Wòá¹¥ĵIMPACT KIERREPORTč¥F www.solarisbus.com www.solarisbus.com Impact of Solaris Bus & Coach S.A. on the economy, society and the environment DIRECTION Knowledge Introduction to the impact analysis www.solarisbus.com 2 COMMON DIRECTION About Solaris Bus & Coach S.A. Solaris Bus & Coach S.A. is a Polish producer 3,000. The manufacture of public service of city, intercity and special buses, as well as vehicles began in 1996 and since then almost trolleybuses and trams boasting over 20 years 15,000 vehicles have left the factory gates of experience. When it started operation, and rolled out onto the streets of Solaris employed 36 people. However, the 32 countries worldwide. company’s staff has now expanded to over Bolechowo Murowana Goślina Head offi ce, bus, Maintenance coach and trolleybus Gdynia Established in 1996 assembly Olsztyn Average No. Established in 1996 of employees Average No. of in 2015: 157* employees in 2015: 1,400 Warszawa Poznań Sosnowiec Final assembly of trams Established in 2011 Average No. Środa Wielkopolska of employees in 2015: 229 2 production plants: Production of bus and trolleybus bodyframes Established in 1998 Production of steel * Employment data for the facility in bodyframes for trams Murowana Goślina includes people Established in 2010 employed in connection with contractual service obligations in Olsztyn, Gdynia, Sosnowiec and Warsaw. Average No. of employees in 2015: 514 people 3 Reasons behind Solaris’s decision to perform this impact analysis Company’s Building awareness of the Presenting the role the advantages integral role of the company company plays in the social resulting from in Poland (by using specifi c, and economic life of the measurable values) which region by showcasing the this study: helps develop relationships signifi cance of educational with: measures, as well as the • local communities, impact on the market environment the company • local and state has as a result of various authorities, acquisitions and investments • other companies and in the development of organizations. electromobility. Better understanding of Presenting specifi c, real values Creating a set of arguments crucial impacts, both positive for the effects of investments (specifi c, balanced and and negative, as well as a and other measures in the credible) in various topical broader view of the context areas of educational and sectors to communicate for making well-informed social commitment. with a variety of stakeholder business decisions and taking groups, such as customers, optimization measures within local and central authorities. current activities. 4 Selected fi gures from the past 20 years Dynamics of employment in Solaris Bus & Coach S.A. The average annual increase in employment over the course of 20 years amounted to 31%*. 2500 2284 2332 2206 2210 2232 2000 1966 1548 1500 1562 1098 1291 1000 1023 8 519 560 500 349 533 597 166 436 239 0 1996 2001 2006 2011 2015 * Data from the end of each respective year. Dynamics of exports by Solaris Bus & Coach S.A. The average annual increase in foreign sales over the course. of 15 years amounted to 29%*. 1200 1100 1000 1010 853 946 800 713 743 600 691 483 562 400 362 364 388 200 124 166 54 0 2001 2003 20052007 2009 2011 2013 2015 * Data from 1996-1999 is not included because of a lack of exports in those years. The substantial growth reported for 2000-2001 has not been included in calculations as it was deemed to be extreme. 5 DIRECTION Knowledge Introduction to the impact analysis www.solarisbus.com 6 COMMON DIRECTION Economic aspects Value of purchases (intermediate consumption) Raw materials and services from Polish suppliers prevail in the structure of Solaris 52.2% purchases, accounting for 52.2% of the overall value of purchases. That is 15 percentage points more than the norm for the sector of automotive vehicle, Polish suppliers trailer and semitrailer production, in the case of which domestic purchases constituted 37.5% of the total intermediate consumption in 2014. 47.8% Solaris purchases from Polish suppliers applied mainly to the following sections and divisions of the economy: vehicle, trailer and semitrailer production, professional and business services, warehousing and foreign suppliers transportation services, utilities and recycling services. 1.34 110 billion PLN* swimming pools that is the total value of raw which is the equivalent of the materials and services used construction costs of over 110 by Solaris in 2015 public swimming pools * 1 PLN = 0.23 EUR. 77 Economic aspects Gross value added** Value added is an important economic consumption. The bigger the share of value indicator. It measures the input of a company added in the fi nal product of a company, the into the production process of goods and bigger its creative input in the production services. process, and the bigger its contribution to the Gross Domestic Product. Gross value added can be calculated as the difference between output and intermediate Gross value added generated in Poland in 2015 by Solaris, broken down by impact categories: 330.6 548.3 291.4 Total value million PLN* million PLN* million PLN* added generated 1.17 by Solaris in 2015 bilion PLN* Direct Indirect Induced impacts impacts impacts It’s 2.5 times the annual state spending on teaching hospitals in Poland 1 PLN = 3.53 PLN The sum of all value added from all Each Polish złoty of gross added value business sectors plus taxes on products produced by Solaris generates a total of less subsidies on products equals gross 3.53 PLN in value added among suppliers domestic product (GDP). and other entities in the Polish economy. * 1 PLN = 0.23 EUR. ** Gross value added at basic prices. 8 Income By providing direct employment to its Solaris is among the top 5 percent of employees and creating indirect effects in organizations, offering the highest industrial the economy through its suppliers and sub sector salaries and wages in the Greater suppliers, who also provide jobs to their Poland voivodeship.** employees and pay them salaries, Solaris has an impact on generating incomes in all sectors of the Polish economy. Income generated by Solaris in Poland in 2015 111.1 105.1 177.2 The total value of million PLN* million PLN* million PLN* income generated 393.4 by Solaris in 2015 ** million PLN* Direct Indirect Induced impacts impacts impacts + = Direct employment Number of jobs maintained Overall number of jobs in Solaris in 2015 in Poland’s economy in 2015 maintained in Poland in 2015 by means of indirect and thanks to Solaris business induced impact activity That is 99% of all graduates Such a number of jobs would of the Poznań University of allow to completely eliminate Technology who obtained unemployment in the city a degree in 2014 of Rzeszów ** Average gross monthly salary of 5,001 PLN or more. *** This refers to net wages. 9 Economic aspects Contributions to state and local budgets The positive impacts of Solaris operations on related investments. Taxes and payments from the polish economy is also refl ected in the Solaris fl ow into the state budgets as well as amount of taxes, fees and other contributions into the budets of local governments in which paid to the state and local budgets. Solaris has its operations, and thus support the fulfi lment of obligations of state and local These payments have a direct impact authorities. on fi nancing public spending on i.a. regional development, road construction, environmental, social, educational and health Contributions to state and local budgets paid by Solaris in 2015 163.6 71,720,000 PLN* Value Added Tax (VAT) million PLN* 67,029,000 PLN* Social contributions** Total amount of taxes fees and other 15,344,000 PLN* contributions paid Advance Personal Income by Solaris in 2015. Tax (PIT) 6,355,000 PLN* Corporate Income Tax (CIT) 3,188,000 PLN* Vehicle tax Perpetual usufruct fee*** Payments to the State Fund for Rehabilitation of Disabled Persons (PFRON) Real estate tax * 1 PLN = 0.23 EUR. ** Based on payroll calculations. 10 Research and development Spending on research and development in A real growth of innovation in Poland can only Poland is relatively low in comparison to other be achieved by an increased commitment of European countries. Nonetheless, investments the private sector to that domain, which is in this area are rising. According to the something Solaris contributes to. Central Statistical Offi ce (GUS), gross domestic expenditure on research and development (GERD) in the private sector amounted to 7.5 billion PLN* in 2014, having climbed by nearly 20 percent year-on-year. Measures taken by Solaris 144 million PLN* Total spending of 57 million PLN* 86 million PLN* Solaris on Research Internal expenditure** of External expenditure*** and Development in the Solaris on research and of Solaris on research and years 2012-2015 development in the years development in the years 2012-2015 2012-2015 684 people 40% of enterprises 3.1% Total number of full-time jobs Including Solaris, spend Expenditure of Solaris on related to R&D projects in over 3% of their annual research and development in 2014 Solaris in the years 2012-2015 sales on R&D presented as the percentage of total company sales * 1 PLN = 0.23 EUR. **Internal expenditure is the fi nancial means spent in the reporting year on R&D, carried out by the reporting entity, irrespective of the origin of the funds in question. This covers both current expenditure, as well as gross fi xed capital formation related to R&D activities (excluding amortisation of the fi xed assets). ***External expenditure is R&D spending claimed by other contractors (subcontractors), both domestic and foreign ones. 11 DIRECTION Knowledge Social aspects www.solarisbus.com 12 Social aspects Caring for the social environment it operates and economic driving, vocational training in, Solaris ventures a number of measures and programmes in collaboration with the initiatives addressed to local communities vocational school in Murowana Goślina and and its staff.