CORPORATE SOCIAL 2016 RESPONSIBILITY 2 Corporate Social Responsibility 2016 2016 Corporate Social Responsibility Report// EULEN Group 3 Page 1 Message from the President 6 2 Message from the CEO 8 3 About this report 10 - Principles that govern this report 12 - Identification of material aspects and definition of contents 14 - Dialogue with our Stakeholders 18 4 EULEN Group 20 - EULEN Group Profile 21 - Our principles 25 - Business model and creation of value 27 - The EULEN Group in figures 28 - Management of risks and opportunities 37 - Legal Compliance and Code of Ethics 40 - Management responsibility 43 5 Strategy and “great company” sentiment 46 - Sustainable social and economic development 47 - R&D&I applied to processes and services 49 - Protection and respect for the environment 51 6 Main factors of success 54 - Cost efficiency 56 - International expansion 57 - Development of new lines of business 58 4 Page 7 Human capitals: our main asset 60 - Employment in EULEN Group 63 - Diversity and integration 70 - Development of our professionals 74 - Health, safety and well-being 78 8 Creation of value beyond our company 84 - Relationship with customers 88 - Responsible management of the supply chain 91 - Relationship with society 95 9 Management of the environmental impact of EULEN Group 98 - Commitment to Environmental Management 101 10 Our contribution to the community 110 - Labor integration and training of people at risk of social exclusion 114 - Support of social and sustainable projects 116 ANNEXES 119 Awards and Distinctions 120 External certifications and accreditations 122 GRI G4 Content Index 125 Independent assurance report 131 2016 Corporate Social Responsibility Report// EULEN Group 5 Message from the President “Our strategy and commitments would not be truly valued by EULEN and our stakeholders if we were to not continue on the non-negotiable track of sustainability”. It is my pleasure to present you with the This year, we also presented the 2016- Corporate Social Responsibility Report of EULEN 2021 Strategic Plan, which has required a Group for financial year 2016. Once again, comprehensive internal process of analysis and we find ourselves at our annual meeting with thought. After we made it through the long crisis responsibility, transparency and excitement period suffered by our country in recent years, to share our achievements as well as our which EULEN managed reasonably well thanks improvement points with you all. We are aware to its strength, diversification of services and that we only deserve your respect and trust if we internationalization, we now face the next five are fair, credible and honest. years with great enthusiasm. It has truly been an important year in the history We have laid down several objectives in this of the company. It is now fully managed by period, all of them important for our future. We the second generation of our family, and the can sum them up as the following: Achieve true third generation is progressively deciding to standardization of our production and support join the company, following the saying that has processes, tackle digital transformation in our always defined us: “Experience is the mother of businesses, and promote the management values knowledge”. In other words, we like to put into and style of EULEN. By doing so, we will achieve practice our idea of what we think is the best way the true differentiation of our offer in comparison to get to know a company: work in all the job with our competitors. This will allow us to achieve positions you can, from the most basic ones to the established sales and margin economic senior management. objectives. 6 Following the standard that has been customary increase our presence in countries like the United in our business history, and that has allowed us States, Chile or Peru. We intend to go from €388 to keep our accounts permanently balanced, we million in sales outside Spain in 2016 to €740 aim to approach our objectives from a growth million in 2021, which represents an approximate position that is fundamentally organic, taking increase of 91%. Therefore, the International advantage of the synergies provided by our Area, which currently accounts for 25.5% of the extensive portfolio of services and solutions, group’s sales, will now have a weight of 32.9%, a which is quite possibly unique in the market, third of the total. and the great relationship we have with our customers. A healthy growth from within, which This strategy and these commitments would not is based on the knowledge of customer needs, be truly valued by EULEN and our stakeholders if of possibilities for improvement and increased we were not to continue on the non-negotiable efficiency in operations. And also based on our track of sustainability. We are going to continue ability to approach the analysis of these facts with to do this. We are aware of the role that a creative vision, trying to go beyond the usual companies play in achieving the ambitious thought pattern. and necessary goals of the 2030 Agenda for Sustainable Development. Consequently, we will If we analyze the history of EULEN, its creative make every effort to ensure that our contribution and innovative profile has been a constant to their fulfillment is relevant. pattern in the steps we take. I am proud to say that we have always been one step ahead in the Essentially, we do this by reducing our water world of services, whether giving professional and energy consumption, thus reducing our and intensive training to our cleaning operators, carbon footprint year after year, supporting or technicians, security guards and other staff in the assuming initiatives to help children and work 60’s, when this was unusual, or starting new and inclusion of the most vulnerable people, carrying unusual business lines, such as environmental out training actions for social groups who have and radiological protection, highly specialized not had the opportunity to receive it, signing electro-medical services or complete solutions cooperation agreements with governments to from the point of view of security convergence. assist them in achieving their development and inclusion objectives, or supporting local and Nowadays, we continue along the same lines: minority sports. We hope that they feel as though our Research, Development and Innovation EULEN is part of society and that we care about department, keeping our minds active and in it, because this is what we try to do each and close collaboration with specialists in each activity every day. We try to grow and advocate for rights, area, always attentive to the needs of our current freedom and well-being. Kind regards, and potential customers, generates several projects and services each year. The excitement of designing new services is only comparable to the enthusiasm of seeing them come true. However, far from just settling with the option of internal growth, we want to complement this with the acquisition of other companies that María José Álvarez Mezquíriz give us a truly interesting added value. For this Executive President purpose, we have set aside an important budget. Our intention is to evaluate, in a special way, companies that contribute to our businesses with a technological view, as well as with operations in the international area. By doing this, our aim is to 2016 Corporate Social Responsibility Report// EULEN Group 7 Message from the CEO “Increasingly, the future must be linked to international expansion. We are aware of the fact that we must reinvent ourselves constantly”. Dear customers, dear friends: Every time I have to increased by more than €52 million (Δ 3.56%), face the challenge of trying to summarize a year of reaching €1,518 million, and the operating income our business in a couple of pages, I have a doubt: rose by €6.26 million (Δ 34.95%) reaching €24.18 million. Is it possible to condense twelve months’ worth of work, challenges, successes, dismay and joy in The figures mentioned above reaffirm my a few pages? And, above all, can we do it in a way conviction that we are on the right path and that that is interesting to anyone who reads them to we are moving forward with enough solvency. know a little more about EULEN, what concerns Our sector, the one for the provision of services us, how we do it, what our intentions are for the to companies, suffers the changes experienced future? The answer that always comes to mind is by our customers in the same proportion. For this the same one: we will try. And you will decide if we reason, we are a good meter of the performance have succeeded. of economy. I would like to start by telling you that this 2016 One of the first symptoms of recovery is probably has been a reasonably positive year, especially reflected by Temporary Work activity, which once considering that we, the Spanish nationals, were again experienced a more than significant growth just leaving what has surely has been our most in 2016 with a rise of 16.88%. Security is also difficult economic period of the last decades. recovering, albeit slowly, from the large decline in The Group significantly improved its results sales experienced between 2010 and 2014. This compared to the previous financial year: sales year, security has grown by 3.25%. 8 Both activities, as well as the increasingly However, EULEN is essentially a company formed powerful development of our businesses in by people. We are concerned about their well- the International Area, have made possible being, their training, the possibility of reconciling the important growth in sales that I referred to family and professional life. We also care for the earlier. construction of a safe working environment, where there is no place for bullying, where This year, the Group has made public its women and men are increasingly equally Strategic Plan for the period 2016-2021.