterior trim balancing shafts, cylinder head covers, Interior trim supports and common rail systems Cockpit subassemblies Gearboxes and differential gearboxes: Airbag casings and shafts Electrical connections Transmission Seatbelts Soundproofing Seats Anti-vibration Doors Fluid dynamics Convertible top kinetics
Chassis and steering ROOFING SYSTEMS Assemblies Components of
Complete rear axles Panoramic and convertible roofs Control arms Special windows Crossbeams Tinting systems Front-end Load maintenance systems Components of
Brakes Suspension Chassis Axles Front-end Steering Hubs, rings and king pins 24 CIE Automotive Annual report 2012
Dominion Earnings momentum beyond all expectation
2012 was the second year in which Dominion’s results were consolidated into those of the Group. Once again, Dominion posted earnings growth and surpassed the forecasts laid down in the merger plans. Dominion posted EBITDA growth of 37.8% to €15 million and revenue growth of 8.1% to €139 million.
These results ratify the company’s By region, Latin America reinforced in Andalusia, Aragon and the Canary strategic commitment to geographic its position as Dominion’s growth Islands. This is a fine example of expansion, with a focus on markets engine, accounting for 88% of the the versatility of the Dominion’s where its innovative offering overall contribution margin, with facility deployment and maintenance generates the highest margins. the remaining 12% generated by solutions which are also being applied projects in Spain, a market affected in the education, corporate and In addition, a titan effort to control by shrinking activity due to the healthcare fields, among others. expenditure and make all of the challenging economic situation. company’s processes more efficient, 2012 was also marked by the start- in line with CIE Automotive’s strategy Despite this adverse trading climate, up of operations in Peru, where the in all its businesses, have also it is worth highlighting the work business broke even in its first year of yielded rewards, making a significant performed for Spain’s ministry for operations, underpinning expectations contribution to margin expansion industry, specifically the development for reasonable growth in this market in and helping to create a culture of of a vehicle diagnosis solution for 2013. In Brazil, business expansion in efficiency that guides all of the the maintenance and repair work Minas Gerais, Bahía and Sergipe served company’s new initiatives. carried out at mechanic workshops to consolidate the position of Dominion CIE Automotive Annual report 2012 25 Key figures Letter to shareholdersIdentity & Internationalcommitments Global footprint organisational 2012 in structurereviewKey milestonesBusiness in 2012 Qualityperformance R&D ProfessionalsSustainability Corporate Share governance price performanceDirectory in 2012
and, by extension, CIE Automotive, importance of this project in a field Latin88% America as one of the players to watch in this in which Dominion has built up a contribution market. Combined IT service revenue in significant track record across several bolsters its position Brazil and Peru surpassed that of Spain counties, this initiative enabled the as margin for the first time. introduction into Honduras of the end- Dominion’s to-end hospital pharmacy IT system growth engine, accounting Elsewhere, execution of the developed by Dominion, bolstering the “Technological upgrade of hydro- leadership position commanded by Dominion meteorological observation and civil this solution which currently manages for 88% of the protection equipment in Honduras” the dispensing over 9 million units of project, worth almost €20 million (as in-patient medicine and roughly 2.5 total contribution part of a 50%-owned consortium), medical prescriptions. consolidated Dominion’s leadership of margin inblosters this business the sustainability segment, where the Looking to 2013, the company plans growth engine firm is deeply specialised in water and to continue to expand geographically, line environmental issues, surveillance further increase its gross margins on and disaster prevention networks, each and every one of the projects meteorological radar networks and underway and complete the revamp Revenue environmental protection solutions. of its product offering in line with (€ millions) This expertise is underpinned by a the new paradigm in Spain. To do full range of proprietary solutions so, it intends to leverage drivers 139 developed entirely in-house by the such as technological vitality (by 128.5 Dominion team. continually fine-tuning and updating an innovative and customer-focused On the healthcare front, the project service offering), cost efficiency highlights of 2012 include completion (generating competitive advantages 2 011 2012 of the partial refitting of five of the via cost control) and its multi-location leading hospitals in Honduras, which approach (targeting the company’s EBITDA were equipped with cutting-edge various existing markets with a medical and clinical equipment. In universal offering adapted to the local 15.3 addition to the economic and strategic realities of each market). 11.1
2 011 2012 26 CIE Automotive Annual Report 2012
BIOFUELS Containing and streamlining costs and funds
The regulatory uncertainty affecting the sector, driven by continuous changes to regulations governing the use and manufacture of biofuels, Revenue biodiesel prompted CIE Automotive to (€ millions) discontinue last year the lines of recycled biofuel business that are not related to CIE Automotive the manufacture and sale of biodiesel 316.3 has decided to made from recycled oils. oils 198.9 focus its biofuel Both the plants and processes using virgin oil, including the business business exclusively on of developing the related raw 2 011 2012 biofuel material, namely jatropha, have been the production of discontinued, leaving intact only the oil recycling business lines. EBITDA biodiesel The Group remains committed to the biofuel business and is reinforcing from recycledproduction oils its strategic focus on the recycled oil 3.9 segment, which includes the collection 2.1 business of used oils as the main raw material for biodiesel manufacturing purposes. 2 011 2012 Revenue in the biofuel business amounted to €199 million in 2012 and left EBITDA of €3.9 million. CIE Automotive Annual report 2012 27 Key figures Letter to shareholdersIdentity & Internationalcommitments Global footprint organisational 2012 in structurereviewKey milestonesBusiness in 2012 Qualityperformance R&D ProfessionalsSustainability Corporate Sharegovernance price performanceDirectory in 2012
Quality
AVANZA QUALITY PROGRAM Triple certification, ever closer
The AVANZA program continues to evolve, building on 10 years of proven effectiveness and remaining true to the four cornerstones on which CIE Automotive’s quality strategy and pledge are firmly based: safety, training, systematic reviews and ongoing learning.
This crucial tool has, if anything, only increased in importance as a result of the challenges faced by CIE Automotive in 2012, when the company was forced to adapt its operations to a far more demanding environment without jeopardising in any way the renowned quality of the Group’s products and processes, which was once again acknowledged by customers and the market last year.
The program is similarly set to continual to play a vital role in the next five years by facilitating delivery of the Group’s “Triple Zero” objective: 28 CIE Automotive Annual report 2012
zero defects, zero accidents and zero a solid corporate culture shared by all unwavering commitment to certifying contamination. of the Group’s human capital. all its plants under the most stringent ISO and OHSAS standards, which From its new perch as part of the Once again in 2012 both systems attest to its process effectiveness, Corporate Network, in 2012 the drove further improvement in optimum plant management and groundwork was laid for enabling performance indicators across all the product and service quality. Triple delivery of sustained and uniform Group’s plants. The metrics measuring certification of all its facilities standard of quality across all and tracking customer service, is ever closer, guaranteeing the operating divisions in light of emerging defective part rates (PPMs) and claims highest standards of quality in terms challenges with a view to guaranteeing all continued their downward descent of management, production and quality excellence at the factory level. in search of the Group’s new “Triple workplace safety. Zero” goal, which will ultimately To this end, CIE Automotive’s quality bolster its already excellent customer officers will focus on coordinating satisfaction levels. all the departments with quality- related duties at each of the factories, The Group’s quality excellence evaluating the areas for improvement, was once again acknowledged by underpinned at all times by one of its customers last year: Mercedes CIE’s legacy values: the transfer of awarded CIE Durametal (Brazil) its best practices in order to help facilities prize for ‘Operational Excellence in encountering difficulties. Logistics’; GM named Autometal (Brazil) best supplier of 2012 for This reinvigorated spirit of constant its quality, service, technology and progress is simply the natural pricing; Chrysler named Century evolution of what CIE Automotive Plastics ‘Supplier of the Year’; CIE has been working on for more than Gameko (Spain) was awarded the a decade, underpinned as ever by National Workplace Health and Safety the improvement systems already Trophy (DIPLOOS 2011 prize) with embedded into the Group’s corporate honourable mention; and CIE Plasfil culture. and CIE Apolo Blue (Portugal) were both acknowledged by the Portuguese The 5 S’s and CONCOR initiatives environmental authorities and the are improving and will continue national business owners’ association to fine-tune the Group’s processes for best ISO 14001 practices. by engaging its finest asset - its professionals - in problem-solving. By These standards and accolades are extension, these tools help to cement similarly the result of CIE Automotive’s zero defects target Plants applicable Certified plants Certification rate
ISO/TS 46 46 100% zero accidents ISO14001 46 40 87%
OHSAS 46 12 26% CIE Automotive Annual report 2012 29 Key figures Letter to shareholdersIdentity & Internationalcommitments Global footprint organisational 2012 in structurereviewKey milestonesBusiness in 2012 Qualityperformance R&D ProfessionalsSustainability Corporate Sharegovernance price performanceDirectory in 2012
zero defects quality targetThe new qualityzero management contamination target is known as zero“Triple accidents Zero”: zero defects, zero accidents and Triplezero Zero contamination 30 CIE Automotive Annual report 2012
R&D
Profitable and sustainable innovation
2012 was a year of transition in terms of European R&D strategy, marked by the end of the Seventh Framework Programme, FP7, and the start of Horizon 2020. H2020 is a pan-European strategy with a triple objective: a 20% reduction in greenhouse gas emissions; raising the share of energy consumption produced from renewable resources to 20%; and a 20% reduction in primary energy consumption.
To meet these targets, the European international R&D forums, notable developments, positioning it as a first- Commission has enacted legislation among which is its participation class technology player in the global that has a direct impact on the in organisms such as Innobasque, playing field. automotive sector. Some of these Centro de Ecodiseño, CDTI, CLEPA, regulations are designed to stimulate EFFRA and ERTRAC, as well as on In 2012 CIE Automotive reacted to the investment in vehicle manufacturing panels tackling strategic definition emerging regulatory developments technology in order to reduce and implementation of the multi-year and the challenges presented by emissions in manufacturing processes, programmes associated with H2020. H2020 by focusing its R&D effort on curtail the environmental impact three core areas: of vehicles throughout their entire In 2012 the Group earmarked 2.2% life cycles and encourage the reuse of revenue to the research and of automotive waste at the end of development work underway with Ecodesign - The Group has vehicles’ useful lives, among other national and international consortia developed strategies to promote initiatives. alongside leading OEMs, technology the efficient use of resources and centres and universities. This active cost savings. To this end, it is CIE Automotive continues to have a and meaningful presence continually working on the entire life cycle of voice in various regional, national and adds to the Group’s know-how and its products and on the end-to-end
transition 20122012 was a year of transitionR&D Seventh Framework Programme in termsFP7 of European R&D strategy, marked by Europeanthe end of the R&D Seventh Framework strategy Programme, FP7, and the start of HorizonHorizon 2020 2020 CIE Automotive Annual report 2012 31 Key figures Letter to shareholdersIdentity & Internationalcommitments Global footprint organisational 2012 in structurereviewKey milestonesBusiness in 2012 Qualityperformance R&D ProfessionalsSustainability Corporate Sharegovernance price performanceDirectory in 2012 32 CIE Automotive Annual report 2012
value chain, focusing particularly Smart factories - The new on the use of alternative materials market paradigm is requiring to those currently employed in manufacturers to redesign their order to make the parts supplied productive facilities to cater to lighter. Lighter parts and vehicles demand for increasingly tighter mean fewer carbon emissions. innovation cycles and more In parallel, the Group continues specialised products with ever- to pay close attention to meeting shorter life cycles. Systems need the mechanical, aesthetic and to be increasingly flexible and financial requirements demanded customisable in order to remain by its customers. sufficiently competitive. To this end, CIE Automotive is working on Energy efficiency - Work was the “Connected Factory” concept ongoing on analysing the energy by integrating information and of revenue efficiency of the productive communication technology, such 2.2% facilities of the Group’s plants, as wireless networks and mobile mainly those that consume electric handset-activated sensors and power and gas to generate the controls, into manufacturing temperature needed to transform processes in order to streamline, raw materials. This work was manage and enhance productive focused primarily on evaluating processes. the facilities’ actual versus theoretical consumption, analysing the opportunities for reducing consumption, recovering energy and lowering contaminating emissions, while also studying how to enhance the real-time capture of consumption parameters. CIE Automotive Annual report 2012 33 Key figures Letter to shareholdersIdentity & Internationalcommitments Global footprint organisational 2012 in structurereviewKey milestonesBusiness in 2012 Qualityperformance R&D ProfessionalsSustainability Corporate Sharegovernance price performanceDirectory in 2012
2.2%of revenue each year CIE Automotive earmarks 2.2% of revenue to its R&D effort each year, setting it apartcompetitors from its competitors setting it apart CIE Automotive 34 CIE Automotive Annual report 2012 CIE Automotive Annual report 2012 35 Key figures Letter to shareholdersIdentity & Internationalcommitments Global footprint organisational 2012 in structurereviewKey milestonesBusiness in 2012 Qualityperformance R&D ProfessionalsSustainability Corporate Share governance price performanceDirectory in 2012
Sustainable approach compartment. Its development The air quality management The new European regulations also depended crucially on aluminium system, PRO-AER require part suppliers to become smelting, precision machining, more committed to and involved forging and assembly, precisely CIE The water quality monitoring and in strategies to reduce passenger Automotive’s strong suits. management system, PRO-URA vehicle emissions and energy consumption in general. As a result, In the areas of competitiveness This suite of solutions was largely CIE Automotive has focused its and the customisation of various supported by Dominion’s research innovation effort primarily on engine automotive functions, the Group into meteorological instruments, fuel /oil management, reducing the developed innovative propositions systems and data with a view to size and weight of the parts it makes, covering metal, forging, aluminium, generating reliable weather and which means reducing the amount machining, plastic and smelting ocean related readings. and weight of the raw materials used technologies, while working in to make them, development of the parallel on panoramic roofing, solar This project, backed by the regional electric engine and improved noise- protection for vehicle occupants and Basque government, carried out in proofing and thermal insulation. boot loading safety features. collaboration with the local university (specifically the engineering schools Under the umbrella of CIE Innovation at the heart of of Bilbao and Vitoria-Gasteiz), the Automotive’s R&D programme, in Dominion’s business Vicomtech-IK4 research centre 2012 the Group also carried out Innovation is one of the cornerstones and KEA-WEB, paved the way for projects in the electric and hybrid of Dominion’s business and one of creation on an online environmental car field, mainly related to active and its key success drivers. The most surveillance system that enables passive security and energy storage tangible materialisation of this pledge the provision in ASP (application and management. is the existence since 2004 of a service provider) format of air quality dedicated innovation corporate unit, monitoring services. The Etorgai E-Vito (E-Cell) project, Dominion R&D, which spearheads and carried out by a consortium of 10 manages the company’s participation Last year Dominion spearheaded Basque automotive players, stands in innovative projects in collaboration development of two ongoing projects out in this arena. The project with other companies, prestigious focused on enhanced weather consisted of the development of a research centres and Spanish and forecasting tools. Simultaneously, in sample electric vehicle based on international universities. collaboration with the biology and the Mercedes-Benz Vito, which environmental sciences faculty of is currently made in Vitoria. CIE This effort to systematically develop Leon University and the Vicomtech- Automotive contributed the electric innovative solutions has resulted in IK4 research centre, the company is equipment, which it developed in the development of the products at the developing an initiative centred on conjunction with the UK’s Evo Electric, heart of the various projects executed advanced civil protection systems demonstrating the advantages by Dominion in the course of 2012: and is participating, along with other afforded by the electric engine automotive sector players, in two relative to its internal combustion The climate and meteorological projects aimed at driving efficiency in counterpart in terms of space and management platform, PRO- industrial processes. weight requirements in the engine METEO 36 CIE Automotive Annual Report 2012 CIE Automotive Annual report 2012 37 Key figures Letter to shareholdersIdentity & Internationalcommitments Global footprint organisational 2012 in structurereviewKey milestonesBusiness in 2012 Qualityperformance R&D ProfessionalsSustainability Corporate Sharegovernance price performanceDirectory in 2012
Professionals
Growth and success driver
CIE Automotive is aware of the need for continuous learning to ensure it can count on the most highly qualified professionals, ready to adapt to new processes and technological requirements. To this end, the company provides its workforce with all the tools necessary to continually upgrade their skills and knowledge, underpinned by the company’s values, aligned with the organisation’s strategic goals.
The Professional Development of the organisation and its people. CIE CIE Automotive’s business activity Program is the company’s instrument Automotive’s training and development means that workplace health and for bringing together all the tools effort is complemented with recruiting safety must lie at the heart of and opportunities for professional and career development programs everything it does. Accordingly, the in- development and lies at the heart of targeted at young graduates with a house audit department continued to the HR management model which desire to work abroad. audit the workplace risk management is the basis for defining worker skill systems in each and every one of the profiles, evaluating executive, middle The Group believes that its human Group’s facilities, underpinned by management and technical job capital is a key component of its management’s conviction that, beyond performance, identifying areas for strategy and an essential part of its mere legal requirements, these improvement and designing career business success. Aware of their programs enable a comprehensive development and training programs. significance, it is respectful and evaluation of the company’s overall supportive of their individual and effectiveness and performance. Throughout the year work continued collective rights, in compliance with on development of the training prevailing labour legislation in each of The Group demands these same courses programmed by the its operating markets. CIE Automotive standards of workplace safety concern Management Learning Centre. Training takes a proactive stance to creating a and care of its suppliers. Throughout course content ranged from finance workplace environment that prioritises 2012 it continued to pay special to workplace accident prevention, stable and cordial labour-management attention to the coordination of all quality and executive development. relations. the contractors and subcontractors In all cases participation and student working at its facilities, requiring engagement reached very high levels. Occupational heath and them to comply with the same risk safety prevention standards as are required CIE Automotive’s training model is As is customary at the company and of any CIE Automotive professional. continually evolving thanks course indeed vital in the manufacturing evaluation and feedback processes. sector, the training and accident During the past year the work Some time after taking the course, prevention efforts made by the Group started in prior years on designing a participants apply the knowledge on the workplace health and safety framework health and safety system acquired in their respective areas front were once again significant in for all plants made steady progress. of competence, performing several 2012. Priority training areas included This process entails participation by exercises to check the correct safety and ergonomics, the idea being CIE Automotive workforce health and application of the concepts taught. to ensure high levels of knowledge at safety officers in training initiatives This ensures that training is the middle management level at all for OHSAS 18001 auditors and continually aligned with the real needs plants. the development of an accident 38 CIE Automotive Annual report 2012
prevention management system participated in a number of workplace based on this standard. safety conventions and seminars in 2012, including the Seminar on In the course of 2012, all CIE Group Implementing Workplace Safety plants established and implemented an Practices Abroad at ADEGI, which was annual risk prevention plan. The results organised in conjunction with Orona. reveal a high level of across-the- board compliance with the corrective Internal communication actions flagged to bring down CIE Automotive uses a number 26% workplace accident rates and with the of internal communications tools preventative measures in place (fire designed to transmit not only news and drills, emergency plans, etc.). significant events, but also to convey a plants shared corporate culture predicated on This in turn drove a fresh reduction common values and targets. in the number of accidents at Group plants and an increase in the number These tools include employee of OSHAS certified plants. Twelve satisfaction surveys, which ensure plants are currently certified under that the company’s management keeps this standard which attests to the its finger on the pulse in terms of the high standards of safety in place at all on-the-ground results of the policies CIE Automotive work centres where implemented in a broad range of areas significant progress has also been such as training, remuneration, career made on standardising and certifying development and corporate image, plant equipment and machinery. among others, and the CIE Automotive intranet, which remains a key support CIE Automotive is also present on the tool for the internal communications leading workplace safety associations function. Lastly, CIE Automotive’s and forums. It is a member of the bi-annual in-house magazine, Noticias, Occupational Health and Safety reflects the main newsworthy items Forum of Guipuzcoa (ADEGI) and affecting the company, with a special the Occupational Health and Safety focus on training, new processes and Committee of the Alava business technology, as well as the Group’s owners’ association, SEA. It also ongoing international expansion.
implementedCIE Automotive implemented2012 a workplace health andworkplace safety plan at each and every one of its plants in 2012 health and safetyplan CIE Automotive Annual report 2012 39 Key figures Letter to shareholdersIdentity & Internationalcommitments Global footprint organisational 2012 in structurereviewKey milestonesBusiness in 2012 Qualityperformance R&D ProfessionalsSustainability Corporate Share governance price performanceDirectory in 2012
TheOSHAS-certified number of OSHAS-certified 26%plants increased once again in 2012 to reach plants26% of all Group facilities increased in 2012
Workforce
2006 8,762 2007 12,577 2008 13,333 2009 11,991 2010 12,352 2011 14,335 2012 16,284
Men 80.2% Women 19.8%
Geographic breakdown:
Europe 5,626 America 9,826 Asia 832 40 CIE Automotive Annual report 2012
effective commitment
Sustainability
CIE Automotive, champion of Basque ecodesign
The environment has emerged as a core strategic differentiating factor when it comes to placing value-added products and services in an increasingly saturated market. Ecodesign means enhanced competitiveness, energy savings and environmental benefits by reducing the manufacturing and consumer goods industries’ environmental footprint. The growing cost of raw materials and fossil fuels is making more efficient resource management increasingly imperative.
CIE Automotive, in its capacity as Sustainable development indeed into everything it does, cutting-edge developer of sustainable leader seeking out rational growth balanced processes and products and through CIE Automotive, as a group specialised with commitment to society and the its other business lines such as in the management of high value- environment. Dominion and biofuels, works to added industrial processes, using a improve various aspects of its unique business model underpinned CIE Automotive’s business activities environmental performance, increase by a multi-technology approach and a imply a commitment to surmounting workplace health and safety and presence in the world’s main emerging the challenges posed by the need support community work in the most markets, builds efficient procedures for sustainable vehicles, not only underprivileged areas. into its productive processes and by making environmentally-friendly CIE Automotive Annual report 2012 41 Key figures Letter to shareholdersIdentity & Internationalcommitments Global footprint organisational 2012 in structurereviewKey milestonesBusiness in 2012 Qualityperformance R&D ProfessionalsSustainability Corporate Share governance price performanceDirectory in 2012
procedures effectiveCIE Automotive has built effective proceduresrational into its production processes and productioneverything processes it does in search of rational growth combined with commitmentgrowth to the surrounding community and environment commitmentsurrounding community and environment
engines and fuels as an alternative and machining time, both of which with the goal of creating a sample to those run on fossil fuels, but also have been reduced substantially. electric vehicle based on the responding to the need to rationalise Other aspects of the process have also Mercedes Benz Vito, which is currently the resources used to make their been modified, including the use of made in Vitoria, and showcasing the parts, ensure that these parts are environmentally-friendly lubricants for regional automotive suppliers’ ability recyclable and sustainable in terms stamping and the reduction of waste to develop new skills and know-how of both use and design and facilitate such as coolant, cleaning wastewater in order to tackle the looming vehicle services that contribute to creating and scrap metal. electrification challenges. a society that is more committed to the responsible use of its limited The proposed new process cuts The project demonstrated the huge resources. machining time by 63% with respect advantages afforded by the electric to the current process, generating engine relative to its internal Several initiatives were carried 27% fewer environmental impacts combustion counterpart in terms of out with this in mind in 2012. For (the environmental impact is 80% space and weight requirements in the example, the “Hot forging” project lower versus the traditional complete engine compartment. To the extent which is aimed at developing a filling system), while repairing the that the weight and space required by semi-automated process for repairing stamp analysed using the proposed today’s batteries are reduced in the forging tools in order to make the new process reduces greenhouse gas future, this new form of propulsion process more sustainable by reducing emissions by 25%. offers major opportunities not only for resource consumption and shortening cutting greenhouse gas emissions and repair times. This new process is more 2012 was also marked by completion fossil fuel consumption requirements sustainable in environmental terms of the Etorgai E-Vito (E-Cell) project, but also in terms of scope for as this process’s key environmental developed as part of a consortium of enhancing vehicle comfort and exterior impacts relate to energy consumption ten Basque automotive companies design possibilities. 42 CIE Automotive Annual report 2012
Efficient raw material and automotive and biodiesel businesses. As a result, the Group has set up a energy management The overriding goal is to minimise next-generation recycling system that CIE Automotive’s manufacturing the environmental ramifications of enables and maximises in-house reuse activity, by its very nature, entails the Group’s activities, specifically of the by-products of its manufacturing the consumption of large quantities rationalising the use of energy to the processes. Against this backdrop, in of energy and raw materials. As a extent possible and making greater 2012 the biofuel production process result, it has put in place resource use of materials that can be recycled. focused exclusively on production consumption management and control from recycled oils, further reinforcing systems that are managed using the Nevertheless, waste management the Group’s attempts to minimise its most stringent quality and efficiency is an inevitable consequence of CIE environmental impacts and to reuse procedures and metrics at both the Automotive’s business operations. resources in its industrial processes.
Sustainability indicators
GHG emissions Energy Electricity Water 333.84 0.1334 0.66 171.98 0.6 0.1131 254.2 114.78
Kwh/€K Kwh/€K Kwh/€K Kwh/€K MT/€K MT/€K m3/year/€K m3/year/€K 2 011 2012 2 011 2012 2 011 2 011 2012
Total The wide variety of technologies used by CIE makes it difficult, if not impossible, to find a single production unit that serves as a useful yardstick for its environmental performance.
This is why CIE Automotive uses the euro as the common denominator (stated in thousands). 1,663,688.00 1,587,760.02 This can lead to differences on account of the product mix and varying raw material-value added percentages.
The emission calculations include GHG emissions from indirect energy consumption (GRI scope 2), i.e., the emissions produced by our energy providers.
It is worth highlighting the fact that despite the decline in revenue, the Group’s sustainability
€K €K metrics continued to improve, indicating an increasingly efficient use of productive 2 011 2012 resources. CIE Automotive Annual report 2012 43 Key figures Letter to shareholdersIdentity & Internationalcommitments Global footprint organisational 2012 in structurereviewKey milestonesBusiness in 2012 Qualityperformance R&D ProfessionalsSustainability Corporate Share governance price performanceDirectory in 2012
Water, which is heavily used in the manufacture of parts requiring material processing at high temperatures, is managed in proprietary treatment and recovery facilities at CIE Automotive with a view to minimising wastewater. 44 CIE Automotive Annual report 2012 CIE Automotive Annual report 2012 45 Key figures Letter to shareholdersIdentity & Internationalcommitments Global footprint organisational 2012 in structurereviewKey milestonesBusiness in 2012 Qualityperformance R&D ProfessionalsSustainability Corporate Share governance price performanceDirectory in 2012
Corporate governance
The Board of Directors of CIE dated 17 March 2004. The full report by 114,000,000 shares with a Automotive, in a meeting held on is available on our corporate website nominal value of €0.25 each. At 31 27 February 2013, approved its 2012 (www.cieautomotive.com) which also December 2012, the free-float stood corporate governance report, as contains all the corporate and financial at 21.85% and the company’s market stipulated in article 116 of the Spanish information filed by the company with capitalisation was €592.8 million. Securities Act, as amended by Law the pertinent regulatory authorities. 26 dated 17 July 2003, a piece of The shareholders with significant legislation that is better known as the Share capital and direct or indirect interests in the Transparency Act, which was enacted shareholders company are the following: by Ministerial Order ECO/3722 of 26 CIE Automotive’s share capital December 2003 and CNMV Circular 1 amounts to €28,500,000 represented
Total shareholding (direct and indirect)
Nominal Shareholder Percentage Direct Indirect Total value of interest shareholding
Risteel Corporation, B.V.* 16,900,021 0 16,900,021 14.825% 4,225,005.25 Corporación Gestamp, S.L. 12,652,182 16,900,021 29,552,203 25.923% 7,388,050.75 Inversiones, Estrategia y Conocimiento Global CYP, S.L.** 9,734,650 0 9,734,650 8.539% 2,433,662.50 Antonio María Pradera Jáuregui 5,700,009 9,734,650 15,434,659 13.539% 3,858,664.75 Elidoza Promoción de Empresas, S.L 12,386,138 0 12,386,138 10.865% 3,096,534.50 Austral, B.V. 9,694,804 0 9,694,804 8.504% 2,423,701.00 Addvalia Capital, S.A. 5,778,509 0 5,778,509 5.069% 1,444,627.25 Compañia Andaluza de Rentas e Inversiones, S.A. 5,700,000 0 5,700,000 5.000% 1,425,000.00 Chairmark, S.A.R.L.*** 3,974,898 0 3,974,898 3.487% 993,724.50 Iberian Capital (GP) I LTD 0 3,974,898 3,974,898 3.487% 993,724.50
* Risteel Corporation is a company controlled by Corporación Gestamp, S.L. ** Inversiones, Estrategia y Conocimiento Global CYP is a company controlled by Antonio María Pradera Jauregui. *** Chairmark, S.A.R.L. is a company managed by Iberian Capital (GP) I LTD. 46 CIE Automotive Annual report 2012
The most significant movement in the company’s shareholder structure in 2012 was the reduction in QMC Development Capital Fund, PLC’s ownership interest to below 3%.
The members of the Board of Directors who hold voting shares in the company are:
Director Percentage interest
Antonio María Pradera Jauregui 13.539
Elidoza Promoción de Empresas, S.L. 10.865
Corporación Gestamp, S.L. 25.923
Austral, B.V. 8.504
Addvalia Capital, S.A. 5.069
Compañía Andaluza de Rentas e Inversiones, S.A. 5.000
Fermín del Río Sanz de Acedo 0.022
There are no legal restrictions on exercising voting rights or on the acquisition and/or transfer of shareholdings. No measure was approved at the general shareholders’ meeting with the aim of neutralising a hypothetical takeover bid.
At the Annual General Meeting held on 25 April 2012, the shareholders of CIE Automotive, S.A. ratified agenda motion seven, effectively granting the Board of Directors authorisation for the derivative acquisition of own shares, directly or through Group companies, in accordance with articles 146 and 509 of the Spanish Corporate Enterprises Act, superseding the authorisation granted at the Annual General Meeting of 29 April 2010, and the reduction of share capital in order to cancel own shares, delegating the required powers of execution in the Board. CIE Automotive Annual Report 2012 47 Key figures Letter to shareholdersIdentity & Internationalcommitments Global footprint organisational 2012 in structurereviewKey milestonesBusiness in 2012 Qualityperformance R&D ProfessionalsSustainability Corporate Share governance price performanceDirectory in 2012 48 CIE Automotive Annual Report 2012
Board of Directors one of which executive (the chairman), the Delegate Committee, Audit and The members of the company’s Board nine of which proprietary and two of Compliance Committee and the of Directors do not hold shares in other which external independent directors. Appointments and Compensation companies having identical, similar or The secretary and vice-secretary to the Committee. complementary activities to those of Board are not directors. the company and/or its Group. Note that Ignacio Martín San Vicente, Directors are appointed for a five- an external director of CIE Automotive, In 2012 CIE Automotive’s Board of year term, renewable thereafter. The resigned voluntarily from the Board of Directors was made up of 12 directors, Board is steered by three committees: Directors on 28 August 2012.
Antonio María Pradera Jáuregui - Chairman
Elidoza Promoción de Empresas, S.L., represented by Goizalde Egaña Garitagoitia - First Vice-Chairman
Addvalia Capital, S.A., represented by María Teresa Salegui Arbizu - Director
Austral, B.V., represented by Bernardino Díaz Andreu García - Director
Carlos Solchaga Catalán - Director
Compañía Andaluza de Rentas e Inversiones S.A. - Director
Corporación Gestamp, S.L., rrepresented by Francisco López Peña - Director
Fermín del Río Sanz de Acedo - Director
Francisco José Riberas Mera - Director
Juan María Riberas Mera - Director
QMC Directorships, S.L., represented by Jacobo Llanza Figueroa - Director
Ángel Ochoa Crespo - Director
Roberto José Alonso Ruiz - Secretary to the Board, non-member
José Ramón Berecibar Mutiozabal - Vice-Secretary to the Board, non-member CIE Automotive Annual Report 2012 49 Key figures Letter to shareholdersIdentity & Internationalcommitments Global footprint organisational 2012 in structurereviewKey milestonesBusiness in 2012 Qualityperformance R&D ProfessionalsSustainability Corporate Share governance price performanceDirectory in 2012
Delegate Committee Audit and Compliance Committee
Antonio María Pradera Jáuregui - Chairman Ángel Ochoa Crespo - Chairman
Elidoza Promoción de Empresas S.L. - Member Addvalia Capital S.A. - Member
Fermín del Río Sanz de Acedo - Member Austral, B.V. - Member
Francisco José Riberas Mera - Member Appointments and Compensation Committee
Carlos Solchaga Catalán - Chairman
Fermín del Río Sanz de Acedo - Member
Francisco José Riberas Mera - Member 50 CIE Automotive Annual report 2012
The Board of Directors appointed Director compensation, including are handled throughout the year by the Jesús María Herrera Barandiarán as salaries, attendance fees and all dedicated shareholder office. the company’s new CEO on 21 January classes of compensation accrued 2013, similarly appointing him to the during the year, amounted to CIE Automotive’s Annual General Delegate Committee. €4,300,000 in 2012. The company’s Meeting, held at first call on 25 April directors did not receive any 2012, was attended in person by Last year the Board of Directors met compensation whatsoever for 24 shareholders holding 89,983,432 six times, the Delegate Committee membership of the boards and/or shares, representing €22,495,858 of met on 10 occasions, while the Audit senior management teams of other share capital, equivalent to 78.93% Committee met five times and the Group companies. Total director of the total. A further 70 shareholders Appointments and Compensation compensation accounted for 7.1% of holding 1,447,064 shares, representing Committee met twice. profit attributable to equity holders of €361,766 of share capital, equivalent to the parent. 1.27% of the total, were represented The Board’s operations are governed by proxy. In all, including those present by a series of basic rules and The notes to the 2012 financial and duly represented, 94 shareholders regulations set out in the company’s statements include disclosures with holding 91,430,496 shares, bylaws and Board Regulations. Its respect to the material transactions representing €22,857,624 of share priority is to maximise the value among consolidated entities and capital, or 80.20%, were in attendance. of the company long term while related party balances with associates In all instances these figures refer to ensuring that business is conducted in and investees. All these transactions voting shares as all the company’s accordance with the business values form part of CIE Automotive’s shares carry identical voting rights. and ethics warranted of a responsible ordinary business activities and were corporate. Its main task is to supervise conducted on an arm’s length basis. The resolutions carried unanimously and control the company, delegating at the Annual General Meeting were the day-to-day management of the On the basis of the internal risk the following: company in its governing bodies and control plan and map drawn up by the management team. the company, priority initiatives 1. Examination and approval of have been defined for the mitigation the annual accounts of CIE Neither the Board Regulations nor the and, where possible, elimination of Automotive, S.A. and of its Internal Securities Market Code of the risks detected. This falls under consolidated Group and granting Conduct nor the Code of Professional the supervision of the Audit and of discharge to the Board of Conduct was modified in 2012. These Compliance Committee. Directors for 2011. documents contain the mechanisms established to detect and resolve Annual General Meeting 2. Approval of the proposed any possible conflicts of interest The Annual General Meeting, its distribution of profit for 2011. between the company and its Group, calling, quorums and resolution and/or its directors, management or ratification procedures are regulated 3. Establishment of the corporate significant shareholders, among other in CIE Automotive’s bylaws and in the website as the ‘electronic office’ stakeholders. General Meeting Regulations. for the purposes of article 11 bis of Spain’s Corporate Enterprises Act. CIE Automotive believes that the In order to encourage shareholder number of independent directors participation at the general meetings, 4. Amendment of articles 1 adequately reflects the company’s in addition to complying with legally (Name. Registered office), shareholder structure, particularly in stipulated requirements, the company 11 (Power to call a general relation to the current free-float. The uses its website to notify shareholders meeting), 12 (Call notice), 12 Board plans to put the appointment of of meeting-related information bis (Shareholders’ information new independent directors before its in addition to the traditional rights), 16 (Representation at shareholders in the event of significant communications channels. In addition, the General Meeting), 16 bis variations in the shareholder structure. shareholder queries and suggestions (Public proxy solicitations), 21 CIE Automotive Annual report 2012 51 Key figures Letter to shareholdersIdentity & Internationalcommitments Global footprint organisational 2012 in structurereviewKey milestonesBusiness in 2012 Qualityperformance R&D ProfessionalsSustainability Corporate Share governance price performanceDirectory in 2012
*(€, thousands)
To the interim dividend 9,847 To the final dividend 10,260 Total dividends 20,107 To voluntary reserves 16,944 Total profit attributable to owners of parent 37,051 Consolidated Group profit 60,577 52 CIE Automotive Annual report 2012
(Resolution ratification), 24 (Publicity of the resolutions) of with articles 146 and 509 (Director remuneration) and 26 the General Meeting Regulations, of the Spanish Corporate (Calling Board meetings) of the in order to adapt their wording Enterprises Act, superseding bylaws with a view to adapting to reflect the bylaw amendments the authorisation granted at the their content to the amendments dealt with in agenda item four. General Meeting of 29 April 2010, introduced by Spanish Law and the reduction of share capital 25/2011, of 1 August 2011, 6. Grant of authorisation to the to cancel own shares, delegating partially reforming the Corporate Board of Directors to increase powers for the execution thereof Enterprises Act and transposing share capital under the terms and in the Board of Directors. Directive 2007/36/EC, of the constraints stipulated in article European Parliament and of 297.1.b) of the Spanish Corporate 8. Special report on Director the Council of 11 July 2011, on Enterprises Act, including the Remuneration Policy for the exercise of certain rights of power to waive pre-emptive submission to the advisory vote shareholders of listed companies. subscription rights as provided of the company’s shareholders, in for in article 506 of the Corporate keeping with article 61.3 of the 5. Amendment of articles 6 (Call Enterprises Act. Spanish Securities Market Act. to the Annual General Meeting), 7 (Call notice), 8 (Information 7. Grant of authorisation to the 9. Delegation of powers to execute made available to shareholders), Board of Directors for the the aforementioned resolutions. 9 (Right to information prior to derivative acquisition of own the General Meeting), 13 (Public shares, directly or through 10. Approval of the minutes of the proxy solicitations) and 25 Group companies, in accordance meeting. CIE Automotive Annual report 2012 53 Key figures Letter to shareholdersIdentity & Internationalcommitments Global footprint organisational 2012 in structurereviewKey milestonesBusiness in 2012 Qualityperformance R&D ProfessionalsSustainability Corporate Share governance price performanceDirectory in 2012
Internal audit function Committee, thereby guaranteeing its The Internal Audit Department independence. provides reasonable assurance to the Board of Directors, the CEO This function is growing in importance and the senior executive team as year after year due to CIE Automotive’ to the effectiveness and efficiency international expansion and broader of its internal control over financial growth plans. The company’s reporting (ICFR) and risk management governing bodies prioritise the systems by carrying out its duties provision and disclosure to the market independently, guided by applicable of financial information of the utmost professional standards and rules, reliability, as well as continued with a view to helping to deliver the work on the development of fraud company’s general objectives. prevention tools.
The Internal Audit Department is located within the Group’s organisational structure. It reports to the Audit and Compliance 54 CIE Automotive Annual report 2012
Share price performance in 2012
Steady does it for CIE Automotive
CIE Automotive’s shares are listed on the continuous stock market in Spain. Despite being affected by the challenging securities market panorama in Spain, the company’s share price held largely steady in 2012, albeit trending a little lower. CIE Automotive Annual report 2012 55 Key figures Letter to shareholdersIdentity & Internationalcommitments Global footprint organisational 2012 in structurereviewKey milestonesBusiness in 2012 Qualityperformance R&D ProfessionalsSustainability Corporate Sharegovernance price performanceDirectory in 2012
Having started the year at €5.60 per share, the share price hit a high of €5.75 in the middle of the year. During the third quarter, the share price largely treaded water, albeit correcting slightly, going on to correct more substantially in the last quarter, dragged down by broader market developments, ending the year at €5.20.
Share price performance of CIE Automotive relative to the IGBM in 2012
120.00%
100.00%
80.00%
60.00%
40.00%
20.00%
0.00%
June 2012 January 2012 April 2012 September 2012 December 2012
CIE Automotive
Índice General de la Bolsa de Madrid (IGBM) 56 CIE Automotive Annual report 2012
Dividend payment
In keeping with the company’s announced dividend policy and the commitment made at the last shareholder meeting, underpinned by the company’s excellent earnings performance and the successful reinforcement of its capital structure, locking in the funding needed to finance its medium and long term growth plans, the Board of Directors has agreed to propose the payment of a dividend against 2012 earnings at the Annual General Meeting, thereby continuing to provide its shareholders with solid and sustainable remuneration.
At a meeting held in December 2012, the Board of Directors approved the payment of an interim dividend from 2012 profits of €0.09 per share (before withholding tax). This dividend was paid on 3 January 2013. CIE Automotive Annual report 2012 57 Key figures Letter to shareholdersIdentity & Internationalcommitments Global footprint organisational 2012 in structurereviewKey milestonesBusiness in 2012 Qualityperformance R&D ProfessionalsSustainability Corporate Sharegovernance price performanceDirectory in 2012 58 CIE Automotive Annual report 2012
T.M. Norma, S.A. CIE Plasty Cz S.R.O. Directory P.I. Itziar, Parcela H1, Prumyslová zóna Lesná 20829 Itziar-Deba (Guipúzcoa) 757 01 Valasské Mezirící Nova Recyd S.A.U. CIE Zdanice Cz s.r.o HEADQUARTERS Pol. Gojain, C/San Bartolomé 13 Nadrazni 418, 69632 Zdanice 01171 Legutiano (Álava) CIE Unitools Press Cz, a.s. CIE Automotive S.A. Orbelan Plásticos, S.A. Hranická 328, CZ 75701 Valasské Meziríci C/ Iparraguirre 34, 2º dcha. Ama Kandida 13, 20140 Andoain ROMANIA 48011 Bilbao (Vizcaya), España (Guipúzcoa) Matricon S.A. Recyde S.A. 155 Gheorghe Doja St. AUTOMOTIVE Pol. Ind. Pagatza s/n 3B 4300 Tirgu Mures 20600 Elgeta (Guipúzcoa) CIE Automotive S.A. ACS Romania, SRL Comp. de Dirección Recylan S.L. Edificio AIC, Parque Empresarial Boroa, Parcela 2ª-4 Strada Unirii 12 Parque Empresarial La Muga 1 48340 Amorebieta (Vizcaya), España 125200 Pogoanele 31160 Orkoyen (Navarra) Jud Buzau EUROPE Comp. de Automoción Recytec S.L. RUSSIA WESTERN EUROPE Pol. Ind. Goiain, C/ San Bartolomé 15 01171 Legutiano (Álava) GERMANY CIE-AVTOCOM, LLC Tarabusi S.A. 18, Azarovskaya street CIE Deutschland, GmbH Bº Urkizu 58, 48213 Igorre (Vizcaya) 248631, Kaluga Dresdner Strasse 1, D 34125 Kassel CIE Udalbide S.A. KINELAGROPLAST LTD. SPAIN Bº Lejarza 5, 48213 Izurza (Vizcaya) 16, ilmen str. 446430 Kinelt (Samara) Alcasting Legutiano, S.L.U. ACS Ibérica, S.L. Pol. Goiain, Zabaldea 2 Parque Tecnológico de Galicia, s/n AMERICA 01170 Legutiano (Álava) 32911 San Cibrão das Viñas (Orense) BRAZIL Alfa Deco S.A. FRANCE Autometal, S.A. Pol. Ind. Pagatza s/n CIE Compiègne SAS Av. Fagundes de Oliveira 1650, 20600 Elgeta (Guipúzcoa) 12 rue du Four Saint-Jacques CEP 09950-905 Diadema (Sao Paulo) Alurecy S.A. BP N 10359 60203 Compiègne Cédex Autoforjas, Ltda. Bº Torrezar s/n ACS France, SAS Av. Pref. Alberto Moura nº 900, 48410 Orozko (Vizcaya) 5-7 Rue Du Moulin Jacquet, BP 59 Distrito Industrial 35.702-383, Sete Lagoas (MG) Grupo Componentes Vilanova, S.L. 79302 Bressuire Cedex Autometal, S.A. filial Autoliner Ronda d´Europa 24 Rua Guaricica, 237 - Vila São José 08800 Vilanova i la Geltrú (Barcelona) PORTUGAL CEP 09950-905 Diadema (Sao Paulo) Egaña 2, S.L. Plasfil-Plástico da Figueira S.A. Autometal, S.A. filial Camaçari Pol. Okango s/n Zona Industrial da Gala, Lote 6 Av. Henry Ford 2000, 48240 Bérriz (Vizcaya) P 3081-852 Figueira da Foz Predio Autometal/Bairro Copec CIE Galfor S.A. APOLOBLUE TRATAMENTOS, LDA 4470-CEP–42810-900 Camaçari (Estado de Bahía) P.I. San Cibrao das Viñas, Calle 2, 3 Zona Industrial de Várzea, Lote 14 Autometal, S.A. filial Dias D’Ávila 32901 Orense Lugar de Casais – Adaes Av. Severino Vieira, S/N - Quadra 19 Gameko-Fabric. Componentes, S.A. 4750 Barcelos Pólo Empresarial Governador Cézar Borges Pol. Gojain, San Antolín, 6, CEP 42850-000 Dias D’Ávila (Bahía) 01171 Legutiano (Álava) CENTRAL AND EASTERN EUROPE Autometal, S.A. filial Taubaté Inyectametal, S.A. LITHUANIA Av. Eurico Ambrogi Santos, 2.100 C/ Arzubia 13, 48220 Abadiano, (Vizcaya) UAB CIE LT Forge Distrito Industrial de Piracangaguá CIE Legazpi, S.A. Stoties G.12, 4520 Marijampolé CEP 12042-010 Taubaté -S.P. - C/ Urola, 10, 20230 Legazpi (Guipúzcoa) Autometal, S.A. filial SBC Injecao CZECH REPUBLIC Mecanizados del Sur-Mecasur, S.A. Pintura e Cromacao de Plásticos, Ltda. Parque Industrial “Bahía de Cádiz” Calle A. CIE Joamar, s.r.o. Estr.Eiji Kikuti 300, CEP 09852-040 Manzana M1 Parcelas 1 y 2 Hranická 328, CZ 75701 Valasské Meziríci Sao Bernardo do Campo (Sao Paulo) El Puerto de Santa María (Cádiz) CIE Praga Louny Durametal, S.A. CIE Mecauto, S.A. Husova 552, Cz 440 40 Louny Av. Parque Norte II, 170, C/ Mendigorritxu nº 140, P.I. Júndiz CIE Metal Cz, s.r.o. Distrito Industrial Maracanaú / CE, 01015 Vitoria (Álava) Hranická 328, CZ 75701 Valasské Meziríci CEP: 61939-180 CIE Automotive Annual report 2012 59 Key figures Letter to shareholdersIdentity & Internationalcommitments Global footprint organisational 2012 in structurereviewKey milestonesBusiness in 2012 Qualityperformance R&D ProfessionalsSustainability Corporate Share governance price performanceDirectory in 2012
Jardim Sistemas Automotivos e BIOFUEL Madrid OFFICE Industriais, S.A. SPAIN C/ Josefa Valcárcel, 3-5 Waldemar Rigout, 105 Bairro: Sertaozinho, 28027 Madrid Bionor Transformación S.A. Maua, 09270 909 Sao Paulo Sevilla OFFICE Edificio AIC, Parque empresarial Boroa, Metalúrgia Nakayone, Ltda Parque Empresarial Nuevo Torneo parcela 2A, 4 Via Francisco Botti, 105 - Bairro Pinhal c/ Zoología s/n - Edificio Vilamar 1, Planta 4º - 48340 Amorebieta (Vizcaya) CEP 13315-000 Cabreúva - SP Módulo 15, 41015 Sevilla Biosur Transformación S.L. MEXICO MEXICO Pol. Ind. Nuevo Puerto, Parcela 52 y 53 CIE Celaya, S.A.P.I. de C.V. 21810 Palos de la Frontera LEÓN, GUANAJUATO OFFICE Avda. Norte 4-100, Col. Ciudad Ind. De Celaya VIA Operador Petrolífero S.L.U Emiliano Zapata 435 - Oficina 3 38010 Celaya (Guanajuato), Ama Kandida 13 , 20140 Andoain (Guipúzcoa) Zona Centro, C.P. 37000 Nugar S.A.P.I. de C.V. Bionor Berantevilla S.L.U. León, Guanajuato Plano regulador 8, col. Xocoyahulco Pol. La Coreanilla. Parc 9 MÉRIDA, YUCATÁN OFFICE Tlalnepantla Edo. De Mexico 54080 01218 Berantevilla (Alava) Calle 35 No. 501-E por 62 A y 62 Pintura, Estampado & Montaje, GAVE, S.L. Col. Centro S.A.P.I. de C.V. Pol. Ind. Las Fronteras-Nave 29 Mérida, Yucatán Carr. Celaya Salamanca km. 5, 28990 Torrejón de Velasco, Madrid HEAD OFFICE, MEXICO CITY Celaya, Guanajuato CP 38020 RESIGRAS, S.L. Diagonal 27 Pintura y Ensambles de México, Pol. Ind. Las Fronteras – Nave 29 Col. Del Valle, C.P. 03100 S.A. de C.V. 28990 Torrejón de Velasco, Madrid México D.F. Servidumbre de Paso #851 L-1 Col. RECICLADOS ECOLÓGICOS DE MONTERREY, NUEVO LÉON OFFICE Rural AG. Oriente SUR, Saltillo, Coahuila RESIDUOS S.L. Condominio Acero Monterrey CP 25016 Polígono Industrial “Finca Lacy II” Zaragoza Sur 1000- Oficina 107 Matic C/ Montadores, parcela P-13 Col. Centro, C.P. 64000 Carr. Celaya Salamanca km. 5, 03600 Elda (Alicante) Monterrey, Nuevo León Celaya, Guanajuato CP 38020 BIODIÉSEL MEDITERRáNEO S.L. PUEBLA OFFICE USA Polígono Industrial “Finca Lacy II” Av. Rosendo Márquez 23 - Local A-4 C/ Montadores, parcela P-13 CIE Automotive USA, Inc. Col. La Paz, C.P. 72160 03600 Elda (Alicante) 37705 Pembroke St. Puebla, Puebla Livonia, Mi. 48152 BRAZIL TIJUANA BAJA CALIFORNIA OFFICE Plaza Castro, Av. de las Américas 3999 - Oficina 102 CENTURY PLASTICS HOLDING Inc. Bioauto SP Indústria e Comércio de Fraccionamiento El Paraíso, C.P. 22440 50413 Utica Drive Biodiésel LTDA. Tijuana, Baja California Shelby Township MI 48315 Avda. Alvares Cabral, 680, VERACRUZ OFFICE parte Jardim Inamar ASIA Calle Orizaba #71 Int., 1 Col. Zaragoza, C.P. 91910 DIADEMA – São Paulo 09.981-030 CHINA Veracruz, Veracruz Bioauto MT Agroindustrial LTDA. CIE Automotive Parts (Shanghai) Rua Das Primaveras, 214N-sala 01 BRAZIL Co. LTD Nova Mutum - Mato Grosso - CEP:78.450-000 SÃO PAULO OFFICE NO.500 Shengxinnan Road, 9-10 plant Biojan-MG Agroindustrial LTDA. Rua João Colino,225 Nanxiang Town Rua Américo Soares, 670 - parte - Centro CEP: 06013-020 - Centro - Osasco - São Paulo Jiading District, 201800 Shanghai Janaúba - Minas Gerais - CEP: 39.440-000 ACS shanghai NOVA LIMA OFFICE 79 Dong Xin Road, Factory # 10 GUATEMALA Rua da Paisagem, 220 - Terreo Songjiang Industrial Zone Biocombustibles de Guatemala S.A. CEP: 34000-000 - Vila da Serra - Nova Lima - MG Songjiang District, 201613 Shanghai 17 Calle 10-31, zona 10, Guatemala C.A. BELO HORIZONTE-MINAS GERAIS OFFICE Avenida D. Pedro II, 3973 – Sala 401, Carlos Prates NANJING AUTOMOTIVE FORJING Co. Ltd DOMINION Xi Guang Guo Farm, Xixia District CEP.: 30710-010, Belo Horizonte – M.G Nanjing SPAIN PERU Barcelona OFFICE Avenida Santa Anita, 319 AFRICA C/ Las Moreras, 115 Chorrillos - Lima MOROCCO 08820 El Prat de Llobregat (Barcelona) CHILE CIE AUTOMOTIVE MAROC, SARL D´AU Bilbao OFFICE DOMINION LIMITADA HEAD OFFICE 4907263 Zone Franche D´Exportation de Tanger, C/ Rodríguez Arias, 6 Av. Apoquindo 5866 Ilot 15, Lot 15-5 - Boukhalef- Tanger 48008 Bilbao Las Condes, Santiago de Chile Annual report Contents 2012Multi-technology in a global market
Key figures 2
Letter to shareholders 4 The audio report, consolidated financial statements, management report and leadership corporate governance report for 2012 are all available for download at the development R&Dguaranteemore Identity and commitments 8 excellence guarantee quality service company´s website: powermanagementleader International footprint 10 vision design new industry design managecomfort www.cieautomotive.com/inversores/index.php growthmanagemetexcelllence success leader guarantee Global organisational structure 12 safetysafety autosales visionexcellence power service growth success leadershipcomfort guarantee guaranteemore 2012 in review 14 leadershipdevelopment R&D design design successsafety excellence guarantee quality service automotive leadership innovation excellence ingeniería industry new quality leader excellence new Key milestones in 2012 17 excellence management service
annual report 2012 more power vision comfort engineering design new industry design manage lea d le comfort er ader engineering service design managemetexcelllence future growth sales leader guarantee auto success record auto R&D
safety development Business performance 18 sales sales mangementengine comfort R&D more power excellence service leader quality safety more visión success automotive leadershipcomfort crecimiento guarantee vision design Quality 27 safety automotive leadership management design innovation excellence R&D successingeniería industry quality automotive new excellence new more power development sales excellence service engineering more comfort engineering lea design d le er ader R&D 30 engineering auto service safety future managementsales auto record vision managementdesing development R&D sales engine comfort R&D more leader more power engineering quality service more CIE Automotive comfort automotive R&D Professionals 36 auto investigación liderazgo vision service mission leader Coordination, content, design y production: quality leadership comfort safety R&D future management excellence excellence aautomotive auto development guarantee excellence DQ Asociados. Photos: CIE Automotive archive. qualitysales more power leadeguaranteer excellence sales leader development record engine service Sustainability 40 auto engineering service engineering safety design growth engineering vision managementdesing sales sucess automotive comfortmore power service engineering management service Corporate governance 44 R&D leader success liderazgo R&D auto investigación sales leader service mission vision research qualityengine lead safety er quality leadership quality engine comfort excellence safety research calidadfuture mission excellence manage auto development guarantee excellence comfort sales design development leader leadeguaranteer excellence safety power leader record engine service Share price performance in 2012 54 service engineering engineeringexcellence design growth management R&D engineering engineering leader comfort power service salessales innovation sucess management automotive engine excellence vision development design R&D leaderservice success comfort Directory 58 vision leader safety research qualityengine quality engine research comfort mission manage managementsuccess design development more auto comfortsafety power servicio guarantee power managementengineeringexcellence safety design power R&D engineering quality innovation engine excellenceinnovation vision development design leader comfort success safety managementinnovaciónmore auto guarantee power mission safetysafety design excellencequalityleader Annual report Contents 2012Multi-technology in a global market
Key figures 2
Letter to shareholders 4 The audio report, consolidated financial statements, management report and leadership corporate governance report for 2012 are all available for download at the development R&Dguaranteemore Identity and commitments 8 excellence guarantee quality service company´s website: powermanagementleader International footprint 10 vision design new industry design managecomfort www.cieautomotive.com/inversores/index.php growthmanagemetexcelllence success leader guarantee Global organisational structure 12 safetysafety autosales visionexcellence power service growth success leadershipcomfort guarantee guaranteemore 2012 in review 14 leadershipdevelopment R&D design design successsafety excellence guarantee quality service automotive leadership innovation excellence ingeniería industry new quality leader excellence new Key milestones in 2012 17 excellence management service
annual report 2012 more power vision comfort engineering design new industry design manage lea d le comfort er ader engineering service design managemetexcelllence future growth sales leader guarantee auto success record auto R&D
safety development Business performance 18 sales sales mangementengine comfort R&D more power excellence service leader quality safety more visión success automotive leadershipcomfort crecimiento guarantee vision design Quality 27 safety automotive leadership management design innovation excellence R&D successingeniería industry quality automotive new excellence new more power development sales excellence service engineering more comfort engineering lea design d le er ader R&D 30 engineering auto service safety future managementsales auto record vision managementdesing development R&D sales engine comfort R&D more leader more power engineering quality service more CIE Automotive comfort automotive R&D Professionals 36 auto investigación liderazgo vision service mission leader Coordination, content, design y production: quality leadership comfort safety R&D future management excellence excellence aautomotive auto development guarantee excellence DQ Asociados. Photos: CIE Automotive archive. qualitysales more power leadeguaranteer excellence sales leader development record engine service Sustainability 40 auto engineering service engineering safety design growth engineering vision managementdesing sales sucess automotive comfortmore power service engineering management service Corporate governance 44 R&D leader success liderazgo R&D auto investigación sales leader service mission vision research qualityengine lead safety er quality leadership quality engine comfort excellence safety research calidadfuture mission excellence manage auto development guarantee excellence comfort sales design development leader leadeguaranteer excellence safety power leader record engine service Share price performance in 2012 54 service engineering engineeringexcellence design growth management R&D engineering engineering leader comfort power service salessales innovation sucess management automotive engine excellence vision development design R&D leaderservice success comfort Directory 58 vision leader safety research qualityengine quality engine research comfort mission manage managementsuccess design development more auto comfortsafety power servicio guarantee power managementengineeringexcellence safety design power R&D engineering quality innovation engine excellenceinnovation vision development design leader comfort success safety managementinnovaciónmore auto guarantee power mission safetysafety design excellencequalityleader