Company: CIE Automotive, S.A.
Industry: Automotive Supplier
Country: Spain
Sector: Consumer Discretionary
Company type: S.A.
Revenue (EUR): 2631000000
Employees: 22812

Reported EU Taxonomy activities:
Manufacture of automotive and mobility components
Installation, maintenance and repair of energy efficiency equipment
Installation, maintenance and repair of renewable energy technologies
Material recovery from non-hazardous waste
Anaerobic digestion of bio-waste

EU Taxonomy KPIs (currency: EUR, units: millions)
Turnover:
totalTurnover: value: 3959.479
percentage: 100.0%
eligibleTurnover: value: 531.588
percentage: 13.4%
alignedTurnover: value: 0
percentage: 0%
nonEligibleTurnover: value: 3427.892
percentage: 86.57%
CapEx:
totalCapex: value: 311.884
percentage: 100.0%
eligibleCapex: value: 0.323
percentage: 0.10%
alignedCapex: value: 0
percentage: 0%
nonEligibleCapex: value: 311.561
percentage: 99.90%
OpEx:
totalOpex: value: 60.045
percentage: 100%
eligibleOpex: value: 0
percentage: 0%
alignedOpex: value: 0
percentage: 0%
nonEligibleOpex: value: 60.045
percentage: 100%

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# Making a difference

Image /page/0/Picture/0 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The "C" is formed by two curved shapes that do not fully connect, creating an incomplete circle. The text "CIE" is in a bold, sans-serif font, while "Automotive" is in a lighter, thinner sans-serif font. The entire logo is in a dark color, likely black or a dark gray, against a white background.

# **2023 ANNUAL REPORT**

Image /page/0/Picture/2 description: The image shows a large, stylized number "2" in black against a white background. The number is bold and fills most of the frame, with its curved shape clearly visible.

Image /page/0/Picture/3 description: The image shows a large, stylized number "3" with a car visible through the cut-out portions of the number. The car is bathed in warm, golden light, suggesting either a sunrise or sunset. The focus is on the front portion of the car, including the hood, front wheel, and side mirror. The background is blurred, emphasizing the car and the number "3".

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*["We are transforming the world,](#page-2-0)* 

### **[2023 highlights](#page-5-0)**

**[Ready for change](#page-15-0)**

**arnings**

**responsibility,**
**benefits**

Image /page/1/Picture/0 description: This image shows the cover of an annual report. The number "23" is prominently displayed, with the words "ANNUAL REPORT" above it. The word "Contents" is in the upper right corner. The image also includes a list of topics covered in the report, including "Chairman and CEO's statement", "2023 highlights", "Ready for change", "Record earnings", "Common responsibility, shared benefits", "Our response to the environmental challenges", and "Responsible management". There are also links to "About this report" and "Data tables".

Image /page/1/Picture/1 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved shapes that do not fully connect, creating an open "C" shape. The text "CIE Automotive" is in a simple, sans-serif font.

**Our response to the environmental challenge 5**

: report

es

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Dear friends of CIE Automotive:

It is our pleasure to introduce CIE Automotive's Annual Report for 2023, a year in which we feel like we made a real difference and helped transform the world through our work. The following pages explain how we took decisions and how we embarked on pathways that not only served to consolidate our financial success but also impacted the people and organisations around us and will ultimately benefit society and the planet in the long term.

We are living in challenging times: the sector is faced with making heavy investments to decarbonise vehicles and increase their connectivity and comfort; it is being drawn into a price war in the electric vehicle segment; and inflation and higher costs are putting pressure on our earnings. There are also, however, encouraging signs that we are on the cusp of a new automotive cycle. Ageing vehicle fleets around the world, low penetration in emerging economies, and growing sensitivity around more environmentally-friendly cars are some of the most promising factors.

**Antón Pradera** Chairman

**Jesús Mª Herrera** Chief Executive Officer

# **We are transforming the world, we are making a difference**

Chairman and CEO's statement

**2023 [highlights](#page-5-0) Ready [for change](#page-15-0) Record [earnings](#page-53-0) 1 2 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/2/Picture/9 description: The image shows a road with yellow lines in the middle, leading towards a bright sunset. The sky is a mix of orange and yellow hues, and there are mountains visible in the distance.

Image /page/2/Picture/11 description: This black and white portrait shows an older man with short, wavy hair, a kind smile, and a suit and tie. The man's face is well-lit, highlighting his features and the texture of his skin. He is wearing a patterned tie and a suit jacket. The background is plain and white, which makes the man the focal point of the image.

Image /page/2/Picture/18 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of two curved lines that do not quite meet, forming an incomplete circle. The words "CIE Automotive" are in a sans-serif font, with "CIE" in a bolder font than "Automotive".

Image /page/2/Picture/19 description: This is a black and white portrait of a middle-aged man with curly hair. He is wearing a suit and tie and smiling slightly. The background is white.

[23](https://annualreport.cieautomotive.com/2023/) Chairman and CEO's statement **ANNUAL**

<span id="page-2-0"></span>Image /page/2/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold black letters on the left side of the image. To the right of the words is a large gray quotation mark followed by the number "23" in bold black letters. There is a dashed line through the middle of the number "2".

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Despite this uncertain climate, with its highlights and lowlights, in 2023 we once again marked new records in revenue, profitability and cash generation. We posted a net profit of €320.2 million, growth of 6.7% from 2022. Our bottom line was driven by topline growth of 3.1% to €3.96 billion and a stronger performance across all our markets, lifting the group's EBITDA to €713.2 million, implying a margin of 18.0%. We converted €447.4 million of that EBITDA into cash flow and brought our net debt down to €1.13 billion. In parallel, we paid our shareholders over €100 million, so delivering our commitment to paying out one-third of our net profit in dividends.

As you can see, these are truly extraordinary numbers, especially considering the environment, which is why we want to thank and congratulate the entire CIE Automotive team for making them possible.

We are optimistic about the future. We are ready to take advantage of the opportunities thrown up by the current market trends to surmount the challenges looming and continue to generate value for our shareholders, both through dividend payments and share price gains, as we have been doing for over 25 years.

To do that, we have a unique business model, which has proven its worth in very tough times, articulated around six pillars: multiple locations, customer diversification, a multi-technology approach, disciplined investing, decentralised management and embedded sustainability standards. A model that will allow us to meet the ambitious targets set down in our 2025 Strategic Plan, which position us among the three most profitable automotive parts makers.

With that in mind, in 2023 we redirected our financial and managerial resources to the businesses and markets offering most growth potential and highest returns. We acquired Iber-Oleff Brasil in a transaction that has reinforced our position in a growth market and allowed us to diversify our local customer base, and we sold our German forging factories specialised in the European truck market.

Financial returns are not, however, our only ambition. Throughout last year we met all our compliance requirements and continued to engage all our professionals in the task of embedding ESG matters into our day-to-day operations. As signatories of the United Nations Global Compact, we aspire to contribute to delivery of the Sustainable Development Goals contemplated in the Agenda 2030 to end poverty, protect the planet and ensure that everyone can live in peace and prosperity. We are well aware that with 10 R&D centers and 108 plants in 17 countries, we are in a privileged position to do that.

In 2023 we once again marked new records in revenue, profitability and cash generation. **We posted a net profit of €320.2 million, growth of 6.7% from 2022**

### Chairman and CEO's [statement](#page-2-0) **2023 [highlights](#page-5-0) Ready [for change](#page-15-0) Record [earnings](#page-53-0) Common responsibility, [shared benefits](#page-64-0) Our response to [the environmental](#page-141-0)  challenge Responsible [management](#page-183-0)** About [this report](#page-229-0) [Data tables](#page-261-0) **1 2 3 4 5 6**

Image /page/3/Picture/11 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter "C" on the left and the words "CIE Automotive" on the right. The "C" is black, and the words "CIE Automotive" are in a thin, sans-serif font.

Image /page/3/Picture/0 description: The image shows the text '23 ANNUAL REPORT' on the left and '/ Chairman and CEO's statement' on the right. The text on the left is in a bold, sans-serif font, while the text on the right is in a lighter, sans-serif font.

Image /page/3/Figure/1 description: The image shows the words "ANNUAL REPORT" in large, bold, sans-serif font on the left side of the image. To the right of the words is a large number "23" with a gray quotation mark above the number.

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Our 25,274 employees at year-end 2023 are both architects and beneficiaries of our transformation process. It is thanks to their dedication that we were able to continue to grow in 2023, generate wealth and mobilise other people so that they too become agents of change. In exchange, we provided them with €35 million worth of support measures (health insurance, food, transportation, etc.) and offered them as safe, stimulating and fair a place to work as possible, regardless of where they carry out their work.

We lifted the percentage of women in our workforce by two points and by year-end had completed diversity and inclusion assessments at 93% of our factories, generating action plans for including people of different cultures, genders, generations and abilities. This is a particularly important milestone in countries whose populations are not sensitive to these matters and where there is no legislation around them.

Our responsible doings have a domino effect on our supply chain. In 2023, we renewed our ISO 20400 Sustainable Procurement certification and rolled out Supply Chain Race 2 Zero, our project for rallying our worldwide suppliers around our goal of being net zero by no later than 2050, offering them resources, guidance and environmental training. This initiative is part of our new environmental roadmap which echoes and expands on the targets set in our 2025 Strategic Plan and establishes new steps towards climate neutrality.

Last year we accompanied our customers with their efforts to decarbonise transport by investing in technology projects aimed at reducing the weight of our parts and improving material circularity. We also participated in a number of research programmes related with the electrification of transport, including Basquevolt, the Basque alliance for the creation of solid-state lithium batteries.

All these activities favour progress in society and development in our business communities, which we supported in 2023 by contributing €497 million of tax and participating in community projects that benefitted over 41,500 people, projects we are certain will have a multiplier effect in the long term.

In 2023 we demonstrated that the future is not preordained, that it is our actions that mark the difference. We know that much remains to be done to create the fair, prosperous and sustainable world we all long for but we are convinced that we are taking steps in the right direction and that is something we are proud of.

Thanks to all for your support,

**Antón Pradera**

Chairman

#### **Jesús Mª Herrera**

Chief Executive Officer

Our responsible doings have a domino effect on the supply chain: In 2023, **we renewed our ISO 20400 Sustainable Procurement certification and rolled out our Supply Chain Race 2 Zero programme**

Chairman and CEO's [statement](#page-2-0) **2023 [highlights](#page-5-0) Ready [for change](#page-15-0) Record [earnings](#page-53-0) Common responsibility, [shared benefits](#page-64-0) Our response to [the environmental](#page-141-0)  challenge Responsible [management](#page-183-0)** About [this report](#page-229-0) [Data tables](#page-261-0) **1 2 3 4 5 6**

Image /page/4/Picture/14 description: The image shows the CIE Automotive logo. On the left is a stylized letter C, formed by two curved black shapes. To the right of the symbol is the text "CIE Automotive" in a simple, sans-serif font.

Image /page/4/Picture/0 description: The image shows the text "23 ANNUAL REPORT" on the left side and "Chairman and CEO's statement" on the right side. The number 23 is large and bold, with the word "ANNUAL" stacked vertically above the word "REPORT" in a smaller font size. A forward slash separates the text on the left from the text on the right.

Image /page/4/Picture/1 description: The image shows the words "ANNUAL REPORT" in bold, black letters, stacked on top of each other. To the right of the words is a large number "23" in black, with a gray quotation mark above the "2". A dashed line runs horizontally through the middle of the number "23".

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# **2023 highlights**

**[Our achievements in figures](#page-7-0)**

**[Key milestones](#page-12-0)**

**[CIE Automotive at a glance](#page-13-0)**

Image /page/5/Picture/16 description: The image shows the CIE Automotive logo. On the left is a stylized letter C, which is black. To the right of the C is the text "CIE Automotive" in black.

S

Chairman and CEO's [statement](#page-2-0)

**Common responsibility, [shared benefits](#page-64-0)**

**2023 highlights 1**

**Ready for change 2**

**Record [earnings](#page-53-0) 3**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/5/Picture/10 description: A close-up shot of a car speedometer shows the needle pointing to 120 km/h. The numbers on the speedometer are white, and the needle is orange. The background of the speedometer is black. The image is blurred, which gives the impression of speed.

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*At CIE Automotive we aspire to be a benchmark in the transformation of the automotive parts sector. Aware that sustainability is essentially a continuous journey towards excellence, in 2023 we worked hard to continue to mark new growth and profitability records, to widen our social impact and to accelerate the decarbonisation of our activities, remaining firmly on the roadmap set in our 2025 Strategic Plan.*

Image /page/6/Picture/4 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter "C" on the left and the text "CIE Automotive" on the right. The letter "C" is white and appears to be made up of two curved lines that do not quite meet. The text "CIE Automotive" is also white and is written in a simple, sans-serif font. The background of the image is a dark blue color.

Image /page/6/Picture/5 description: The image contains the letter 'S' in white against a dark blue background. The letter is large and fills most of the frame.

Image /page/6/Picture/7 description: The image shows a close-up of the word "ning" in white letters against a dark blue background. The letters are bold and sans-serif.

7

Chairman and CEO's [statement](#page-2-0) **2023 highlights 1 Ready [for change](#page-15-0) Record [earnings](#page-53-0) Common responsibility, [shared benefits](#page-64-0) Our response to [the environmental](#page-141-0)  challenge Responsible [management](#page-183-0)** About [this report](#page-229-0) [Data tables](#page-261-0) **2 3 4 5 6**

# [23](https://annualreport.cieautomotive.com/2023/) 2023 highlights **ANNUAL**

Image /page/6/Picture/0 description: The image shows the words "ANNUAL REPORT" in large, bold, white letters on the left side of the image. To the right of the words is a large number "23" in white, with a gray quotation mark above it.

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**1.1**

€3.96

# **Our achievements in figures**

# Earnings achievements

**EBITDA**

**NET PROFIT**

**CASH FLOW FROM OPERATIONS**

> **NET DEBT**

MARGIN

MARGIN

VS. 2022

## **REVENUE**  VS. 2022 +3.1%\* **€3.96 billion**

VS. 12.6% vs. 2022 18% **713.2 M€ 320.2 M€**

VS. 6.7% vs. 2022 8%

> *(\*) 9.1%, at constant exchange rate and including 3 adjustment points for the effect of raw material transfer. This growth is very similar to that of the market, 9.4%, calculated using light vehicles production S&P IHS February 2024 (12 months 2023) (growth % in units). Global market and Indian market weighted with CIE Automotive segment mix in India (PV, 2W, MHCV, tractor).*

OF 65% of EBITDA

-11% vs. 2022 1.56X ND/EBITDA

**447.4 M€**

**1,126.5 M€**

Image /page/7/Picture/20 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is white and appears to be made up of two curved shapes. The text "CIE Automotive" is also white and is written in a clean, sans-serif font. The background of the logo is a dark gray color.

Chairman and CEO's [statement](#page-2-0)

**[shared benefits](#page-64-0)**

**2023 [highlights](#page-5-0) Ready for change 2 Record [earnings](#page-53-0) Common responsibility, 1 3 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

<span id="page-7-0"></span>[23](https://annualreport.cieautomotive.com/2023/) 2023 highlights **ANNUAL**

**REPORT**

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# Shared achievements

**25,294 EMPLOYEES**  IN 19 COUNTRIES

Image /page/8/Figure/9 description: The image shows statistics for shareholders, customers, society, suppliers, and employees. For shareholders, 100.6 million euros were paid out in dividends, and meetings were held with over 400 analysts and investors. For customers, there are 92 factories with triple certification, approximately 2% of revenue is earmarked for R&D projects, and 41% of new orders are for electrified vehicles (NEV - New Energy Vehicles). For society, 84.2 million euros were paid in tax, over 1 million euros were invested in community work, and there are more than 41,500 beneficiaries. For suppliers, 2.95 billion euros were spent on procurements, 92.2% of suppliers are local, and there are 698 quality and ESG audits.

**807,806 HOURS** OF TRAINING

**20%** OF EMPLOYEES ARE **FEMALE** (+2%)

**9% REDUCTION** IN THE INJURY FREQUENCY RATE AND **16% REDUCTION** IN THE INJURY SEVERITY RATE

Image /page/8/Picture/11 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is black, while the text is in a lighter shade of gray.

Image /page/8/Picture/12 description: The image shows an icon of a person wearing a hard hat. The person is facing forward and has a simple, rounded head and body. The hard hat is also rounded and has a brim. The icon is orange.

Chairman and CEO's [statement](#page-2-0)

### **2023 [highlights](#page-5-0) Ready 2** ready **for change Record [earnings](#page-53-0) Common responsibility, [shared benefits](#page-64-0) 1 3 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

[23](https://annualreport.cieautomotive.com/2023/) 2023 highlights **ANNUAL**

Image /page/8/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters. To the right of the words is a large gray quotation mark and the number "23" in bold, black letters.

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# Progress on environmental commitments

ROLLOUT OF A NEW ENVIRONMENTAL ROADMAP for the medium and long term

SUPPLY CHAIN RACE 2 ZERO decarbonisation programme

ENVIRONMENTAL FOOTPRINT MEASURED in all geographies

Image /page/9/Figure/15 description: The image shows CIE Automotive's improving indicators for emissions, water consumption, and waste. Emissions are down 20.54% compared to 2022, with 337,937 T CO2e. Water consumption is down 1.93% compared to 2022, with 1,625,246.7 M3. Waste is up 11.21% compared to 2022, with 380,071.23 MT. A footnote states that the data on environmental consumption and emissions includes emissions from discontinued German forging companies until June 30, 2023, and does not include data from Salgglas, which represents less than 0.3% of the group's sales.

Image /page/9/Picture/17 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C in black, followed by the text "CIE Automotive" in black sans-serif font on a green background.

**WASTE**

from discontinued German forging companies
represents less than 0.3% of the group's sales.

Chairman and CEO's [statement](#page-2-0)

#### **2023 [highlights](#page-5-0) 1**

**Ready 2** ready **for change**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

Image /page/9/Picture/0 description: The image shows the text "ANNUAL REPORT" on the left, followed by a large number "23". To the right of these elements, a diagonal line separates them from the text "2023 highlights".

/ 2023 highlights

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CORPORATE DIVERSITY PLAN: Assessment complete at 93% of our factories

ULYSS
17 stu
and +

CERTIF
of fac
45001-

ULYSSES PROGRAMME: 17 students, 4 countries and +10 factories

CERTIFICATION: 94% of factories are ISO 45001-certified

ESG TRAINING: 97% of our plant Management Committee members are trained in ESG

## Progress on social commitments

Image /page/10/Picture/17 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter "C" on the left and the words "CIE Automotive" on the right. The letter "C" is black and appears to be made up of two curved shapes. The words "CIE Automotive" are in a simple, sans-serif font and are also black.

Chairman and CEO's [statement](#page-2-0)

### **2023 [highlights](#page-5-0)**

**Ready for change**

**Record earnings**

**Common responsibility, shared benefits**

**Our response to [the environmental](#page-141-0)  challenge 1[2](#page-15-0)[3](#page-53-0)[4](#page-64-0)56**

**Responsible [management](#page-183-0)**

> About [this report](#page-229-0)

Image /page/10/Picture/10 description: The image shows the cover of an annual report. The text "23 ANNUAL REPORT" is in the upper left corner. The text "2023 highlights" is in the upper center of the image. The text "Chairman and CEO's statement" is in the lower left corner. The text "2023 highlights" is in the lower left corner. The text "Ready for change" is in the lower left corner. The text "Record earnings" is in the lower left corner. The text "Common responsibility, shared benefits" is in the lower left corner. The text "Our response to the environmental challenge" is in the lower left corner. The text "Responsible management" is in the lower left corner. The text "About this report" is in the lower left corner. The text "Data tables" is in the lower left corner. The background of the image is a photograph of people walking on a crosswalk.

Pro
on
co

Image /page/10/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters on the left side of the image. To the right of the words is a large number "23" in black, with a gray quotation mark above the "2". A dashed line runs horizontally through the middle of the number "2".

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New PLATFORM for the Whistleblowing Channel

Rollout of CRIMINAL RISK MAP in Italy, Romania and Slovakia

Monitoring of 79 ESG INDICATORS within the 2025 Strategic Plan

Image /page/11/Picture/13 description: The image shows a close-up of a geometric pattern with triangular shapes in shades of orange and gray. The triangles are arranged in a grid-like fashion, with dark lines separating them. In the upper right corner, there is a logo that says "CIE Automotive". On the left side of the image, there is a curved line with dashes, resembling a road.

# Progress on governance

Chairman and CEO's [statement](#page-2-0)

Image /page/11/Picture/3 description: The image shows a list of three items. The first item is labeled "1" and titled "2023 highlights". The second item is labeled "2" and titled "Ready for change". The third item is labeled "3" and titled "Record earnings".

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

Image /page/11/Picture/0 description: The image shows the text "23 2023 highlights ANNUAL REPORT". The text is arranged in a way that "ANNUAL REPORT" is on the left, "23" is above it, and "2023 highlights" is on the right, separated by a diagonal line.

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#### **DECEMBER**

First edition of the CIE Automotive Environmental Awards

#### **JUNE**

Amendment and extension of the syndicated loan from 2027 to 2028

First non-IBEX 35 company to obtain the tax transparency seal

e
ates
orting

in

Image /page/12/Picture/14 description: The image shows a white trophy icon on a gray background. The trophy has a wide base, a slender stem, and a bowl-shaped top with two handles.

Image /page/12/Figure/3 description: This image shows a timeline of key milestones. The timeline starts with January, which includes an interim dividend of €0.41 per share from 2022 profits. March includes a share capital decrease, cancelling own shares bought back, and Engineering, Quality, Environment and Decarbonisation Days in India. May includes the acquisition of Iber-Oleff of Brazil, an expert in plastic parts, and the inauguration of the new Pernambuco 2 factory in Brazil. June includes an amendment and extension of the syndicated loan from 2027 to 2028, and the first non-IBEX 35 company to obtain the tax transparency seal. July includes the launch of a new digital platform to reinforce the Whistleblowing Channel and update of its rules, and the final dividend from 2022 profits of €0.419/share. October includes the sale of the German forging factories to focus on higher growth markets. November includes a silver medal in Informe Reporta 2022, which rates listed companies' reporting efforts, and Engineering, Quality, Environment and Decarbonisation Days in Mexico. December includes the first edition of the CIE Automotive Environmental Awards.

Image /page/12/Picture/5 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is black, while the text is in a lighter color.

Image /page/12/Figure/6 description: The image shows the numbers 1 and 2 in a large, bold, black font. A black dot is between the two numbers.

Image /page/12/Picture/7 description: The image shows a black road with white dashed lines on a white background. The road curves and has a small offshoot on the right side.

Image /page/12/Picture/8 description: The image shows a black and white icon of a badge with a check mark in the center. The badge has a scalloped edge.

Chairman

<span id="page-12-0"></span>Image /page/12/Picture/0 description: The image shows the text "ANNUAL REPORT" on the left side of the image, with the number "23" above the word "REPORT". On the right side of the image, there is a diagonal line followed by the text "2023 highlights".

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# **1.3**

Image /page/13/Picture/85 description: This image shows a list of companies in Spain that are involved in research and development. The list includes CIE Alcasting, CIE Amaya, CIE Denat, CIE Egaña, CIE Galfor, CIE Gameko, CIE Inyectametal, CIE Legazpi, and CIE Mecasur.

- CIE Nova Recyd
- CIE Orbelan

Image /page/13/Picture/88 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved shapes that do not fully connect, creating an open "C" shape. The text "CIE Automotive" is in a simple, sans-serif font, with "CIE" in a bolder typeface than "Automotive".

- 
- CIE Mecasur • CIE Mecauto
- CIE Norma
- 
- CIE Recyde
- CIE Recylan
- CIE Recytec
- CIE Udalbide
- CIE Vilanova • ACS Ibérica

#### 6. FRANCE *R&D*

• CIE Compiègne • ACS France

### 7. ITALY

• Metalcastello Spa • CIE Somaschini • CIE Somaschini Automotive

### 11. LITHUANIA

• CIE LT Forge

- 5. PORTUGAL *R&D* • CIE Stratis
	- CIE Plasfil

### 12. CZECH REPUBLIC

- CIE Zdanice
- CIE Metal CZ
- CIE Plasty
- CIE Unitools Press
- CIE Praga Louny

### 14. ROMANIA

- CIE Matricon
- ACS Romania
- Golde Oradea

### 15. RUSSIA

• CIE RUS

### 13. SLOVAKIA *R&D*

- CIE Mar SK
- Golde Lozorno

### 3. BRAZIL *R&D*

- CIE Autoforjas
- CIE Autometal SBC
- CIE Dias D'Ávila
- CIE Autocom
- CIE Jardim Sistemas
- CIE Nakayone
- CIE Durametal
- CIE Taubaté
- CIE Autometal Diadema (multitech.)
- CIE Autometal Pernambuco
- CIE Autometal Minas
- CIE Autometal Salto
- CIE Autometal Pernambuco II

### 2. MEXICO *R&D*

- CIE Amaya Mex
- CIE Celaya (multitech.)
- CIE Matic
- CIE Nugar
- CIE PEMSA Celaya
- CIE Plásticos México
- CIE PEMSA Saltillo
- CIE Forjas de Celaya
- Bill Forge de México
- Golde Puebla • CIE Mapremex
- 1. UNITED STATES *R&D*
- CIE USA
- CIE Newcor RGI Clifford
- CIE Newcor MTG
- CIE Somaschini North America
- Golde Auburn Hills

1

2

3

5 4

<sup>6</sup> <sup>12</sup> <sup>10</sup> 13

11

14

17

7

8

#### 16. CHINA *R&D*

15 • CIE Automotive Parts Shanghai (multitec.) • Nanjing Automotive Forging • ACS Shanghai • ACS Wuhan • Golde Changchun • Golde Shanghai • Golde Tianjin • Golde Wuhan • Golde Shandong • SAMAP Ningde • SAMAP Shanghai

#### 17. INDIA *R&D*

16 • CIE India Forgings Pune • CIE India Gears Pune • CIE India Gears Rajkot • CIE India Stampings Rudrapur • CIE India Stampings Nashik • CIE India Stampings Kanhe • CIE India Stampings Kanhe II • CIE India Stampings Zaheerabaad • CIE India Stampings Pantnagar • CIE India Stampings Nagpur • CIE India Composites Division • CIE India Foundry Division • CIE India Magnetic Products Division • Bill Forge Bommasandra • Bill Forge Jigani (Plant 2) • Bill Forge Attibele • Bill Forge Coimbatore • Bill Forge Haridwar • Bill Forge Jigani (Plant 6) • CIE Aluminium Casting Aurangabad HPDC • CIE Aluminium Casting Aurangabad GDC • CIE Aluminium Casting Pantnagar • CIE Aluminium Casting Pune • CIE Hosur • Golde Pune

### 8. MAROCCO

• CIE Maroc

### 10. HUNGARY

• CIE Salgglas

### 9. GERMANY *R&D*

9

# Global footprint

# **CIE Automotive at a glance**

Chairman and CEO's [statement](#page-2-0)

#### **2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**1**

<span id="page-13-0"></span>Image /page/13/Picture/0 description: The image shows the text "23 2023 highlights ANNUAL REPORT". The number 23 is in a larger font size than the other text. The word "ANNUAL" is stacked on top of the word "REPORT".

**REPORT**

{14}------------------------------------------------

## History **<sup>1996</sup>**

INSSEC investor group set up to create a Spanish business group in the automotive services sector and an agreement to make an equity investment in Egaña SA to set up Corporación Industrial Egaña.

#### **1997**

Corporación Industrial Egaña embarked on national expansion with the acquisition of Basque SMEs from the sector which brought the group know-how in a range of technologies.

#### **1998**

Start of international expansion in Europe with the acquisition of Unitools Press, in the Czech Republic.

#### **1999**

Creation of Autokomp Ingeniería, the embryo for the current technology centre, to provide the group companies with R&D support.

#### **2000**

Entry into the Brazilian market with the acquisition of 50% of Autometal.

#### **2002**

Corporación Industria Egaña merges with Grupo Aforasa to create CIE Automotive.

Inauguration of the company's first greenfield factory in Mexico, in the town of Celaya.

#### **2006**

Entry into the Chinese market, CIE Automotive's first Asian stop, with a greenfield project, CIE Automotive Parts Shanghai.

Creation of the CIE Desc joint venture in Mexico, marking a qualitative leap in the ability to service North American customers.

#### **2009**

Entry into the roof systems segment with the acquisition of Advanced Comfort Systems (ACS).

#### **2011**

Reverse merger with Dominion via Inssec.

CIE Autometal listed on the Sao Paulo stock exchange.

### **2012**

Initial foray into the US market with the acquisition of Century Plastics.

Maiden forging factory in Asia with the creation of the Nanjing Automotive Forging joint venture (NFJ).

#### **2013**

Entry into the Indian market via the strategic alliance with India's Mahindra & Mahindra Group, giving rise to MCIE (since renamed, CIE India), a listed company.

### **2014**

Delisting of CIE Automotive's Brazilian subsidiary, Autometal.

#### **2015**

Endorsement of the United Nations Global Compact, approval of the group's CSR & Sustainability Policy and creation of the Cross-Group CSR Committee (currently, the Cross-Group ESG Committee).

#### **2016**

CIE Automotive lists its technology subsidiary, Dominion.

#### **2017**

Publication of the Global Supply Chain Manual.

Celebration of the first CSR Day (currently called ESG Days).

#### **2018**

CIE Automotive's shares in Dominion distributed to the company's shareholders in the form of an extraordinary dividend.

Creation of the Suppliers Portal as a management tool focused on overseeing ESG risks.

#### **2019**

Acquisition of Inteva's roof systems division, positioning CIE Automotive in the global top 3 in the design and manufacture of roofs.

#### **2020**

CIE Automotive ties its €690 million syndicated loan to green finance criteria.

Membership of the SERNAUTO Responsible Business Committee.

First share buyback and cancellation programme.

#### **2021**

CIE Automotive turns 25 and unveils its 2025 Strategic Plan.

#### **2022**

Commitment to achieve climate neutrality before 2050 announced.

Second share buyback and cancellation programme.

CSR
OSS-

logy

y

Chairman and CEO's [statement](#page-2-0)

### **2023 [highlights](#page-5-0)**

**Ready for change**

**Record earnings**

**Common responsibility, shared benefits**

**Our response to [the environmental](#page-141-0)  challenge 1[2](#page-15-0)[3](#page-53-0)[4](#page-64-0)56**

**Responsible [management](#page-183-0)**

> About [this report](#page-229-0)

[Data tables](#page-261-0)

# [23](https://annualreport.cieautomotive.com/2023/) 2023 highlights **ANNUAL**

Image /page/14/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters. To the right of the words is a large number "23" in black, with a dashed line running horizontally through the middle of the number. To the left of the number is a gray quotation mark.

{15}------------------------------------------------

# **Ready for change**

**The challenges facing the automotive sector, having [revisited pre-pandemic volumes](#page-17-0)** 

**A genuine [business model](#page-28-0)**

**[The commitments](#page-36-0) that inspire us**

**[Our sustainable growth strategy](#page-40-0)**

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready for change**

**Common responsibility, shared benefits**

**Our response to [the environmental](#page-141-0)  challenge**

**Record earnings 12[3](#page-53-0)[4](#page-64-0)56**

**Responsible [management](#page-183-0)**

> About [this report](#page-229-0)

Image /page/15/Picture/16 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved shapes that do not fully connect, creating an incomplete circle. The text "CIE Automotive" is written in a clean, sans-serif font, with "CIE" in a bolder typeface than "Automotive".

<span id="page-15-0"></span>Image /page/15/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is the number 23.

{16}------------------------------------------------

*We are ready to lead change at our company and in the sector: a firm commitment to people and the planet, a resilient model set to overcome challenges, an effective strategy for delivering our targets and the technological know-how to make them happen.*

Image /page/16/Picture/13 description: This image shows an aerial view of a road winding through a landscape of green fields and trees. The road is gray and has white lines on the edges. The fields are a mix of green and brown, and the trees are a variety of shades of green. The CIE Automotive logo is in the upper center of the image.

Chairman and CEO's [statement](#page-2-0)

**2023 1 highlights**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/16/Picture/0 description: The image shows the words "ANNUAL REPORT" on the left side of the image, and the number "23" on the right side of the image. The background is a dark green color.

{17}------------------------------------------------

**2.1**

**The challenges facing the automotive sector, having revisited pre-pandemic volumes**

**The automotive industry's productive model is in the midst of profound transformation in a bid to decarbonise vehicles and increase their connectivity and comfort, while keeping prices in check. Having surmounted the supply chain friction that was impeding this transition, the experts anticipate the start of a new cycle driven by vehicle substitution in developed markets and low vehicle penetration in emerging markets. In 2023, production amounted to 90.3 million vehicles, revisiting pre-pandemic levels.**

Image /page/17/Picture/5 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved shapes that do not fully connect, creating an incomplete circle. The text "CIE Automotive" is in a simple, sans-serif font.

Chairman and CEO's [statement](#page-2-0)

**Ready [for change](#page-15-0)**

**Record [earnings](#page-53-0)**

**Common responsibility, [shared benefits](#page-64-0)**

**2023 1 highlights**

> **Our response to [the environmental](#page-141-0)**

**challenge**

**Responsible [management](#page-183-0)**

About [this report](#page-229-0)

[Data tables](#page-261-0)

**2**

**3**

**4**

**5**

Ready for change

<span id="page-17-0"></span>Image /page/17/Picture/1 description: The image shows the text "23 Ready for change ANNUAL REPORT" on a black background. The number 23 is in white and is larger than the other text. The words "Ready for change" are in white and are separated from the number 23 by a white diagonal line. The words "ANNUAL REPORT" are in white and are smaller than the other text.

{18}------------------------------------------------

Image /page/18/Figure/13 description: This image is a bar chart that shows global sales in millions from 2020 to 2026. The y-axis on the left shows the sales in millions, ranging from 0 to 100. The y-axis on the right shows the year-over-year change in percentage, ranging from -20% to 10%. The x-axis shows the years from 2020 to 2026. The global sales in millions for each year are as follows: 77.2 in 2020, 80.3 in 2021, 79.0 in 2022, 86.4 in 2023, 88.6 in 2024, 91.3 in 2025, and 93.1 in 2026. The year-over-year change for each year is as follows: -14% in 2020, 4% in 2021, -2% in 2022, 9% in 2023, 3% in 2024, 3% in 2025, and 2% in 2026.

**2023 was a year of recovery for the automotive sector. Although the concerns about the supply chain did not fade entirely, the situation improved gradually: chip delivery times came down, raw material prices remained in check and the transport logistics issues were resolved.**

Image /page/18/Figure/11 description: The image is a graph that shows global production from 2020 to 2026. The y-axis on the left shows the global production in millions, ranging from 0 to 100. The y-axis on the right shows the year-over-year change, ranging from -20% to 25%. The x-axis shows the years from 2020 to 2026. The global production in 2020 was 74.6 million, in 2021 was 77.2 million, in 2022 was 82.3 million, in 2023 was 90.3 million, in 2024 was 90.0 million, in 2025 was 91.7 million, and in 2026 was 93.3 million. The year-over-year change in 2020 was -16%, in 2021 was 3%, in 2022 was 7%, in 2023 was 10%, in 2024 was 0%, in 2025 was 2%, and in 2026 was 2%. The source of the data is S&P IHS.

As these issues began to recede, global light vehicles production started to rise, ending the year at 90.3 million vehicles. That volume, up 9.7% from 2022 and back at pre-pandemic levels, reflects the replenishment of inventories and satisfaction of the order backlog.

In parallel, sales increased to 86.4 million units, up 9% from 2022, helped by the recovery in production volumes.

## As these issues began to recede, **global light vehicles production started to rise, ending the year at 90.3 million vehicles**

## Sector background

*Source: S&P IHS*

Image /page/18/Picture/16 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved lines that do not fully connect, creating an opening on the right side. The text "CIE Automotive" is written in a simple, sans-serif font, with "CIE" in a slightly bolder font than "Automotive".

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready for change Record earnings Common responsibility, shared benefits Our response to [the environmental](#page-141-0)  challenge 1[2](#page-15-0)[3](#page-53-0)[4](#page-64-0)56**

**Responsible [management](#page-183-0)**

> About [this report](#page-229-0)

[Data tables](#page-261-0)

Image /page/18/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters on the left side of the image. To the right of the words is a large, stylized number "23" in black, with a gray quotation mark above the "2". A dashed line runs horizontally through the middle of the number "23".

{19}------------------------------------------------

**CIE Automotive monitors the market constantly to detect risks and opportunities that could shape its business in the future (refer to the chapter on "Risk management"). This permanent scrutiny allows it to mitigate the key market risks and leverage its competitive advantages.**

Next is a description of the main challenges and opportunities, with further information provided in "Risk management - Market risks":

### **Economic slowdown**

According to the International Monetary Fund's estimates, the global economy grew at a moderate rate of 3% in 2023 and will slow to 2.9% in 2024, well below the 3.5% recorded in 2022 and average growth of 3.8% between 2000 and 2019. Prospects are, however, very difference between the advanced economies, where the slowdown is expected to be more pronounced, and emerging and developing economies, which are expected to register higher growth.

Image /page/19/Picture/10 description: The image shows a black and white icon of an electric car with a euro symbol above it. The car has a charging cable plugged into its side. The euro symbol is a circle with a horizontal line through the center.

#### **Heavy investment in electric vehicles**

The transition to electric mobility is requiring heavy investments in new technology around batteries, vehicle autonomy and electric propulsion systems. The OEMs need to design specific vehicle platforms, requiring significant investment in engineering and design. Automotive suppliers need to improve their production lines to adapt them for electric vehicles which implies, in addition to capital expenditure, investing in skills.

Image /page/19/Picture/30 description: The image shows a black circle with a white Euro symbol inside it. Above the circle is a black arrow pointing upwards. The background is a light peach color.

### **Increase in borrowing costs**

The automotive sector players were faced by an increase in borrowing costs as a result of the successive interest rate increases implemented to curb inflation. The increase in the cost of money left many OEMs and suppliers, which had leveraged up to deal with the fallout from the pandemic and/or invest in vehicle electrification, in a precarious position.

Image /page/19/Picture/15 description: The image shows a black and white icon of an electric car being charged. The car is depicted in silhouette with a charging cable plugged into its side. Above the car are two euro symbols with a lightning bolt in between them, suggesting the cost of electricity. The overall design is simple and graphic, likely intended for use as a symbol or sign related to electric vehicles and charging costs.

.

#### **Price war in electric vehicle segment**

Growth in electric vehicles is driving the OEMs to cut prices aggressively in order build a position in the market. A price war broke out in January when one of the electric vehicle segment leaders cut the price of its cheaper models in a move that was quickly followed by the other OEMs, worried they would be left out of this niche; discounts went as high as 15% on some models in China. In fact, the Chinese electric vehicle makers are making major inroads, exporting very cheap models to Europe.

### **CHALLENGES**

Despite the sector's strong performance in 2023 in the wake of global supply chain normalisation, the business faced certain challenges that could well become more pressing in the years to come:

Image /page/19/Picture/7 description: The image shows a black and white icon of a euro symbol inside a circle. A line graph with an upward trend is superimposed on the circle, with an arrow pointing to the right.

# Challenges and opportunities

Image /page/19/Picture/25 description: The image shows a stylized letter 'C' in black, set against a peach-colored background. The 'C' is not a complete circle; it has a break in the curve. A white triangle is visible in the upper-left corner, adding a subtle contrast to the overall design.

Chairman and CEO's

[statement](#page-2-0) **2023 [highlights](#page-5-0)**

**Record**

**Ready [for change](#page-15-0) 2**

**[earnings](#page-53-0) Common responsibility, [shared benefits](#page-64-0) Our response to [the environmental](#page-141-0)  3 4 5**

**challenge**

**Responsible** 

About [this report](#page-229-0)

**[management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/19/Picture/0 description: The image shows the text "ANNUAL REPORT" on the left side and the number "23" on the right side. The number 23 has a dashed line running through it.

{20}------------------------------------------------

| Europe         | 54% | China  | 23% |
|----------------|-----|--------|-----|
| North America: |     | Brazil | 22% |
| US             | 71% | India  | 4%  |
| Mexico         | 28% | Japan  | 55% |

Source: ACEA, Anfavea, J

### **OPPORTUNITIES**

Despite these challenges, there is talk about a new cycle in the automotive industry, buoyed by the following factors:

Image /page/20/Picture/5 description: The image shows a circular arrow around three people. The arrow is pointing clockwise, suggesting a cycle or rotation of people.

**Shift in demand composition**

The economic slowdown, coupled with an ageing fleet in developed economies and growth in developing economies, could change the market's composition. While demand is expected to remain steady in terms of volumes, the outlook is for a higher share of sales in the mass market segment and in sales in developing economies.

Image /page/20/Picture/8 description: The image shows a black and white icon of an electric car with three people standing behind it. The car has a charging plug symbol on its side, indicating that it is an electric vehicle. The people are represented by simple stick figures, suggesting a group or shared transportation concept.

**Ageing global vehicle fleet** 

The advanced age of the stock of vehicles on the road implies potential demand via substitution. The OEMs can tap this demand by offering updated models with enhanced features, more modern technology and more efficient performance. There is pent-up demand in the US and Europe among buyers who are not shopping for secondhand cars, suggesting they are waiting to buy a new car.

Image /page/20/Picture/13 description: The image shows a sign indicating a low emission zone. The sign features a black car with two downward-pointing arrows above it, all enclosed in a rectangular frame attached to a pole. To the right of the sign, the text "Low emission device" is displayed.

### **Public interest in the new electric vehicles**

Growing environmental awareness and emerging regulations restricting the use of less environmentally-friendly cars are whetting consumers' interest in electric vehicles. As prices come down, the number of charging stations rises and autonomy improves, the share of electric vehicles is bound to increase.

Image /page/20/Picture/10 description: The image shows a black and white icon of a damaged car with a globe above it, next to the text "Ageing vehicle f".

### **Low vehicle penetration in certain development economies**

Developing economies with low vehicle penetration rates are ripe for healthy growth in vehicle sales. These countries often present transport infrastructure limitations, economic barriers and very limited access to credit. As these obstacles are surmounted, their populations will start to buy more cars, as is already happening in India and Brazil.

#### **AVERAGE AGE OF THE VEHICLE FLEET IN 2023 MOTORISATION RATE BY COUNTRY**

*Source: ACEA, Anfavea, JPM, ANFAC, IHS, GiPA, OICA, INEGI, NTS Source: ACEA, Anfavea, JPM, ANFAC, IHS, GiPA, OICA, INEGI, NTS*

|        | 2021       | 2022       |
|--------|------------|------------|
| Europe | 11.8 years | 12.1 years |
| US     | 13.1 years | 13.6 years |
| Mexico | 12.6 years | 10.1 years |
| Brazil | 10.3 years | 10.7 years |
| India  | 25 years   | 25 years   |
| China  | 5.1 years  | 7 years    |

Image /page/20/Picture/22 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of three curved black lines that do not quite connect, forming an incomplete circle. The words "CIE Automotive" are in a simple, sans-serif font, with "CIE" in a bolder weight than "Automotive".

### Chairman and CEO's [statement](#page-2-0) **2023 [highlights](#page-5-0) Ready [for change](#page-15-0) Record [earnings](#page-53-0) Common responsibility, [shared benefits](#page-64-0) Our response to [the environmental](#page-141-0)  challenge Responsible [management](#page-183-0)** About [this report](#page-229-0) [Data tables](#page-261-0) **1 2 3 4 5 6**

Image /page/20/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters, stacked on top of each other. To the right of the words is a large number "23" in black, with a gray quotation mark above it.

{21}------------------------------------------------

**Tax benefits Incentives**

|                | Acquisition | Ownership | Company car | Purchase | Infraestructure |
|----------------|-------------|-----------|-------------|----------|-----------------|
| Austria        | ✓           | ✓         | ✓           | ✓        | ✓               |
| Belgium        | ✓           | ✓         | ✓           | X        | X               |
| Bulgaria       | X           | ✓         | X           | X        | X               |
| Croatia        | ✓           | ✓         | X           | ✓        | X               |
| Cyprus         | ✓           | ✓         | X           | ✓        | X               |
| Czech Republic | ✓           | ✓         | ✓           | ✓        | ✓               |
| Denmark        | ✓           | ✓         | ✓           | X        | ✓               |
| Estonia        | X           | X         | X           | X        | X               |
| Finland        | ✓           | X         | ✓           | X        | X               |
| France         | ✓           | X         | ✓           | ✓        | X               |
| Germany        | X           | ✓         | ✓           | ✓        | X               |
| Greece         | ✓           | ✓         | ✓           | ✓        | X               |
| Hungary        | ✓           | ✓         | ✓           | ✓        | X               |
| Ireland        | ✓           | ✓         | ✓           | ✓        | X               |
| Italy          | X           | ✓         | X           | ✓        | X               |
| Latvia         | ✓           | ✓         | ✓           | X        | X               |
| Lithuania      | ✓           | X         | ✓           | ✓        | X               |
| Luxembourg     | ✓           | ✓         | ✓           | ✓        | X               |
| Malta          | ✓           | ✓         | X           | ✓        | X               |
| Netherlands    | ✓           | ✓         | ✓           | ✓        | X               |
| Poland         | ✓           | ✓         | X           | ✓        | X               |
| Portugal       | ✓           | ✓         | ✓           | ✓        | X               |
| Romania        | X           | ✓         | X           | ✓        | X               |
| Slovakia       | ✓           | ✓         | ✓           | X        | X               |
| Slovenia       | ✓           | X         | X           | ✓        | X               |
| Spain          | ✓           | ✓         | ✓           | ✓        | ✓               |
| Sweden         | X           | ✓         | ✓           | X        | ✓               |

*Source: ACEA*

Image /page/21/Picture/18 description: The image shows an icon of a building with columns and a circle in front of it. Inside the circle is a symbol that looks like a euro sign with a plug attached to it. To the right of the icon is the text "Government aid to boost the transition to electric vehicles".

Governments are rolling out incentive schemes to encourage consumers to replace their old cars and embrace the new efficient and green models. This is creating opportunities for OEMs capable of aligning themselves with the sustainability and efficiency incentives. Note that three-quarters of the EU members states are currently offering electric vehicle purchase incentives.

## Governments around the world are rolling out **incentive schemes to encourage the purchase of more efficient cars**

**ELECTRIC CAR TAX BENEFITS AND PURCHASE INCENTIVES EUROPE** 

Image /page/21/Picture/15 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of two curved lines that do not quite meet, creating a gap in the middle. The words "CIE Automotive" are written in a simple, sans-serif font.

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

#### **Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) Common responsibility, [shared benefits](#page-64-0) Our response to [the environmental](#page-141-0)  challenge 3 4 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**1**

Image /page/21/Picture/0 description: The image shows the text "ANNUAL REPORT 23" in a stylized format. The word "ANNUAL" is stacked above the word "REPORT" on the left side of the image. To the right of the words is a large number "23" with a gray quotation mark above it.

{22}------------------------------------------------

Market

performance

by region

#### **Europe:**

Production in Europe totalled 17.3 million vehicles in 2023, annual growth of 12.6%, reflecting the gradual supply chain normalisation.

In 2023, purchases were boosted by the need to renew an aged vehicle fleet (especially rental car fleets) and electric and plug-in purchase incentives.

In the electric segment the European OEMs are facing a surge in Chinese electric vehicle imports. The resulting price war is putting the weaker parts suppliers in a tough situation, negotiating prices that leave their EBIT margins at under 5%. Faced by this situation, while Brussels has officially started an anti-subsidy investigation on electric cars from China, the various national governments are rolling out initiatives to protect their industries. For this and other strategic reasons, the Chinese OEMs are looking into options for setting up manufacturing in Europe down the line. For example, in December BYD formally announced plans to build a factory in Hungary in phases.

The Europe
coming year
losing share

The European market is forecast to remain flat in the coming years, as is expected of a mature market that is losing share to other areas of the world.

### **North America:**

Vehicle production in North America totalled 15.7 million units, up 9.7% from 2022. This growth, considered high for a mature market, is attributable to the positive impact of the Inflation Reduction Act (IRA), which provides electric vehicle buyers a tax credit of up to \$7,500 if the car meets certain regional production requirements.

A flat evolution is expected in the coming years, typical of an already mature market that is losing weight in favor of other markets.

One negative development was the simultaneous strike at three OEMs - General Motors, Stellantis and Ford - in the US and Canada. Production foregone during the stoppages is estimated at 203,793 vehicles.

Unlike Europe and despite the market's maturity, vehicle production in the US is expected to increase by 1% in 2024, in large part, but not entirely, due to the recovery in volumes in the wake of the strike. Medium term, the market is expected to revisit its pre-pandemic levels by 2026, again setting it apart from the European market.

### *Vehicle purchase incentives*

In August 2022, the US passed the Inflation Reduction Act (IRA), which includes \$369bn in clean energy investments as well as provisions that will lower the cost of prescription drugs and increase taxes on large corporations. Of particular interest for the automotive sector is the vehicle purchase incentive and the infrastructure tax credit. Overall, the bill is projected to help cut greenhouse gas emissions by about 40% from 2005 levels by the end of the decade.

The Inflation Reduction Act contains financial incentives to encourage the purchase of electric and hydrogen fuel cell powered vehicles as well as the deployment of charging stations. Provisions in the IRA provide a tax credit for the purchase of the vehicle itself and a tax credit for the purchase and installation of charging assets or charging infrastructure.

Image /page/22/Picture/22 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter "C" on the left and the words "CIE Automotive" on the right. The "C" is made up of two curved lines that do not quite meet, creating an opening at the top. The words "CIE Automotive" are in a simple, sans-serif font, with "CIE" in a bolder font than "Automotive".

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0) Record [earnings](#page-53-0) Common responsibility, [shared benefits](#page-64-0) Our response to [the environmental](#page-141-0)  challenge 2 3 4 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**1**

Image /page/22/Picture/0 description: The image shows the text "ANNUAL REPORT" on the left side and the number "23" on the right side. The number "23" is partially obscured by a quotation mark.

{23}------------------------------------------------

### **Brazil:**

Brazil produced 2.2 million vehicles in 2023, growth of 1.2% from 2022. Tax breaks mitigated the pronounced rise in interest rates in 2023.

The big announcement last year was BYD's acquisition of the old Ford factory in Bahía, which is now expected to produce two electric cars and one hybrid model, as well as electric trucks and buses. Production is expected to start in the second half of 2024 with initial annual capacity of 150,000 units, a figure expected to double to 300,000 from 2025.

Growth in production is expected to accelerate in 2024, to 3% and, most notably in 2025 and 2026, when production growth is forecast at 6% and 7%, respectively. Some of the anticipated growth is attributable to the fact that the Brazilian central bank has already started to cut interest rates.

#### **India:**

Demand for vehicles in India broke new records in 2023. Production increased by 4.4% to 5.4 million units, despite strong levels already in 2022. As well as a strong performance in the passenger vehicle segment, other segments with even greater growth potential started to recover: commercial vehicles (+0%); motorcycles (+4%) and tractors (-2%).

Notably electrification also started to make inroads in this market: in early October, Tata announced it would launch eight electric models in 2030. This growth is expected to get a further injection from public initiatives designed to draw investments related with electric vehicles. In 2023, electric car sales volumes increased by around 90% (88% as of November). However, combustion-engine vehicles are expected to continue to dominate this market.

As for the outlook for light vehicle production, growth is expected to take a breather in 2024, consolidating the sharp growth recorded last year before going on to regain traction, with growth of 4/5% forecast for both 2025 and 2026.

### **China:**

The world's largest vehicle maker increased production by 10.0% in 2023. Although domestic demand appears to be slowing, Chinese production was boosted by the extension of tax relief for electric vehicles until 2027. Moreover, the Chinese OEMs are growing in foreign markets thanks to a price-based growth strategy.

Annual growth to 2026 is forecast at 3%.

Image /page/23/Picture/23 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is black, while the text is a lighter shade of gray.

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

Image /page/23/Figure/4 description: The image shows the number 2 in light gray on the left, and the words "Ready for change" in black on the right.

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**1**

Image /page/23/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold black letters on the left side of the image. To the right of the words is a large gray quotation mark and the number "23" in bold black letters.

{24}------------------------------------------------

## Market trend analysis is a crucial aspect of **the market risk management effort**

Image /page/24/Figure/2 description: The image shows a diagram illustrating key sector trends in the automotive industry. The diagram is structured around a circular flow, indicating a continuous cycle of change and adaptation. The title of the diagram is "Key sector trends". To the left of the diagram is a list of topics: Chairman and CEO's statement, 2023 highlights, Ready for change, Record earnings, Common responsibility, shared benefits, Our response to the environmental challenge, Responsible management, About this report, and Data tables. These topics are numbered 1 through 6. The diagram is divided into three main sections: "The world is changing", "The automotive sector is changing", and "The suppliers' space is changing". Each section is represented by an icon and a list of related trends. The "The world is changing" section includes an icon of a globe and lists trends such as climate change, demographic trends, technological change, and macroeconomics and geopolitics. The "The automotive sector is changing" section features an icon of a car and lists trends like electrification, the user experience, safety and protection, and autonomy and connectivity. The "The suppliers' space is changing" section includes an icon of a truck with a gear and lists trends such as customer outsourcing and Industry 4.0. The diagram also includes the text "SECTOR ANALYSIS" and the logo "ODS". The image also includes the text: "The automotive parts makers are playing a crucial role in transforming the automotive sector by helping the OEMs to tackle many of the trends arising from society's demands. These trends are giving way to new forms of mobility and prompting changes in manufacturing models. As outlined in "Risk management", analysing these trends is a crucial aspect of CIE Automotive's market risk management effort."

Image /page/24/Picture/4 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is black, while the words are in a thin, sans-serif font.

Image /page/24/Picture/0 description: The image shows the words "ANNUAL REPORT" in black, with a large gray quotation mark and the number "23" in black to the right of the words.

{25}------------------------------------------------

**The world is** 

**changing**

#### **Climate change**

The environmental laws written to combat climate change are coming faster and are becoming more ambitious and global in reach. Climate change regulations are tackling two key fronts. Firstly, they are requiring the use of greener energy sources, focused primarily on electrification. Secondly, all sector players must mitigate their carbon footprints taking a lifecycle approach.

### **Demographic trends**

There are many opposing demographic trends unfolding simultaneously around the world whose ultimate overall effect on the automotive sector is expected to be clearly positive.

- More than half of forecast population growth is concentrated in Africa, but the most of the world's population is located in Asia (60%), with Europe losing share (10%.)
- Life expectancies are rising and birth rates dropping, driving population ageing.
- Urbanisation is a parallel trend and we are also seeing - mainly regional - migratory displacements of populations.

#### **Technological change**

The world is moving towards a Fourth Industrial Revolution, which will change our lives and make productive processes, including those of the automotive sector, more efficient.

The emerging improved and more efficient vehicle architectures are based on the use of the right materials and their correct application, which means that different technologies will have a role to play in the next-generation, multi-material vehicles.

### **Macroeconomics and geopolitics**

- Emerging market opportunities: the Chinese, Indian and Brazilian economies, to name a few, are expected to experience sharp growth in the coming years.
- National protectionism: initially perceived as a threat, protectionism strategies are no longer expected to have a significant impact on the automotive sector.

Image /page/25/Picture/20 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is black, while the text is in a lighter shade of gray.

#### Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

> **Record [earnings](#page-53-0)**

**Ready [for change](#page-15-0) 2**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**1**

**3**

Image /page/25/Picture/0 description: The image shows the text "ANNUAL REPORT" and the number "23" in a bold font. To the right of this is a diagonal line followed by the text "Ready for change".

**REPORT**

{26}------------------------------------------------

**The automotive sector is changing**

**Electrification** 

With the aim of curbing climate change, the automotive industry is investing heavily in R&D oriented around transport decarbonisation. Despite those efforts, EV penetration rates vary significantly from one market to the next and we are likely to see vehicles fuelled by different sources of

energy coexist for some time.

### **User experience**

Car buyers' preferences have shifted. Nowadays they are looking for aspects related with comfort, such as spaciousness, driver assistance and smart infrastructure, to the detriment of other attributes such as power, aerodynamics and external aesthetics. Within the comfort thrust, the penetration of roof systems is outpacing the general automotive market.

### **Safety and protection**

Vehicle safety prioritisation is making manufacturing more complex and increasing the number of parts and their added value. Today's cars are being fitted with sophisticated driver assistance systems that prevent accidents and other passive safety systems designed to mitigate damage and injuries in the event of a collision; those systems are being embedded in the chassis and bodywork, for example, as well as shaping seatbelt and airbag development. Growing safety and protection requirements for passengers and other road users is requiring the introduction of more complex solutions involving different materials, reinforcing the astuteness of the multitechnology approach.

#### **Autonomous and connected car**

Major progress has been made on autonomous driving in recent years, thanks to which important driver assistance features have been introduced to new cars. However, the mainstreaming of the autonomous car in the coming years continues to face obstacles. In parallel, users are demanding greater connectivity between their cars and the outside world (virtual assistants, automation, etc.), all of which requires establishing high-speed connections. The OEMs are therefore expected to partner with technology, telephony and infrastructure providers.

Image /page/26/Picture/15 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is black, while the text is in a lighter shade of gray.

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

> **Record [earnings](#page-53-0)**

**Ready [for change](#page-15-0) 2**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**1**

**3**

Image /page/26/Picture/0 description: The image shows the text "ANNUAL REPORT" on the left side of the image, with the number "23" above the word "REPORT". On the right side of the image, there is a diagonal line followed by the text "Ready for change".

**REPORT**

{27}------------------------------------------------

## **Digital transformation is expected to shake up** the automotive sector's supply chain

**The suppliers' space is changing**

#### **Production outsourcing**

The OEMs are increasingly outsourcing production of their vehicles to their suppliers who nowadays account for over 75% of total vehicle value, in order to concentrate on their core competencies.

### **Industry 4.0**

The automotive supplier sector is investing heavily in R&D in order to build so-called smart factories: cloud platforms, simulation capabilities, cognitive manufacturing and online robotics. In the years to come digital transformation is expected to shake up the existing automotive sector's supply chain.

Image /page/27/Picture/16 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved shapes, one above the other, with a gap between them. The text "CIE Automotive" is in a simple, sans-serif font.

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**[shared benefits](#page-64-0)**

#### **Ready [for change](#page-15-0) Record [earnings](#page-53-0) Common responsibility, 2 3 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**1**

Image /page/27/Picture/0 description: The image shows the words "ANNUAL REPORT" in black, with the number "23" in a larger font size and also in black. A gray quotation mark is above the number 23.

{28}------------------------------------------------

• Roof systems

Image /page/28/Picture/5 description: The image shows two rounded rectangles stacked vertically. Several orange arrows point in different directions, suggesting movement or interaction between the rectangles and their surroundings. The rectangles have thick, dark outlines.

Flexible standard

machinery

High returns

on investments

High EBITDA-to-cash conversion ratio

**Disciplined investing**

> 4 autonomous geographic

1 corporat
to suppor
the region

# regions

1 corporate network to support the regions

**Decentralised management**

4 autonom

#### Ethical commitment

CIE culture

#### Eco-efficiency

#### Active listening

#### **Integration of ESG standards**

Image /page/28/Picture/20 description: The image shows a logo consisting of four puzzle pieces. Three of the puzzle pieces are connected and outlined in black. The letters 'S', 'E', and 'G' are written in orange on these three pieces, respectively. The fourth puzzle piece is black and is positioned to connect with the other three pieces.

Image /page/28/Figure/25 description: The image shows a business model with the title "A genuine business model". The model is divided into three sections: Geographical balance, Customer diversification, and Multi-technology approach. The Geographical balance section includes the following information: 108 manufacturing facilities (including 3 multi-technology factories), 10 research centers, and 17 countries. The Customer diversification section includes the following information: 70% OEMs (automobile manufacturer) and 30% TIER-1 SUPPLIERS. The Multi-technology approach section includes the following information: 7 technologies: Aluminium die casting, Forging, Metal stamping and tube forming, Machining, Plastic, and Casting. The image also includes a list of topics: Chairman and CEO's statement, 2023 highlights, Ready for change, Record earnings, Common responsibility, shared benefits, Our response to the environmental challenge, Responsible management, About this report, and Data tables.

**To tackle the challenges facing the automotive sector and help move it towards governance (ESG) aspects.**

#### **sustainability, CIE Automotive has a unique business model which has been proving its effectiveness for over 25 years. Its approach is underpinned by customer, technological and geographical diversification, disciplined investing and decentralised decision-making. The model has been enriched in recent years by the inclusion of environmental, social and**

Image /page/28/Picture/17 description: The image shows a diagram with two rounded rectangles stacked vertically, resembling the number '8'. The rectangles are outlined in black. Inside and around the rectangles are orange arrows indicating movement or interaction. In the top rectangle, there are two arrows pointing outwards to the left. In the bottom rectangle, there is one arrow pointing downwards to the left. There is also a double-headed arrow pointing up and down between the two rectangles.

<span id="page-28-0"></span>Image /page/28/Picture/0 description: The image shows the text "ANNUAL REPORT 23 / Ready for change". The word "ANNUAL" is stacked on top of the word "REPORT". The number "23" is large and bold. The phrase "Ready for change" is written in a thin, sans-serif font.

**REPORT**

Image /page/28/Picture/14 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved lines that do not fully connect, creating a gap in the middle. The text "CIE Automotive" is written in a simple, sans-serif font.

{29}------------------------------------------------

# Geographical balance

**Since its creation in 1996, CIE Automotive has been strategically expanding its geographic reach, locating its manufacturing facilities close to the vehicle assembly platforms in the main automotive markets: Europe, North America, Asia and Brazil. Thanks to the acquisition of a number of companies, the construction of greenfield facilities and strategic alliances with other companies, CIE Automotive has built itself up to include 108 manufacturing (including 3 multitechnology factories) and 10 research centres located in 17 countries.** 

This geographical diversification positions it a leading supplier for the platforms worldwide, enabling it to maintain a healthy sales and earnings mix across the various regions. Geographic diversification is a crucial defensive tool in moments of crisis, as slowdowns in production in some markets are often mitigated by stronger momentum in others.

Against that backdrop, specifically to direct its financial and managerial resources to markets with higher growth potential, such as India, and other technologies in greater demand and tied to its decarbonisation strategy, in 2023 the company sold Mutares its German forging business, the subsidiaries of CIE Forging Germany GmbH.

#### North America

# 31%

The company entered the Mexican market two decades ago and over the last 10 years expanded into the US by means of mergers and acquisitions. It currently has 13 manufacturing facilities in Mexico and five in the US.

#### Europe

36%

Having sold its German forging business in October 2023, CIE Automotive has 39 manufacturing facilities in western and eastern Europe and one factory in

Morocco.

Brazil

9%

In Brazil, CIE Automotive has 14 manufacturing facilities following the acquisition of Iber-Oleff, which specialises in plastic parts. It commands a noteworthy position in this market in the wake of the consolidation of the automotive parts market in recent years.

Asia

# 24%

CIE Automotive has 25 manufacturing facilities in India and 12 in China. The company entered the Indian market, the world's fastest-growing automotive market, through its alliance with the local business group Mahindra & Mahindra, later cementing its position in the country by acquiring Bill Forge and AEL (now CIE Aluminium Casting). In China, the company's growth is the result of its acquisition of Inteva's roof systems division.

#### **CIE AUTOMOTIVE FACTORIES AROUND THE WORLD**

Image /page/29/Picture/20 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of two curved shapes that do not quite meet, creating an incomplete circle. The words "CIE Automotive" are in a simple, sans-serif font, with "CIE" in a bolder font than "Automotive".

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0)**

**Record [earnings](#page-53-0)**

**Common responsibility, [shared benefits](#page-64-0)**

**Our response to [the environmental](#page-141-0)** 

**challenge**

**Responsible [management](#page-183-0)**

About [this report](#page-229-0)

[Data tables](#page-261-0)

**1**

**2**

**3**

**4**

**5**

Image /page/29/Picture/0 description: The image shows the words "ANNUAL REPORT" in large, bold, black letters on the left side of the image. To the right of the words is a large number "23" in black, with a gray quotation mark above the number.

{30}------------------------------------------------

# Customer diversification CIE Automotive has strategic

relationships with more than 80 customers worldwide, including the main multinational automotive original equipment makers (OEMs) (70%) and Tier 1 parts makers (30%).

Its sales policy is predicated on not becoming significantly reliant on any single customer: the largest customer represents just 8% of total group revenue. Not only does this strategic approach strengthen the company's price negotiation power, it has been key to the growth achieved during times of crisis.

**MAIN CUSTOMERS** 

Image /page/30/Picture/6 description: The image shows the word "Jeep" in a bold, sans-serif font. The word is black and the background is white. There is a registered trademark symbol to the lower right of the letter "p".

Image /page/30/Picture/8 description: The image shows the Mercedes-Benz logo. The logo consists of a three-pointed star inside a circle, positioned above the words "Mercedes-Benz" in a serif typeface.

Image /page/30/Picture/9 description: The image shows the Audi logo, which consists of four interlocking rings. The rings are all the same size and thickness, and they are arranged in a horizontal line. The logo is black and white.

HYUNDAI

Image /page/30/Picture/11 description: The image is a black and white logo of Volkswagen. It features a stylized "V" stacked on top of a stylized "W", both enclosed within a circle. The lines are thick and solid, creating a bold and recognizable emblem.

Image /page/30/Picture/12 description: The image shows the Citroen logo, which consists of two inverted chevrons stacked on top of each other. The chevrons are black and outlined in white.

Image /page/30/Picture/13 description: The image is completely white and contains no discernible content or features.

Image /page/30/Picture/14 description: The image shows the Land Rover logo. The logo is an oval shape with a black background and white text. The text reads "LAND ROVER" with an arrow pointing to the right between the two words.

Image /page/30/Picture/15 description: The image shows a stylized letter 'A' formed by three thick, vertical lines. The middle line is shorter than the other two, creating the crossbar of the 'A'. The lines are black against a white background.

Image /page/30/Picture/16 description: The image contains a partial view of the word "OPI" in bold, black font at the top. Below the text, there is a curved line that appears to be part of a larger design or logo. The background is white.

Image /page/30/Picture/32 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter "C" on the left and the words "CIE Automotive" on the right. The letter "C" is made up of two curved lines that do not quite meet, creating a gap in the middle. The words "CIE Automotive" are written in a simple, sans-serif font.

Image /page/30/Picture/17 description: The image contains two logos. The first logo is the Opel logo, which consists of a circle with a stylized lightning bolt inside. The second logo is the ZF logo, which consists of the letters "ZF" inside a circle.

Image /page/30/Picture/18 description: The image shows the logo for Bajaj Auto. The logo consists of a stylized "B" symbol above the word "BAJAJ" in a bold, sans-serif font. The "B" symbol is composed of three overlapping, angled shapes that create a sense of movement and dynamism. The logo is in black against a white background.

RENAULT

Image /page/30/Picture/20 description: The image shows a black and white graphic. The graphic appears to be a stylized logo or symbol, with bold, angular shapes. The shapes are arranged in a way that suggests a sense of movement or direction. The overall impression is modern and abstract.

Image /page/30/Picture/21 description: The image shows the Nissan logo. The logo consists of the word "NISSA" in a bold, sans-serif font, with a stylized circle partially surrounding the word. The top and bottom of the circle have small, horizontal extensions that connect to the top and bottom of the letters "N" and "A" respectively. The logo is black and white.

Image /page/30/Picture/22 description: The image contains a partial view of a black, stylized letter 'S' against a white background. The letter is bold and angular, with three horizontal lines forming the upper part of the 'S'. The lower part of the 'S' is curved. The letter is cropped on the left side of the image.

Image /page/30/Picture/23 description: The image contains a partial view of a logo or design. The top portion shows the upper part of a word in a bold, sans-serif font, with only the top halves of the letters visible. Below this, there's a circular or oval shape with a thick outline, and within it, there are some obscured letters or symbols. The overall impression is that the image is a close-up of a logo, possibly cropped, with a combination of text and a graphic element.

Image /page/30/Picture/24 description: The image shows the logo for FAW Group, a Chinese state-owned automobile manufacturer. The logo consists of two parts: a stylized emblem and the acronym "FAW" in bold, sans-serif font. The emblem is an oval shape containing a stylized number "1" in white against a black background. The acronym "FAW" is positioned below the emblem, also in black.

NTN

Image /page/30/Picture/26 description: The image shows the word "CATERPILLAR" in all caps. The "A" in the word is replaced with a black triangle.

Image /page/30/Picture/27 description: The image shows the Bosch logo. The logo consists of a circle with a stylized letter "H" inside, followed by the word "BOSCH" in bold, sans-serif font.

**Mahindra**

Image /page/30/Picture/29 description: The image shows the Ford logo, which consists of the word "Ford" written in a stylized script inside of an oval. The oval is black with a white outline, and the word "Ford" is written in white.

DAIMLER

### Chairman and CEO's [statement](#page-2-0) **2023 [highlights](#page-5-0) Ready [for change](#page-15-0) Record [earnings](#page-53-0) Common responsibility, [shared benefits](#page-64-0) Our response to [the environmental](#page-141-0)  challenge Responsible [management](#page-183-0)** About **1 2 3 4 5 6**

[this report](#page-229-0)

[Data tables](#page-261-0)

Image /page/30/Picture/0 description: The image shows the text "23 Ready for change ANNUAL REPORT". The number 23 is large and bold, and the words "ANNUAL REPORT" are stacked vertically and are smaller than the number 23. The words "Ready for change" are to the right of the number 23 and are separated by a diagonal line.

**REPORT**

{31}------------------------------------------------

**REVENUE MIX BY TECHNOLOGY**

Image /page/31/Figure/21 description: The image shows the word "TOTAL" in a smaller font size above the number "3,959" in a very large font size. Below the number is the text "M€".

Image /page/31/Figure/8 description: The image is a bar chart comparing different metal technologies. The technologies are Aluminium Die Casting (388 M€, 9.8%), Forging (695 M€, 17.6%), Metal Stamping and Tube Forming (929 M€, 23.5%), Machining (721 M€, 18.2%), Plastic (419 M€, 10.6%), Casting (153 M€, 3.9%), and Roof Systems (654 M€, 16.5%).

# Multi-technology approach

**CIE Automotive's production effort encompasses more than 7,000 parts and subassemblies made using seven different fundamental processes or technologies: aluminium die casting, forging, metal stamping and tube forming, machining, plastic, casting and roof systems.**

Mastery of these different technologies positions the group as an end-to-end supplier for its customers, who can choose between different technical proposals for a given part or select a subassembly made using a wide range of technologies.

This technological versatility not only gives customers greater choice, it also allows the group to direct its investments into the technologies in highest demand in each market over time.

At present, the main market thrust is clearly vehicle electrification. Over 80% of the parts and subassemblies made by CIE Automotive can be adapted for electric and hybrid vehicles.

32

Image /page/31/Picture/18 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is black, while the words "CIE Automotive" are in a sans-serif font and are also black.

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) Common responsibility, [shared benefits](#page-64-0) 3 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**1**

Image /page/31/Picture/0 description: The image shows the words "ANNUAL REPORT" in large, bold, sans-serif font on the left side of the image. To the right of the words, there is a large number "23" with a gray quotation mark above it. The number "23" is also in a bold, sans-serif font.

{32}------------------------------------------------

| Number of factories      | TOTAL | Aluminium (5) | Forging (4) | Stamping | Machining | Plastic (3) | Casting (6) | Roof systems |
|--------------------------|-------|---------------|-------------|----------|-----------|-------------|-------------|--------------|
| Europe (1)               | 40    | 5             | 3           | 5        | 16        | 5           | -           | 6            |
| North America            | 17    | 1             | 2           | 4        | 6         | 2           | -           | 2            |
| Brazil                   | 14    | 1             | 1           | 4        | 1         | 6           | 1           | -            |
| Asia (India & China) (2) | 37    | 4             | 9           | 8        | 3         | 1           | 2           | 10           |
| TOTAL                    | 108   | 11            | 15          | 21       | 26        | 14          | 3           | 18           |

*(1) Includes the CIE Maroc factory in Morocco and the CIE Automotive Rus factory in Russia.*

*(2) Includes one multi-technology factory (CIE Automotive Parts Shanghai).*

*(3) Includes three multi-technology factories (CIE Celaya, CIE Automotive Parts Shanghai and CIE Autometal Diadema).*

*(4) Includes one multi-technology factory (CIE Autometal Diadema), as well as one facility in each of India and the US that use composites technology.*

*(5) Includes one multi-technology factory (CIE Celaya).*

*(6) Includes a Magnets plant in India.*

NORTH AMERICA

17 factories

BRAZIL 14 factories

Image /page/32/Figure/23 description: The image shows the text "ASIA" at the top, followed by the text "37 factories". Below the text are 37 factory icons arranged in a grid pattern.

EUROPE(1)

40 factories

🏭🏭🏭🏭🏭🏭
🏭🏭🏭🏭🏭🏭
🏭🏭🏭🏭🏭🏭
🏭🏭🏭🏭🏭🏭

Image /page/32/Picture/22 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is black and appears to be made up of two curved shapes. The words "CIE Automotive" are in a simple, sans-serif font, with "CIE" in a bold font and "Automotive" in a lighter font.

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0) Record [earnings](#page-53-0) Common 2 3**

**responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**1**

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| CAPEX                                                                                                                   | Strict investment<br>discipline High<br>return hurdles | EBITDA-to-cash<br>conversion threshold                                                                                                                      |
|-------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Flexible, standard<br>equipment which<br>enables high capacity<br>utilisation.                                          | CAPEX ≥ 20% ROI.                                       | Operational excellence<br>coupled with control<br>over CAPEX for an<br>EBITDA-to-operating<br>cash conversion ratio<br>that is above the market<br>average. |
| Recurring capex of<br>~2-3% of revenue, which<br>is sufficient to enable<br>facility maintenance<br>and organic growth. | Net working<br>capital ≈ 0.                            | Target<br>ratio of >60%.                                                                                                                                    |

# Disciplined investing

**Every year, CIE Automotive invests in expanding its capacity and optimising its facilities. Investments are framed by strict financial discipline focused on cash generation.** 

Investments are planned considering the three pillars of the company's financial discipline: capital expenditure, high return thresholds and the conversion of EBITDA into operating cash flow.

#### **ESG criteria**

Beyond its long-standing financial discipline, in 2023 CIE Automotive improved its investing procedures to include ESG criteria and analyse new risk factors. Now the investment selection process considers environmental criteria, for example, the scope for cutting power consumption, the waste generated by the asset under study and the repercussions for personal health and safety, in keeping with local regulations. In another first for the company, industrial and climate risks are now analysed before making any investment. All of the suppliers involved in an investment process have to sign the ESG Commitment for Suppliers.

#### **PILLARS OF DISCIPLINED INVESTING STRATEGY**

Image /page/33/Picture/17 description: The image shows the CIE Automotive logo. On the left is a stylized letter C, formed by two curved lines that do not quite meet, creating a gap in the C shape. To the right of the C is the text "CIE Automotive" in a simple, sans-serif font. The word "CIE" is slightly bolder than "Automotive".

#### Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

#### **Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) Common 3**

#### **responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**1**

Image /page/33/Picture/0 description: The image shows the text "ANNUAL REPORT" on the left side and the number "23" on the right side. The number 23 is large and bold, with a dashed line running through the middle of the number. There is a gray quotation mark above the number 23.

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#### **CHARACTERISTIC OF THE DECENTRALISED MANAGEMENT**

and orders

Productivity of indirect workers

Variable and long-term incentives

Image /page/34/Figure/5 description: The image shows a circular diagram with the title "GOAL: VALUE CREATION" in the center. An upward-pointing arrow and a euro symbol are above the title. The diagram has several points around the circle, each with a description. Starting from the top and going clockwise, the points are: "Cash generation", "Full team commitment", "Simple and direct decision-making", "Universal, flexible and multi-tasking entrepreneurs", "Streamlined corporate structure", and "Global presence and ordoro".

Descentralised management structure

Support service network

## Decentralised management

**CIE Automotive follows a decentralised management model to give it the flexibility needed to outperform in a global market. Its lean structure, which is markedly simple, optimum and efficient, accelerates the decisionmaking process, giving the company a competitive edge, especially in challenging times such as these.**

Each region and division takes decisions suited to its circumstances, albeit always with the shared goal of creating value. In this process, they are supported by the various Corporate Areas (Sales, Procurements, R&D, Human Resources, Engineering, Quality & Environment, Internal Audit, Compliance and ESG) and a series of Network Services vested with a group-wide remit.

Image /page/34/Picture/7 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of three curved lines that do not quite meet, forming an incomplete circle. The words "CIE Automotive" are written in a simple, sans-serif font. The logo is black on a white background.

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0)**

**Record [earnings](#page-53-0)**

**Common responsibility, [shared benefits](#page-64-0)**

**Our response to [the environmental](#page-141-0)** 

**challenge**

**Responsible [management](#page-183-0)**

About [this report](#page-229-0)

[Data tables](#page-261-0)

**1**

**2**

**3**

**4**

**5**

**6**

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{35}------------------------------------------------

Integration of ESG standards

**CIE Automotive officially integrated ESG standards into its business model in 2019, a step that reinforced its commitment to the 10 Global Compact Principles and the Sustainable Development Goals.**

Integration of ESG standards goes beyond the organisation itself, extending to the supply chain, which is assessed along responsibility criteria.

The company also participates actively in a range of business associations and forums in order to have a positive influence on the broader business community.

Image /page/35/Picture/13 description: The image shows an icon of three puzzle pieces interlocked with the letters S, G, and E on them. A fourth puzzle piece is floating above the other three, not yet connected. The puzzle pieces are orange.

**TIMELINE OF ESG TRANSFORMATION**

## CIE Automotive is committed to the **10 Global Compact Principles and the Sustainable Development Goals**

Endorsement of the United Nations Global

Compact

Membership of Forética's Transparency, Integrity and Good Governance

Cluster

Integration of ESG criteria into the company's business model

Membership of the SERNAUTO Responsible Business Committee

New Strategic Plan including the ESG strategy for the first time

Announcement of the commitment to reach net zero by 2050

2015

2016

2019

2020

2021

2022

Image /page/35/Picture/21 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of two curved shapes that do not quite meet, creating an incomplete circle. The words "CIE Automotive" are in a simple, sans-serif font, with "CIE" in a bolder font than "Automotive".

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready for change**

**Record earnings Common responsibility, shared benefits Our response to [the environmental](#page-141-0)  challenge 1[2](#page-15-0)[3](#page-53-0)[4](#page-64-0)56**

**Responsible [management](#page-183-0)**

> About [this report](#page-229-0)

[Data tables](#page-261-0)

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Mission

We are a committed team with an automotive story that has been growing steadily for more than 25 years.

- **We are a global and multi-technology supplier**
- Four continents
- Seven technologies
- **We create value for all of our stakeholders**
- **We guarantee quality and service**
- **As a team, we join in and innovate**
- Every person is an entrepreneur
- We are proud to belong here
- **We care for our planet**
- We help improve our surroundings
- We minimise our environmental impact

Image /page/36/Picture/28 description: The image shows an orange eye icon next to the word "Vision" in black text.

To provide the best solutions for the mobility of tomorrow while being:

- **Climate neutral:**
- Maximum resource circularity
- Zero net emissions
- **Value chain drivers:**
- End-to-end approach
- Commitment to local economies

# **2.3The commitments that inspire us**

#### • **A benchmark for society:**

- Guaranteeing everyone's ethical conduct, health and safety
- Listening, communicating and acting

#### • **Excellent in management:**

- Transparency and integrity
- Value creation

Values

- **Committed to a job well done**
- **Innovation as the response to any challenge**
- **Focused on people, their families and their surroundings**
- **Diversity, equality and inclusion**
- **Sustainable and profitable growth**
- **Ethical and honest conduct**
- **Self-criticism and recognition of others**
- **Champions of climate action**
- **Compliance with the law**

Mission, vision and values

Image /page/36/Picture/14 description: The image shows a target with an arrow in the bullseye. The target has three concentric circles, and the arrow is pointing towards the center of the target. The color of the target and arrow is orange.

**Guided by its mission, vision and values, CIE Automotive pursues excellence in its businesses while undertaking to minimise its impact on the environment and maximise its contribution to society. In tune with the United Nations 2030 Agenda, the company has embedded social and environmental responsibility into all its processes. Its actions are inspiring other sector players and contributing to the transition towards sustainability.**

Image /page/36/Picture/43 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved lines that do not fully connect, creating an incomplete circle. The text "CIE Automotive" is written in a simple, sans-serif font.

Image /page/36/Picture/44 description: The image shows two hands cupped together, holding a heart. The hands and heart are orange, with a gradient that is lighter at the top and darker at the bottom.

Chairman and CEO's statement

**2023**

**highlights**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**1**

<span id="page-36-0"></span>Image /page/36/Picture/0 description: The image shows the text "ANNUAL REPORT 23 / Ready for change". The number 23 is large and bold, and there is a dashed line underneath it.

**REPORT**

{37}------------------------------------------------

## Social responsibility at CIE Automotive

**CIE Automotive factors ESG considerations into all its business decisions, from strategic planning to execution on the ground. This approach allows it to respond to its customers' demands and the growing body of legislation around sustainability, while also locking in profitable, long-term growth by driving efficiency and innovation so as to minimise its negative impacts.** 

### **Global Compact**

CIE Automotive's public commitment to sustainable development dates back to 2015, when it signed its endorsement of the United Nations Global Compact. That endorsement implied the public assumption of responsibility in key areas including human and labour rights, environmental protection and anti-corruption. Eight years later, as a Signatory of the Spanish Chapter of the Global Compact, the group has moved beyond its respect for the Company's 10 universally recognised principles and become an agent of systematic change in the shift towards a sustainable economy.

Image /page/37/Picture/13 description: The image contains the logo of the UN Global Compact. The logo features a globe encircled by the text "UN GLOBAL COMPACT" in a circular arrangement. Below the globe, there are two olive branches forming a semi-circle. To the right of the globe, there are two large letters "U" and "G" stacked vertically.

United Nations
Global Compact

### **ESG Policy**

At the forefront o
Board of Director
an ESG Policy, wh
members of the
principles and ge
practices into the
Effective applicat
risks associated v
Management an

At the forefront of the company's gradual transformation is the Board of Directors, which in 2017 championed the formulation of an ESG Policy, which was updated in 2021, that is binding on all members of the company. This policy defines the fundamental principles and general framework for building sustainability practices into the company's business model and strategy. Effective application of these principles and the potential risks associated with it are addressed in CIE Automotive's Risk Management and Control Policy.

### **Management monitoring**

Supervision of ESG and sustainability management falls to the Board of Director's ESG Committee, which delegates oversight of application of the principles in the Cross-Group ESG Committee. This monitoring process takes the form of 79 ESG indicators that measure performance in different areas. The KPIs are in turn included in each factory's management plans and are used to track delivery of the sustainability aspects of the 2025 Strategic Plan.

The group's social responsibility extends to its supply chain. Indeed, CIE Automotive was the first company in its sector to create a supplier platform devoted solely to managing and evaluating ESG matters.

Image /page/37/Picture/21 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved shapes, one above the other, with a gap in between. The text "CIE Automotive" is in a simple, sans-serif font.

#### Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

#### **Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) Common responsibility, [shared benefits](#page-64-0) Our response to [the environmental](#page-141-0)  challenge 3 4 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**1**

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{38}------------------------------------------------

Image /page/38/Picture/18 description: A portrait of a woman with short gray hair, smiling and wearing a gray shirt. The background is a light gray color.

**Susana Molinuevo**  *Compliance & ESG*

Image /page/38/Picture/14 description: This is a headshot of a man with short, dark hair and a light complexion. He is smiling and wearing a blue shirt with a dark blazer. The background is a light gray color. The image is cropped in a rounded square shape.

**Iker Hernández**  *Risk Management & Internal Control*

Image /page/38/Picture/16 description: A professional headshot of a man with short brown hair and glasses, wearing a dark suit and blue tie. He is smiling and looking directly at the camera. The background is a light gray color, and the image is cropped in a rounded square format.

**Iñigo Loizaga** *Engineering, Quality and Environmental Management*

Image /page/38/Picture/20 description: This is a headshot of a middle-aged man with short, graying hair. He has a warm smile and is wearing a dark suit with a red tie. The background is a light gray color.

**Mikel Orbegozo**  *Sales*

Image /page/38/Picture/24 description: This image is a headshot of a middle-aged man with a bald head. He has fair skin and is wearing a light blue collared shirt with a dark blazer over it. The background is a solid light gray color. The image is cropped in a rounded square shape.

**Aitor Zazpe**  *Human Resources & Business Management*

Image /page/38/Picture/30 description: This is a portrait of a woman with long brown hair. She is smiling and wearing a black and white striped shirt. The background is a light gray color.

**María Miñambres** *Control & Tax*

Image /page/38/Picture/12 description: This is a headshot of a woman with shoulder-length blonde hair. She is smiling broadly and wearing a white blazer with black trim. She has fair skin and is wearing gold hoop earrings. The background is a light gray color. There is an orange circle in the upper right corner of the image.

**Lorea Aristizabal**  *Business Development*

Image /page/38/Picture/22 description: This is a portrait of a woman with long, wavy brown hair. She is smiling and wearing a white shirt and a green blazer. She also has a necklace. The background is a light gray color.

**Irache Pardo** *Finance, Treasury & Procurements*

Image /page/38/Picture/28 description: A man with a white beard and glasses is wearing a suit and tie. He has a kind expression and is looking directly at the camera. The background is a light gray color.

**Jose Esmoris** *R&D*

Image /page/38/Picture/26 description: The image shows a man with short brown hair and a goatee. He is wearing a blue shirt. The background is a light gray color.

**Javier Alvarez** *Human Resources*

Image /page/38/Picture/32 description: The image shows a legend with two entries. The first entry has an orange circle next to the text "Permanent member". The second entry has a gray circle.

Non-permanent member

#### **Driving sustainability**

As its sector leader, what CIE Automotive does on the ESG front enhances its reputation and serves as inspiration for other companies. To that end, it shares its best practices at sustainability forums such as the Responsible Business Committee of SENAUTO, the Spanish association of automotive equipment and components manufacturers.

Outside of its sector, CIE Automotive is a member of Forética, Spain's foremost corporate sustainability and social responsibility organisation. Within Forética, it participates actively in a number of clusters, including the Transparency, Integrity and Good Governance, the Climate Change and the Social Impact Clusters.

#### **CROSS-GROUP ESG COMMITTEE**

Image /page/38/Picture/35 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved lines that do not fully connect, creating an opening on the right side. The text "CIE Automotive" is written in a simple, sans-serif font, with "CIE" in a slightly bolder font than "Automotive".

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

ANNUAL
REPORT

23

/ Ready for change

Image /page/38/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large number 23 with a quotation mark above the 2.

{39}------------------------------------------------

17. PARTNERSHIPS FOR THE GOALS

Strengthen the means of implementation and revitalise the global partnership for sustainable development.

Image /page/39/Picture/31 description: The image is a square icon for Sustainable Development Goal 5: Gender Equality. The background is a solid red color. In the upper left corner is the number '5' in white, followed by the words 'GENDER EQUALITY' stacked vertically, also in white. Below the text is a white symbol representing gender equality, which combines the female and male symbols with an equals sign in the middle.

16. PEACE, JUSTICE AND STRONG INSTITUTIONS

Promote just, peaceful and inclusive societies.

Image /page/39/Picture/21 description: The image is a square with a red background. In the upper left corner is the number 4 in white. To the right of the number is the text "QUALITY EDUCATION" in white. In the center of the square is a white open book and a white pencil.

3. GOOD HEALTH AND WELLBEING Ensure healthy lives and promote well-being for all at all ages.

Image /page/39/Picture/14 description: The image is a square with a yellow background. In the upper left corner is the number 7 in white. To the right of the number 7 is the text "AFFORDABLE AND CLEAN ENERGY" in white. Below the number and text is a white circle with a power button symbol in the center. The circle is surrounded by rays of light.

4. QUALITY EDUCATION Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all.

Image /page/39/Picture/23 description: The image is a maroon square with the number 8 in white on the top left. To the right of the number 8 is the text "DECENT WORK AND ECONOMIC GROWTH" in white. Below the text is a white graphic of a bar graph with an arrow pointing upwards.

5. GENDER EQUALITY Achieve gender equality and empower all women and girls.

Image /page/39/Picture/33 description: The image is a square with an orange background. In the upper left corner is the number 9 in white. Below the number is the text "INDUSTRY, INNOVATION AND INFRASTRUCTURE" in white. In the center of the square is a white graphic of three cubes connected together.

8. DECENT WORK AND ECONOMIC GROWTH Promote sustained, inclusive and sustainable economic growth, full and productive

employment, and decent work for all.

Image /page/39/Picture/26 description: The image is a square with an orange background. In the upper left corner is the number 12 in white. To the right of the number is the text "RESPONSIBLE CONSUMPTION AND PRODUCTION" in white. Below the text is a white infinity symbol with an arrow pointing clockwise.

9. INDUSTRY, INNOVATION AND INFRASTRUCTURE

Build resilient infrastructure, promote inclusive and sustainable industrialisation, and foster innovation.

Image /page/39/Picture/36 description: The image is a square with a green background. In the upper left corner is the number 13 in white. To the right of the number is the text "CLIMATE ACTION" in white. Below the number and text is a white eye shape with a globe inside of it.

7. AFFORDABLE AND CLEAN ENERGY Ensure access to affordable, safe, reliable and modern energy for all.

Image /page/39/Picture/16 description: The image is a pink square with the number 10 in white in the upper left corner. To the right of the number 10 are the words "REDUCED INEQUALITIES" in white. Below the number and text is a white graphic of a horizontal line with a triangle pointing to the left on the left side of the line, a triangle pointing to the right on the right side of the line, a triangle pointing up above the line, and a triangle pointing down below the line. The graphic is meant to represent the reduction of inequalities.

10. REDUCED INEQUALITIES Ensure equal opportunity and reduce inequalities of outcome; maintain a presence in less developed countries.

Image /page/39/Picture/18 description: The image is a square icon with a blue background. In the upper left corner is the number 16 in white. To the right of the number is the text "PEACE, JUSTICE AND STRONG INSTITUTIONS" in white. Below the text is a white dove holding an olive branch in its beak, and below the dove is a white gavel.

12. RESPONSIBLE CONSUMPTION AND PRODUCTION Ensure sustainable consumption and production patterns.

Image /page/39/Picture/28 description: The image is a square with a blue background. In the upper left corner is the number 17 in white. To the right of the number is the text "PARTNERSHIPS FOR THE GOALS" in white. Below the number and text is a white graphic of five overlapping circles.

13. CLIMATE ACTION Take urgent action to combat climate change and its impacts.

## Commitment to the 2030 Agenda

**CIE Automotive embraces its role as an agent of change by placing delivery of the United Nations 2030 Agenda, a shared plan of action for people, the planet, prosperity and universal peace, at the heart of its policies, strategies and activities.**

Shaped by its activities, presence and business model, CIE Automotive has identified 11 Sustainable Development Goals (SDGs) where it has the scope for having a bigger impact: SDG 3 (Good health and wellbeing), SDG 4 (Quality education), SDG 5 (Gender equality), SDG 7 (Affordable and clean energy), SDG 8 Decent work and economic growth), SDG 9 (Industry, innovation and infrastructure), SDG 10 Reduced inequalities), SDG 12 (Responsible consumption and production), SDG 13 (Climate action), SDG 16 (Peace, justice and solid institutions) and SDG 17 (Partnerships for the goals).

SDG 7 Affordable and clean energy was formally added in 2023 in response to the growing use of renewable energy at the company's manufacturing facilities and to stress its contribution to the decarbonisation of transportation.

Image /page/39/Picture/12 description: The image is a square green icon for Sustainable Development Goal 3: Good Health and Well-Being. The number 3 is in the upper left corner, and the text "GOOD HEALTH AND WELL BEING" is in the upper right corner. A white heart with a heartbeat line is in the lower center of the icon.

## **SDG 7** *Affordable and clean energy* **was formally added in 2023** in

response to the growing use of renewable energy

Image /page/39/Picture/39 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved shapes that do not fully connect, creating an incomplete circle. The text "CIE Automotive" is written in a simple, sans-serif font, with "CIE" in a bolder typeface than "Automotive".

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0) Record [earnings](#page-53-0) Common responsibility, [shared benefits](#page-64-0) Our response to [the environmental](#page-141-0)  2 3 4 5**

**challenge**

About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**1**

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{40}------------------------------------------------

#### **LINES OF THE 2025 STRATEGIC PLAN**

# **[2](#page-2-0).4 Our sustainable growth strategy**

Image /page/40/Figure/13 description: The image shows two diagrams, one labeled "Key operational lines" and the other labeled "Key ESG lines". The "Key operational lines" diagram contains four icons: an electrical plug labeled "Electrification", a globe labeled "International expansion", a seat with a checkmark labeled "Comfort", and a factory with a wifi symbol labeled "Industry 4.0". The "Key ESG lines" diagram contains four icons: a crescent moon labeled "CIE culture", a handshake labeled "Ethical commitment", a lightbulb with a leaf labeled "Eco-efficiency", and a speech bubble with lines labeled "Active listening".

**In 2021, CIE Automotive sets its 2025 Strategic Plan in motion, an allencompassing strategy devised to deliver profitable and sustainable growth that addresses both business and ESG lines of initiative. In 2023 the company passed the plan's halfway mark, duly delivering the scheduled annual targets and evidencing its ability to achieve healthy earnings in a complex economic and sector environment while reducing its environmental footprint and meeting its stakeholders' expectations.**

Image /page/40/Picture/15 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved shapes that do not fully connect, creating an incomplete circle. The text "CIE Automotive" is in a simple, sans-serif font.

Chairman and CEO's statement

**2023 highlights**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**1**

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**REPORT**

{41}------------------------------------------------

Image /page/41/Picture/13 description: The image shows a black and white icon of a person standing on a podium with a check mark on the front. There are two other people on the podium, one on either side of the person in the center. The person in the center is taller than the other two people.

Image /page/41/Picture/15 description: The image shows a black and white icon of a Euro symbol overlapping a gear. The Euro symbol is on the left side of the gear.

| COMMITMENTS EMBEDDED |
|----------------------|
| STRATEGIC PLAN       |

| Revenue growth that is 20 percentage points above market growth.                                                                |
|---------------------------------------------------------------------------------------------------------------------------------|
| An EBITDA margin of over 19% in 2025, reinforcing the company's position as one of the most profitable suppliers in the sector. |
| CAPEX of around €1 billion over the five-year period, which is around 5% of revenue per annum.                                  |
| Annual income tax payments of 2% of revenue.                                                                                    |
| Sustained generation of cash from operations of 65% of EBITDA. Approximately €500 million from 2025.                            |

Image /page/41/Picture/17 description: The image shows a black and white icon of a bank with a euro symbol on top of it. The bank has a classical architectural style with columns and a triangular pediment. The euro symbol is a circle with a stylized 'E' inside.

Image /page/41/Picture/19 description: The image shows a black and white icon of a euro symbol inside a circle with two arrows rotating around it.

## 2025 Strategic Plan

**The 2025 Strategic Plan constitutes an integral response to the transformation of the automotive market and new sensitivities around environmental, social and governance matters. It sets ambitious and quantifiable business and ESG targets and details the specific lines of work for achieving them. The two blocks are interdependent and necessary to attain sustainable profitability.**

### **BUSINESS STRATEGY**

CIE Automotive's business strategy is articulated around the generation of operating cash flow and so translates into significant deleveraging over its time horizon, enabling it to invest up to €1.5 billion without its leverage (net debt-to-EBITDA) rising above 2x. The momentum in operating cash flow is being driven by margin expansion, which more than offset the rise in interest rates in 2023.

The amount set aside for investments may be used for any type of transaction that maximises the company's returns, including M&A deals, share buybacks, the purchase of minority interests, etc. The criteria will always be to prioritise transactions that maximise value generation at a given point in time.

#### **ORGANIC\* COMMITMENTS EMBEDDED IN THE 2025 STRATEGIC PLAN**

Image /page/41/Picture/11 description: The image shows a black and white icon representing financial growth in euros. The icon features a euro symbol inside a circle, positioned to the left of a bar graph. The bar graph consists of three bars of increasing height, with an arrow pointing upwards above the tallest bar, indicating an upward trend.

*(\*) These commitments were established considering the group's former scope, which included MFE. Sales at constant exchange rates and without considering the positive impact of pass-through clause activation.*

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0) Record [earnings](#page-53-0) Common responsibility, [shared benefits](#page-64-0) Our response to 2 3 4**

**[the environmental](#page-141-0)** 

**challenge**

**Responsible [management](#page-183-0)**

About [this report](#page-229-0)

[Data tables](#page-261-0)

**1**

**5**

**6**

Image /page/41/Picture/0 description: The image shows the words "ANNUAL REPORT" in the lower left corner, and the number "23" in the upper right corner. There is a gray quotation mark to the left of the number 23.

{42}------------------------------------------------

#### **BUSINESS LINES OF INITIATIVE**

In order to deliver its commitments, CIE Automotive has defined four lines of initiative around the key automotive sector trends (refer to "Sector background"): electrification, Industry 4.0, comfort and international expansion. These lines of initiative likewise respond to the market changes identified as a risk factor, as detailed in the "Risk management" chapter.

**Electrification**

The company wants to take advantage of the opportunity afforded by decarbonisation of the transport sector to create new value-added products for electric vehicles, particularly in EV motors, power electronics, gearboxes and batteries. At present, 80% of the products made by CIE Automotive are compatible with both electrified and combustionpowered vehicles.

#### **Industry 4.0**

Immersed in the fourth industrial revolution, CIE Automotive is gradually adopting smart manufacturing tools and different enabling technologies. These tools interact with and learn from each other and feature sensorisation capabilities that make it possible to capture data which is later analysed using algorithms.

Implementation of these technologies is not only making our processes more efficient but is also reducing our environmental impact by cutting prototype volumes, energy and raw material consumption, product rejects and scrap generation.

#### **International expansion**

The company seeks geographical diversification by investing in countries where vehicle penetration is low and growth expectations are high. Broadly speaking, until 2025, the plan is for all the divisions to add capacity and develop new products that add more value and address their existing customers' emerging needs. In parallel, the sales teams are working intensely to bring in new customers.

#### **Comfort**

CIE Automotive's strategy in the comfort area is concentrated at its roof systems division. More specifically, it is looking to consolidate its position in bottomloaded roofs and fixed glass roofs with shades. It also wants to be able to incorporate panoramic roofs into both fixed and movable sunroofs, addressing all ranges. The company is also focusing on thinner roofs equipped with flat roller blind technology, which are particularly necessary in the electric vehicle segment. Lastly, it is working on ambient comfort by adding spot lighting to both its roofs and their shades.

Image /page/42/Picture/20 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" in a simple, sans-serif font. The letter "C" is formed by two curved shapes, one above the other, creating a crescent-like form. The text is aligned horizontally with the letter "C" and is in a dark color, likely black or a dark gray.

Image /page/42/Picture/21 description: The image shows a light orange check mark inside of a circle. The check mark and circle are slightly faded.

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

Image /page/42/Figure/5 description: The image shows the number 2 in light gray on the left, and the words "Ready for change" in black on the right.

**Record [earnings](#page-53-0) Common responsibility, [shared benefits](#page-64-0) 3 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

ANNUAL
REPORT

23

/ Ready for change

Image /page/42/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters on the left side of the image. To the right of the words is a large number "23" in black, with a gray quotation mark above the "2". A dashed line runs horizontally through the middle of the number "23".

{43}------------------------------------------------

### ESG STRATEGY

The 2025 Strategic Plan marked a watershed moment for CIE Automotive by setting global ESG targets for the first time and placing the bonus on each factory to contribute to their delivery, under the guidance and supervision of the cross-cutting corporate areas.

To specify and evaluate progress towards those qualitative goals, CIE Automotive is tracking 79 specific KPIs with defined targets and timelines. These indicators are part of the management plans at all of the company's factories, which report to the corporate areas quarterly, half-yearly or annually, depending on the stipulated frequency.

All of that information gets consolidated into a global ESG dashboard hosted within the group's corporate intranet. Progress on the various indicators is reported to the Board's ESG Committee and the CEO, who has tasked the Cross-Group ESG Committee with overseeing delivery of various KPIs.

The KPIs are reviewed periodically and realigned with the most updated context assessment, which factors in the latest trends in the automotive industry, stakeholder demands and regulatory developments, among other aspects

The targets and the work being done by the corporate areas driving their attainment are articulated around four strategic lines of initiative: CIE culture, ethical commitment, eco-efficiency and active listening.

Image /page/43/Picture/14 description: The image is a close-up of a green and white graphic. The graphic appears to be a stylized representation of puzzle pieces fitting together. The green pieces are solid and have rounded edges, while the white pieces are outlined in green. The overall impression is one of connection and integration.

## To specify and evaluate progress towards its qualitative ESG goals, **CIE Automotive is tracking 79 specific KPIs with defined targets and timelines**

Image /page/43/Picture/16 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is made up of two curved shapes that do not quite meet, creating an incomplete circle. The text "CIE" is in bold, while "Automotive" is in a regular font.

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready for change**

**Record earnings Common responsibility, shared benefits Our response to [the environmental](#page-141-0)  challenge Responsible [management](#page-183-0) 1[2](#page-15-0)[3](#page-53-0)[4](#page-64-0)56**

> About [this report](#page-229-0)

Image /page/43/Picture/0 description: The image shows the words "ANNUAL REPORT" in black on the left side of the image. To the right of the words is a large number "23" in black, with a gray quotation mark above the number.

{44}------------------------------------------------

Image /page/44/Figure/3 description: The image is a diagram outlining various aspects of a company's commitment to environmental, social, and governance (ESG) factors. It is divided into several sections, each focusing on a different area of the company's operations and how it integrates ESG principles. The sections include: Environment, Engineering, Human Resources, Supply Chain, Investor Relations, Sales, Finance, M&A, Compliance, CIE Culture, Commitment to Ethics, Eco-Efficiency, and Active Listening. Each section lists specific actions and goals related to ESG. For example, the Environment section focuses on minimizing environmental impact and includes actions such as using renewable energy and promoting material circularity. The Human Resources section emphasizes diversity, equality, and inclusion, with goals such as completing corporate assessments by 2025. The diagram also includes a numbered list from 1 to 6, with each number corresponding to a different aspect of the company's ESG journey, such as "2023 highlights," "Ready for change," and "Responsible management."

#### **COMMITMENTS BY CORPORATE DEPARTMENT**

Image /page/44/Picture/5 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved lines that do not fully connect, creating an incomplete circle. The text "CIE Automotive" is in a simple, sans-serif font.

ANNUAL
REPORT

23

/ Ready for change

Image /page/44/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters on the left side of the image. To the right of the words is a large gray quotation mark, followed by the number "23" in large, bold, black letters. A dashed line runs horizontally through the number "23".

{45}------------------------------------------------

Image /page/45/Figure/6 description: The image shows a timeline with two text boxes and a number in between. The first text box says "Sustained generation of cash from operations equivalent to ≈65% of EBITDA, or ≈€500 million, from 2025". The number in between is "5". The second text box says "90% of this target has been achieved, having generated ≈€450 million of operating cash flow in 2023".

Image /page/45/Figure/2 description: The image shows the target delivery of CIE Automotive. In a year of transition in the automotive sector's post-pandemic normalisation, CIE Automotive delivered all of its annual targets, both its business and ESG targets. The degree of delivery towards the 2025 strategic targets are shown in a timeline. The 2025 strategic commitments are: Revenue growth that is ≈20 percentage points above market growth over the five-year period, An EBITDA margin of over 19% in 2025, CAPEX of around €1 billion over the five-year period, which is ≈5% of revenue per annum, Annual income tax payments of ≈2% of revenue, and Sustained generation of cash from operations equivalent to ≈65% of EBITDA ≈€500 million in 2025. The progress in 2023 is: ≈75% of this target has been achieved thanks to strong organic growth in all geographies, > 75% of this target has been achieved, despite the impact of inflation on our cost base, On track for delivery, having invested ≈5% of revenue on average in the last three years, On track for delivery, having paid corporate tax equivalent to ≈2% of revenue in the last three years, and 90% of this target has been achieved and generated ≈€400 million of operating cash flow in 2023.

*(\*) These commitments were established considering the group's former scope, which included MFE. Sales at constant exchange rates and without considering the positive impact of pass-through clause activation.*

Image /page/45/Picture/5 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved shapes, one above the other, with a gap in between. The text "CIE Automotive" is in a simple, sans-serif font.

Image /page/45/Picture/0 description: The image shows the words "ANNUAL REPORT" on the left side of the image. On the right side of the image is the number 23 in a large font. There is a gray quotation mark above the number 23.

{46}------------------------------------------------

| SDG    | KPI                                                    | Target | Deadline              | 2023             |
|--------|--------------------------------------------------------|--------|-----------------------|------------------|
| 3<br>8 | Employees trained on<br>Code of Conduct                | >95%   | 2021 Image: checkmark | Image: checkmark |
| 3<br>8 | Organisation of ESG<br>workshops                       | 100%   | 2025                  | Image: checkmark |
| 4<br>8 | Global rollout of<br>Criminal Risk Prevention<br>Model | 100%   | 2025                  | Image: checkmark |

| SDG           | KPI                                                                                                                                                        | Target               | Deadline | 2023             |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------|----------|------------------|
| 8<br>10       | No. of countries to have<br>embedded ESG criteria into<br>their purchasing processes<br>/ Total number of markets in<br>which the group operates           | 100%                 | 2021     |                  |
| 8<br>10<br>13 | % Local suppliers / Total<br>suppliers over total expenditure<br>during the period                                                                         | >70%                 | 2023     |                  |
| 8<br>10       | No. of suppliers with annual<br>purchasing volumes of >€1m<br>that have been audited and/or<br>self-assessed along ESG criteria<br>during the Plan horizon | 25%                  | 2022     |                  |
| SDG           | KPI                                                                                                                                                        | Target               | Deadline | 2023             |
| 9             | Reduction of energy consumption (KWh/value added)                                                                                                          | 2%<br>Annual average | 2025     | Image: Checkmark |
| 12            |                                                                                                                                                            |                      |          |                  |
| 13            |                                                                                                                                                            |                      |          |                  |
| 9             | Reduction of direct GHG emissions (Scope 1) (MT CO₂e/value added)                                                                                          | 2%<br>Annual average | 2025     | Image: Checkmark |
| 12            |                                                                                                                                                            |                      |          |                  |
| 13            |                                                                                                                                                            |                      |          |                  |
| 9             | Reduction of indirect GHG emissions produced via the generation of energy (Scope 2) (MT CO₂e)                                                              | 5%<br>Annual average | 2025     | Image: Checkmark |
| 12            |                                                                                                                                                            |                      |          |                  |
| 13            |                                                                                                                                                            |                      |          |                  |
| 9             | Reduction of emissions intensity (MT CO₂e/value added)                                                                                                     | 3%<br>Annual average | 2025     | Image: Checkmark |
| 12            |                                                                                                                                                            |                      |          |                  |
| 13            |                                                                                                                                                            |                      |          |                  |

| SDG     | KPI                                                                                                         | Target | Deadline | 2023 |
|---------|-------------------------------------------------------------------------------------------------------------|--------|----------|------|
| 5<br>10 | No. of factories to<br>have completed<br>diversity assessment /<br>Total group factories                    | 100%   | 2025     | 93%  |
| 3<br>8  | % of plants with ISO 45001<br>certification considering<br>scope at the start of the<br>2025 Strategic Plan | 100%   | 2025     | 94%  |
| 3<br>8  | No. of people trained<br>/ Total no. of people<br>to be trained on ESG<br>matters                           | 100%   | 2025     | 97%  |

#### **COMPLIANCE AREA**

#### **SUPPLY CHAIN AREA**

#### **ENVIRONMENTAL AREA**

#### **HUMAN RESOURCES AREA**

### COMPLIANCE WITH THE KPIS SET IN THE 2025 STRATEGIC PLAN

Image /page/46/Picture/20 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter "C" on the left and the words "CIE Automotive" on the right. The "C" is made up of two curved shapes that do not quite meet, creating a gap in the middle. The words "CIE Automotive" are in a sans-serif font, with "CIE" in a bold font and "Automotive" in a regular font.

#### Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0) 1**

Image /page/46/Figure/4 description: The image shows the numbers 2 and 3 in gray on the left side of the image. To the right of the number 2 is the text "Ready for change" in black. To the right of the number 3 is the text "Record earnings" in gray.

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/46/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters. To the right of the words is a large number "23" with a gray quotation mark above it.

{47}------------------------------------------------

| SDG           | KPI                                                                                                                                  | Target                                                                                                                                                                              | Deadline                 | 202x                     |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------|--------------------------|
| 9<br>12<br>13 | No. of production lines to have<br>implemented Industry 4.0<br>technology initiatives by division<br>or technology                   | Europe: 3<br>Asia: 1<br>America: 1                                                                                                                                                  | 2024                     | Image: Checkmark         |
| 9<br>12<br>13 | Introduction of circular<br>economy projects to enhance<br>energy consumption (#)                                                    | Development<br>of a circular<br>economy<br>project in<br>Europe for<br>extension to<br>another region                                                                               | 2024                     | Image: Checkmark         |
| 9<br>12<br>13 | % improvement in the gross to<br>net weight ratio                                                                                    | Europe:<br>3% improvement<br>in 2 significant<br>products across<br>3 technologies<br>Rest<br>of world :<br>3% improvement<br>in 3 significant<br>products across<br>3 technologies | 2025                     | Image: Checkmark         |
| SDG           | KPI                                                                                                                                  | Target                                                                                                                                                                              | Deadline                 | 2023                     |
| 17            | No. of factories self-assessed in<br>NQC with a score of over 80%                                                                    | 75%                                                                                                                                                                                 | 2021<br>Image: checkmark | 85%<br>Image: checkmark  |
| 17            | Fact-finding mission to<br>determine which platforms<br>each factory uses with its<br>customers for ESG self-<br>assessment purposes | 100%                                                                                                                                                                                | 2021<br>Image: checkmark | 100%<br>Image: checkmark |
| 17            | No. of salespeople to have<br>received training / Total number<br>of salespeople                                                     | 80%                                                                                                                                                                                 | 2021<br>Image: checkmark | 100%<br>Image: checkmark |
| M&A AREA      |                                                                                                                                      |                                                                                                                                                                                     |                          |                          |
| SDG           | KPI                                                                                                                                  | Target                                                                                                                                                                              | Deadline                 | 2023                     |
| 3<br>8        | New acquirees to<br>have implemented                                                                                                 | 100%                                                                                                                                                                                | 2021<br>Image: checkmark | Image: checkmark         |

#### **ENGINEERING AREA SALES AREA**

Image /page/47/Picture/8 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is black and is made up of two curved shapes that do not quite meet. The words "CIE Automotive" are in a simple, sans-serif font and are also black.

**responsibility, [shared benefits](#page-64-0)**

Image /page/47/Figure/2 description: The image shows a list of topics. The first topic is "Chairman and CEO's statement". The second topic is "2023 highlights" and is labeled with the number 1. The third topic is "Ready for change" and is labeled with the number 2. The fourth topic is "Record earnings" and is labeled with the number 3. The fifth topic is "Common responsibility shared bene" and is labeled with the number 4.

**Our response to [the environmental](#page-141-0)** 

**challenge**

**Responsible [management](#page-183-0)**

About [this report](#page-229-0)

[Data tables](#page-261-0)

**5**

**6**

Image /page/47/Figure/1 description: The image shows the words "ANNUAL REPORT" in bold, black letters. To the right of the words is a large number "23" with a gray quotation mark above the "2".

{48}------------------------------------------------

| SDG | KPI                                                                                                             | Target | Deadline                 | 2023             |
|-----|-----------------------------------------------------------------------------------------------------------------|--------|--------------------------|------------------|
| 8   | Compliance with the<br>requirements stipulated in the<br>first sustainable finance issue<br>until repayment (%) | 100%   | 2021<br>✔                | ✔                |
| 8   | ESG financing agreements<br>published (%)                                                                       | 100%   | 2023<br>✔                | ✔                |
| 8   | Gross sustainable borrowings<br>/ Gross group borrowings                                                        | >50%   | 2025<br>✔                | ✔                |
| SDG | KPI                                                                                                             | Target | Deadline                 | 2023             |
| 8   | No. of key ESG analysts<br>answered / Total key ESG<br>analysts to have contacted CIE<br>Automotive             | 100%   | 2021<br>Image: Checkmark | Image: Checkmark |
| 8   | Publication of the ESG Plan on<br>the corporate website and<br>intranet                                         | 100%   | 2021<br>Image: Checkmark | Image: Checkmark |

#### **FINANCE AREA INVESTOR RELATIONS AREA**

7

10

16

8

12

17

9

13

4

3 Health and wellbeing

## **CIE Automotive met its ESG targets** for the year

5 Gender equality

Quality education

Affordable and clean energy

Decent work and economic growth

Industrialisation, innovation and infrastructure

Reduced inequalities

Responsible consumption and production

Climate action

Peace, justice and strong institutions

Partnerships for the goals

49

Image /page/48/Picture/25 description: The image shows the CIE Automotive logo. On the left is a stylized letter C, formed by two curved black shapes that do not fully connect, creating a crescent-like form. To the right of this symbol is the text "CIE Automotive" in a simple, sans-serif font. The word "CIE" is slightly bolder than "Automotive".

|   | Chairman<br>and<br>CEO's<br>statement |  |
|---|---------------------------------------|--|
| 1 | 2023<br>highlights                    |  |
| 2 | Ready<br>for change                   |  |
| 3 | Record<br>earnings                    |  |
|   | Common                                |  |
| 4 | responsibility,<br>shared benefits    |  |

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/48/Picture/0 description: The image shows the words "ANNUAL REPORT" on the left side of the image. To the right of the words is a large number "23" with a quotation mark above the number. A dashed line runs through the number 23.

{49}------------------------------------------------

Innovation as the strategic enabler

> **CIE Automotive is in the midst of a technological transformation that will ultimately shrink its corporate footprint and that of its products and leave it more efficient for competing in a changing and contested market. In 2023 it continued to innovate and invest approximately 2% of its revenue, through its 10 research centres and the productive units, with a view to facilitating delivery of its 2025 Strategic Plan targets. Its 10 R&D centres and its engineering and R&D areas are working on improvement projects, following a roadmap articulated around four strategic lines of action: ecoefficiency, Industry 4.0, new mobility concepts and safety. Innovation also plays a crucial role in moving the company towards climate neutrality.**

Image /page/49/Figure/4 description: The image shows a green icon of a lightning bolt inside of a circular arrow. The arrow is pointing in a clockwise direction.

### **ECO-EFFICIENCY AND CIRCULARITY**

With the aim of becoming net zero by 2050, the R&D area is focusing hard on reducing consumption and emissions.

In parallel, the company is working on projects in the electric motor, battery and power electronics systems in order to continue to penetrate the electrified vehicle segment and so contribute to the decarbonisation of transportation in the use phase.

CIE Automotive collaborates with a range of research programmes targeting decarbonisation at both the regional and international levels. Those programmes are looking at systems for zero-emission vehicles, whether battery-powered or fuel-cell electric vehicles.

In batteries, CIE Automotive is also participating in the Basque initiative for the production of solid-state batteries, which is planning to build 10 GWh of capacity. Basquevolt plans to commission a production line in four years' time, entailing €700 million of investment and generating more than 800 direct jobs. Solid-state batteries will deliver a substantial increase in battery autonomy, while lowering their costs and reducing dependence on certain critical materials. That will also lead to democratisation of the electric vehicle, paving the way for costs of €15,000 per vehicle, making them accessible to most citizens. This project considers the life cycle of the new batteries, including disassembly, recycling or reuse.

Image /page/49/Picture/11 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is made up of two curved shapes that do not quite meet, creating an incomplete circle. The text "CIE Automotive" is in a simple, sans-serif font.

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0)**

**Record [earnings](#page-53-0)**

**Common responsibility, [shared benefits](#page-64-0)**

**Our response to [the environmental](#page-141-0)** 

**challenge**

**Responsible [management](#page-183-0)**

About [this report](#page-229-0)

[Data tables](#page-261-0)

**1**

**2**

**3**

**4**

**5**

**6**

Image /page/49/Picture/1 description: The image shows the words "ANNUAL REPORT" in bold, black letters on the left side of the image. To the right of the words are the numbers "23" in a large, bold font. The "2" is black, and the "3" is gray.

{50}------------------------------------------------

### **Materials**

Innovation is driving the transition to a circular economy by enabling more efficient use of materials and steadily reducing the amounts of raw materials needed relative to a product's end weight, all of which is making parts lighter. Here the engineering area is working on a number of different projects:

- Introduction of new product functions, so reducing the number of parts. In the roof systems division, this means including lighting, display screens and photovoltaic cells in the systems.
- Launch of eco-design tools for incorporation into new product and project processes. In 2023 this project emphasised the incorporation of disassembly and recycling criteria at the product design phase.
- Projects to increase the circularity of polymer transformation technologies.
- Introduction of recycled materials into roofing textiles that can help cut product emissions up to three-fold.
- Innovation in technologies that reduce the use of fuel and chemical products, such as ESG+ technology, in roofs and side windows, delivering a consideration reduction in waste generation and the products' environmental footprints.
- Continuation of the multi-year projects aimed at rationalising the use of raw materials, which are being rolled out across all technologies and regions, developing new process concepts with the potential to directly reduce our scope 3 emissions.

#### **Vehicle light-weighting**

Helping make vehicles lighter is a key thrust of CIE Automotive's innovation strategy due to its contribution to reducing the use of raw materials, lowering fuel consumption in an internal combustion vehicle while in use or increasing the autonomy of an electric vehicle:

- Aluminium forging for chassis and suspension parts, achieving very compelling mechanical property ratios relative to weight
- Technology shift marked by increased use of polymer materials, reducing the bill of materials by adding functions
- Development of the new thin roof concept which weighs less and takes up less space
- Reducing roof weights by using resin transfer moulding (RTM) frames

## **Helping make vehicles lighter is a key thrust** of CIE Automotive's

innovation strategy

Image /page/50/Picture/26 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" in a sans-serif font. The letter "C" is formed by two curved shapes, one above the other, with a gap in between. The text "CIE" is in a bold font, while "Automotive" is in a lighter font.

| ernal<br>the |  |  |
|--------------|--|--|
| sion<br>cal  |  |  |
| of<br>erials |  |  |
| which        |  |  |
| er           |  |  |
|              |  |  |

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0) Record [earnings](#page-53-0) Common responsibility, [shared benefits](#page-64-0) 2 3 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**1**

Image /page/50/Picture/0 description: The image shows a partial view of an annual report cover. The words "ANNUAL REPORT" are stacked on the left side of the image. To the right of the words is a large number "23".

{51}------------------------------------------------

CIE Automotive is future-proofing its factories by adopting new tools and technologies. The number of data control and capture sensors embedded in its equipment and production is growing all the time. In parallel, collaborative robots (cobots) are popping up on its production lines, providing employees with real-time information over new interfaces. In addition, data analytics is being used in a growing number of technologies, underpinned by increasingly efficient deep learning algorithms available in tools requiring lowcode programming.

In 2023, the company finished the demo for a new intralogistics platform for the automation of the transportation of finished products with the goal of establishing a continuous loop for the delivery and collection of finished product packaging for storage up high in the warehouse.

Current mobility trends point to improving the user experience shaped by a keen interest in comfort and connectivity. Against this backdrop, CIE Automotive is innovating intensely in its roof systems area, specifically:

This solution adds flexibility, efficiency and traceability to the logistics processes by means of the smart management of different sensors and mobile devices, including automotive guided vehicles (AGVs) and autonomous mobile robots (AMRs). These devices are being integrated into the factories' existing management systems and other sensors to give users visibility and control in real time using 5G technology. The 5G standard is crucial on account of the massive volumes of data involved, the density of the devices, the broad coverage required in spaces like these and the immediacy needed for the entire intralogistics ecosystem to work optimally.

In tandem the company has added cobots in assembly and inspection operations and when using chemical products. The use of these collaborative robots enables more precise product dosing and delivers a significant reduction in their environmental impact.

Image /page/51/Picture/16 description: The image shows a light orange car icon with rounded edges. The car has a simple, cartoonish design with two circular headlights and a curved line representing a smile or grill. The car's body is a single, solid color, and the background is white.

- Integrating lighting into glass or shading.
- Reducing noise by means of the use of brushless motors.
- Adding shading-glass.
- Improving user ergonomics by electrifying side windows and shades and introducing self-opening luggage covers.
- Improving aesthetics and style by means of flush door panes.
- Adding solutions featuring photochromatic glass.
- Introducing panoramic screens.
- Making roofs that take up less space.
- Improving the compartment space.

### **INDUSTRY 4.0**

Image /page/51/Picture/20 description: The image contains the words "NEW", "MOBILITY", and "CONCEPT" stacked vertically. The text is in a sans-serif font and is gray in color.

Image /page/51/Picture/19 description: The image shows the logo for CIE Automotive. On the left is a stylized letter C, formed by three curved black shapes. To the right of the C is the text "CIE Automotive" in a simple sans-serif font.

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) Common responsibility, [shared benefits](#page-64-0) 3 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/51/Picture/10 description: The image shows a light orange icon of a factory with a wifi symbol above it. The factory has two peaks on its roof and a tall chimney. The wifi symbol consists of three curved lines and a dot in the center.

**1**

Image /page/51/Picture/0 description: The image shows the words "ANNUAL REPORT" in the lower left corner, and the number "23" in the upper right corner. The number 23 is in a large, bold font, and the words "ANNUAL REPORT" are in a smaller, less bold font.

{52}------------------------------------------------

It is working on a number of projects designed to provide, from the development phase, **more accurate predictions of how parts and systems will perform throughout their life cycles** 

Product safety is a priority component of CIE Automotive's product development and innovation strategy. At present it is working on a number of projects designed to provide, from the development phase, more accurate predictions of how parts and systems will perform throughout their use phase in a number of possible scenarios.

More specifically, the company is working to improve product performance in terms of noise and vibrations considering frequency dependent characteristics so as to enhance prediction from the design phase.

It is also optimising the design process around crash events by improving how it models the joins and interactions between parts to make vehicles safer in the event of accidents or impacts.

Lastly, new requirements have been added throughout the entire process with the aim

of achieving zero defects and ultimately maximising product safety and customer satisfaction.

Using widely accepted sector methodologies, all the possible ways a product could become a risk are identified every step of the way, from product conception to manufacture, prioritising those sources of risk and generating action plans to reduce their likelihood of occurrence and severity, radically mitigating any potential malfunction in the products we deliver our customers.

### **SAFETY**

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) Common responsibility, [shared benefits](#page-64-0) 3 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/52/Picture/10 description: The image shows a shield with a check mark inside a circle. The shield and check mark are light orange.

**1**

Image /page/52/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters on the left side of the image. To the right of the words is a large, stylized number "23" in black, with a gray quotation mark above it.

{53}------------------------------------------------

# **Record earnings**

**Economic [performance](#page-55-0)** 

**[Earnings performance](#page-57-0) by region**

> **[Sound financial](#page-60-0) position**

Image /page/53/Picture/15 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter "C" on the left and the words "CIE Automotive" on the right. The letter "C" is made up of two curved black shapes that do not quite meet, forming an incomplete circle. The words "CIE Automotive" are in a simple, sans-serif font, with "CIE" in a slightly bolder font than "Automotive".

Image /page/53/Picture/16 description: The image contains a close-up of a large, bold, black letter 'S' against a white background. The letter is positioned on the right side of the frame, and part of another letter, possibly a 'J', is visible on the left edge. The focus is sharp, highlighting the smooth curves and lines of the letterform.

**cial**

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready for change**

**Record earnings**

**Common responsibility, shared benefits**

**Our response to [the environmental](#page-141-0)  challenge 1[2](#page-15-0)3[4](#page-64-0)56**

**Responsible [management](#page-183-0)**

> About [this report](#page-229-0)

<span id="page-53-0"></span>Image /page/53/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is the number 23.

{54}------------------------------------------------

*We are making history, testing and beating our own limits year after year. What is driving our profitable growth? A flexible model, an astute strategy and the coordinated efforts of a diverse team working across four continents.*

Image /page/54/Picture/13 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved lines that do not fully connect, creating a crescent shape. The text "CIE Automotive" is in a simple, sans-serif font. The logo is in a dark color against a lighter background.

Chairman and CEO's [statement](#page-2-0)

**2023 1highlights**

**Ready 2for change**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/54/Picture/0 description: The image shows the text "ANNUAL REPORT" on the left side and the number "23" on the right side. There is a quotation mark above the number 23.

{55}------------------------------------------------

**3.1**

# **Economic performance**

**CIE Automotive once again demonstrated its commitment to growth and profitability in 2023. It delivered a profit of €320.2 million, up 6.7% from 2022, having lifted its revenue to €3.96 billion, against the backdrop of recovering vehicle production volumes, high interest rates and persistent inflation.**

Topline growth, of 3.1% from 2022, combined with efficient team management, unlocked double-digit growth in operating profit: EBITDA increased by 12.6% to €713.2 million, while EBIT was 18.1% higher at €527.7 million.

These figures highlight the solidity of the business model, articulated around geographic, customer and technological diversification, and the merits of focusing on cash generation. The company's healthy earnings performance was also helped by the disappearance of less competitive suppliers unable to withstand the supply chain friction, firstly, and the rise in borrowing costs after that.

Image /page/55/Picture/15 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the text "CIE Automotive" on the right. The letter C is made up of two curved shapes, one above the other, that do not quite meet in the middle. The text "CIE Automotive" is in a simple, sans-serif font.

#### Chairman and CEO's [statement](#page-2-0)

**Common responsibility, [shared benefits](#page-64-0)**

**2023 1highlights**

**Ready [for change](#page-15-0) 2**

> **Our response to [the environmental](#page-141-0)  challenge**

**Record [earnings](#page-53-0) 3**

> **Responsible [management](#page-183-0)**

> > About [this report](#page-229-0)

[Data tables](#page-261-0)

**4**

**5**

<span id="page-55-0"></span>Image /page/55/Picture/0 description: The image shows the text "ANNUAL REPORT 23 Record earnings". The number 23 is large and white, and the words "Record earnings" are in a smaller, white font.

{56}------------------------------------------------

| New growth opportunities<br>with the acquisition<br>of Iber-Oleff                                                                                                                                                                                                        |  |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|
| CIE Automotive acquired Iber-Oleff Brasil for €20<br>million, a multiple of 6.7 times its EBITDA. With<br>close to 400 employees and 2022 revenue of €25<br>million, Iber-Oleff Brasil has a factory in Salto, in<br>the state of Sao Paolo, where it specialises in the |  |
| manufacture of plastic parts for vehicle interiors,<br>offering integrated injection, welding, painting,<br>laser and assembly processes.                                                                                                                                |  |
| The acquisition of Iber-Oleff Brasil gives the<br>group a foothold with major Asian OEMs<br>with bases in Brazil, as well as reinforcing<br>its positioning with European and American<br>OEMs. This deal provides a unique opportunity                                  |  |
| to unlock significant growth for a limited<br>investment thanks, above all, to the synergies<br>arising from its integration in the company's<br>existing Brazilian plastics division.                                                                                   |  |
| The Iber-Oleff acquisition reflects CIE Automotive's<br>strategy of channelling its resources into high                                                                                                                                                                  |  |

growth markets such as Brazil and India.

*Sale of the German forging factories to focus on higher performance markets and technologies*

In October CIE Automotive sold Matares its German forged parts manufacturing business: the factories in Schöneweiss, GSA, Falkenroth and Jeco, with close to 600 employees and annual revenue of around €220 million in 2022.

CIE Automotive acquired these factories in 2013 along with the rest of the parts division it bought from the Mahindra group. These factories were specialised in truck parts for the European market, a business that was less profitable for the group. After 10 years of continuous improvements to increase their profitability, CIE Automotive was able to sell the factories for €55.5 million, equivalent to 5 times their EBITDA.

The main rationale for the disposal is to redirect financial and managerial resources to more profitable markets, including regions with higher growth potential and technologies in greater demand from the group's customers, in line with the sector megatrends (decarbonisation, vehicle light-weighting, comfort, etc.).

#### **2023 EARNINGS**

## **CIE Automotive acquired Iber-Oleff Brasil for €20 million**, a multiple of 6.7 times its EBITDA

*(\*) EBITDA: Net operating result + Amortization, EBIT: Net operating result, Net profit: Result attributable to the shareholders of the parent company.*

*(\*\*) The percentage operating margins are not comparable to those of previous years due to the inflationary environment and its derivatives.*

In 2023 the company generated €447.4 million of operating cash flow, which is equivalent to 65% of EBITDA, in line with the 2025 Strategic Plan target. Thanks to this healthy cash flow, the group was able to pay out more than €100 million of dividends to its shareholders and resume its longstanding M&A strategy, acquiring Iber-Oleff in Brazil.

| € m                | 2022    | 2023    | Chg. %   |
|--------------------|---------|---------|----------|
| Revenue            | 3,838.6 | 3,959.5 | 3.1%     |
| EBITDA *           | 633.4   | 713.2   | 12.6%    |
| EBITDA margin % ** | 16.5%   | 18.0%   | 1.5 p.p. |
| EBIT *             | 446.7   | 527.7   | 18.1%    |
| EBIT margin % *    | 11.6%   | 13.3%   | 1.7 p.p. |
| Net profit **      | 300.1   | 320.2   | 6.7%     |

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

| 2 | Ready<br>for change                               |
|---|---------------------------------------------------|
| 3 | Record<br>earnings                                |
| 4 | Common<br>responsibility,<br>shared benefits      |
| 5 | Our response to<br>the environmental<br>challenge |

About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**1**

{57}------------------------------------------------

**3.2**

# **Earnings performance by region**

**All of the group's markets made a positive contribution in 2023, delivering doubledigit EBITDA and EBIT margins, despite very different conditions from one region to another. While the mature markets, such as North America and Europe, reported modest growth on account of extremely high vehicle penetration rates, the emerging markets, where penetration is lower, including India, China and Brazil, reported higher growth.**

Image /page/57/Picture/14 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the text "CIE Automotive" on the right. The letter C is made up of two curved shapes, one above the other, that do not quite meet in the middle. The text "CIE Automotive" is in a simple, sans-serif font.

Chairman and CEO's [statement](#page-2-0)

**2023 1highlights**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

<span id="page-57-0"></span>**ANNUAL REPORT**

{58}------------------------------------------------

*(\*) Considering the effect of the pass-through of raw material price increases and in constant currencies.*

## Europe

CIE Automotive generated €1.43 billion of revenue in Europe, growth of 12.0% from 2022 (in constant currencies and factoring in the pass-through of raw material price increases), despite market maturity. Revenue in this market was boosted by electric vehicle purchase incentives and the renewal of very aged rental car fleets.

## North America

The North American factories generated €1.23 billion of revenue, growth of 14.2% (in constant currencies and factoring in the pass-through of raw material price increases) from 2022, compared to market growth of 9.7%. This performance was partly shaped by national incentives for the purchase of electric vehicles and pent-up demand in the fleet segment, more than offsetting the fallout from several weeks of strike action at the General Motors, Stellantis and Ford factories in the US and Canada.

| Factories in North America |                                   |                | Factories in Europe |                                  |                 |
|----------------------------|-----------------------------------|----------------|---------------------|----------------------------------|-----------------|
| Revenue                    | €1.23 billion<br>+ 14.2% vs 2022* |                | Revenue             | €1.43 billion<br>+12.0% vs 2022* |                 |
| EBITDA margin              | 18.5%<br>EBITDA: €228.0 million   | MARKET<br>9.7% | EBITDA margin       | 17.2%<br>EBITDA: €245.0 million  | MARKET<br>12.6% |
| EBIT margin                | 14.1%<br>EBIT: €174.1 million     |                | EBIT margin         | 11.5%<br>EBIT: €164.4 million    |                 |

Chairman and CEO's [statement](#page-2-0) **2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) Common responsibility, [shared benefits](#page-64-0) 3 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**1**

Image /page/58/Picture/16 description: The image shows the logo of CIE Automotive. The logo consists of a stylized letter 'C' and the words 'CIE Automotive' in a sans-serif font. Below the logo is a faint, abstract design that resembles a circuit board or a network of interconnected lines.

Image /page/58/Picture/0 description: The image shows the text "ANNUAL REPORT" on the left side and the number "23" on the right side. The number 23 is large and bold, with a dashed line running through it. There is a quotation mark above the number 2.

{59}------------------------------------------------

*(\*) Considering the effect of the pass-through of raw material price increases and in constant currencies.*

| Chairman<br>and<br>CEO's                          | Brazil              |                                                                                                                                           |                | Asia               |                                                                                                                                                                               |                |                    |                                   |                 |
|---------------------------------------------------|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------|----------------|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------|--------------------|-----------------------------------|-----------------|
| statement                                         |                     | In Brazil, CIE Automotive reported revenue of<br>€360.3 million, growth of 18.1% from 2022. The<br>company navigated a challenging market |                |                    | In India, CIE Automotive posted revenue of €617.5 million, while defending its high margins.<br>The company was able to tap the strong demand in the various market segments. |                |                    |                                   |                 |
| 2023<br>highlights                                |                     | environment shaped by unemployment,<br>higher interest rates and political instability.                                                   |                |                    | In China, CIE Automotive's revenue contracted by 19.4%, amid a fierce price war, but<br>EBITDA and EBIT margins remained high.                                                |                |                    |                                   |                 |
| Ready<br>for change                               |                     |                                                                                                                                           |                |                    |                                                                                                                                                                               |                |                    |                                   |                 |
| Record<br>earnings                                | Factories in Brazil |                                                                                                                                           |                | Factories in India |                                                                                                                                                                               |                | Factories in China |                                   |                 |
| Common<br>responsibility,<br>shared benefits      | Revenue             | €360.3 million<br>+18.1% vs 2022*                                                                                                         |                | Revenue            | €617.5 million<br>8.0% vs 2022*                                                                                                                                               |                | Revenue            | €322.3 million<br>-19.4% vs 2022* |                 |
| Our response to<br>the environmental<br>challenge |                     |                                                                                                                                           |                |                    |                                                                                                                                                                               |                |                    |                                   |                 |
| Responsible<br>management                         | EBITDA margin       | 19.5%<br>EBITDA: €70.2 million                                                                                                            | MARKET<br>1.2% | EBITDA margin      | 17.7%<br>EBITDA: €109.4 million                                                                                                                                               | MARKET<br>4.4% | EBITDA margin      | 18.8%<br>EBITDA: €60.6 million    | MARKET<br>10.0% |
| About<br>this report                              | EBIT margin         | 15.9%<br>EBIT: €57.2 million                                                                                                              |                | EBIT margin        | 14.0%<br>EBIT: €86.4 million                                                                                                                                                  |                | EBIT margin        | 14.1%<br>EBIT: €45.5 million      |                 |
| Data tables                                       |                     |                                                                                                                                           |                |                    |                                                                                                                                                                               |                |                    |                                   |                 |

**1**

**2**

**3**

**4**

**5**

**6**

Image /page/59/Picture/5 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is black, and the words "CIE Automotive" are in a sans-serif font.

Image /page/59/Picture/0 description: The image shows the words "ANNUAL REPORT" on the left side of the image. To the right of the words is a large number "23" with a quotation mark above it.

{60}------------------------------------------------

**3.3**

# **Sound financial position**

**Financial management was a key component of CIE Automotive's strong earnings in 2023. Faced with higher borrowing costs on the back of successive interest rate increases, which put the weakest suppliers in serious jeopardy, the company locked in the liquidity and term structure needed by refinancing its debt and increasing the share of its borrowings at fixed rates to 54.5%. In parallel, it continued to honour its sustainability commitments by tying its borrowing costs to delivery of those pledges.**

CIE Automotive's net debt came down by approximately €143.5 million in 2023 for an adjusted year-end balance of €1.13 billion, implying a net debt-to-EBITDA ratio of 1.56x. That leaves the company in a comfortable position for undertaking new strategic investments designed to further its profitable growth and reinforce its position in highgrowth markets.

The reduction in net debt was enabled by the generation of €447.4 million of operating cash flow (which is around 65% of EBITDA, in line with the 2025 Strategic Plan targets), which translated into €276.5 million of cash flow (after growth CAPEX, working capital and other items).

#### Chairman and CEO's [statement](#page-2-0)

**2023 1highlights**

**Ready 2for change**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

<span id="page-60-0"></span>**ANNUAL REPORT**

{61}------------------------------------------------

#### **COMPARATIVE BALANCE SHEET**

#### **DEBT STRUCTURE**

#### **FINANCIAL RATIOS**

*(\*) Net debt and EBITDA figures adjusted for the group's 50% interest in the Chinese JV, SAMAP.*

#### **Diversification of financing sources**

CIE Automotive works with a number of banks to finance its activities. As a result, its credit risk is not concentrated. At year-end 2023, CIE Automotive had undrawn credit lines totalling €78 million (total limit under these facilities: €768 million).

## • Loan in euros • Price band based on net debt/EBITDA • 250 million in loan format and 440 million • in the form of a RCF (380 million undrawn) • Unexercised option to extend by one year • Partially fixed rate • Fixed rate • Several • Loans in dollars • At fixed and floating rates facilities, working capital lines, etc.

| € m                             | 2019    | 2020    | 2021    | 2022    | 2023    | MATURITY   | Characteristics                                                                                                                                                                                        |
|---------------------------------|---------|---------|---------|---------|---------|------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Syndicated<br>loan              | ≈ 480   | ≈ 345   | 300     | 340     | 310     | April 2028 | • Loan in euros<br>• Price band based on net debt/EBITDA<br>• 250 million in loan format and 440 million<br>• in the form of a RCF (380 million undrawn)<br>• Unexercised option to extend by one year |
| EIB                             | 113     | 139     | 121     | 108     | 95      | April 2031 | • Loan in euros<br>• Partially fixed rate                                                                                                                                                              |
| IFC-EDC                         | 134     | ≈122    | ≈121    | ≈103    | ≈82     | June 2028  | • Loans in dollars                                                                                                                                                                                     |
| Long-term<br>loan               | ≈ 77    | ≈ 68    | 68      | 68      | 68      | July 2026  | • Loan in euros<br>• Fixed rate                                                                                                                                                                        |
| North America                   | ≈ 212   | ≈ 167   | ≈ 128   | 105     | 77      | Several    | • Several<br>• Loans in dollars<br>• At fixed and floating rates                                                                                                                                       |
| Other                           | ≈ 1,105 | ≈ 1,407 | ≈ 1,442 | 1,417   | 1,538   | Several    | • Borrowings comprising bilateral loans (local), credit<br>facilities, working capital lines, etc.                                                                                                     |
| Gross debt                      | ≈ 2,121 | ≈ 2,248 | ≈ 2,180 | ≈ 2,141 | ≈ 2,169 |            |                                                                                                                                                                                                        |
| Cash<br>and cash<br>equivalents | ≈ 599   | ≈ 653   | ≈ 785   | ≈ 857   | 1,035   |            |                                                                                                                                                                                                        |
| Net debt                        | ≈ 1,522 | ≈ 1,595 | ≈ 1,395 | ≈ 1,290 | 1,135   |            |                                                                                                                                                                                                        |

| € m                                 | 2022           | 2023           |
|-------------------------------------|----------------|----------------|
| Fixed assets                        | 3,560.8        | 3,541.4        |
| Net working capital                 | (501.0)        | (469.7)        |
| <b>Total net assets</b>             | <b>3,059.8</b> | <b>3,071.7</b> |
| Equity                              | 1,504.6        | 1,661.2        |
| Net debt                            | 1,289.8        | 1,134.7        |
| Other (net)                         | 265.4          | 275.8          |
| <b>Total equity and liabilities</b> | <b>3,059.8</b> | <b>3,071.7</b> |

|                              | 2022 | 2023 |
|------------------------------|------|------|
| Adjusted net<br>debt/EBITDA* | 1.98 | 1.56 |
| Net<br>debt/equity           | 0.86 | 0.68 |
| Leverage ratio               | 0.46 | 0.41 |

|   | Chairman<br>and<br>CEO's<br>statement        |
|---|----------------------------------------------|
| 1 | 2023<br>highlights                           |
| 2 | Ready<br>for change                          |
| 3 | Record<br>earnings                           |
| 4 | Common<br>responsibility,<br>shared benefits |

About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/61/Picture/16 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved lines that do not fully connect, creating an incomplete circle. The text "CIE Automotive" is written in a simple, sans-serif font.

Image /page/61/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters on the left side of the image. To the right of the words is a large number "23" in black, with a gray quotation mark above the "2". A dashed line runs horizontally through the middle of the "2".

{62}------------------------------------------------

Image /page/62/Figure/9 description: The image contains two line charts. The first line chart shows data points ranging from approximately -0.25 to 4.0. The x-axis is labeled with dates from 01-07-22 to 01-12-23. The y-axis ranges from -0.5 to 4.5. The second line chart shows data points ranging from approximately 2.3 to 5.6. The x-axis is labeled with dates from 01-07-22 to 01-12-23. The y-axis ranges from 2.0 to 6.0.

#### **DEBT MATURITY PROFILE**

Image /page/62/Figure/7 description: The image contains two text labels. The first label reads "3-MONTH EURIBOR (July 2022 - December 2023)". The second label reads "SOFR + 3M SPREAD\*".

Image /page/62/Figure/8 description: The image contains the text "SOFR + 3M SPREAD" in a bold, sans-serif font. The text is arranged on a single line and appears to be the primary focus of the image.

 *(\*) The SOFR Overnight plus a spread of 0.2616% (the 3-month spread)*

#### **Trend in interest rates**

Interest rates were once again a unique force in 2023. Whereas official rates were increased further in the US and Europe, market rates took a different course. 12-month Euribor increased slightly and longer-term rates, using the 5-year IRS as proxy, ended the year lower, as did the equivalent American proxy.

Therefore, it looks as if the actions taken by the European Central Bank and Federal Reserve have effectively anchored inflation expectations, prompting the market to decouple from the increases in official rates and even start to discount rate cuts in 2024. Favourable conditions in the equity and fixed-income markets went a long way to facilitating this performance.

| € m                     | 2022           | 2023           |
|-------------------------|----------------|----------------|
| Within one year         | 472.0          | 511.7          |
| Between 1 and 2 years   | 701.3          | 315.6          |
| Between 3 and 5 years   | 820.7          | 1,266.3        |
| More than 5 years       | 147.1          | 75.9           |
| <b>Total borrowings</b> | <b>2,141.1</b> | <b>2,169.5</b> |

**Ready [for change](#page-15-0) Record [earnings](#page-53-0) Common responsibility, [shared benefits](#page-64-0) Our response to [the environmental](#page-141-0)  challenge Responsible [management](#page-183-0) 2 3 4 5 6**

> About [this report](#page-229-0)

[Data tables](#page-261-0)

Image /page/62/Picture/15 description: The image shows the CIE Automotive logo. On the left is a stylized letter C, formed by two curved black shapes. To the right of the symbol is the text "CIE Automotive" in a simple, sans-serif font. The word "CIE" is slightly larger and bolder than the word "Automotive".

Image /page/62/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters. To the right of the words is a large number "23" with a gray quotation mark above it.

23 / Record earnings

{63}------------------------------------------------

### *Extension of the sustainable syndicated loan*

CIE Automotive renewed and extended its syndicated loan from 2027 to 2028 with the backing of all of the banks in the pool, evidencing its lenders' confidence in the company's creditworthiness.

The syndicated loan refinancing also raises the profile of CIE Automotive's commitment to sustainability as the cost of this facility is tied to delivery of its ESG targets.

#### **100% of net debt is sustainable**

At year-end 2023, 100% of the group's net debt and 68% of its gross debt was tied to ESG criteria, surpassing already in 2022 the targets set in the 2025 Strategic Plan of tying 70% of net debt and 50% of gross debt to delivery of these criteria.

CIE Automotive set a new milestone in 2019 when it arranged its first sustainable financing facility. Since then it has been working to standardise its financing arrangements so that all new agreements include a sustainability clause whereby the rate of interest comes down if the company meets its ESG targets.

Moody's is the independent agency tasked with certifying compliance with these commitments.

CIE Automotive renewed and extended its syndicated loan from 2027 to 2028 **with the backing of all of the banks in the pool**

S
t
s

e
ng

e
y

#### **Strategy**

Image /page/63/Picture/11 description: The image contains text describing how central banks' interest rate increases have led CIE Automotive to take measures to minimize the impact on its financing strategy.

The fact that its liquidity buffer stood at €1.73 billion at year-end 2023 is evidence of the merit of the financial management undertaken by the company to safeguard its solvency in the face of potential market risks.

In addition, in 2023 the company continued to increase the volume of gross borrowings arranged at fixed rates to mitigate the risk of even higher interest rates, while leaving margin for benefitting from potential rate cuts in the near term.

By way of illustration, at year-end 2021, 35% of the group's gross debt were fixed-rate borrowings, a level which increased to 50% by the end of 2022 and stood at 55% by yearend 2023.

Image /page/63/Figure/15 description: The image shows a gray icon of a calendar with a euro symbol on the lower left side. The calendar has a grid of dots representing days, and the euro symbol is a circle with a stylized 'E' inside.

Chairman and CEO's [statement](#page-2-0) **2023 [highlights](#page-5-0)**

**Ready for change**

#### **Record earnings**

**Common responsibility, shared benefits**

**Our response to [the environmental](#page-141-0)  challenge 1[2](#page-15-0)[3](#page-53-0)[4](#page-64-0)56**

**Responsible [management](#page-183-0)**

> About [this report](#page-229-0)

[Data tables](#page-261-0)

Image /page/63/Picture/24 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of two curved shapes that do not quite meet, creating a gap in the middle. The words "CIE Automotive" are written in a simple, sans-serif font.

Image /page/63/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large number "23" with a gray quotation mark above the number. There is a dashed line going through the number 2.

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# **Common responsibility, shared benefits**

**[Collaboration and reciprocity with our](#page-66-0) STAKEHOLDERS**

**[We create value for our](#page-71-0) SHAREHOLDERS**

**[Excellence with and for our](#page-81-0) CUSTOMERS**

**Our TEAM[: the people behind the transformation](#page-88-0)**

**[Change begins with our](#page-114-0) SUPPLIERS**

**Serving the [COMMUNITIES](#page-134-0) that host us**

Image /page/64/Picture/18 description: The picture shows a close-up of a person wearing a yellow and white shirt with a black jacket.

Chairman and CEO's [statement](#page-2-0)

**2023 1 highlights**

**Ready 2 for change**

**Record [earnings](#page-53-0) 3**

**Common responsibility, shared benefits 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

Image /page/64/Picture/10 description: The image is divided diagonally, with the upper left portion being white and the lower right portion showing a blurred, dark, and indistinct scene. The colors in the lower right are muted, with shades of gray, blue, and green blending together. The lack of clear details makes it difficult to identify specific objects or features within the scene.

Image /page/64/Picture/20 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter "C" on the left and the words "CIE Automotive" on the right. The letter "C" is made up of two curved black shapes that do not quite meet, forming an incomplete circle. The words "CIE Automotive" are in a simple, sans-serif font, with "CIE" in a slightly bolder font than "Automotive".

Image /page/64/Picture/21 description: The image shows a close-up of bold, black text against a white background. The text is cropped, but the visible portions spell out the words "ty," and "efits" vertically. The font is sans-serif and the letters are large, filling much of the frame.

REHOLDERS

<span id="page-64-0"></span>Image /page/64/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is the number 23, with a quotation mark above the number 2.

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*We urge our stakeholders to work together towards a shared future in which success is not measured in financial terms only but also considering our positive and long-lasting impact on people and broader society.*

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0) 1**

**Ready 2 for change**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/65/Picture/13 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved lines that do not quite meet, creating an incomplete circle. The text "CIE Automotive" is written in a simple, sans-serif font. The logo is set against a solid background.

Image /page/65/Picture/14 description: The image shows a close-up of a person's face and shoulder, with text overlaid on the image. The text is white and bold, and it reads "her ss is t also ng". The background is blurry and appears to be a warm, yellowish color.

Image /page/65/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is the number "23" with a quotation mark above the number 2.

{66}------------------------------------------------

**4.1**

# **Collaboration and reciprocity with our STAKEHOLDERS**

**CIE Automotive builds professional relations based on trust, responsibility and mutual benefits, engaging with thousands of individuals, organisations and communities that help it create its value proposition. The company classifies these stakeholders into nine main categories in order to standardise how it engages with them and encourage their involvement, creating the communication channels necessary to understand their legitimate expectations and help them see how they can contribute to the progress of all.**

#### Chairman and CEO's [statement](#page-2-0)

**2023 1 highlights**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/66/Picture/14 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the text "CIE Automotive" on the right. The letter C is made up of two curved shapes, one above the other, that do not quite meet in the middle. The text "CIE Automotive" is in a simple, sans-serif font.

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{67}------------------------------------------------

#### **SHAREHOLDERS**

- CIE Automotive generates value for its shareholders via dividends.
- It provides transparent, accurate and timely information to the investment community.
- It earns the market's trust.

#### **BUSINESS PARTNERS**

• The strategic alliances with Donghua Automotive Industrial and the SAIC Group in China bring enhanced knowledge of and adaptation to the local market.

#### **PUBLIC AUTHORITIES**

- The company works with the authorities in its business communities to improve various services.
- It implements their requirements at its facilities, cooperating lawfully and transparently.

#### **SECTOR**

• The company participates actively, holding positions of prominence, in several business associations in Spain and Europe.

#### **FINANCIERS**

• The company negotiates the best possible conditions on the basis of investment requirements and prevailing market conditions.

### **PROFESSIONALS**

- It offers decent work and training in all countries.
- It safeguards the health and safety of its employees.
- It facilitates collective bargaining.
- It respects human rights with an emphasis on the more vulnerable markets.

#### **CUSTOMERS**

- The company is strategically committed to innovation to meet customers' demands.
- It guarantees the quality and safety of its products.
- It fine-tunes the supply chain continually.
- It manages its resources efficiently in order to contain prices.

#### **SOCIETY**

- The company drives development through its activities in its operating markets.
- It finances community work targeted at the least privileged.
- It helps make safer and more comfortable and environmentally-friendly cars.
- It fights climate change.

## SOCIETY CIE Automotive MARKET

#### **SUPPLIERS**

- The company guarantees its suppliers are given equal opportunities.
- It promotes transparency and optimal pricing.
- It provides fair payment terms.
- It reaches out to its suppliers as part of its effort to deliver customer satisfaction.

#### **WHAT CIE AUTOMOTIVE DOES FOR ITS STAKEHOLDERS**

#### Chairman and CEO's [statement](#page-2-0)

#### **Common responsibility, [shared benefits](#page-64-0)**

**2023 [highlights](#page-5-0) 1**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**4**

Image /page/67/Picture/35 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C in black on the left, followed by the text "CIE Automotive" in a simple, sans-serif font, also in black. The background is a solid orange color.

Image /page/67/Figure/36 description: The image shows the word "MARKET" in white letters on an orange background.

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## Value generated and distributed

*(\*) Dividend distributed during the year.*

#### **VALUE GENERATED AND DISTRIBUTED**

## **In 2023, it distributed €3.58 billion, equivalent to 90.5% of its revenue**, to society in employee remuneration, supplier payments,

sharehol

shareholder dividends and taxes

CIE Automotive's business is a source of wealth for its stakeholders across all its geographical markets. In 2023, it distributed €3.582,1 billion, equivalent to 90.5% of its revenue, to society in the form of employee remuneration, supplier payments, shareholder dividends and taxes.

| € m                                                                    | 2022    | 2023    |
|------------------------------------------------------------------------|---------|---------|
| Revenue                                                                | 3,838.6 | 3,959.5 |
| Economic value distributed                                             | 2022    | 2023    |
| To shareholders (dividends)**                                          | 88.2    | 100.6   |
| To employees (employee benefits expense)                               | 605.1   | 652.0   |
| To suppliers (consumption of raw materials<br>and auxiliary materials) | 2,370.4 | 2,332.3 |
| To society (income tax paid)                                           | 468.5   | 497.2   |

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

#### **Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**1**

Image /page/68/Picture/19 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is black, and the words "CIE Automotive" are in a dark gray color. The background is a light gray color.

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{69}------------------------------------------------

### CORPORATE WEBSITE

The corporate website *www.cieautomotive.com* provides relevant information about the company: in addition to information about possible jobs in the dedicated human resources tab, the supplier tab provides access to the new Suppliers Portal. There is also a 'Press Centre' with all of the company's press releases and an extensive microsite with information for investors and shareholders containing all the documentation required under securities market regulations (CNMV Circular 3/2015).

### SPECIFIC CONTACTS FOR EACH STAKEHOLDER GROUP\*

ESG and Society: Susana Molinuevo *esg@cieautomotive.com*

Professionals: Aitor Zazpe *hr@cieautomotive.com*

Investor relations and business partners: Lorea Aristizabal *ir@cieautomotive.com*

Customers and sector: Mikel Orbegozo *sales@cieautomotive.com*

Supply chain: Irache Pardo *purchasing@cieautomotive.com*

Financiers: Irache Pardo *financierocie@cieautomotive.com*

Public relations: *compliance@cieautomotive.com*

### MAILING ADDRESS

Any stakeholder so wishing may also write to the department in question at the following address:

AIC - Automotive Intelligence Center.

## Parque Empresarial Boroa, Parcela 2A – 4, 48340 Amorebieta (Bizkaia), España.

Image /page/69/Picture/33 description: The image shows an orange icon of an address book. The address book has a person icon on the cover and a spiral binding on the left side.

### WHISTLEBLOWING CHANNEL

Anyone can notify improprieties or breaches of the company's business ethics or any of the matters stipulated in CIE Automotive's Code of Professional Conduct through the new platform hosted on the corporate website.

*CIE Automotive, S.A. | Inicio (integrityline.com). https://cieautomotive.integrityline.com/*

*(\*) Also included on the corporate website.*

The company has a wide range of reporting and communication channels, the most important being its corporate website, where its stakeholders can consult all kinds of information about the company and reach out to it in different ways.

## Stakeholder engagement

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0) 1**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/69/Picture/31 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" in a sans-serif font. The letter "C" is formed by two curved shapes that do not fully connect, creating a crescent-like appearance. The text is aligned horizontally with the letter "C", with "CIE" in a bold font and "Automotive" in a lighter, regular font.

Image /page/69/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters on the left side of the image. To the right of the words is a large gray quotation mark, followed by the number "23" in bold, black letters.

{70}------------------------------------------------

*[For further information about the tax responsibility seal, refer to Society]*

CIE Automotive defended **its second spot on the Informa Reporta ranking in respect of its 2022 Annual Report**

**Transparency**

As part of its commitment to transparency, CIE Automotive reports on its performance along the economic, environmental, social and governance dimensions in an integrated Annual Report which has become an essential

tool for understanding CIE Automotive's

performance.

The quality of the information provided in that report has been acknowledged by Informe Reporta, an assessment of the quality of the reporting efforts of the companies listed on the Madrid stock exchange by analysing 36 indicators related with the principles of importance, relevance, transparency and

accessibility.

In 2023, CIE Automotive defended its second spot on the ranking in respect of its 2022 Annual Report, once again coming out ahead of all the other non-Ibex 35 companies and

all the other constituents of the Basic Materials, Manufacturing and Construction sector.

The 2022 Annual Report, published in February 2023, once again placed second on the Informe Reporta ranking.

Notably, CIE Automotive's Annual Report has jumped from the 51st position in 2014 to second place in 2022 and 2023.

In 2021, the company also began to publish an annual Tax Contribution Report, a document written to provide vested parties with knowledge of its tax and community contributions, its community engagement strategy, its risk management policies and its approach to transfer pricing. That report helped the company earn the tax responsibility seal (T for Transparency) awarded by the Haz Foundation in 2022.

Chairman and CEO's [statement](#page-2-0) **2023 [highlights](#page-5-0) Ready 2 for change Record [earnings](#page-53-0) 1 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

| 5 | Our response to the environmental challenge |
|---|---------------------------------------------|
|---|---------------------------------------------|

About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/70/Picture/15 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of two curved lines that do not quite meet, creating an incomplete circle. The words "CIE Automotive" are written in a simple, sans-serif font. The background is a solid color.

SI LAS PIEDRAS QUEMA
LA SALIDA DEL HOR

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**4.2**

#### **PROGRESS MADE IN 2023**

Distribution of over €100 million of dividends to shareholders.

Analysis of different
broadening the sha

Analysis of different investor segments with a view to broadening the shareholder base.

Engagement with over 400 investors and analysis.

#### **CHALLENGES FOR 2024**

Publication of an Investor Kit, a synopsis of useful information for investors and analysts looking to get an initial understanding of the company, marking a new step in the company's transparency strategy.

Targeting of key investors at roadshows and other conferences

scheduled for 2024.

Reassessment of investment appetite across family offices.

Reinforcement of ou
investors, extending

Reinforcement of our ESG messaging with analysts and investors, extending the work done in 2023.

# **We create value for our SHAREHOLDERS**

**In 2023, the company once again paid out onethird of its profits to its shareholders, implying cumulative growth in dividends of 26% over the last five years. Despite this compelling remuneration and the company's excellent earnings performance - CIE Automotive is one of the three most profitable companies in its sector with some of the highest growth prospects - its share price continued to lag its solid fundamentals.**

Chairman and CEO's [statement](#page-2-0)

**2023 1 highlights**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> **Responsible [management](#page-183-0)**

> > About [this report](#page-229-0)

[Data tables](#page-261-0)

**6**

Image /page/71/Picture/23 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of two curved lines that do not quite meet, creating a gap in the middle. The words "CIE Automotive" are written in a simple, sans-serif font.

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{72}------------------------------------------------

## Who are our shareholders?

#### **ANNUAL CHANGE IN SHAREHOLDER STRUCTURE**

| Percentage                                 |
|--------------------------------------------|
| ACEK Desarrollo y Gestión Industrial, S.L. |
| Corporación Financiera Alba, S.A.          |
| Antonio María Pradera Jáuregui             |
| Elidoza Promoción de Empresas, S.L.        |
| Mahindra&Mahindra, Ltd.                    |
| Addvalia Capital, S.A.                     |
| ABRDN PLC                                  |
| FMR LLC                                    |
| Alantra Asset Management, SGIIC, S.A.      |
| Total core shareholders                    |
| Own shares                                 |
| Other Board members                        |
| Free float                                 |

**SHAREHOLDERS**  *In percentage*

A significant percentage of the company's shares, **74.1%, were in the hands of a core group of benchmark shareholders** 

At year-end 2023, CIE Automotive's share capital amounted to €29.95 million, made up of 119,807,484 shares with a unit par value of €0.25, following the cancellation of 2,742,516 shares, 2.24% of the total at the time, acquired under the scope of the buyback programme initiated in 2022.

A significant percentage of the company's shares, 74.1%, were in the hands of a core group of benchmark shareholders and members of the Board of Directors. The free float accounted for 25.90% of the total and own shares, the remaining 0.04%.

Most of the free float shareholders are Spanish but funds from the US, UK, Norway, France, Luxembourg, Poland, Switzerland and Sweden also command a meaningful presence. This situation highlights the diversity and stability of CIE Automotive's shareholder structure.

CORE SHAREHOLDERS

FREE FLOAT **25.90%**

Image /page/72/Picture/20 description: This image is a pie chart showing the distribution of shares. The chart shows that core shareholders own 72.62% of the shares, and own shares are 0.04%.

BOARD OF DIRECTORS **1.44%**

| Percentage                                 | 2021   | 2022   | 2023   |
|--------------------------------------------|--------|--------|--------|
| ACEK Desarrollo y Gestión Industrial, S.L. | 15.69% | 15.69% | 16.05% |
| Corporación Financiera Alba, S.A.          | 12.73% | 13.35% | 13.66% |
| Antonio María Pradera Jáuregui             | 10.53% | 10.53% | 10.77% |
| Elidoza Promoción de Empresas, S.L.        | 10.89% | 10.34% | 10.58% |
| Mahindra&Mahindra, Ltd.                    | 7.83%  | 7.83%  | 8.01%  |
| Addvalia Capital, S.A.                     | 5.26%  | 5.26%  | 5.38%  |
| ABRDN PLC                                  | 3.99%  | 3.99%  | -      |
| FMR LLC                                    | 0.00%  | 3.02%  | 5.13%  |
| Alantra Asset Management, SGIIC, S.A.      | 3.50%  | 3.37%  | 3.05%  |
| Total core shareholders                    | 70.42% | 69.03% | 72.62% |
| Own shares                                 | 0.01%  | 2.37%  | 0.04%  |
| Other Board members                        | 1.44%  | 1.44%  | 1.44%  |
| Free float                                 | 28.13% | 27.21% | 25.90% |

Chairman and CEO's [statement](#page-2-0) **2023 [highlights](#page-5-0) Ready [for change](#page-15-0) 1 2**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/72/Picture/19 description: The image shows the CIE Automotive logo. On the left is a stylized letter C, formed by two curved black shapes. To the right of the symbol is the text "CIE Automotive" in a simple, sans-serif font. The word "CIE" is in a bolder font than "Automotive".

Image /page/72/Picture/0 description: The image shows the words "ANNUAL REPORT" in large, bold, black letters. To the right of the words is a large number "23" with a gray quotation mark above it.

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Image /page/73/Figure/17 description: This image is a line graph comparing the performance of CIE Automotive, IBEX 35, and STOXX Europe 600 Automobiles & Parts from 2018 to 2023. The y-axis represents percentage change, ranging from -80% to 60%. In 2023, CIE Automotive shows a 20% change, STOXX Europe 600 Automobiles & Parts shows a 2% change, and IBEX 35 shows a 1% change.

*(\*) PER: relationship between the share price and profit.*

## Share price performance

#### **CIE AUTOMOTIVE'S STOCK MARKET INDICATORS**

#### **SHARE PRICE PERFORMANCE, 2018-2023**

CIE Automotive's shares gained 7% in 2023 to end the year at €25.72. This moderate performance contrasts with stronger gains in the Stoxx Europe 600 Automobiles & Parts (+19%) and Ibex 35 (+23%), due, in part, to a more stringent base effect in the case of the company's shares. Over the past five years, CIE Automotive's share price has increased by 20%, significantly outperforming the Stoxx Europe 600 Automobiles & Parts (which gained 2% over that timeframe) and the Ibex 35 (just 1%). Comparing CIE Automotive's share price with the corrections sustained by most of the parts makers included in the broader sector index, the difference is even more striking.

Over the course of 2023, however, there continued to be a lag between CIE Automotive's fundamentals and its share price performance. Specifically, its share price remained well below the consensus target price of €31.38 assigned by the universe of analysts that follow the company. In contrast to other automotive parts makers, the company has not had to issue any profit warnings in the face of the recent sector complexity, remaining among the top three sector players in terms of profitability and growth prospects.

However, these achievements have not been priced in by the market. The automotive industry is not currently attractive to investors and mediumcap stocks are not managing to attract funds from the major investment funds, a combination that is not helping CIE Automotive. On top of this, liquidity fell in 2022, particularly after the company exited the Ibex 35 index.

The company's share price performance over the last year should not cloud its performance over a longer time horizon. Over the last five years, for example, CIE Automotive's share price has staged a stellar performance by comparison with its sector peers. CIE Automotive's share price has gained 20% over that period, while the Stoxx Europe 600 Automobiles & Parts has traded sideways.

|                                         | 2021        | 2022        | 2023        |
|-----------------------------------------|-------------|-------------|-------------|
| Number of shares at year-end            | 122,550,000 | 122,550,000 | 119,807,484 |
| Share price at year-end (€)             | 27.36       | 24.06       | 25.72       |
| Market capitalisation at year-end (€ m) | 3,352.9     | 2,948.6     | 3,081.4     |
| Average trading volume                  | 183,009     | 160,965     | 50,429      |
| P/E multiple*                           | 12.6        | 9.7         | 9.6         |

|                                         | 2021        | 2022        | 2023        |
|-----------------------------------------|-------------|-------------|-------------|
| Number of shares at year-end            | 122,550,000 | 122,550,000 | 119,807,484 |
| Share price at year-end (€)             | 27.36       | 24.06       | 25.72       |
| Market capitalisation at year-end (€ m) | 3,352.9     | 2,948.6     | 3,081.4     |
| Average trading volume                  | 183,009     | 160,965     | 50,429      |
| P/E multiple*                           | 12.6        | 9.7         | 9.6         |

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0) 1**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

|   | Common          |
|---|-----------------|
| 4 | responsibility, |
|   | shared benefits |

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/73/Picture/22 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of two curved black shapes that are separated by a white space. The words "CIE Automotive" are written in a simple, sans-serif font. The word "CIE" is in bold, while the word "Automotive" is not.

2020 2021 2022

OXX Europe 600 Automobiles & Parts

Image /page/73/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters on the left side of the image. To the right of the words is a large number "23" in black, with a gray quotation mark above the number.

{74}------------------------------------------------

Image /page/74/Figure/12 description: The image is a bar graph comparing "Alternative Platforms" and "BME" from 2019 to 2023. The y-axis is in increments of 10,000, starting from 0 and ending at 100,000. In 2019, BME is at 48,536, and Alternative Platforms is at approximately 73,000. In 2020, BME is at 68,645, and Alternative Platforms is at approximately 96,000. In 2021, BME is at 44,229, and Alternative Platforms is at approximately 70,000. In 2022, BME is at 38,685, and Alternative Platforms is at approximately 69,000. In 2023, BME is at 12,181, and Alternative Platforms is at approximately 22,000.

Image /page/74/Figure/14 description: This image is a bar chart that displays values from 1990 to 2023. The y-axis is labeled with "€ m" and ranges from 0 to 1,500,000. The x-axis represents the years from 1990 to 2023. The bar chart shows the following values for each year: 1990: 16,024, 1991: 21,778, 1992: 22,341, 1993: 35,557, 1994: 52,952, 1995: 46,430, 1996: 75,935, 1997: 160,937, 1998: 257,844, 1999: 286,046, 2000: 488,863, 2001: 440,199, 2002: 439,943, 2003: 494,346, 2004: 636,895, 2005: 848,209, 2006: 1,150,566, 2007: 1,665,873, 2008: 1,243,168, 2009: 897,187, 2010: 1,037,277, 2011: 925,321, 2012: 698,950, 2013: 703,669, 2014: 883,869, 2015: 962,166, 2016: 652,925, 2017: 651,489, 2018: 587,507, 2019: 469,635, 2020: 429,359, 2021: 378,121, 2022: 362,105, 2023: 301,241.

#### **BME EXCHANGED VOLUMES VOLUME TRADED ON THE SPANISH STOCK MARKET BY BME**

## The drop in CIE Automotive's total trading volume **is less pronounced looking at the shares traded on all platforms**

#### **Drop in trading volumes**

The downtrend in trading volumes on the exchanges managed by BME of recent years, which is affecting not only CIE Automotive but the stock market in general (see the chart below) continued in 2023. Some of the trading volume lost by BME has shifted to the socalled alternative platforms.

As a result, the drop in CIE Automotive's total trading volume is less pronounced looking at the shares traded on all platforms (BME and alternative platforms) than looking exclusively at the BME-managed exchanges.

*Fuente: BME.*

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

#### **Ready for change**

| 1 | 2023 highlights                             |
|---|---------------------------------------------|
| 2 | Ready for change                            |
| 3 | Record earnings                             |
| 4 | Common responsibility, shared benefits      |
| 5 | Our response to the environmental challenge |
| 6 | Responsible management                      |

> About [this report](#page-229-0)

[Data tables](#page-261-0)

Image /page/74/Picture/17 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved shapes, one above the other, with a gap in between. The text "CIE" is in bold, while "Automotive" is in a regular font.

Image /page/74/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters on the left side of the image. To the right of the words is a large number "23" in black, with a gray quotation mark above it.

{75}------------------------------------------------

#### **CONSENSUS TARGET PRICES**

#### **ANALYST RECOMMENDATIONS**

*In percentage*

Image /page/75/Figure/9 description: The image is a pie chart with three categories: HOLD, BUY, and OUTPERFORM. HOLD and BUY each account for 40% of the pie chart, while OUTPERFORM accounts for 20%.

## The analyst community's consensus target **price at year-end was €31.38, implying upside of 22%**

#### **Share price outlook**

The company trusts that the gap between the sharp growth in the company's earnings and its share price will narrow in the coming years, helped by a positive outlook for the automotive sector, which is finding its way back to growth after several years below prepandemic levels.

The analysts that cover CIE Automotive agree that there is a significant mismatch between the company's fundamentals and its share price, as is evident in their average target price of €31.38 at year-end 2023, which is 22% above the closing share price. Over half of the analysts following CIE Automotive have Buy or Outperform recommendations.

#### **ESG-related stock indices**

CIE Automotive belongs to a number of stock indices that focus on ESG aspects:

- Bloomberg ESG Data Index
- Bloomberg ESG Score Universe
- Solactive ISS ESG Screened Paris Aligned Developed Markets Small Cap Index NTR
- Solactive ISS ESG Screened Europe Small Cap Index NTR

| COMPANY              | ANALYST                           | RECOMMENDATION | PRICE  | Last update |
|----------------------|-----------------------------------|----------------|--------|-------------|
| Alantra Equities     | Álvaro Lenze                      | Hold           | 30.90€ | 10/2023     |
| Bankinter            | Esther Gutiérrez de la Torre Coll | Buy            | 32.60€ | 07/2023     |
| Bestinver Securities | Enrique Yáguez                    | Buy            | 32.70€ | 05/2023     |
| Caixabank BPI        | Bruno Bessa                       | Hold           | 27.00€ | 10/2023     |
| Exane BNP Paribas    | Francisco Ruiz                    | Hold           | 26.00€ | 10/2023     |
| Gaesco Valores       | Iñigo Recio                       | Buy            | 35.00€ | 05/2023     |
| Intermoney Valores   | Virginia Pérez                    | Buy            | 30.00€ | 05/2023     |
| JB Capital Markets   | Alberto Espelosín                 | Buy            | 33.80€ | 10/2023     |
| Kepler Cheuvreux     | Alexandre Raverdy                 | Hold           | 27.00€ | 05/2023     |
| Norbolsa             | Nikola Egia                       | Hold           | 30.51€ | 06/2023     |
| Oddo BHF             | Anthony Dick                      | Outperform     | 33.00€ | 10/2023     |
| Renta 4              | Álvaro Aristegui                  | Outperform     | 35.5€  | 10/2023     |
| Sabadell             | Alfredo del Cerro                 | Buy            | 29.81€ | 10/2023     |
| Santander            | Robert Jackson Pina               | Outperform     | 35.50€ | 07/2023     |
| CONSENSUS            | -                                 | -              | 31.38€ | -           |

Chairman and CEO's [statement](#page-2-0)

#### **2023 [highlights](#page-5-0) Ready [for change](#page-15-0) 1 2**

**Record [earnings](#page-53-0) 3**

#### **Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/75/Picture/18 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of two curved lines that do not quite meet, creating a gap in the middle. The words "CIE Automotive" are written in a simple, sans-serif font.

Image /page/75/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters on the left side of the image. To the right of the words is a large, stylized number "23" in black. Above the number "2" is a gray quotation mark.

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The share price spiked on the back of the name change to CIE Automotive India, **the sale of the forging business in Germany and the company's steady earnings momentum**

#### **CIE AUTOMOTIVE'S STOCK MARKET INDICATORS IN INDIA**

*(\*) Including continuing operations only, i.e., excluding the earnings of CIE Forgings Germany, which was classified as held for sale.*

### **SHARE PRICE PERFORMANCE IN INDIA**

The shares of CIE Automotive India Limited are traded on India's two main stock exchanges: the National Stock Exchange of India Limited (NSE) and the BSE Limited (BSE). On the BSE, the Indian company's share price rallied by 34.4% to end the year at INR 470.65, marking a high for the year of INR 549.25; on the NSE the share price gained 34.5% to end the year at INR 470.70, having peaked during the year at INR 549.45. The share price spiked on the back of the company name change to CIE Automotive India, completion of the disposal of the truck parts forging business in Germany and the company's steady earnings momentum. It cooled from annual highs due to the slowdown in some end user segments.

Demand in the Indian automotive market was mixed: growth was healthy in the light vehicle segment, while the tractor and twowheel segments were flat. The European automotive market had a good year although the two wars along its borders left investors feeling uncertain. In general, automotive related stocks performed well in India. However, the players with exposure to Europe did not perform as well.

|                                                            | 2019    | 2020    | 2021    | 2022    | 2023      |
|------------------------------------------------------------|---------|---------|---------|---------|-----------|
| No. of shares<br>at year-end (millions)                    | 379.01  | 379.01  | 379.05  | 379.05  | 379.05    |
| Share price<br>at year-end on BSE (INR)                    | 164.75  | 171.80  | 235.00  | 343.85  | 470.65    |
| Share price<br>at year-end on NSE (INR)                    | 164.75  | 172.00  | 234.2   | 346.45  | 470.70    |
| High for the<br>year on BSE (INR)                          | 258.30  | 179.10  | 311.65  | 347.20  | 549.25    |
| High for the<br>year on NSE (INR)                          | 135.55  | 59.05   | 148.30  | 164.00  | 334.90    |
| Market capitalisation<br>at year-end on BSE (INR millions) | 62,442  | 65,114  | 89,068  | 131,606 | 178,400   |
| Average trading<br>volume on BSE (shares)                  | 47,831  | 16,302  | 76,125  | 153,726 | 153,108   |
| Average trading<br>volume on NSE (shares)                  | 185,060 | 207,911 | 498,953 | 884,430 | 1,088,360 |
| Earnings<br>per share (INR)                                | 9.35    | 2.81    | 10.44*  | 18.76*  | 21.03     |
| P/E multiple                                               | 17.62   | 61.21   | 22.43*  | 18.47*  | 22.38     |

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0)**

**Record [earnings](#page-53-0)**

**Common responsibility, [shared benefits](#page-64-0)**

**Our response to [the environmental](#page-141-0)** 

**challenge**

**Responsible [management](#page-183-0)**

About [this report](#page-229-0)

[Data tables](#page-261-0)

**1**

**2**

**3**

**4**

**5**

**6**

Image /page/76/Picture/9 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter "C" on the left and the words "CIE Automotive" on the right. The letter "C" is made up of two curved shapes that do not quite meet, creating an incomplete circle. The words "CIE Automotive" are in a sans-serif font, with "CIE" in a slightly bolder font than "Automotive".

Image /page/76/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large quotation mark and the number 23.

{77}------------------------------------------------

*(\*) 2018 EPS calculated using normalised earnings in the automotive segment.*

*(\*\*) Payout: percentage of profit paid out to shareholders.*

*(\*\*\*) Estimate for 2023 as of the date of publication of this document.*

## Shareholder remuneration

In 2023 CIE Automotive once again honoured its commitment to distributing one-third of its profits to its shareholders. Specifically, it distributed €100.6 million of dividends against the previous year's earnings in two payments, one of €0.41 per share and the other of €0.419, on 5 January 2023 and 7 July 2023, respectively.

That put the dividend back at, and even above, the pre-pandemic benchmark, having reached €0.74 against 2019 earnings.

In line with its remuneration policy, the Board of Directors, agreed on 14 November 2023 to pay an interim dividend against 2023 profits of €0.45 per share, up 10% year-on-year. That interim dividend was paid out on 5 January 2024.

In recognition of the trend in shareholder remuneration at the company in recent years, CIE Automotive received the El Economista award for value creation as part of the tenth edition of the Inversión a Fondo prizes acknowledging the best investment ideas of 2022.

#### **SHAREHOLDER REMUNERATION**

## **The company distributed €100.6 million of dividends** against the previous year's earnings in two payments, one of €0.41 per share and the other of €0.419

gainst the previous year's ear
one of €0.41 per share

|                                            | 2019 | 2020 | 2021 | 2022 | 2023  |
|--------------------------------------------|------|------|------|------|-------|
| Ordinary EPS (€)*                          | 2.23 | 1.48 | 2.18 | 2.49 | 2.67  |
| Payout**                                   | 33%  | 33%  | 33%  | 33%  | 33%   |
| Accrued dividend per share (€)(***)        | 0.74 | 0.50 | 0.72 | 0.83 | 0.90  |
| Dividend distributed during the year (€ m) | 80.0 | 93.9 | 61.3 | 88.2 | 100.6 |

Chairman

and CEO's [statement](#page-2-0) **2023**

**[highlights](#page-5-0)**

**[for change](#page-15-0)**

**Common responsibility, [shared benefits](#page-64-0)**

**Ready 1 2**

**Record [earnings](#page-53-0) 3**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**4**

Image /page/77/Picture/23 description: The image shows the CIE Automotive logo. On the left is a stylized letter C in black, with a gray background behind it. To the right of the C is the text "CIE Automotive" in a simple, sans-serif font.

Image /page/77/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large number "23" with a quotation mark above the number 2.

{78}------------------------------------------------

# Engagement with shareholders and investors

Irrespective of their ownership interests, all shareholders receive equal treatment in terms of the information they get and their right to participate in and cast their votes at the company's Annual General Meeting, as contemplated in Spain's Corporate Enterprises Act.

Investor relations are framed by transparency and accessibility criteria, in keeping with the Policy for reporting to and communicating with shareholders and the market. That policy lays out the general principles of conduct that guide the Investor Relations Department, which is tasked with providing the broad financial community with accurate and timely information.

The Board of Directors supervises all of the information disclosed to the market and takes measures to safeguard its shareholders and investors' rights, all in the company's best interests.

#### The company distributes its information **PRINCIPLES OF THE MARKET INFORMATION AND COMMUNICATION POLICY**

Image /page/78/Picture/18 description: The image shows a stylized icon representing marketing or promotion. It features a gray megaphone shape on the right side, with a gradient from dark gray at the bottom to light gray at the top. To the left of the megaphone is a rounded square with an orange background. Inside the square is a white line graph with an upward trend, indicating growth or positive results.

using different channels, the key channels being Spain's securities market regulator, the CNMV for its acronym in Spanish, which publishes the most significant developments pertaining to the company, and the corporate website (www.cieautomotive.com), which has a dedicated "Shareholders and Investors" microsite. There it publishes all the latest group news and developments and provides contact details.

To facilitate its work, the IR Department uses Nasdaq IR Insight, a management platform that allows it keep a detailed record of its meetings (content and labelling), bringing up information about investor profiles and contacts and generating real-time market alerts.

**Distribution** of information in a transparent, clear, accurate, uniform and simultaneous manner

Image /page/78/Picture/20 description: The image shows a gray silhouette of a person with an orange square in the upper left corner. Inside the orange square is a white line graph with an upward trend.

#### **Active effort** to

keep shareholders continuously and permanently informed

Image /page/78/Picture/31 description: The image shows a gray smartphone with a rounded rectangle icon in the upper left corner. The icon is orange and contains a white line graph with an upward trend.

**Equal treatment** in terms of the acknowledgement and exercise of all shareholders' rights

Image /page/78/Picture/22 description: The image shows a magnifying glass with a graph icon in the upper left corner. The graph icon is orange and shows an upward trending line. The magnifying glass is gray and partially covers the graph icon.

#### **Development** of

information tools and communication channels that take advantage of the latest technology

Image /page/78/Picture/34 description: The image shows a building with a triangular roof and four columns. In front of the building is a square with rounded corners. Inside the square is a line graph with an upward trend. The square is orange, and the building is gray.

**Collaboration** with shareholders so that disclosure practices are transparent, effective and in keeping with the corporate interest

Image /page/78/Picture/24 description: The image shows a scale with a graph trending upwards on one side and a traditional balance scale on the other. The graph is in a rounded square with an orange background. The balance scale is gray and appears to be evenly balanced.

**Protection** of the rights and legitimate interests of all shareholders

**Compliance** with the law, the company's corporate governance rules and the principles of cooperation and transparency in dealing with the competent authorities and regulators

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Common responsibility, [shared benefits](#page-64-0)**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**1**

**4**

### 79

Image /page/78/Picture/27 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of two curved shapes that do not quite meet, creating a gap in the middle. The words "CIE Automotive" are written in a simple, sans-serif font.

Image /page/78/Picture/28 description: The image shows two overlapping icons. The first icon is a rounded square with an orange gradient. Inside the square is a white line graph with an upward trend. The second icon is a gray gradient circle with a bite taken out of it. Inside the circle is a white lowercase "i" character.

Image /page/78/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large number "23" with a quotation mark above the number.

{79}------------------------------------------------

#### **Communication with investors and analysts**

In 2023, the Investor Relations Department engaged intensively, participating in conferences and roadshows at which it interacted with more than 400 investors. Most notably, it once again attended the J.P. Morgan European Automotive Conference and the Santander Autos Day, along with players of the calibre of BMW, Mercedes or Renault. For the first time it also participated in the ESN/Gaesco Conference, which took place in Paris.

Framed by its mission of helping more potential investors get to know the company, it also organised six site visits, bringing investors for the first time to the CIE Vilanova factory, the group's largest aluminium casting facility in terms of sales.

In parallel, the team stayed in constant contact with the analysts that cover the company, a total of 15 this year. The Investor Relations Department responded to their enquiries about different aspects of CIE Automotive's business and strategy, including the Indian market's potential, the company's strategy in China and its M&A activity, among other matters.

It also fielded interest in ESG aspects, most notably the independence of the Board of Directors and the use of ESG criteria to determine remuneration.

In addition to its recurring communication and outreach efforts, the Investor Relations Department analysed a number of different investment segments with a view to broadening the shareholder base and boosting trading volumes. The actions taken and segments studied were the following:

studied the matter with two brokers with a strong presence in Spain, the conclusion reached was that this investor universe is currently focused

• Analysis of a potential dual listing with the help of the IEAF IR Club, which specialises in listed Spanish companies. Complementing that analysis, the company participated in the IR Think Tank - Europe, an international

institutional investors and fund
tainability matters, the company
with the expert ESG analysts at its
MR.

- Assessment of potential investor appetite in family offices: having on other types of companies.
- event organised in London by the prestigious IR Magazine, at which listed companies from all sectors exchanged practical tips.
- Reinforced ESG engagement: given institutional investors and fund managers' growing interest in sustainability matters, the company sought to increase its interaction with the expert ESG analysts at its major shareholders, for example, FMR.
- Liquidity agreement.

### *Steps taken to catalyse the share price*

The Investor Relations Department **interacted with more than 400 investors in 2023**

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0)**

**Record [earnings](#page-53-0)**

**Common responsibility, [shared benefits](#page-64-0)**

**Our response to [the environmental](#page-141-0)** 

**challenge**

**Responsible [management](#page-183-0)**

About [this report](#page-229-0)

[Data tables](#page-261-0)

**1**

**2**

**3**

**4**

**5**

**6**

Image /page/79/Picture/15 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" in a sans-serif font. The letter "C" is formed by two curved shapes that do not fully connect, creating a gap in the middle. The text is aligned horizontally with the letter "C".

lyse

Image /page/79/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large number "23" with a gray quotation mark above the number.

{80}------------------------------------------------

#### **Institutional Investor Awards**

Once again in 2023, the work done by CIE Automotive's Investor Relations Department was acknowledged in the awards handed out by Institutional Investor, a leading international business to business publisher. CIE Automotive stood out again in the Small & Midcap category.

#### **Analyst breakfast**

The company held its traditional Analyst Day in November, which was attended this year by the CEO, Jesús Mari Herrera. During a breakfast event, the CEO went over all of the topics of current interest at the company, highlighting the ease with which it is delivering its ambitious strategic targets for 2025, in spite of the significant deterioration in the macroeconomic and sector environments, as well as signalling the likely intensification in M&A activity during the second half of the Strategic Plan's time horizon. The event was attended by all of the houses that cover CIE Automotive.

#### **Analyst survey**

In 2023, CIE Automotive conducted an Analyst Satisfaction Survey in which 13 analysts participated. The main goal was to evaluate the transparency and effectiveness of the Investor Relations Department's communication effort. The 29 aspects assessed, including team availability, feedback received and response times, were positively rated by all of the participants.

The idea is to use this feedback to strengthen relations with analysts and investors in 2024, ensuring clear and timely communication and greater transparency when disclosing important developments.

The recent analyst survey has yielded valuable insight, painting a very positive overall picture, while highlighting certain areas for improvement. The highest rated aspects included the availability, flexibility and sector knowledge displayed by the IR team, qualities that facilitate the analysts' work. The analysts also valued the participation by management in earnings presentations and investor meetings. The main area for improvement flagged by the analysts relates to additional disclosures in the financial information published, an aspect which the company is analysing and working on.

## In 2023, CIE Automotive conducted an analyst satisfaction survey **to evaluate 29 aspects of the IR Department's transparency and communication effort**

**CC**

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0)**

**Record [earnings](#page-53-0)**

**Common responsibility, [shared benefits](#page-64-0)**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

### **Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**1**

**2**

**3**

**4**

Image /page/80/Picture/18 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is made up of two curved shapes, one above the other, with a gap in between. The text "CIE" is in bold, and "Automotive" is in a lighter font.

Image /page/80/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters on the left side of the image. To the right of the words is a large number "23" in bold, black letters, with a gray quotation mark above it.

{81}------------------------------------------------

**4.3**

### **PROGRESS MADE IN 2023**

Consolidation of the roof systems division in India.

New orders for elect

Expansion in Brazil, m

New orders for electrified vehicles (NEV - New Energy Vehicles).

Expansion in Brazil, making CIE Automotive a regional sector leader.

in all markets.

ica.

OEMs.

y capabilities.

Global product risk mitigation analysis.

Multiple OEM awards in all markets.

**CHALLENGES FOR 2024**

Growth in North America.

Penetration of new OEMs.

Development of new capabilities.

# **Excellence with and for our CUSTOMERS**

**CIE Automotive stands apart for its commitment to doing things well. The company aims to supply its customers with the best mobility solutions, underpinned by its zero-defects policy, which it reinforced in 2023 with product risk analysis in all geographies. This commitment to quality earned it recognition from the various OEMs and ultimately paved the way for market share gains.**

Chairman and CEO's [statement](#page-2-0)

**Common responsibility, [shared benefits](#page-64-0)**

**2023 1 highlights**

**Ready 2 for change**

> **Our response to [the environmental](#page-141-0)  challenge**

**Record [earnings](#page-53-0) 3**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**4**

**5**

Image /page/81/Picture/24 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of two curved lines that do not quite meet, creating a gap in the middle. The words "CIE Automotive" are written in a simple, sans-serif font.

<span id="page-81-0"></span>Image /page/81/Picture/0 description: The image shows the words "ANNUAL REPORT" in white, stacked on top of each other. To the right of the words is a large white number "23" with a quotation mark above it.

{82}------------------------------------------------

STRUCTURAL PARTS, CHASSIS & STEERING

Image /page/82/Picture/20 description: The image shows a black interior and exterior trim. The trim is rectangular and has a ribbed surface. It has a small handle on the right side. The trim is labeled "INTERIOR AND EXTERIOR TRIM".

Image /page/82/Picture/21 description: The image shows a gray engine valve cover. The valve cover is rectangular and has several circular openings and bolt holes. The valve cover is made of metal and has a rough surface. The valve cover is likely from a car engine.

Image /page/82/Picture/25 description: The image shows six different automotive parts. The first image shows a roof system. The second image shows structural parts, chassis, and steering. The third image shows a transmission and gearbox. The fourth image shows interior and exterior trim. The fifth image shows an engine and motor area. The sixth image shows commercial vehicles.

ENGINE & MOTOR AREA

# Value-added offering

#### **PRODUCT FAMILIES**

Image /page/82/Picture/16 description: The image shows a black scanner with its lid slightly open, revealing a white scanning surface inside. The scanner is positioned at an angle, with the top left corner appearing higher than the bottom right corner. The background is plain white.

ROOF SYSTEMS

Image /page/82/Picture/18 description: The image shows a black metal part with a cylindrical shaft extending upwards. The part has several mounting points with holes, suggesting it is designed to be attached to other components. The overall shape is complex, with a combination of curved and angular surfaces.

CIE Automotive is helping its 80+ customers with their mobility transformation efforts, offering them a range of more than 7,000 parts and subassemblies it designs to meet their quality, efficiency and sustainability requirements and address the key sector trends: electrification, comfort and safety.

The company works in close collaboration with OEMs and Tier 1 suppliers to enhance its designs and overcome the technological and economic challenges associated with sustainable mobility. It offers them different technological alternatives for a given part or subassembly, serving as a "one-stop shop" for the automotive platforms.

This proactive approach demonstrates CIE Automotive's commitment to innovation and its willingness to play a key role in the sustainable transportation scene.

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0) 1**

**Ready 2 for change**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/82/Picture/24 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved shapes that do not fully connect, creating an incomplete circle. The text "CIE Automotive" is in a simple, sans-serif font.

Image /page/82/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters. To the right of the words is a large gray quotation mark and the number 23 in black.

{83}------------------------------------------------

#### **Towards electric transportation**

The company is technologically prepared to play a significant role in the process of electrifying the stock of vehicles. Indeed 80% of its extensive product portfolio is adaptable for different kinds of vehicles, including electric and hybrid vehicles.

In recent years, the company has consolidated its presence in the electrified vehicle segment, particularly in allimportant areas such as batteries, motors and electronics. This strategic positioning reflects the forecast growth in market demand and is being driven by the guiding initiatives set down in the 2025 Strategic Plan.

Thanks to its technological prowess and the sales effort made, 41% of the order intake in 2023 related to new energy vehicles (NEVs).

**po**

f

**Over 80% of its extensive product portfolio is adaptable** for different kinds of vehicles, **including electric and hybrid vehicles**

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready for change**

**Record earnings**

**Common responsibility, shared benefits**

**Our response to [the environmental](#page-141-0)** 

**challenge**

**Responsible [management](#page-183-0)**

About [this report](#page-229-0)

[Data tables](#page-261-0)

**1[2](#page-15-0)[3](#page-53-0)[4](#page-64-0)56**

Image /page/83/Picture/8 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the text "CIE Automotive" on the right. The letter C is black, and the text is in a lighter color. The background is a light orange color.

Image /page/83/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters on the left side of the image. To the right of the words is a large number "23" in black, with a gray quotation mark above it.

{84}------------------------------------------------

# Business milestones by region

The company gained market share in the last year, driven in part by the sales teams' efforts to enter new emerging markets and in part by the disappearance of certain suppliers, unable to survive the surge in raw material costs and increase in interest rates.

Faced by a complex macroeconomic scenario, the sales teams worked hard to pass through part of the increase in costs derived from the growth in energy prices and inflation in raw materials and labour.

### **North America**

- Entry into the plastics division in the US thanks to one of the country's leading traditional OEMs with a maiden big project for the interior of one of its main vehicles under a contract worth over \$25 million.
- Customer diversification in the metal, roof systems and aluminium division in North America thanks to new orders for nextgeneration OEMs and traditional OEMs with little history in the division.
- Consolidation of the plastics factory in Mexico as a benchmark Tier 1 plastic parts supplier in the region.

### **Europe**

- New orders and consolidation of existing aluminium casting technology projects for the main premium OEMs.
- Transformation of the forging line at the CIE Galfor factory for the above-mentioned projects using the new aluminium casting technology.
- A significant percentage of all the new orders across the various technologies offered in Europe are focused on the electric vehicle.
- Ford awarded CIE Vilanova Q1 certification. This certification rewards the factory for its performance in terms of quality and logistics and allows it to opt for new tenders as Ford is rationalising its supplier portfolio and prioritising those with Q1 certification.

### **Brazil**

• Customer diversification in this region, with a presence in active projects and new orders for Asian, European and American automotive sector customers, is positioning CIE Automotive as a benchmark supplier of automotive parts for all the OEMs present in the region.

#### **Asia**

• Start of line production for a series of projects using different technologies focused on key parts for electric vehicles in India.

Chairman and CEO's [statement](#page-2-0)

#### **Common responsibility, [shared benefits](#page-64-0)**

**2023 [highlights](#page-5-0) 1**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**4**

Image /page/84/Picture/26 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved lines that do not fully connect, creating an open shape. The text "CIE Automotive" is in a simple, sans-serif font.

Image /page/84/Picture/0 description: The image shows the words "ANNUAL REPORT" in large, bold, sans-serif font on the left side of the image. To the right of the words is a large number "23" with a gray quotation mark above the "2". The number "23" is also in a bold, sans-serif font.

{85}------------------------------------------------

|               | Total certifiable factories |      | IATF 16949 |      | ISO 14001 |      | ISO 45001 |      |    |     |    |      |    |     |
|---------------|-----------------------------|------|------------|------|-----------|------|-----------|------|----|-----|----|------|----|-----|
|               | 2022                        | 2023 | 2022       | 2023 | 2022      | 2023 | 2022      | 2023 |    |     |    |      |    |     |
|               | N                           | N    | N          | %    | N         | %    | N         | %    | N  | %   |    |      |    |     |
| Asia          | 37                          | 34   | 33         | 89%  | 32        | 94%  | 28        | 76%  | 32 | 94% | 29 | 78%  | 32 | 94% |
| Europe        | 44                          | 40   | 42         | 95%  | 39        | 98%  | 42        | 95%  | 39 | 98% | 39 | 89%  | 35 | 88% |
| North America | 20                          | 16   | 19         | 95%  | 16        | 100% | 18        | 90%  | 15 | 94% | 19 | 95%  | 15 | 94% |
| Brazil        | 11                          | 13   | 11         | 100% | 12        | 92%  | 11        | 100% | 12 | 92% | 11 | 100% | 12 | 92% |
| Total         | 112                         | 103  | 105        | 94%  | 99        | 96%  | 99        | 88%  | 98 | 95% | 98 | 88%  | 94 | 91% |

#### **QUALITY POLICY PRIORITIES**

#### **GLOBAL CERTIFICATION SNAPSHOT IN 2023 (AS OF 31 DECEMBER 2023)**

Total quality model

CIE Automotive stands apart in the automotive parts industry for its total quality management. Its reputation is underpinned by constant improvement of its products and processes by means of prevention, systematic revision, training and know-how sharing, framed by its Environment Policy.

Focused on excellence, the company complies with the IATF 16949 quality standard, which is specific to the automotive industry and harmonises the different assessment and certification systems in the supply chain. It is also working to obtain environmental management (ISO 14001) and occupational health and safety management (ISO 45001) certification at all its factories. To manage these three standards, the company has a global certification agreement with TÜV RHEINLAND until 2024.

Compliance with IATF 16949 implies compliance with the associated consumer health and safety measures, even though as a B2B company, CIE Automotive does not have any contact with end vehicle

That technical specification pass-through to suppliers such as CIE Automotive means that reparability, disassembly and recyclability criteria that improve vehicle end life are also taken into consideration.

In 2023, the company did not incur any significant fines related with consumer safety or with incidents of non-compliance with product information and labelling requirements.

users. Nevertheless the OEMs pass on to CIE Automotive their product and project technical specifications and requirements to ensure that each part contributes to guaranteeing the safety of the vehicles ultimately put on the market.

Image /page/85/Figure/13 description: The image shows five icons, each with a title below it. The first icon shows a car being protected by two hands, and the title below it is "Customer protection". The second icon shows a head with two arrows circling it, and the title below it is "Proactive stance". The third icon shows a magnifying glass over a gear with an exclamation point below it, and the title below it is "Zero-defects mission". The fourth icon shows a hand holding a badge with a checkmark on it, and the title below it is "Service". The fifth icon shows a shield with a thumbs up on it, and the title below it is "Prevention as the best safety tool".

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0) 1**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

#### **Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/85/Picture/22 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of two curved shapes, one above the other, that do not quite meet. The words "CIE Automotive" are in a simple sans-serif font.

Image /page/85/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters. To the right of the words is a large gray quotation mark and the number "23" in bold, black letters.

{86}------------------------------------------------

# Customer satisfaction and protection *Product risk analysis*

*in all regions*

The company took its customer satisfaction effort a step further in 2023 by analysing its products in all geographies for quality risk in order to prevent product recalls by the OEMs.

This analysis is part of a global programme in collaboration with the company's insurance broker which also encompasses industrial and environmental risk analyses, combining and leveraging the two firms' risk analysis and mitigation know-how. Under this programme, projects are being ranked by geography for close monitoring. Last year the company also organised internal communication seminars, shared best practices and developed new procedures for scaling up incidents with the goal of avoiding not only legal noncompliance but indeed any source of customer dissatisfaction.

The company focused on the prevention of possible defects, an effort that included the reinforcement of procedures and controls, enhanced traceability of all products, analysis of the causes of potential defects and constant communication with its customers.

Customer satisfaction is one of CIE's key success factors. To that end, the company has a satisfaction control system that measures, tracks and analyses customer feedback with the aim of proposing improvements at the various factories, where needed.

This system is used to assess each factory's performance and to quantify customer perceptions on the basis of audits, assessments and current data. That information is then used to compile an annual report and draw up corrective action plans as necessary.

### **Consumer claims, complaints and grievance systems**

Despite its best efforts on the product quality front, both preventive during the design and industrialisation phases and corrective during manufacturing, on occasion deviations lead to customer claims.

When that happens, it is vital to react immediately to prevent the supply of nonconforming parts and conduct in-depth analysis of the root causes. The solutions provided are shared with and applied to all potentially affected facilities and technologies.

The company did not receive any significant fines or penalties as a result of legal proceedings related with incidents of noncompliance with product information or labelling in 2023.

Chairman and CEO's [statement](#page-2-0)

**Common responsibility, [shared benefits](#page-64-0)**

**2023 [highlights](#page-5-0) 1**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**4**

Image /page/86/Picture/22 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" in a simple, sans-serif font. The letter "C" is formed by two curved shapes, one above the other, creating a crescent-like appearance. The text is aligned horizontally with the letter "C" and is in a dark color, likely black or a dark gray.

Image /page/86/Figure/23 description: The image shows an orange icon on a gray background. The icon consists of a globe with grid lines and a magnifying glass with an exclamation point inside. The magnifying glass is positioned in front of the globe.

Image /page/86/Picture/0 description: The image shows the text "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the text is the number "23" in a large, bold font. To the right of the number is a forward slash, followed by the text "Common responsibility, shared benefits".

shared benefits

{87}------------------------------------------------

| ORGANISATION                                           | FACTORY                    | COUNTRY   | ACCOLADES                                                                                                |
|--------------------------------------------------------|----------------------------|-----------|----------------------------------------------------------------------------------------------------------|
| CONFEDERACIÓN DE INDUSTRIALES LITUANOS (LPK)           | CIE GAMEKO                 | SPAIN     | EXPORTER OF THE YEAR PRIZE FOR 2022                                                                      |
| NEXTEER                                                | CIE RECYTEC                | MEXICO    | PERFECT QUALITY AWARD                                                                                    |
| NISSAN                                                 | CIE PEMSA CELAYA           | MEXICO    | REGIONAL QUALITY AWARD                                                                                   |
| CÁMARA DE COMERCIO, INDUSTRIA<br>Y ARTESANÍA DE KAUNAS | CIE LT FORGE               | LITHUANIA | "FABRICADO EN MARIJAMPOLĖ"                                                                               |
| BAJAJ AUTO                                             | CIE ALUMINUM CASTING INDIA | INDIA     | QUALITY PLATINUM AWARD                                                                                   |
| TATA MOTOR                                             | CIE GOLDE PUNE             | INDIA     | ATMANIRBHAR EXCELLENCE                                                                                   |
| VOLKSWAGEN                                             | CIE AUTOMETAL DIADEMA      | BRAZIL    | FINALIST IN THE NEW PRODUCT LAUNCH BEST NEW PRODUCT<br>IN THE VOLKSWAGEN "THE ONE" BEST SUPPLIERS AWARDS |
| PLASTIC OMNIUM                                         | CIE AUTOMETAL MINAS        | BRAZIL    | MELHOR FORNECEDOR                                                                                        |
| GENERAL MOTORS                                         | CIE GOLDE SHANDONG         | CHINA     | SUPPLIER QUALITY EXCELLENCE AWARD                                                                        |
| HONDA BRASIL                                           | CIE AUTOMOTIVE SALTO       | BRAZIL    | HONDA SUPPLIER AWARD                                                                                     |

#### **CERTIFICATIONS AND ACCOLADES IN 2023**

#### **Data protection and confidentiality**

CIE Automotive collaborates with its customers to provide innovative solutions. Given the nature of this work, it is vital to duly guarantee the confidentiality of sensitive information at the corporate and individual division levels. To that end the company is working on an information safekeeping project guided by the following standards:

- Compliance with benchmark international standards, including ISO 27001, ISO 27005 and ISO/IEC 27002/2005. In 2021, CIE Automotive's Engineering Centre in Spain obtained the TISAX Label, which is based on ISO 27001 criteria, and in 2022 and 2023 it extended the seal to new countries.
- Process re-engineering and social engineering adapted for the organisation's specific needs.
- Real-time management of information security.

The company did not receive any significant fines for non-compliance with data protection laws or regulations in 2023.

Nor did it receive any significant fines or penalties as a result of legal proceedings related with incidents of non-compliance with product information or labelling during the reporting period.

The Systems Manager is the executive ultimate responsible for security, also carrying out information security director functions.

### **Eco-design**

The introduction of eco-design criteria at the earliest stages of product development helps minimise the impact of CIE Automotive's products during the manufacturing process and also when the end vehicles are in use. At this stage, and in collaboration with its customers, the company builds reparability,

disassembly and final recycling criteria into its designs in order to improve the circularity of the end product; despite the fact that disassembly and recycling are the responsibility of its customers, CIE Automotive contributes its know-how in materials, processes and certain products.

#### **Certifications and accolades**

In 2023, CIE Automotive was named best supplier by a number of market-leading OEMs and organisations. Those accolades encourage it to press ahead with its continuous improvement and customer satisfaction efforts.

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0)**

**Record [earnings](#page-53-0)**

**Common responsibility, [shared benefits](#page-64-0)**

**Our response to [the environmental](#page-141-0)** 

**challenge**

**Responsible [management](#page-183-0)**

About [this report](#page-229-0)

[Data tables](#page-261-0)

**1**

**2**

**3**

**4**

**5**

**6**

Image /page/87/Picture/16 description: The image shows the CIE Automotive logo. On the left is a stylized letter C, formed by two curved shapes that do not fully connect, creating an incomplete circle. To the right of the symbol is the text "CIE Automotive" in a simple, sans-serif font. The logo is in black against a white background.

Image /page/87/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters on the left side of the image. To the right of the words is a large number "23" in black, with a gray quotation mark above it.

{88}------------------------------------------------

# **4.4 PROGRESS MADE IN 2023**

Expansion of the Ulysses programme to 17 people of four nationalities, so delivering the related strategic target for this initiative two years ahead of the deadline (2025).

Lifting the share of factories with ISO 45001 certification to 94% (95 out of 101 certifiable factories certified, only excluding facilities acquired or built after 2020, which is when the 2025 Strategic Plan was published, and those sold by CIE Automotive in recent years, including the German forging factories).

Reduction in workplace injuries despite the growth in hours worked, improving on the 2022 indicators which marked a record year for workplace safety.

Provision of ESG training to virtually all of the group's managers (97% of the members of the factory management committees, excluding the factories acquired this year, trained on ESG considerations).

Diversity & inclusion assessments carried out at 93% of the group's factories, 98 of the 105 included under the scope of the Plan, implying almost full compliance with this strategic target two years ahead of the deadline (100% of factories assessed by 2025).

Two percentage point increase in the percentage of women working at the company to over 20% for the first time, despite the difficulties facing the manufacturing sector in terms of gender diversity.

#### **CHALLENGES FOR 2024**

Completing 100% of the diversity assessments for full delivery of this target one year ahead of the related deadline (2025).

Continued growth in the percentage of women and other groups that may be under-represented at CIE Automotive.

Ongoing improvement in accident metrics, carrying over the momentum of

recent years.

Detection of new training needs and increasing the scope of existing programmes, specifically providing ESG training to all managers (3% outstanding), so as to deliver this strategic target one year ahead of the deadline (2025).

# **Our TEAM: the people behind the transformation**

**CIE Automotive's ability to successfully integrate ESG aspects depends largely on our employees' sense of belonging. To that end, in 2023 the company continued to make progress on programmes that prioritise their well-being and improve the workplace climate, such as D&I assessments at every factory, executive training on ESG matters and enhanced health and safety conditions.**

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Common responsibility, [shared benefits](#page-64-0)**

**Ready [for change](#page-15-0) 2**

> **Our response to [the environmental](#page-141-0)  challenge**

**Record [earnings](#page-53-0) 3**

> **Responsible [management](#page-183-0)**

> > About [this report](#page-229-0)

[Data tables](#page-261-0)

**1**

**4**

**5**

**6**

Image /page/88/Picture/26 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is black, while the words "CIE Automotive" are in a lighter color.

<span id="page-88-0"></span>Common responsibility, shared benefits **ANNUAL**

**REPORT** [23](https://annualreport.cieautomotive.com/2023/)

{89}------------------------------------------------

# Employment and diversity

At year-end 2023, CIE Automotive employed 25,294 people in nine countries on four continents.

In all of its markets the group is committed to upholding human rights and prevailing labour legislation, framed by its Human Rights Policy.

#### EUROPE NORTH AMERICA

| Number c   |
|------------|
| M   W      |
| Local mar  |
| % local me |
| Fixed/inde |
| M   W      |
| Training h |
| Employee   |
| Training h |
| M   W      |
| Training h |
| M   W      |

#### **TOTAL** BRAZIL ASIA

**JOB MAP AT CIE AUTOMOTIVE (at year-end)**

| Number of employees                              | 7,320   |       |
|--------------------------------------------------|---------|-------|
| M   W                                            | 4,735   | 2,585 |
| Local managers as % of all factory managers      | 89%     |       |
| % local members of factory management committees | 93%     |       |
| Fixed/indefinite contracts as % of total         | 79%     |       |
| M   W                                            | 83%     | 73%   |
| Training hours                                   | 289,561 |       |
| Employees trained                                | 7,282   | 99%   |
| Training hours per person                        | 39.6    |       |
| M   W                                            | 39.0    | 40.7  |
| Training hours per person trained                | 39.8    |       |
| M   W                                            | 38.4    | 42.3  |

| Number of employees                              | 5,717   |       |
|--------------------------------------------------|---------|-------|
| M   W                                            | 4,273   | 1,444 |
| Local managers as % of all factory managers      | 80%     |       |
| % local members of factory management committees | 94%     |       |
| Fixed/indefinite contracts as % of total         | 96%     |       |
| M   W                                            | 96%     | 97%   |
| Training hours                                   | 175,199 |       |
| Employees trained                                | 4,706   | 83%   |
| Training hours per person                        | 30.8    |       |
| M   W                                            | 27.5    | 40.8  |
| Training hours per person trained                | 37.2    |       |

| Number of employees                              | 8,872   |      |
|--------------------------------------------------|---------|------|
| M   W                                            | 8,446   | 426  |
| Local managers as % of all factory managers      | 97%     |      |
| % local members of factory management committees | 88%     |      |
| Fixed/indefinite contracts as % of total         | 71%     |      |
| M   W                                            | 71%     | 65%  |
| Training hours                                   | 217,915 |      |
| Employees trained                                | 5,565   | 63%  |
| Training hours per person                        | 24.6    |      |
| M   W                                            | 23.8    | 40.6 |
| Training hours per person trained                | 39.2    |      |
| M   W                                            | 38.4    | 50.0 |

| Number of employees                              | 3,385   |      |
|--------------------------------------------------|---------|------|
| M   W                                            | 2,715   | 670  |
| Local managers as % of all factory managers      | 100%    |      |
| % local members of factory management committees | 100%    |      |
| Fixed/indefinite contracts as % of total         | 96%     |      |
| M   W                                            | 96%     | 95%  |
| Training hours                                   | 125,131 |      |
| Employees trained                                | 2,730   | 81%  |
| Training hours per person                        | 37.0    |      |
| M   W                                            | 36.1    | 40.4 |
| Training hours per person trained                | 45.8    |      |
| M   W                                            | 42.8    | 61.6 |

ASIA

| Number of   |
|-------------|
| M   W       |
| Local man   |
| % local mer |
| Fixed/inde  |
| M   W       |
| Training h  |
| Employees   |
| Training ho |
| M   W       |
| Training ha |

| Number of employees                              | 25,294  |       |
|--------------------------------------------------|---------|-------|
| M   W                                            | 20,169  | 5,125 |
| Local managers as % of all factory managers      | 89%     |       |
| % local members of factory management committees | 92%     |       |
| Fixed/indefinite contracts as % of total         | 82.5%   |       |
| M   W                                            | 83%     | 82%   |
| Training hours                                   | 807,806 |       |
| Employees trained                                | 20,283  | 80%   |
| Training hours per person                        | 31.9    |       |
| M   W                                            | 29.7    | 40.6  |
| Training hours per person trained                | 39.8    |       |
| M   W                                            | 38.1    | 46.0  |

#### Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0) 1**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

#### **Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/89/Picture/26 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved shapes, one above the other, with a gap in between. The text "CIE Automotive" is in a simple, sans-serif font.

Image /page/89/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters on the left side of the image. To the right of the words is a large gray quotation mark and the number "23" in bold, black letters.

{90}------------------------------------------------

Image /page/90/Figure/18 description: The image is a pie chart showing the distribution of people in three categories: Executives, Graduates, and Tradespeople. Executives make up 4% of the total, with 1,004 people. Graduates make up 28% of the total, with 7,023 people. Tradespeople make up 68% of the total, with 17,267 people.

Image /page/90/Figure/15 description: The image shows a breakdown of the workforce by gender. According to the image, women make up 20% of the workforce, which is 5,125 people. Men make up 80% of the workforce, which is 20,169 people. The image also includes the word 'Percentage'.

**17%** 4,161

Image /page/90/Figure/21 description: The image shows two donut charts. The first chart, titled "BREAKDOWN OF THE WORKFORCE BY AGE Percentage", shows the age distribution of the workforce. 17% (4,161) are over 50, 26% (6,624) are under 30, and 57% (14,509) are between 30 and 50. The second chart, titled "DIVERSITY OF ABILITIES Percentage", shows that 1% (242) of the workforce are people with diversity of abilities.

**BREAKDOWN OF THE WORKFORCE BY JOB CATEGORY**  Percentage

Percentage

Convinced that diversity is a source of value-added, CIE Automotive's workforce encompasses a rich mix of genders, ages, education levels and skillsets.

By age, 26% of its employees are under the age of 30, 57% are aged between 30 and 50, and 17% are over the age of 50. In addition, the company is tapping and nurturing young talent under internship and scholarship programmes.

As for its employees' education levels, reflecting its manufacturing profile, 68% are tradesmen and women, 28% are university graduates and 4% hold management positions.

CIE Automotive values talent no matter where it hails from. That is evident in the fact that 89% of its factory managers are nationals from the country in which the factory is located. In addition, 92% of the members of its factory management committees are local professionals.

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

Image /page/90/Figure/7 description: The image shows the number 5 and the text "Our response to the environmental challenge".

About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**1**

Image /page/90/Picture/20 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter "C" on the left and the words "CIE Automotive" on the right. The "C" is black and appears to be made up of two curved shapes that do not quite meet. The words "CIE Automotive" are in a sans-serif font, with "CIE" in a bolder font than "Automotive".

Image /page/90/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters on the left side of the image. To the right of the words is a large number "23" in black, with a gray quotation mark above it.

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|                           | 2022*              |                   |                      |                         | 2023               |                   |                      |                         |
|---------------------------|--------------------|-------------------|----------------------|-------------------------|--------------------|-------------------|----------------------|-------------------------|
| % of women by<br>category | % of<br>executives | % of<br>graduates | % of<br>tradespeople | % of women<br>by region | % of<br>executives | % of<br>graduates | % of<br>tradespeople | % of women<br>by region |
| ASIA                      | 5%                 | 7%                | 4%                   | 5%                      | 6%                 | 8%                | 4%                   | 5%                      |
| BRAZIL                    | 24%                | 15%               | 12%                  | 13%                     | 18%                | 17%               | 21%                  | 20%                     |
| EUROPE                    | 21%                | 23%               | 22%                  | 22%                     | 23%                | 23%               | 27%                  | 25%                     |
| NORTH AMERICA             | 13%                | 22%               | 40%                  | 34%                     | 14%                | 23%               | 41%                  | 35%                     |
| TOTAL                     | 12%                | 17%               | 19%                  | 18%                     | 12%                | 18%               | 22%                  | 20%                     |

*(\*) Includes 676 employees at the German operations classified as discontinued.* 

### The share of **female employees increased by two points, from 18% to 20%, in 2023**

#### **BREAKDOWN OF THE WORKFORCE BY EMPLOYEE CATEGORY AND GEOGRAPHIC AREA**

As in 2022, 1% of the workforce had differing abilities. Inclusion of these people is heavily influenced by the sensitivities and legislation of each country. Europe and Brazil stand out, reporting considerably higher percentages.

Excluding the impact of the discontinuation of the German forging businesses, which impacts this indicator notably as the number of employees with differing abilities at those factories was relatively high, the number of employees in this category would have increased by 20 year-on-year, implying growth in the number of people with differing abilities at the group of 7.5%.

Note that this analysis relates only to employees with differing abilities that are directly hired by the group. In addition to its employees, CIE Automotive purchases a range of services from special employment centres and similar entities that support the integration of people with differing abilities into the workforce.

### **Gender diversity**

As for gender diversity, 20% of the group's employees are women. It is common for this figure to be low in the world of manufacturing; nevertheless, CIE Automotive has been managing to bring this percentage slowly higher in recent years.

In 2023, helped by the completion of diversity assessments at nearly all of the group's facilities, a number of awareness and training drives and execution of factory-level equality plans that go beyond the group's legal requirements, the share of female employees increased by two points, from 18% to 20%. Indeed, the 2023 figure is the highest in the entire series, having increased by four points in recent years.

CIE Automotive's predominantly male workforce is attributable to tradition in the automotive sector and restrictions on women accessing technical training at schools and universities. There are also cultural barriers in some countries that impede higher female representation at the factories as is evident in the differences between North America, where women hold 35% of all jobs, for example, and China, where they hold only 5%.

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Brazil o

That being said, the two-point increase in the percentage of female employees in 2023 was felt across the entire group, albeit most pronounced in the Americas and Europe, increasing by three points in Europe, seven in Brazil and two in Mexico.

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

Image /page/91/Figure/6 description: The image shows the number 4 on the left, followed by the words "Common responsibility, shared benefits" on the right.

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**1**

Image /page/91/Picture/24 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The "C" is formed by two curved shapes that do not fully connect, creating a crescent-like appearance. The text is in a simple, sans-serif font.

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CIE Automotive champions the provision of technical training to women from school age through its **participation in the STEM Planet project and the "Committed to talent" initiative**

#### **GENDER INDICATORS**

*(\*) This ratio is calculated as the average remuneration of women divided by the average remuneration of men.*

Image /page/92/Picture/7 description: The image is an abstract composition featuring geometric shapes and contrasting colors. A dark gray shape, resembling a stylized letter 'D' or a partial circle, dominates the left side of the image. Inside this shape, there is a white, curved area that creates a sense of depth. To the right, a light orange shape forms a corner, intersecting with the gray shape and creating a sense of overlap. The overall effect is a modern and minimalist design with a focus on form and color.

Image /page/92/Picture/8 description: The image is an abstract composition featuring a gray area on the left and a brown area on the right. A gradient orange circle is positioned between the two areas, partially overlapping both. The bottom of the image has a white strip.

The situation also varies by job category and level of seniority. Forty per cent of the members of the Management Committee are women, while female boardroom representation stands at 36%; five of the 14 directors are women.

> In order to encourage more women to look at manufacturing positions in the long term, CIE Automotive is championing the provision of technical training to women from school age through its participation in the CIE STEM Planet project and, together with Innobasque, in the STEM careers chapter of the public sector "Committed to talent" initiative.

|                                                   | 2022  | 2023  |
|---------------------------------------------------|-------|-------|
| % of female employees                             | 18%   | 20%   |
| % of new hires                                    | 19%   | 23%   |
| % of women on the group's<br>Management Committee | 40%   | 40%   |
| % of women on the Board of<br>Directors           | 36%   | 36%   |
| % gender pay gap*                                 | 94.9% | 92.4% |

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready for change**

**Record earnings**

**Common responsibility, shared benefits**

**Our response to [the environmental](#page-141-0)** 

**challenge**

**Responsible [management](#page-183-0)**

About [this report](#page-229-0)

[Data tables](#page-261-0)

**1[2](#page-15-0)[3](#page-53-0)[4](#page-64-0)56**

**CIE Automotive**

Image /page/92/Picture/0 description: The image shows the words "ANNUAL REPORT" in black, with a large gray quotation mark and the number "23" in black to the right of the words.

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**GENDER PAY GAP**

#### **GENDER PAY GAP BY SIGNIFICANT LOCATIONS**

**SPAIN**

**GER**

SLO

CZE

**ROM**

**US**

MEX

DDA

**INDIA**

ASIA

#### **Gender pay gap**

The gender pay gap increased by around two percentage points in 2023 from 2022. The average earnings of the company's female employees amounted to 92.4% of what the men earn on average, compared to 94.9% in 2022.

Specifically, female employees earned €17,510 on average, compared to the €18,960 earned by the men. It is important to note that the salaries were converted to euros at yearend exchange rates and include the salaries of all of the group's factories and offices, so that the indicator considers people from different regions, with different technical skills and from countries with markedly different levels of economic, social and labour market development.

The increase in the gender pay gap in 2023 is primarily attributable to two factors:

Image /page/93/Figure/29 description: This image is a bar chart comparing data from 2022 and 2023 for CIE Automotive in different regions and countries. The chart includes data for Europe, specifically Spain, Germany, Slovakia, Czech Republic, and Romania. It also includes data for Asia, specifically China and India, and North America, specifically the US and Mexico. Finally, it includes data for Brazil. The data for 2022 is as follows: Europe: 94.9%, Spain: 78%, Germany: 94%, Slovakia: 89%, Czech Republic: 77%, Romania: 80%, China: 88%, India: 77%, US: 78%, Mexico: 71%, and Brazil: 77%. The data for 2023 is as follows: Europe: 92.4%, Spain: 81%, Germany: 87%, Slovakia: 88%, Czech Republic: 75%, Romania: 85%, China: 89%, India: 79%, US: 76%, Mexico: 65%, and Brazil: 74%.

- The first, which is not entirely within the group's control, is the situation at the factories newly acquired in Hungary and Brazil, where the pay gap before their acquisition was above the group average, so bringing the 2023 group average down.
- The second relates to a development within the group, which is working hard to bring more women to work at its factories. These new hires are concentrated in entry-level positions, where starting salaries are lower, so that comparisons between male and female pay without considering job categories increases the pay gap. It is likely, however, that as these new female employees develop their careers at the group, gaining experience and taking on new responsibilities, the pay gap in these lower categories will narrow. As shown in the table below, female wages are only lower than male wages in the lower job categories (tradespeople).

|                                     |               |                  | 2022  |  |               |                  |       |  | 2023 |  |  |
|-------------------------------------|---------------|------------------|-------|--|---------------|------------------|-------|--|------|--|--|
| AGGREGATE pay gap                   | No. of people | Average earnings | % gap |  | No. of people | Average earnings | % gap |  |      |  |  |
| Men                                 | 20,332        | 18,969           |       |  | 20,580        | 18,960           |       |  |      |  |  |
| Women                               | 4,573         | 17,997           | 94.9% |  | 4,945         | 17,510           | 92.4% |  |      |  |  |
| Gender pay gap BY EMPLOYEE CATEGORY |               |                  |       |  |               |                  |       |  |      |  |  |
| Executives - M                      | 871           | 65,747           |       |  | 894           | 64,797           |       |  |      |  |  |
| Executives - W                      | 112           | 63,713           | 97%   |  | 118           | 66,443           | 103%  |  |      |  |  |
| Graduates - M                       | 5,731         | 22,059           |       |  | 5,771         | 22,268           |       |  |      |  |  |
| Graduates - W                       | 1,169         | 24,214           | 110%  |  | 1,210         | 25,108           | 113%  |  |      |  |  |
| Tradesmen                           | 13,730        | 14,711           |       |  | 13,915        | 14,642           |       |  |      |  |  |
| Tradeswomen                         | 3,292         | 14,229           | 97%   |  | 3,617         | 13,371           | 91%   |  |      |  |  |

EUR

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0)**

**Record [earnings](#page-53-0)**

**Common responsibility, [shared benefits](#page-64-0)**

**Our response to [the environmental](#page-141-0)** 

**challenge**

**Responsible [management](#page-183-0)**

About [this report](#page-229-0)

[Data tables](#page-261-0)

**1**

**2**

**3**

**4**

**5**

**6**

Image /page/93/Picture/27 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of two curved black shapes that do not quite meet, forming an incomplete circle. The words "CIE Automotive" are in a simple, sans-serif font, with "CIE" in bold and "Automotive" in a lighter weight.

Image /page/93/Picture/0 description: The image shows the words "ANNUAL REPORT" in large, bold, black letters on the left side of the image. To the right of the words is a large number "23" in black, with a gray quotation mark above it.

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|                                                                                                                                                                                                     | ACTION PLANS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | SAMPLE MEASURES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 37 factories assessed,<br>over half of which are<br>undertaking more<br>than 30 diversity<br>actions based on<br>the results of their<br>assessments and the<br>factory equality plans<br>drawn up. | • Gender diversity<br>This is the diversity area of greatest concern for the European factories due to its importance in<br>the current social context in Europe.<br><br>• Generational diversity<br>Age is being managed actively from the standpoint of factory succession. In general, the<br>companies' workforces are older than is optimal, mainly due to limits under the factories'<br>collective bargaining agreements and also the fact that young people in internships and<br>similar initiatives do not compute as staff.<br><br>• Diversity of abilities<br>This area of diversity is managed actively by the European factories where regulations<br>are stringent. The average number of people with differing abilities at these factories is<br>considerably above the group average and the factories that do not have direct employees<br>with differing abilities subcontract services from special employment centres. Some of<br>the factories more than cover their legal requirements; those that do not meet them by<br>outsourcing tasks to these centres.<br><br>• Multicultural diversity<br>This is clearly the least prioritised area of diversity due to the lack of specific regulations and<br>the socio-economic climate in Europe. | • Gender diversity<br>Factoring gender considerations into rec<br>workers priority access to training initiativ<br>incorporation into more male-dominated<br>training schedules to ensure female work<br>can attend, and scorecards, KPIs and oth<br>mechanisms.<br><br>• Generational diversity<br>Identifying professionals with high potent<br>and plans for hiring people under the age<br><br>• Diversity of abilities<br>Meeting with representatives from local c<br>disabilities with a view to making potentic<br>of suppliers that have people of differing<br>an inclusive and equitable climate.<br><br>• Multicultural diversity<br>Facilitating the provision of work practice<br>Red Cross' inclusion and employment arr |

Factoring gender considerations into recruiting efforts, giving female workers priority access to training initiatives that facilitate their incorporation into more male-dominated areas of work, adapting training schedules to ensure female workers on shorter working hours can attend, and scorecards, KPIs and other control and monitoring

Identifying professionals with high potential and leadership attributes and plans for hiring people under the age of 30 at certain factories.

Meeting with representatives from local associations for people with disabilities with a view to making potential hires. Encouraging the use of suppliers that have people of differing abilities on staff to promote

Facilitating the provision of work practice to immigrants through the

Diversity management is one the company's most important challenges as it strives to bring together people of different cultures, genders, generations and abilities. As a result, the 2025 Strategic Plan sets the target of carrying out diversity & inclusion assessments at 100% of its factories so as to get a global snapshot of diversity across the group and take the opportune measures.

At year-end 2023, those assessments had been completed at 98 factories around the world, 93% of the 105 factories under the scope of the Plan (all except those acquired after 2020). Each factory establishes an action plan on the basis of the information obtained and conclusions it yields. Note that CIE Automotive manages diversity using the same decentralised approach as it applies to the rest

of its management efforts and it is therefore up to each factory, based on the hard data, the environment in which it operates and the knowledge of the local managers to establish which areas of diversity they want to work on and set their own measures and action plans. Execution of the action plans is monitored by the factories themselves and by the corporate Human Resources Department.

#### **EUROPE**

### *Factory level assessments and action plans*

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**1**

Image /page/94/Picture/18 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is made up of two curved shapes that are black. The text "CIE Automotive" is in a simple, sans-serif font and is also black.

Image /page/94/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large number "23" with a quotation mark above it.

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|   |                                                   |                                                                                                                                                                  | <b>ACTION PLANS</b>                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | <b>SAMPLE MEASURES</b>                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|---|---------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | Chairman<br>and<br>CEO'S<br>statement             | 16 factories assessed,<br>of which 13 are<br>undertaking more<br>than 80 diversity<br>actions based on<br>the results of their<br>assessments.                   | • Gender diversity<br>Female access to management positions at the factories has been a challenge until now in<br>both Mexico and the US.<br>• Generational diversity<br>In general, there are no issues in this area: the workforces are relatively young by comparison<br>with other regions.<br>• Diversity of abilities<br>In general this is an area of diversity of lesser importance as there are no binding regulations<br>on this topic in North America.<br>• Multicultural diversity<br>This is of great importance in the US in particular.                                                                                                                                 | • Gender diversity<br>For example, the Mexican factories<br>set specific targets for raising the<br>the percentage of female employees in the<br>American market.<br>• Generational diversity<br>Prioritising and hiring in the over-age<br>factories, where that age bracket is higher.<br>• Diversity of abilities<br>Evaluating and improving the facilities in<br>the Mexican factories in order to take into account<br>differing abilities.<br>• Multicultural diversity<br>Increased hiring of black, white or coloured people based<br>on the deficits identified at each factory in<br>comparison with the local census. |
| 1 | 2023<br>highlights                                |                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 2 | Ready<br>for change                               |                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 3 | Record<br>earnings                                |                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 4 | Common<br>responsibility,<br>shared benefits      | BRAZIL                                                                                                                                                           | <b>ACTION PLANS</b>                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | <b>SAMPLE MEASURES</b>                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 5 | Our response to<br>the environmental<br>challenge | 11 factories have<br>completed their<br>diversity assessments<br>and all have launched<br>action plans<br>encompassing 30<br>different diversity<br>initiatives. | • Gender diversity<br>Some of the technologies used involve factory work that requires greater physical strength.<br>Nevertheless, the action plans rolled out seek to increase the number of women in all job<br>categories.<br>• Generational diversity<br>In general, the Brazilian factories feel comfortable with their current numbers and succession<br>targets.<br>• Diversity of abilities<br>Brazil has powerful legislation in this area implying different binding percentages depending on<br>the size of the factory. Our Brazilian factories are sensitive to this topic and actively manage it<br>as integration and inclusion is culturally entrenched in this market. | • Gender diversity<br>Action plans have been rolled out across<br>all job categories. Already in 2023, women have<br>increased in the Brazilian market.<br>• Diversity of abilities<br>Increasing the percentage of employees with disabilities.<br>• Multicultural diversity<br>The Brazilian factories have committed to increasing the number<br>of ethnicities that are under-represented.                                                                                                                                                                                                                                    |
| 6 | Responsible<br>management                         |                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   | About<br>this report                              |                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   | Data tables                                       |                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                   | INDIA                                                                                                                                                            | ACTION PLANS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | SAMPLE MEASURES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   | Chairman<br>and<br>CEO's<br>statement             | 24 factories have<br>completed their<br>assessments and<br>all have established<br>action plans.                                                                 | • Gender diversity<br>The need to include women is not as consolidated in Indian society today as it is other<br>geographys. That is evident in the make-up of the Indian workforce, where there are relatively<br>few women at the factory level, particularly in operator positions.                                                                                                                                                                                                                                                                                                                                                                                                  | • Gender diversity<br>Management has an action plan for<br>the factories and the percentage of increased<br>slightly in 2023.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 1 | 2023<br>highlights                                |                                                                                                                                                                  | • Generational diversity<br>Although the Indian factories report balanced generational representation, they have devised<br>action plans to compete with technology firms for talent.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | • Generational diversity<br>Several factories have specific youth programs.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 2 | Ready<br>for change                               |                                                                                                                                                                  | • Diversity of abilities<br>There are no regulations in this respect, but the factories are keen to see what other companies<br>are doing in this area of diversity.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | • Diversity of abilities<br>Benchmarking in order to understand the best practices<br>for moving the group forward in this area.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 3 | Record<br>earnings                                |                                                                                                                                                                  | • Multicultural diversity<br>The authorities encourage local hiring.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 4 | Common<br>responsibility,<br>shared benefits      |                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 5 | Our response to<br>the environmental<br>challenge | CHINA                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                   |                                                                                                                                                                  | ACTION PLANS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 6 | Responsible<br>management                         | 10 Chinese factories,<br>all of them, have<br>completed their<br>assessments.                                                                                    | • Gender diversity<br>There are no plans to undertake initiatives in this area in the short term.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   | About<br>this report                              |                                                                                                                                                                  | • Generational diversity<br>Nearly all of the Chinese factories' employees are under the age of 50, so that this area of diversity is considered reasonably under control.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   | Data tables                                       |                                                                                                                                                                  | • Diversity of abilities<br>There are no relevant implementing regulations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                   |                                                                                                                                                                  | • Multicultural diversity<br>The factory employees are Chinese nationals, which is in the government's interest, except for the odd expatriate European.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |

For example, the Mexican factories at the machining divisions have set specific targets for raising the number of women on staff. In 2023 the percentage of female employees already increased in the North Prioritising and hiring in the over-45 age category at the Mexican factories, where that age bracket is under-represented. Evaluating and improving the facilities and resources available at the Mexican factories in order to improve accessibility for people with Increased hiring of black, white or mixed-race people depending on the deficits identified at each plant, particularly in the US, by Action plans have been rolled out to increase the number of women in all job categories. Already in 2023 the percentage of female employees Increasing the percentage of employees with a disability The Brazilian factories have committed to stepping up their hiring of ethnicities that are under-represented compared to the regional

#### **NORTH AMERICA**

Image /page/95/Picture/5 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The "C" is black, while the text is a lighter color, possibly gray or a light shade of black. The background is a light color, likely white or off-white.

Image /page/95/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters, with a large grey quotation mark and the number "23" in black to the right of the words.

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Image /page/96/Figure/6 description: The image shows a section titled "SAMPLE MEASURES" and lists three types of diversity with short descriptions. The first is "Gender diversity" which states that management has an action plan for lifting female representation at the factories and the percentage of women on the payroll increased slightly in 2023. The second is "Generational diversity" which states that several factories have specific youth hiring targets. The third is "Diversity of abilities" which states that benchmarking is in order to understand best practices and alternatives for moving the group forward in this area of diversity.

**INDIA**

Image /page/96/Picture/5 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The "C" is black, while the text is in a lighter color.

{97}------------------------------------------------

| Brazil         | Dermeval<br>Sánchez        |
|----------------|----------------------------|
| Mexico         | Iván<br>Portillo           |
| Mexico         | Isabel Sánchez<br>Figueroa |
| Mexico         | Patricia<br>Barrera        |
| India          | Vikas<br>Sinha             |
| India          | Hemant<br>Shinde           |
| US             | Karen<br>Rabine            |
| Corporate      | Javier<br>Álvarez          |
| Corporate      | Inés<br>Bergareche         |
| China          | Vera<br>Yan                |
| Golde Europe   | Nicoleta<br>Sotoc          |
| Plastic Europe | Celia<br>Delgado           |
| MCA Europe     | Sara<br>Pancorbo           |
| MET Europe     | Iván<br>Navajas            |

#### **MEMBERS OF THE DIVERSITY COMMITTEE**

The assessments are being conducted using a shared diversity and inclusion tool which evaluates diversity in terms of gender, age, culture and abilities. Diversity is measured using specific metrics and improved using practices related with talent such as recruiting, selection, promotion, training, remuneration, performance evaluation and job mobility, among others. There is also a questionnaire to analyse each factory's specific sensitivities.

The Diversity, Equality and Inclusion Committee, set up in 2021, made up of 14 professionals representing all divisions and regions, is responsible for the performance of these assessments.

To the extent that the assessments identify common problems, the Committee is considering the possibility of launching corporate actions in the coming years for either several factories or even the entire group.

The assessments use a shared diversity and inclusion tool which **evaluates diversity in terms of gender, age, culture and abilities** 

Plas

MCA

MET

### Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready for change**

**Record earnings**

#### **Common responsibility, shared benefits**

**Our response to [the environmental](#page-141-0)  challenge 1[2](#page-15-0)[3](#page-53-0)[4](#page-64-0)56**

**Responsible [management](#page-183-0)**

> About [this report](#page-229-0)

[Data tables](#page-261-0)

Image /page/97/Picture/20 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is black, while the text is a lighter shade of gray.

Image /page/97/Picture/0 description: The image shows the words "ANNUAL REPORT" in black, with a large number "23" in black to the right of the words. A gray quotation mark is above and to the left of the number 23.

{98}------------------------------------------------

Action taken in 2023
- Remuneration aligned with the job, dedication and performance and above minimum wages in all regions.
- Diversity assessments completed at 93% of CIE Automotive's factories.
- In 2023, CIE Automotive received and managed 17 complaints related with matters addressed in the harassment protocol, which is one more than in 2022. In the wake of these complaints, the group took significant measures, even laying off one of the people involved.
- None of the factories surveyed in 2023 identified risks of forced or child labour.
- The group reported a significant reduction in its injury frequency and severity rates in 2023 by comparison with 2022, which was already the best year on record.
- Over 194,000 hours of health and safety training.
- Increasing the number of factories with OHS certification (ISO 45001).
- Over 56% of employees under collective bargaining agreements.
- 25,506 hours of training on human rights, year-on-year growth of 30%.
- 89% of factory managers are local.
- 92% of factory management committee members are local.

| Commitments                                                                                          | Action taken in 2023                                                                                                                                                                                                                                                                                                                                          |
|------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Provision of decent work                                                                             | • Remuneration aligned with the job, dedication and performance and above<br>minimum wages in all regions.                                                                                                                                                                                                                                                    |
| Prevention of discriminatory<br>practices                                                            | • Diversity assessments completed at 93% of CIE Automotive's factories.<br>• In 2023, CIE Automotive received and managed 17 complaints related with<br>matters addressed in the harassment protocol, which is one more than in 2022.<br>In the wake of these complaints, the group took significant measures, even laying<br>off one of the people involved. |
| Zero-tolerance stance on<br>compulsory or child labour                                               | • None of the factories surveyed in 2023 identified risks of forced or child labour.                                                                                                                                                                                                                                                                          |
| Protection of people's safe and<br>healthy                                                           | • The group reported a significant reduction in its injury frequency and severity<br>rates in 2023 by comparison with 2022, which was already the best year on<br>record.<br>• Over 194,000 hours of health and safety training.<br>• Increasing the number of factories with OHS certification (ISO 45001).                                                  |
| Facilitation of collective bargaining<br>and freedom of association                                  | • Over 56% of employees under collective bargaining agreements.                                                                                                                                                                                                                                                                                               |
| Promotion of a culture of respect<br>for human rights and employee<br>awareness-raising in this area | • 25,506 hours of training on human rights, year-on-year growth of 30%.                                                                                                                                                                                                                                                                                       |
| Respect and promote the<br>participation of local communities<br>in our management                   | • 89% of factory managers are local.<br>• 92% of factory management committee members are local.                                                                                                                                                                                                                                                              |

A good place to work

CIE Automotive offers its employees decent working conditions, remuneration in line with the work they perform and the training and safety conditions needed to do their jobs. It respects its employees' right to exercise freedom of association and to collective bargaining, regardless of the country they are working in.

These commitments are formally enshrined in the company's Human Rights Policy, which is signed by all factory and HR managers, and is worded in conformity with the International Labor Organization's fundamental conventions and the labour principles set down in the United Nations Global Compact.

To ensure those rights are upheld, the company conducts a survey every year to identify the factories at risk of breaching them, taking opportune measures as necessary. In 2023, 100% of the group's factories reported that they had identified no such risks.

Chairman and CEO's [statement](#page-2-0)

**Common responsibility, [shared benefits](#page-64-0)**

**2023 [highlights](#page-5-0) 1**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**4**

Image /page/98/Picture/17 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved shapes that do not fully connect, creating a gap in the middle. The text "CIE Automotive" is in a sans-serif font, with "CIE" in a bolder typeface than "Automotive".

Image /page/98/Picture/0 description: The image shows the text "ANNUAL REPORT" on the left side of the image. To the right of the text is a large number "23" with a quotation mark above it.

{99}------------------------------------------------

### **DECENT WORK: REMUNERATION AND STABILITY**

CIE Automotive offers its employees the best possible employment terms and conditions and is committed to job stability.

Eighty-two per cent of the workforce (almost 21,000 employees) are on permanent contracts, with the remaining 18% (4,400 employees) on temporary contracts. By region, permanent contracts represent 96% of the total in Europe and Brazil, compared to 79% in North America and 71% in Asia.

The large majority of CIE Automotive employees work full-time, with just 112 employees working part-time.

#### **Wages**

CIE Automotive is committed to providing a living wage to all its employees, regardless of where they work. That commitment is duly enshrined in its Human Rights Policy, which, in addition to pledging to protect its people's health, prevent discrimination and reject the use of compulsory or child labour, promises to provide decent work, specifically committing to paying them in accordance with their skills and knowledge, complying with labour legislation in all its markets, guaranteeing its employees' right to rest irrespective of prevailing labour laws and, to the extent possible, providing flexible working hours.

Among the controls performed around the provision of a living wage, CIE Automotive verifies the pay situation at the companies it acquires during the first year of integration to ensure that the lowest wages paid exceed the minimum wage and obtain evidence, albeit limited, that the wages paid by the companies acquired are at least reasonable for the market in

question. For example, in the case of the Brazilian *(\*) Includes 676 employees at the German operations classified as discontinued in 2022*

Image /page/99/Picture/18 description: The image shows a gray icon of a euro symbol inside a circle, with three horizontal lines to the right of the circle. The euro symbol is white, and the lines are also white.

#### **EMPLOYMENT CATEGORIES AND EMPLOYMENT TYPE\***

company acquired in 2023, the employee on the lowest wage earns 1.5 times the local minimum wage (this ratio is the same for the lowest-earning man as the lowest-earning women), while at the Hungarian company acquired the lowest-earning employee earns the minimum wage (again, this ratio is the same for the lowest-earning man as the lowest-earning women).

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All of CIE Automotive's employees earn a fixed wage, in line with the nature of their work and on-the-job performance. Nearly 7,000 employees also received a bonus in 2023 as a result of delivery of set targets and/ or excellent or improved performances.

Aside from wages, the company supports its employees with a series of company benefits which enhance their and their families' quality of living and generate a sense of belonging. These benefits entailed an investment of close to €35 million in 2023.

| By contract type | Year-end 2022* | Year-end 2023 |
|------------------|----------------|---------------|
| Permanent        | 21,112         | 20,859        |
| Temporary        | 3,874          | 4,435         |
| Total            | 24,986         | 25,294        |
| Full-time        | 24,843         | 25,182        |
| Part-time        | 143            | 112           |
| Total            | 24,986         | 25,294        |

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0) 1**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

#### **Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/99/Picture/26 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved shapes that do not quite meet, creating an opening. The text "CIE Automotive" is in a simple, sans-serif font.

Image /page/99/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters on the left side of the image. To the right of the words is a large number "23" in black, with a gray apostrophe above it.

{100}------------------------------------------------

Image /page/100/Figure/3 description: This image shows information about the CIE Automotive group. The image is divided into two columns. The left column contains a list of topics: Chairman and CEO's statement, 2023 highlights, Ready for change, Record earnings, Common responsibility, shared benefits, Our response to the environmental challenge, Responsible management, About this report, and Data tables. The right column contains information about the company's health insurance, food services, transport assistance, and education programs. The health insurance program provides €21 million in health insurance or in-house medical services. The food services program provides €7 million earmarked to food services. The transport assistance program provides €7 million of transport assistance. The education program provides €0.5 million earmarked to education.

### **Organisation of working hours**

In keeping with its decentralised management approach, CIE Automotive introduces flexibility and work-life balance measures suited to the needs of each factory, division or country.

The most common measures across the group include staggered work start and end times; adjustment of working hours to protect family time; the possibility of working from home; days of maternity and paternity leave beyond the legally stipulated minimum; and specific care for pregnant employees.

Among those widespread initiatives it is worth highlighting those designed to facilitate work-life balance and encourage joint responsibility for parenting; these measures were in place at over 80% of the group's workplaces in 2023.

#### **EMPLOYEE SUPPORT**

Image /page/100/Picture/5 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved shapes that do not fully connect, creating an incomplete circle. The text "CIE Automotive" is in a simple, sans-serif font.

Image /page/100/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters on the left side of the image. To the right of the words is a large number "23" in black, with a gray quotation mark above it.

{101}------------------------------------------------

#### **Right to disconnect**

At year-end, 12 workplaces in Europe and Brazil had specific right-to-disconnect policies to ensure the required measures are taken to guarantee disengagement from work-related electronic communications (computers, company phones, etc.) outside of working hours and during leaves of absence and holidays.

#### **Absenteeism**

In 2023 the absenteeism ratio was 5%, up one point from 2022, albeit in line with that of prior years, implying the loss of around 2.8 million hours of work. This percentage is relatively stable and is only partially manageable by the company as it is influenced by exogenous factors such as the age of specific groups of factory workers and the general economic situation in the regions where the company has operations.

#### **Communication**

The main channels used to reach out to employees are the dashboard and corporate intranet. There is also a six-monthly newsletter in which the company shares the most significant financial and business developments, as well as reporting on social and environmental aspects.

To learn what is of concern to its employees, CIE Automotive conducts a workplace climate survey at every factory every two years. It carried out 38 such surveys in 2023, obtaining an average score of 7 points out of 10.

#### Improved facility maintenance in Mexico and Morocco

Implementation of facility improvements in the lunchroom and water dispensers to ensure a comfortable and functional work climate.

Refurbishment of the bathrooms and provision of lockers to factory workers, as well as enhancement of the changing rooms and storage areas.

#### Improved employee listening and grievance mechanisms in Mexico and Morocco

Ongoing publicity of the channels for voicing grievances and suggestions with regular publication of their status and outcome monitoring sessions in a bid to improve internal communication.

#### Introduction of flexibility and work-life balance measures in Spain

Introduction of flexible working arrangements to allow employees to manage their working hours, so fostering a healthy balance between work and home life.

#### Team-building activities at several Mexican factories

Organisation of regular team-building activities to foster a sense of belonging and collaboration, so improving relations within the company.

#### Noise safety awareness drive at CIE Matic

Rollout of an awareness campaign addressing the importance of using personnel protection gear (PPE) to improve noise conditions in specific positions.

#### Design and implementation of recognition mechanisms at severak Mexican factories

Development and execution of new mechanisms for acknowledging employees, so fostering a positive workplace climate.

#### Reinforcement of information about internal vacancies at several factories

Publication and publicity of vacancies on the various internal communication platforms which can be searched by specific skills and position criteria.

The results of those surveys are used to draw up annual or two-year plans for improving employee satisfaction. The initiatives set in motion in 2023 to improve the workplace climate included:

Chairman and CEO's

[statement](#page-2-0) **2023**

**[highlights](#page-5-0)**

**[for change](#page-15-0)**

**Ready 2**

**Record [earnings](#page-53-0) 3**

#### **Common responsibility, [shared benefits](#page-64-0) 4**

| 5 | Our response to the environmental challenge |
|---|---------------------------------------------|
|---|---------------------------------------------|

About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**1**

Image /page/101/Picture/26 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of two curved lines that do not quite meet, forming a crescent shape. The words "CIE Automotive" are in a sans-serif font, with "CIE" in a bold font and "Automotive" in a lighter font.

Image /page/101/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters. To the right of the words is a large number "23" in black with a dashed line running through the middle of the number. To the left of the number is a gray quotation mark.

{102}------------------------------------------------

#### **TRAINING HOURS BY EMPLOYEE CATEGORY**

### **TRAINING AND MOBILITY: OPPORTUNITIES FOR PERSONAL GROWTH**

Continuous employee training is essential for CIE Automotive, not only because it allows its employees update their skills and knowledge but also because it contributes to their productivity and efficiency, as well as increasing their ability to innovate in an environment being shaped by technological advances and competitiveness.

The company imparted 807,806 hours of training in 2023. The breakdown by employee category was more than 96,000 hours for executives, over 228,000 hours for university graduates and over 483,000 hours for factory workers.

Image /page/102/Figure/23 description: The image contains three tables. The first table, titled "TRAINING HOURS BY EMPLOYEE CATEGORY", shows the number of training hours and the number of employees receiving training in 2022 and 2023. For Executives, the training hours were 25,015 in 2022 and 96,142 in 2023, with 726 employees receiving training in 2022 and 678 in 2023. For Graduates, the training hours were 223,042 in 2022 and 228,425 in 2023, with 5,888 employees receiving training in 2022 and 5,782 in 2023. For Tradesmen and women, the training hours were 564,275 in 2022 and 483,239 in 2023, with 13,970 employees receiving training in 2022 and 13,823 in 2023. The total training hours were 812,332 in 2022 and 807,806 in 2023, with 20,584 employees receiving training in 2022 and 20,283 in 2023. The second table, titled "TRAINING IN 2023", shows the hours and employees trained by gender. For hours, men had 599,973 and women had 207,833, totaling 807,806. For employees trained, men had 15,763 and women had 4,520, totaling 20,283. The third table, titled "EMPLOYEES RECEIVING TRAINING BY GENDER, %", shows the percentage of employees receiving training in 2022 and 2023. In 2022, 82% of employees received training, while in 2023, 80% of employees received training.

Although the majority of employees who benefitted from training programme were men, reflecting the company's predominantly male workforce, the number of training hours received by female employees (46 hours per female employee trained) was higher compared to their male colleagues (38 hours per male employee trained). That phenomenon was common to all regions.

|                            | Men     | Women   | Total   |
|----------------------------|---------|---------|---------|
| Hours                      | 599,973 | 207,833 | 807,806 |
| Employees trained          | 15,763  | 4,520   | 20,283  |
| CIE Automotive people      | 20,169  | 5,125   | 25,294  |
| Hours per employee trained | 38.1    | 46.0    | 39.8    |
| Hours per employee         | 29.7    | 40.6    | 32.0    |

|                                           | 2022 | 202 |  |
|-------------------------------------------|------|-----|--|
| Employees receiving<br>training, %        | 82%  | 80% |  |
| Male employees<br>receiving training, %   | 80%  | 78% |  |
| Female employees<br>receiving training, % | 85%  | 88% |  |

| Female employees<br>receiving training, % | 85% | 88% |
|-------------------------------------------|-----|-----|

|                     |         | Number of training<br>hours | No. of employees<br>receiving training |        |
|---------------------|---------|-----------------------------|----------------------------------------|--------|
| EMPLOYEE CATEGORY   | 2022    | 2023                        | 2022                                   | 2023   |
| Executives          | 25,015  | 96,142                      | 726                                    | 678    |
| Graduates           | 223,042 | 228,425                     | 5,888                                  | 5,782  |
| Tradesmen and women | 564,275 | 483,239                     | 13,970                                 | 13,823 |
| TOTAL               | 812,332 | 807,806                     | 20,584                                 | 20,283 |

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

#### **Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**1**

Image /page/102/Picture/22 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter "C" in black, with a peach-colored semi-circle behind it. To the right of the "C" is the text "CIE Automotive" in black.

Image /page/102/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters, stacked on top of each other. To the right of the words is a large number "23" in black, with a dashed line running horizontally through the middle of the number. To the left of the number is a gray quotation mark.

{103}------------------------------------------------

**TRAINING BY REGION AND GENDER**

**TRAINING ON HUMAN RIGHTS BY REGION AND GENDER**

**TRAINING ON OHS BY REGION AND GENDER**

## **The number of training hours received per female**  employee was higher than that of their male colleagues

|               | TOTAL TRAINING HOURS |         |                | TOTAL NO. OF PEOPLE TRAINED |       |               | HOURS PER EMPLOYEE TRAINED |       |             | HOURS PER EMPLOYEE |       |             |
|---------------|----------------------|---------|----------------|-----------------------------|-------|---------------|----------------------------|-------|-------------|--------------------|-------|-------------|
|               | MEN                  | WOMEN   | TOTAL          | MEN                         | WOMEN | TOTAL         | MEN                        | WOMEN | TOTAL       | MEN                | WOMEN | TOTAL       |
| Asia          | 200,623              | 17,292  | <b>217,915</b> | 5,219                       | 346   | <b>5,565</b>  | 38.4                       | 50.0  | <b>39.2</b> | 23.8               | 40.6  | <b>24.6</b> |
| Brazil        | 98,093               | 27,038  | <b>125,131</b> | 2,291                       | 439   | <b>2,730</b>  | 42.8                       | 61.6  | <b>45.8</b> | 36.1               | 40.4  | <b>37.0</b> |
| Europe        | 116,802              | 58,397  | <b>175,199</b> | 3,454                       | 1,252 | <b>4,706</b>  | 33.8                       | 46.7  | <b>37.2</b> | 27.3               | 40.4  | <b>30.6</b> |
| North America | 184,455              | 105,106 | <b>289,561</b> | 4,799                       | 2,483 | <b>7,282</b>  | 38.4                       | 42.3  | <b>39.8</b> | 39.0               | 40.7  | <b>39.6</b> |
| <b>TOTAL</b>  | 599,973              | 207,833 | <b>807,806</b> | 15,763                      | 4,520 | <b>20,283</b> | 38.1                       | 46.0  | <b>39.8</b> | 29.7               | 40.6  | <b>31.9</b> |

|               | TOTAL TRAINING HOURS |       |        |  | TOTAL NO. OF PEOPLE TRAINED |       |       |  | HOURS PER EMPLOYEE TRAINED |       |       |
|---------------|----------------------|-------|--------|--|-----------------------------|-------|-------|--|----------------------------|-------|-------|
|               | MEN                  | WOMEN | TOTAL  |  | MEN                         | WOMEN | TOTAL |  | MEN                        | WOMEN | TOTAL |
| Asia          | 2,910                | 358   | 3,268  |  | 658                         | 184   | 842   |  | 4.4                        | 1.9   | 3.9   |
| Brazil        | 3,659                | 662   | 4,321  |  | 762                         | 76    | 838   |  | 4.8                        | 8.7   | 5.2   |
| Europe        | 2,785                | 992   | 3,777  |  | 740                         | 172   | 912   |  | 3.8                        | 5.8   | 4.1   |
| North America | 8,463                | 5,677 | 14,140 |  | 2,660                       | 1,823 | 4,483 |  | 3.2                        | 3.1   | 3.2   |
| TOTAL         | 17,818               | 7,688 | 25,506 |  | 4,820                       | 2,255 | 7,075 |  | 3.7                        | 3.4   | 3.6   |

|               | TOTAL TRAINING HOURS |        |         |  | TOTAL NO. OF PEOPLE TRAINED |       |        |  | HOURS PER EMPLOYEE TRAINED |       |       |
|---------------|----------------------|--------|---------|--|-----------------------------|-------|--------|--|----------------------------|-------|-------|
|               | MEN                  | WOMEN  | TOTAL   |  | MEN                         | WOMEN | TOTAL  |  | MEN                        | WOMEN | TOTAL |
| Asia          | 45,111               | 2,310  | 47,421  |  | 2,101                       | 184   | 2,285  |  | 21.5                       | 12.6  | 20.8  |
| Brazil        | 23,989               | 4,714  | 28,703  |  | 1,916                       | 129   | 2,045  |  | 12.5                       | 36.5  | 14.0  |
| Europe        | 21,249               | 9,363  | 30,612  |  | 1,507                       | 558   | 2,065  |  | 14.1                       | 16.8  | 14.8  |
| North America | 53,019               | 34,754 | 87,773  |  | 3,803                       | 2,483 | 6,286  |  | 13.9                       | 14.0  | 14.0  |
| TOTAL         | 143,368              | 51,141 | 194,509 |  | 9,327                       | 3,354 | 12,681 |  | 15.4                       | 15.2  | 15.3  |

Chairman and CEO's [statement](#page-2-0) **2023 [highlights](#page-5-0) Ready 2 for change Record [earnings](#page-53-0) Common responsibility, [shared benefits](#page-64-0) Our response to [the environmental](#page-141-0)  challenge 1 3 4 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/103/Picture/13 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter "C" on the left and the words "CIE Automotive" on the right. The letter "C" is made up of two curved shapes that are open on the right side. The words "CIE Automotive" are in a sans-serif font, with "CIE" in bold.

Image /page/103/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large number "23" with a quotation mark above and to the left of the number.

{104}------------------------------------------------

#### **HOURS OF TRAINING ON ESG MATTERS**

*[For further information, refer to "Progress made on the ESG front"]*

#### **Decentralisation**

Job training is aimed at facilitating acquisition of the skills needed to enable effective job performance. A good part of the company's training effort is decentralised, taking place at each factory, in keeping with the guidelines set down in the Training Plan Procedure. That plan indicates the phases each factory's training programmes need to follow: identification of training needs, planning, definition, execution, evaluation and feedback.

Every year the corporate Human Resources Department also presents a comprehensive plan for CIE Automotive factories covering centralised training initiatives targeting advanced management skills, interpersonal skills, sustainability, corporate ethics and other core aspects.

The training provided in 2023 emphasised traditional core areas of people management (health and safety, soft skills, and technical training) and other subjects that are relatively new in the world of business, such as ESG and human rights.

#### **ESG training**

ESG training is one of the group's top

## priorities. In 2023, CIE Automotive provided **global training on ESG matters**

| Environmental | 38,654  |
|---------------|---------|
| Social        | 220,015 |
| OHS           | 194,509 |
| Human rights  | 25,506  |
| Governance    | 15,435  |

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0)**

**Record [earnings](#page-53-0)**

**Common responsibility, [shared benefits](#page-64-0)**

**Our response to [the environmental](#page-141-0)** 

**challenge**

**Responsible [management](#page-183-0)**

About [this report](#page-229-0)

[Data tables](#page-261-0)

**1**

**2**

**3**

**4**

**5**

**6**

Image /page/104/Picture/13 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved lines that do not fully connect, creating an opening at the bottom. The text "CIE Automotive" is written in a simple, sans-serif font, with "CIE" in a bolder typeface than "Automotive".

Image /page/104/Picture/0 description: The image shows the words "ANNUAL REPORT" on the left side of the image. To the right of the words is a large number "23" with a gray quotation mark above the number.

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|                                        | Edici\u00f3n 2023-2024                   | Objetivo                     |
|----------------------------------------|------------------------------------------|------------------------------|
| No. of students                        | 17                                       | 15                           |
| No. of home countries                  | 4                                        | 3                            |
| No. of participants still at the group | First edition: 90%; second edition: 100% | 80% in employment 2 years on |

### *Ulysses Programme, target delivered*

CIE Automotive strives to foster a shared culture across all of its markets and encourages employees to progress at the company through mobility programmes, in line with the targets set down in its 2025 ESG Plan.

Among these initiatives, the Ulysses Programme, which combines mobility and talent attraction, stands out. Thanks to this initiative, young professionals from different plants and of different nationalities attend an excellence training centre in the Basque region before going on to build their skills at the group's emblematic factories in Spain and Italy.

This programme delivers four key objectives: embedding the group's values; facilitating cross-country communication going

forward; fostering intragroup relationships; and providing the group with highly skilled professionals.

Since resuming the programme in the wake of the pandemic, it has been expanded to the point of exceeding the Strategic Plan target. Currently, 17 students from four countries (Brazil, Czech Republic, India and Mexico) are participating in the newest edition of the Ulysses Programme, which began in October 2023, so topping the figures established in the 2025 Strategic Plan, which called for 15 participants from three different markets. Moreover, the retention rate, two years after completing the programme, currently stands at 90% for the first edition and 100% for the second edition, likewise delivering the related Strategic Plan retention rate target of at least 80%.

#### **TARGET DELIVERY**

The Ulysses Programme **combines mobility and talent attraction**

#### **Phases of the programme**

The Ulysses programme is structured into two distinct phases:

#### **Phase 1:**

Depending on the originating factory, the students participate in different technology modules (polymers, metal and metal injection). There are also two common modules addressing key soft skills and the company's lean management philosophy: Entrepreneurship & Innovation and Lean Manufacturing.

#### **Phase 2:**

The students spend several months at a factory. A large number of CIE Automotive's legacy plants are involved in this training initiative, including CIE Orbelan, CIE Inyectametal, CIE Udalbide, CIE Egaña and CIE Galfor, among others, as well as the corporate Engineering Department, the corporate Controller Department and the Laboratory located in AIC - Amorebieta.

New this year was the incorporation of youths from Eastern Europe and the provision of training development of structural staff, unlike previous exercises that focused only on production plant personnel.

Chairman and CEO's [statement](#page-2-0) **2023 [highlights](#page-5-0) Ready [for change](#page-15-0) Record [earnings](#page-53-0) 1 2 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/105/Picture/18 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is black, while the words are in a thin, sans-serif font.

Image /page/105/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large number "23" with a quotation mark above the number 2.

{106}------------------------------------------------

### **ETHICAL LABOUR RELATIONS**

Labour relations at CIE Automotive are governed by moral principles and respect for people.

CIE Automotive values and respects its employees' right to exercise freedom of association and encourages collective bargaining, engaging in constant dialogue with its workers' representatives at its European factories as well as in less unionised countries. In 2023, 56% of the group's employees were covered by collective bargaining agreements.

Over the course of the year, the company entered into 39 collective bargaining agreements (regional, sectoral and some factory-specific) at a number of facilities in the following countries: Mexico, Brazil, Spain, France, Italy, the Czech Republic, Romania, India and China.

These agreements feature specific obligations on the part of the company negotiated with the workers' representatives at each factory although they all tend to emphasise essential matters such as occupational health and safety.

*(\*) Includes 676 employees at the German operations classified as discontinued in 2022.*

#### **EMPLOYEES COVERED BY COLLECTIVE BARGAINING AGREEMENTS BY COUNTRY**

| Country        | WORKFORCE<br>2022 | Employees covered by<br>collective bargaining<br>agreements 2022 | %    | PLANTILLA<br>WORKFORCE | Employees covered by<br>collective bargaining<br>agreements 2023 | %    |
|----------------|-------------------|------------------------------------------------------------------|------|------------------------|------------------------------------------------------------------|------|
| BRAZIL         | 2,901             | 2,898                                                            | 100% | 3,385                  | 3,376                                                            | 100% |
| CHINA          | 1,525             | 367                                                              | 24%  | 1,365                  | 360                                                              | 26%  |
| CZECH REPUBLIC | 560               | 278                                                              | 50%  | 557                    | 244                                                              | 44%  |
| FRANCE         | 289               | 289                                                              | 100% | 270                    | 268                                                              | 99%  |
| GERMANY*       | 793               | 747                                                              | 94%  | 110                    | 82                                                               | 75%  |
| HUNGARY        | 0                 | 0                                                                | 0%   | 359                    | 0                                                                | 0%   |
| INDIA          | 7,389             | 2,555                                                            | 35%  | 7,501                  | 2,647                                                            | 99%  |
| ITALY          | 429               | 426                                                              | 99%  | 415                    | 410                                                              | 0%   |
| KOREA          | 2                 | 0                                                                | 0%   | 6                      | 0                                                                | 0%   |
| LITHUANIA      | 225               | 0                                                                | 0%   | 231                    | 0                                                                | 35%  |
| MEXICO         | 5,384             | 3,538                                                            | 66%  | 5,700                  | 3,683                                                            | 65%  |
| MOROCCO        | 74                | 0                                                                | 0%   | 62                     | 0                                                                | 0%   |
| NETHERLANDS    | 4                 | 0                                                                | 0%   | 4                      | 0                                                                | 0%   |
| PORTUGAL       | 280               | 280                                                              | 100% | 270                    | 270                                                              | 100% |
| ROMANIA        | 544               | 541                                                              | 99%  | 621                    | 612                                                              | 99%  |
| RUSSIA         | 42                | 0                                                                | 0%   | 31                     | 0                                                                | 0%   |
| SLOVAKIA       | 558               | 145                                                              | 26%  | 488                    | 145                                                              | 30%  |
| SPAIN          | 2,315             | 2,215                                                            | 96%  | 2,299                  | 2,158                                                            | 94%  |
| US             | 1,672             | 0                                                                | 0%   | 1,620                  | 0                                                                | 0%   |
| TOTAL          | 24,986            | 14,279                                                           | 57%  | 25,294                 | 14,255                                                           | 56%  |

Chairman

### and CEO's [statement](#page-2-0) **2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

#### **Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**1**

Image /page/106/Picture/19 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The "C" is formed by two curved shapes, one above the other, creating a circular form with a gap in the middle. The text "CIE Automotive" is in a simple, sans-serif font.

Image /page/106/Picture/0 description: The image shows the text "ANNUAL REPORT" on the left side and the number "23" on the right side. The number 23 has a dashed line through it and a quotation mark above it.

{107}------------------------------------------------

#### **Prevention of discriminatory practices**

CIE Automotive introduced its Protocol for Preventing and Handling Workplace Harassment, which is binding upon all group facilities, in 2020. This protocol addresses the prevention of mobbing and of sexual or gender harassment and includes several preventive measures, such as zero-tolerance towards harassment, shared employee responsibility for monitoring workplace conduct and the implementation of communication programmes. The full text of the protocol is available for consultation on the corporate website.

In 2023, CIE Automotive received and managed 17 complaints related with matters addressed in the protocol, which is one more than in 2022. In the wake of these complaints, the group took significant disciplinary action, even laying off one of the employees involved.

It is important to note that when CIE Automotive integrates new companies, as it did in Hungary (CIE Salgglas) and Brazil (Iberoleff- CIE Autometal Salto) last year, the factory managers and HR heads are asked to sign the group's Harassment Protocol and Human Rights Policy by way of endorsement. As a result, the group's protocol and policy are binding upon all factories from the outset.

#### **HOURS OF TRAINING ON HUMAN RIGHTS MATTERS**

In 2023 CIE Automotive imparted **25,000 hours of human rights training**

#### **Fostering respect for human rights as a culture**

CIE Automotive champions tolerance, dignity and fundamental human rights. To reinforce that, in 2023 it imparted 25,000 hours of related training. That means that roughly one in four employees received training on human rights last year.

#### **Zero-tolerance stance on compulsory or child labour**

CIE Automotive works to ensure there is no compulsory or child labour at its factories. Its hiring controls include preventive measures and minimum age controls in keeping with the ILO's standards or local legislation if more stringent. No instances of compulsory or child labour were detected in 2023.

|                   | Men    | Women | Total  |
|-------------------|--------|-------|--------|
| 2022              |        |       |        |
| Hours             | 13,193 | 6,438 | 19,631 |
| Employees trained | 3,700  | 2,116 | 5,816  |
| 2023              |        |       |        |
| Hours             | 17,818 | 7,688 | 25,506 |
| Employees trained | 4,820  | 2,255 | 7,075  |

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready for change**

**Record earnings**

**Common responsibility, shared benefits**

**Our response to [the environmental](#page-141-0)** 

**challenge**

**Responsible [management](#page-183-0)**

About

[this report](#page-229-0)

[Data tables](#page-261-0)

**1[2](#page-15-0)[3](#page-53-0)[4](#page-64-0)56**

Image /page/107/Picture/15 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter "C" on the left and the text "CIE Automotive" on the right. The background is orange.

Image /page/107/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large number "23" with a quotation mark above it.

{108}------------------------------------------------

Health and safety

> CIE Automotive guarantees the provision of safe and healthy working conditions for its employees, working actively to protect their health, in strict compliance with its Health and Safety Policy, which us approved at the senior management level. Expansion of this policy has yielded very encouraging results, as borne out by the fact that the group achieved record safety results in 2022, and then again in 2023.

#### **HEALTH AND SAFETY POLICY PRINCIPLES**

Image /page/108/Picture/5 description: The image shows three shield icons. The first shield icon contains a white image of a group of people. The second shield icon contains a white image of a monitor. The third shield icon contains a white image of a gavel.

Consideration of safety across all activities, tasks and levels. The physical, mental and emotional health of all of the people populating the value chain, including their psychological and social well-being, are unwavering and fundamental objectives for the group.

Personal safety always prevails. As a result, the company trains and raises awareness among all members of the organisation.

Safety is intrinsic to the group's activities. To achieve it, CIE Automotive complies with prevailing legislation in all its markets, meets its stakeholders' expectations, while taking on other safety goals it seems fit.

It guarantees the health and safety of everyone working at the organisation and at any subcontractors coming to its places of work, involving them tirelessly in the continuous improvement effort by means of systematic reviews, consultation and participation, as well as defining objectives measured using our safety dashboard.

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0)**

**Record [earnings](#page-53-0) Common responsibility, [shared benefits](#page-64-0)**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**1**

**2**

**3**

**4**

109

Image /page/108/Picture/15 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter "C" on the left and the text "CIE Automotive" on the right. The letter "C" is made up of two curved shapes, one above the other, that do not quite meet. The text "CIE Automotive" is in a simple, sans-serif font.

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Image /page/108/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters. To the right of the words is a large gray quotation mark and the number "23" in bold, black letters.

{109}------------------------------------------------

Image /page/109/Figure/32 description: The image shows a flowchart with three levels. The top level is a black rounded rectangle containing the text "Corporate OHS Department". A line connects this to the second level, which is a white rounded rectangle containing the text "Factory level OHS areas (one or more technicians)". A line connects this to the third level, which is a white rounded rectangle containing the text "Outside safety services as a preventive modality".

The Health and Safety Policy is publicised at all levels of the organisation via direct delivery or email to all executives, heads, middle managers and workers' representatives. It also includes prevention plans that reach all levels of the organisation via manuals containing information about risks, preventive measures and emergency measures that are delivered to employees; they are also posted in visible places (such as notice boards or specially designated spaces) and publicised in other ways thought up by the various factory managers who are responsible for making sure the Health and Safety Policy is broadcast, understood, applied and kept updated.

The policy can be modified by management in light of contextual developments, changes in legal requirements, safety plan revisions or the results of the continuous improvement process.

### **Occupational health and safety framework**

The company has devised an occupational health and safety (OHS) framework (process no. 12) in order to effectively manage all of the risks that could jeopardise delivery of the its targets.

The documents comprising this framework or system include:

- The reported OHS Policy and OHS Target documents.
- The documented procedures required under benchmark applicable regulations.
- The documents needed to ensure effective process planning, operation and control.
- The legally applicable requirements and other standards adopted by the group.
- The registers required under benchmark applicable regulations.

CIE Automotive has 15 corporate procedures and 'formats' related with delivery of the targets set in the OHS area.

 Those specific procedures establish the occupational health and safety requirements to be upheld in all activities. The 'formats' compile relevant information about the controls, measures and, in general, data yielded by an activity or a methodology for carrying it out.

#### **Model and structure**

Each factory has its own health and safety plan, which is put together on the basis of a framework system that is subjected to continual audit as part of the group's workplace safety management systems.

This structure enables the company to adapt safety measures for each factory and evaluate the measures taken by it on this front as a whole. Individual action plans are formulated every year to deliver the targeted level of improvement defined on the basis of the prior year's performance.

Every facility has a health and safety officer who, in addition to monitoring accidents and safety indicators, is tasked with ergonomics, avoiding exposure to harmful substances and managing psychosocial risks, as well as coordinating health monitoring.

The factories have an outside safety service that covers the four legally-stipulated areas of accident prevention expertise and a health and safety officer at each of its productive facilities.

The corporate Health And Safety Department regularly audits the factories, maintains the corporate intranet and serves as contact point for issues related with occupational health and safety.

At the factory level, the safety staff inspect the adequacy of the company's facilities, conduct emergency evacuation drills, provide training, assist with incident investigations and carry out awareness drives.

#### **STRUCTURE**

The company has an **occupational health and safety framework**

Chairman and CEO's [statement](#page-2-0) **2023 [highlights](#page-5-0) Ready [for change](#page-15-0) 1 2**

**Record [earnings](#page-53-0) 3**

#### **Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/109/Picture/30 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of two curved shapes that do not quite meet, forming an incomplete circle. The words "CIE Automotive" are in a simple, sans-serif font.

Image /page/109/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters on the left side of the image. To the right of the words is a large gray quotation mark, followed by the number "23" in bold, black letters.

{110}------------------------------------------------

#### **Joint management–worker health and safety committees**

The factories frequently have joint management-worker health and safety committees under the scope of their collective bargaining agreements, particularly in markets with tighter health and safety regulations, as is the case in Europe.

#### **Certification**

Under its 2025 Strategic Plan, CIE Automotive is aiming to have 100% of its factories ISO 45001-certified by 2025. This is the benchmark international occupational health and safety management system standard designed to protect workers and visitors from accidents and workplace illnesses.

In 2023 the group certified four factories in Portugal, India and China, bringing the total number of factories certified to 95, which is 94% of the total.

#### **Indicators and assessment**

CIE Automotive has been using three key OHS indicators to track its safety record for over 15 years: the injury frequency rate, the injury severity rate and the number of lost-time injuries.

It also conducts an annual survey at each factory, called CIE Safety, the goal being for the facilities to score at least 85%. In 2023, all plants surpassed the target except one, which already has a corrective action plan in place.

#### **Continuous improvement in accident metrics**

In 2023, CIE Automotive recorded 345 injuries, 23 less than in 2022. Of the total, 339 were mild, six were serious and there no fatalities.

The injury frequency and severity rates continued to come down, marking record lows. In 2023 the severity rate fell to 0.11 and the frequency rate, to 6.19.

As for work-related illnesses, the group recorded 27 cases, compared to 22 in 2022. Note that there were no injuries affecting subcontracted workers.

Image /page/110/Picture/30 description: The image shows a peach-colored shield with a white circle in the center. Inside the white circle is a peach-colored check mark.

*(\*) Injury: an accident occurring at work that causes at least one lost day.*

*(\*\*) Frequency: injuries per million hours worked.*

*(\*\*\*) Severity: days lost due to injuries per thousand hours worked, excluding absenteeism.*

*(\*\*\*\*) Absenteeism: absences not substantiated by holidays or other leave.*

Image /page/110/Picture/16 description: The image is an abstract design featuring a light orange background with white lines and shapes. The white elements appear to form a stylized, geometric pattern, possibly resembling letters or symbols. The design is simple yet visually striking due to the contrast between the colors and the clean lines.

#### **INJURY METRICS**

| Lost-time injuries*              | <table><tr><th></th><th>2022</th><th>2023</th></tr><tr><td></td><td>368</td><td>345</td></tr><tr><td></td><td>H: 312</td><td>H: 302</td></tr><tr><td></td><td>M: 56</td><td>M: 43</td></tr></table> |        | 2022 | 2023 |  | 368  | 345  |  | H: 312 | H: 302 |  | M: 56 | M: 43 |
|----------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------|------|--|------|------|--|--------|--------|--|-------|-------|
|                                  | 2022                                                                                                                                                                                                | 2023   |      |      |  |      |      |  |        |        |  |       |       |
|                                  | 368                                                                                                                                                                                                 | 345    |      |      |  |      |      |  |        |        |  |       |       |
|                                  | H: 312                                                                                                                                                                                              | H: 302 |      |      |  |      |      |  |        |        |  |       |       |
|                                  | M: 56                                                                                                                                                                                               | M: 43  |      |      |  |      |      |  |        |        |  |       |       |
| Cases of work-related ill health | <table><tr><th></th><th>2022</th><th>2023</th></tr><tr><td></td><td>22</td><td>27</td></tr><tr><td></td><td>H: 16</td><td>H: 15</td></tr><tr><td></td><td>M: 6</td><td>M: 12</td></tr></table>      |        | 2022 | 2023 |  | 22   | 27   |  | H: 16  | H: 15  |  | M: 6  | M: 12 |
|                                  | 2022                                                                                                                                                                                                | 2023   |      |      |  |      |      |  |        |        |  |       |       |
|                                  | 22                                                                                                                                                                                                  | 27     |      |      |  |      |      |  |        |        |  |       |       |
|                                  | H: 16                                                                                                                                                                                               | H: 15  |      |      |  |      |      |  |        |        |  |       |       |
|                                  | M: 6                                                                                                                                                                                                | M: 12  |      |      |  |      |      |  |        |        |  |       |       |
| Injury frequency rate**          | <table><tr><th></th><th>2022</th><th>2023</th></tr><tr><td></td><td>6.82</td><td>6.19</td></tr></table>                                                                                             |        | 2022 | 2023 |  | 6.82 | 6.19 |  |        |        |  |       |       |
|                                  | 2022                                                                                                                                                                                                | 2023   |      |      |  |      |      |  |        |        |  |       |       |
|                                  | 6.82                                                                                                                                                                                                | 6.19   |      |      |  |      |      |  |        |        |  |       |       |
| Injury severity rate***          | <table><tr><th></th><th>2022</th><th>2023</th></tr><tr><td></td><td>0.13</td><td>0.11</td></tr></table>                                                                                             |        | 2022 | 2023 |  | 0.13 | 0.11 |  |        |        |  |       |       |
|                                  | 2022                                                                                                                                                                                                | 2023   |      |      |  |      |      |  |        |        |  |       |       |
|                                  | 0.13                                                                                                                                                                                                | 0.11   |      |      |  |      |      |  |        |        |  |       |       |
| Absenteeism****                  | <table><tr><th></th><th>2022</th><th>2023</th></tr><tr><td></td><td>4%</td><td>5%</td></tr></table>                                                                                                 |        | 2022 | 2023 |  | 4%   | 5%   |  |        |        |  |       |       |
|                                  | 2022                                                                                                                                                                                                | 2023   |      |      |  |      |      |  |        |        |  |       |       |
|                                  | 4%                                                                                                                                                                                                  | 5%     |      |      |  |      |      |  |        |        |  |       |       |

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Common responsibility, [shared benefits](#page-64-0)**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**1**

Image /page/110/Picture/25 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved shapes, one above the other, with a gap between them. The text "CIE Automotive" is in a simple, sans-serif font.

Image /page/110/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters. To the right of the words is a large number "23" in black with a gray quotation mark above it.

{111}------------------------------------------------

|                  | 2022       | 2023       |
|------------------|------------|------------|
| Mild injuries    | 356        | 339        |
| Serious injuries | 12         | 6          |
| Fatalities       | 0          | 0          |
| <b>TOTAL</b>     | <b>368</b> | <b>345</b> |

|               | Men | Women | Total |
|---------------|-----|-------|-------|
| North America | 0   | 0     | 0     |
| Europe        | 13  | 8     | 21    |
| Brazil        | 2   | 4     | 6     |
| Asia          | 0   | 0     | 0     |
| TOTAL         | 15  | 12    | 27    |

|               | %  |
|---------------|----|
| North America | 3% |
| Europe        | 7% |
| Brazil        | 2% |
| Asia          | 4% |
| TOTAL         | 5% |

|                                      | Men | Women | Total |
|--------------------------------------|-----|-------|-------|
| 2023                                 |     |       |       |
| Injuries                             | 302 | 43    | 345   |
| Cases of work-<br>related ill health | 15  | 12    | 27    |
| 2022                                 |     |       |       |
| Injuries                             | 312 | 56    | 368   |
| Cases of work-<br>related ill health | 16  | 6     | 22    |

**WORKPLACE ACCIDENTS AND CASES OF ILL HEALTH BY GENDER**

#### **INJURIES BY SEVERITY. COMPARISON**

**CASES OF WORK-RELATED ILL HEALTH BY GENDER AND REGION**

**AVERAGE ABSENTEEISM RATE BY REGION**

Chairman and CEO's [statement](#page-2-0) **2023 [highlights](#page-5-0) Ready 2 for change Record [earnings](#page-53-0) Common responsibility, 1 3 4**

**[shared benefits](#page-64-0) Our response to** 

**[the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/111/Picture/17 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter "C" on the left and the text "CIE Automotive" on the right. The "C" is black and appears to be formed by two curved shapes that do not fully connect. The text "CIE Automotive" is in a simple, sans-serif font and is also black.

Image /page/111/Picture/18 description: The image shows a grayed-out cartoon drawing of a lamp with a question mark on the lampshade. The lamp has a wide lampshade, a narrow neck, a small table, and a wide base.

Image /page/111/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black font. To the right of the words is a large number "23" in black font with a gray quotation mark above it.

{112}------------------------------------------------

#### **OCCUPATIONAL HEALTH AND SAFETY TRAINING BY REGION AND GENDER**

## In 2023, **CIE Automotive provided 194,509 hours** of health and safety training

#### **Health and safety training**

Employees receive safety training tailored to the risks posed by their jobs. In 2023, CIE Automotive provided 194,509 hours of health and safety training to 12,681 employees (9,327 men and 3,354 women).

| OHS TRAINING HOURS |         |        | NO. OF PEOPLE TRAINED ON OHS |       |       | HOURS PER EMPLOYEE TRAINED |      |       |       |
|--------------------|---------|--------|------------------------------|-------|-------|----------------------------|------|-------|-------|
|                    | MEN     | WOMEN  | TOTAL                        | MEN   | WOMEN | TOTAL                      | MEN  | WOMEN | TOTAL |
| Asia               | 45,111  | 2,310  | 47,421                       | 2,101 | 184   | 2,285                      | 21.5 | 12.6  | 20.8  |
| Brazil             | 23,989  | 4,714  | 28,703                       | 1,916 | 129   | 2,045                      | 12.5 | 36.5  | 14.0  |
| Europe             | 21,249  | 9,363  | 30,612                       | 1,507 | 558   | 2,065                      | 14.1 | 16.8  | 14.8  |
| North America      | 53,019  | 34,754 | 87,773                       | 3,803 | 2,483 | 6,286                      | 13.9 | 14.0  | 14.0  |
| TOTAL              | 143,368 | 51,141 | 194,509                      | 9,327 | 3,354 | 12,681                     | 15.4 | 15.2  | 15.3  |

Image /page/112/Picture/14 description: The image shows a checklist icon with an alert icon overlapping it. The checklist icon is a rounded rectangle with three checkmarks and a horizontal line. The alert icon is a triangle with an exclamation point inside.

Chairman

and CEO's [statement](#page-2-0) **2023**

**[highlights](#page-5-0)**

#### **Common responsibility, [shared benefits](#page-64-0)**

**Ready 2 Ready for change**

**Record [earnings](#page-53-0) 3**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**1**

**4**

Image /page/112/Picture/17 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter "C" on the left and the words "CIE Automotive" on the right. The letter "C" is made up of two curved shapes that do not quite meet, creating a gap in the middle. The words "CIE Automotive" are written in a simple, sans-serif font. The word "CIE" is in bold, while the word "Automotive" is in a lighter weight font.

Image /page/112/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large quotation mark and the number 23.

{113}------------------------------------------------

### *Health and safety challenges and initiatives for the years ahead*

In addition to its entrenched emergency and self-protection plans, CIE Automotive has set itself the goal of advancing in the following areas:

#### **Hot work risk controls**

Companies are exposed to human harm and physical damage from fires sparked during hot work. Between 2017 and 2021, the US firefighter forces responded to an estimated annual average of 3,396 structure fires related with hot work, according to the most recent NFPA report. These fires caused average annual fatalities and civilian injuries of 19 and 120, respectively. The statistics regarding worker injuries and fatalities related with hot work paint an even darker picture.

Faced with that reality, in 2023 CIE Automotive introduced a new procedure for controlling and regulating hot work at all group factories (CIE CO PR P 16) which is expected to become fully operational over the course of 2024. Under this procedure all internal or external work requiring the use of fire or combustion will be verified.

### **Fire safety self-inspections**

Beyond the emergency measures in place across the factories, the group is planning to introduce a systematic method for performing regular fire safety inspections.

Specifically, inspections will take place at least monthly at all group factories covered by the new hot work procedure - CIE CO PR P 16 - verifying their critical facilities and establishing action plans to address all deviations detected.

Image /page/113/Picture/19 description: The image contains the words "Business Activity" on the first line and "Coordination" on the second line. The text is in a bold, sans-serif font.

CIE Automotive guarantees the health and safety of the workers of all companies entering its places of work. The so-called Business Activity Coordination unit is therefore one of the most important areas of the health and safety effort.

The vast volumes of documents and large number of companies and workers involved mean that this unit needs to be digitalised to perform its coordination work more effectively.

The resulting coordination software platform is intended to reduce workplace risks, ensure compliance with applicable regulations and increase cooperation between contracting and subcontractor firms, as well as reduce the costs associated with workplace accidents.

The idea is to integrate internal and external health and safety management and, if correctly applied, guarantee compliance with applicable legal requirements.

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**1**

Image /page/113/Picture/23 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of two curved shapes that do not quite meet, creating a gap in the middle. The words "CIE Automotive" are written in a simple, sans-serif font.

Image /page/113/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large number "23" with a quotation mark above the number.

{114}------------------------------------------------

# **4.5 PROGRESS MADE IN 2023**

Rollout of the Supply Chain

#### Rollout of the **Supply Chain Race 2 Zero** programme.

s.

Annual renewal of **ISO 20400** Sustainable procurement certification.

Main non-productive suppliers obliged to register with the Supplier Portal and undergo ESG assessment.

Verification by an independent firm of the level of ESG compliance at over 50% of global purchasing volumes.

Addition of more stringent sustainability compliance criteria to procurement management documents in response to market and customer demands.

Performance of 698 process and ESG supplier audits.

Provision of ongoing ESG training to group buyers.

Participation in ESG training forums for the supply chain.

Compliance with the ESG KPIs at the group level.

#### **CHALLENGES FOR 2024**

Phase two of Supply Chain Race 2 Zero: **building a roadmap with the suppliers that generate the most emissions.**

Spearheading compliance by the supply chain with **due diligence**  requirements.

Annual verification of ESG compliance by an outside firm.

10% increase in ESG audits.

Increased performance of physical audits, including ESG verifications.

Participation in ESG forums and leading provision of internal training on legal and/or company requirements.

Compliance with the ESG KPIs at the group level.

# **Change begins with our SUPPLIERS**

**To tackle environmental challenges and contribute to social progress, CIE Automotive has embraced the role of leader in its supply chain, leveraging partnerships to multiply its impact on society Framed by that approach, in 2023 it launched its global decarbonisation acceleration programme, Supply Chain Race 2 Zero, expanded the requirement to register with the ESG Supplier Portal to non-productive suppliers and added new sustainability requirements in its procurement management documents in response to market and customer demands. Thanks this responsible and unique approach to the management of its approximately 23,000\* suppliers, it renewed its ISO 20400 Sustainable procurement certification, remaining the only automotive parts maker in Spain to boast this certification.**

*(\*) 740 suppliers were from the discontinued German forging companies.*

#### Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0) 1**

**Ready 2 Ready for change**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/114/Picture/33 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of two curved shapes, one above the other, that do not quite meet in the middle. The words "CIE Automotive" are in a sans-serif font, with "CIE" in a bolder font than "Automotive".

<span id="page-114-0"></span>Image /page/114/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is the number 23, with a quotation mark above the number 2.

{115}------------------------------------------------

**25%** of the suppliers calculate
the carbon footprint of their products

**32%**

**32%** are aiming to reduce their net emissions

**28%** use renewable energy only

**62%**

**62%** are ISO 14001-certified

- **1.** Selecting the most critical suppliers (highest emissions) that have yet to target their emissions strategically.
- **2.** Increasing the universe of suppliers to receive the decarbonisation commitment analysis form.
- **3.** Monitoring the performance of the suppliers that already measure their carbon footprints:
	- Validating their measurements system
	- Detailing targets by Scope
	- Setting target delivery deadlines
	- Quantifying the changes economically

# Supply Chain Race 2 Zero programme

Measurement of CIE Automotive's carbon footprint in 2022 showed that over 80% of the GHG emissions associated with its activities originated from its supply chain. That threw up the challenge of involving its suppliers in the company's commitment to becoming climate neutral by 2050. So began the Supply Chain Race 2 Zero project.

The first step in this race to decarbonisation was to understand its suppliers' real GHG emission figures, their level of commitment to reducing them and their advances to date. The idea was also to identify suppliers that need help tackling this challenge.

The group surveyed its main suppliers in all its geographies regarding their engagement around decarbonisation. The suppliers were selected on the basis of their emissions impact and/or procurement volume. They represent 41% of the group's total purchases (57% of productive suppliers), which amounted to €2.95\* billion in 2023.

The study reveals that there is still ample room for improvement: only a minority of the suppliers surveyed have become aware of the need to reduce their carbon footprint:

With this information in hand, CIE Automotive will set deadlines for its suppliers to offer decarbonised technical solutions, so minimising its emissions and multiplying its positive impact, even in countries with lax environmental regulations.

The goal of Supply Chain Race 2 Zero is to focus on helping in the weakest areas. In general, the smaller and more local suppliers need support in the form of resources, guidance or environmental knowledge. This partnership includes information about energy efficiency, technical solutions and identification of areas for improvement, among other forms of assistance.

From 2024, the Supply Chain Race 2 Zero programme's new roadmap will involve:

*(\*) 75 million euros correspond to the business of discontinued German forges.*

Chairman and CEO's [statement](#page-2-0)

### **2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

#### **Common responsibility, [shared benefits](#page-64-0) 4**

| 5 | Our response to the environmental challenge |
|---|---------------------------------------------|
|---|---------------------------------------------|

About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**1**

Image /page/115/Picture/26 description: The image shows the CIE Automotive logo. On the left is a stylized letter C, formed by two curved shapes in black. To the right of the C is the text "CIE Automotive" in a simple, sans-serif font, also in black.

Image /page/115/Picture/0 description: The image shows the text "ANNUAL REPORT" on the left side and the number "23" on the right side. The number 23 has a quotation mark above it.

{116}------------------------------------------------

#### **Sharing best practices**

With Supply Chain Race 2 Zero, CIE Automotive wants to inspire other companies with fragmented supply chains to work to reduce emissions in their chains.

To that end, the Procurement Department participated in several outside events last year inspired by a leitmotif of "Moving towards decarbonisation together":

- **ESG PROCUREMENT SUMMIT:** CIE Automotive participated in the ESG Procurement Summit giving a talk about "Advanced strategies for sustainable supply chain development". El evento trata de ayudar a las empresas
- **SUPPLY CHAIN AUTOMOTIVE MANUFACTURING MEETINGS MADRID:** the only supply chain event in Spain that brings together automotive makers, tier suppliers and contractmanufacturers.
- **ECOVADIS WORLDTOUR:** the company participated in this event which tackled issues such as identifying Scope 3 emissions and defining net zero strategies, strategies for engaging suppliers around sustainability, the importance of due diligence and its application in Europe and the importance of ESG ratings in attracting investment.
- **AERCE APPLICATION OF ESG POLICIES IN THE SUPPLY CHAIN:** CIE Automotive led this seminar, focusing its presentation on the integration of ESG criteria into its strategy and how it transmits them to its suppliers to get them to up their ESG commitments.
- **ESG IN BUSINESS STRATEGY:** One member of the company's corporate Procurement Department earned this certificate from CUNEF University.

Image /page/116/Picture/10 description: The image shows a gray icon of a browser window with a white thumbs-up symbol inside. The browser window has rounded corners and a white bar at the top with three white circles, resembling browser controls. The thumbs-up symbol is positioned in the center of the window, with the thumb pointing upwards and the fingers curled in a fist. The background is a gradient of light orange and white.

The Procurement Department participated in several outside events last year inspired by a leitmotif of **"Moving towards decarbonisation together"**

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready for change**

**Record earnings**

**Common responsibility, shared benefits**

**Our response to [the environmental](#page-141-0)** 

**challenge**

**Responsible [management](#page-183-0)**

About [this report](#page-229-0)

[Data tables](#page-261-0)

**1[2](#page-15-0)[3](#page-53-0)[4](#page-64-0)56**

Image /page/116/Figure/11 description: The image contains the number 117 in a simple, sans-serif font. The number is dark gray and appears against a light gray or white background. The digits are vertically aligned and take up a significant portion of the image.

Image /page/116/Picture/12 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is made up of two curved shapes, one above the other, that do not quite meet. The text "CIE Automotive" is in a simple, sans-serif font.

Image /page/116/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters on the left side of the image. To the right of the words is a large number "23" with a gray quotation mark above the "2". The number "23" is black and has a dashed line running horizontally through it.

{117}------------------------------------------------

#### **Activities with suppliers in India, Mexico and Brazil**

Internally, CIE Automotive India organised a Suppliers Congress on 28 July 2023 under the slogan "ESG - A multitude of opportunities". The goal of this event was to share CIE India's ESG targets and expectations with suppliers so as to rally them around delivery of the ESG targets that in turn form part of CIE Automotive's overall Strategic Plan. To encourage and motivate the best-performing suppliers in terms of quality, delivery, cost and ESG aspects, the management team provided them with a distinction.

In Brazil, meanwhile, the company organised an online training session explaining how to register properly for the ESG Supplier Portal in May and a workshop for suppliers to CIE Durametal addressing ESG practices and stakeholder relations.

Lastly, in Mexico, the company awarded a prize to its Best ESG Supplier.

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Record earnings**

**Common responsibility, shared benefits**

**Ready for change 1[2](#page-15-0)[3](#page-53-0)[4](#page-64-0)56**

**Our response to [the environmental](#page-141-0)  challenge**

**Responsible [management](#page-183-0)**

> About [this report](#page-229-0)

[Data tables](#page-261-0)

THE BEST SUP

AWARD ENVIRONMENT SOCIAL

MPP

PEMSA Celaya

ONLINE AO VIVO VIA MICROSOFT TEAMS

Image /page/117/Picture/16 description: The image contains the words "WORKSHOP PARA FORNECEDORES" in bold, black font. The word "WORKSHOP" is on the top line, "PARA" is on the top right, and "FORNECEDORES" is on the bottom line.

Palestrante:
Luiz Gol

29/Ago.
ORIENTAÇÃO

MANTENHA O MICROFONE DESLIGADO.

Promovendo a Sustentabilidade e Parcerias:
Workshop da Durametal abordará Práticas ESG, Certificações
Reconhecidas e Relações com Partes Interessadas

Não fique de fora!
Contamos com a sua presença.

Image /page/117/Picture/22 description: The image shows a landscape with green trees and a light green field. There is a white cloud or fog in the upper right corner of the image. In the lower left corner, there is a logo with the word "DURAMETAL" in white letters. To the right of the word "DURAMETAL", there is another logo with the letters "CR" and the word "Automotive".

Image /page/117/Picture/24 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The "C" is formed by two curved shapes that do not fully connect, creating an open circle. The text "CIE Automotive" is in a simple, sans-serif font.

Image /page/117/Picture/0 description: The image shows the words "ANNUAL REPORT" in black, with a large gray quotation mark and the number "23" in black to the right of the words.

{118}------------------------------------------------

*Collaboration with suppliers to reduce impacts at CIE Automotive*

Just as its suppliers receive assistance with shrinking their carbon footprint, CIE Automotive also receives their help cutting emissions at its facilities and thereby helping to decarbonise transport.

Specifically, it entered into agreements for the purchase of renewable energy and the implementation of collaborative energy efficiency projects. In parallel it works with its suppliers on initiatives related with energy self-consumption, reducing the use of coolant and onsite waste management.

The following stand out among the projects championed and managed by the procurement area:

- Solar panels
- Switch from combustion to electric forklifts
- Chemistry driven waste reduction projects
- Carbon offset projects with airlines

#### **Collaboration on social issues**

Beyond the scope of these environmental efforts, CIE Automotive also carried out a number of community projects involving CIE Automotive staff and supply chain employees. These initiatives include efforts designed to spur the transfer of technology and skills to developing economies and maximise its operations' positive impact on local economies.

For example, the company participated in research and training projects with local schools and universities and industry associations in developing countries, providing or supporting education, including the Lakshya and Gems projects in India, to name a few.

CIE Automotive entered into agreements for the **purchase of renewable energy and the implementation of collaborative energy efficiency projects**

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0) 1**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/118/Picture/23 description: The image shows a green and white logo. The logo is a stylized globe with two white lines running across the top half. The top right corner of the image contains the letter C in black.

Image /page/118/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large number 23 with a quotation mark above the 2.

{119}------------------------------------------------

# Renewal of ISO 20400 Sustainable procurement certification

In 2023, CIE Automotive renewed its ISO 20400 Sustainable procurement certification, remaining the only company in Spain to boast this quality seal.

Annual renewal took place following a rigorous audit by AAERCE, the Spanish association of procurement professionals, under the sustainable procurement requirements governed by IFPSM (International Federation of Purchasing and Supply Management). The audit confirmed that the company had met the requirements formulated the previous year.

With this renewal, CIE Automotive ratified the operational excellence of its Procurement Department and the contribution being made by the latter to the company's broader sustainability and social responsibility policies. To achieve this certification, which is based on UNE-15896 Value added purchasing management, the following parameters were appraised:

- Purchasing policy.
- Selection and monitoring of suppliers.
- Purchasing processes, ESG requirements in all group purchases.
- Buyer training.
- Risk management, purchase specifications and internal organisation.
- Alignment with new regulations and requirements in the areas of due diligence, taxonomy and diversity and inclusion.

Beyond the recognition that comes with the certification, it represents a challenge for the procurement teams as it not only requires compliance with ISO 20400 by the company but also with ESG standards by its suppliers. So, for example, the company cannot make an acquisition without a positive assessment of the target's management.

In this way, ISO 20400 certification reinforces the company's sustainability policies by extending them to the entire supply chain and lays the groundwork for making further progress in ESG as it requires:

- Ensuring supply chain security.
- Avoiding financial, environmental and reputational risks.
- Inspiring confidence among investors, consumers and other stakeholders.
- Fostering employee wellbeing and contributing to opening new markets for products and services.
- Being prepared to achieve the decarbonisation targets CIE Automotive has set for itself, its supply chain constituting its main source of emissions (Scope 3).

## **CIE Automotive is the only Spanish** automotive parts maker to boast **ISO 20400 certification**

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0) 1**

| 2 | Ready for change |
|---|------------------|
|---|------------------|

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

| 5 | Our response to the environmental challenge |
|---|---------------------------------------------|
|---|---------------------------------------------|

About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/119/Picture/30 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of two curved shapes that do not quite meet, forming an incomplete circle. The words "CIE Automotive" are in a simple, sans-serif font.

Image /page/119/Picture/31 description: The image shows a certificate with the logos of IFPSM and AERCE at the top. The certificate states that the International Federation of Purchasing and Supply Chain Management is proud to certify something. The certificate also mentions ISO 20400 and CIE AUTOMOTIVE. The text "GESTIÓN DE COMPRAS Y CONTRATACIONES CE AUTOMOTIVE" is also present on the certificate.

Image /page/119/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters. To the right of the words is a large number "23" with a gray quotation mark above the "2". A dashed line runs horizontally through the number "23".

{120}------------------------------------------------

Image /page/120/Picture/4 description: The image is a logo with the letters "SDG" in bold black font in the center. Surrounding the letters is a circle made up of 17 different colored segments. The colors of the segments are red, orange, yellow, green, blue, and purple.

Image /page/120/Picture/5 description: The image shows a stylized road with a badge at the top. The road is black with white dashed lines down the center, and it curves slightly. The badge at the top is a dark gray color and has a circular center with a scalloped edge.

Ethical conduct

> Full opportunity

Human rights

#### **Sustainable procurement**

Image /page/120/Figure/0 description: The image shows a diagram illustrating ISO 20400 Procurement. At the center is a circle with "ISO 20400" written inside. Surrounding this central circle is a circular path with various elements connected to it. These elements include "Continuous improvement", "Compliance with law and norms", "Integration in the life cycle", "Specifications", "Risk analysis", "Innovative solutions", "Stakeholder interests", "ESG requirements", "Procurement process", "Supplier selection and governance", "Transparency", "Commitment", "Procurement Policy", "Internal organization", "Buyer training", and "Focus on needs". The image also includes text on the left side, such as "Chairman and CEO's statement", "2023 highlights", "Ready for change", "Record earnings", "Common responsibility, shared benefits", "Our response to the environmental challenge", "Responsible management", "About this report", and "Data tables". These are numbered from 1 to 6. The top left corner has "ANNUAL REPORT" and "23".

Buying goods and services whose life cycle has a positive environmental, social and economic impact

Image /page/120/Picture/2 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter C on the left, followed by the text "CIE Automotive" in a simple, sans-serif font. The letter C is formed by two curved shapes, one above the other, with a gap between them. The text is in black, and the background is white.

cy

{121}------------------------------------------------

### *Delivery of strategic commitments*

ISO 20400 certification was a target set in the 2025 Strategic Plan in which the supply chain plays a fundamental role: of the nearly 80 ESG-related KPIs being tracked by the group, 18 relate to the procurement function.

The corporate Procurement Department is responsible for setting the ESG strategy for the supply chain along with the procedures for complying with the strategic objectives set by the Board of Directors.

The group's ESG targets are implemented at the local level, an effort that is monitored from headquarters on a quarterly basis.

The supply chain plays a fundamental role: **of the group's nearly 80 ESG-related KPIs, 18 relate to the procurement function**

#### **2025 STRATEGIC PLAN TARGETS DELIVERED**

*(\*) Discontinued German forging companies do not have any suppliers in this section.*

|                                                                                                                                                      | Target | Deadline                        | 2023                             |
|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|----------------------------------|
| No. of countries to have embedded ESG criteria into their<br>purchasing processes / Total number of markets in which<br>the group operates           | 100%   | 2021<br>Image: Green check mark | 100%<br>Image: Green check mark  |
| % Local suppliers / Total suppliers over total expenditure<br>during the period                                                                      | >70%   | 2023<br>Image: Green check mark | 78.2%<br>Image: Green check mark |
| No. of suppliers with annual purchasing volumes of >€1m<br>that have been audited and/or self-assessed along ESG<br>criteria during the Plan horizon | 25%    | 2022<br>Image: Green check mark | 34%<br>Image: Green check mark   |

Chairman and CEO's [statement](#page-2-0) **2023**

#### **Common responsibility, [shared benefits](#page-64-0)**

**[highlights](#page-5-0) 1**

**Ready 2 Ready for change**

**Record [earnings](#page-53-0) 3**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**4**

Image /page/121/Picture/19 description: The image contains the number 122 in a simple, sans-serif font. The numbers are black and are set against a light gray background.

Image /page/121/Picture/20 description: The image shows the CIE Automotive logo in the upper right corner and a green graphic on the left side. The graphic is a thick green line that forms a rounded corner at the top and has three green circles stacked vertically along the line. The background is white in the upper portion and light gray in the lower portion.

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{122}------------------------------------------------

## ESG Supplier Portal

In the automotive components sector CIE Automotive set itself apart in 2018 when it created, in a sector first, a Suppliers Portal devoted exclusively to managing ESG aspects in the supply chain.

Five years on, this Portal remains a crucial tool for implementing uniform ESG requirements regardless of the nationality of the company's suppliers or their place of business.

The Portal is an online platform that is free to use and accessible from the Supply Chain tab on the corporate website. Existing and prospective suppliers of products and services to CIE Automotive can register.

By year-end 2023, a total of 8,000 suppliers populated the company's supplier base. Any candidates that did not complete or

pass the assessment received a message encouraging them to complete the process and/or improve their scores with the help of CIE Automotive.

For the first time in 2023, non-productive, or indirect suppliers, with annual procurement volume of over €500,000 are now required to register with the Portal and submit to an ESG assessment, an obligation previously limited to suppliers of productive materials, or direct suppliers.

#### A **productive or direct purchase** is the

purchase of products or services that form part of the final products received by the group's customers. The raw materials used in any of its technologies, the parts included in its end products (rubber, textiles, fasteners) and even subcontracting processes (heat treatments, machining) therefore fall into this category.

Exceptionally, the tooling used in productive processes is also included within productive purchasing. In short, productive purchases account for over 70% of the group's total procurement spend and are the biggest source of Scope 3 emissions for CIE Automotive.

In contrast a **non-productive or indirect purchase** is one that facilitates the production process but is not an integral part of the end products delivered to its customers.

#### *[Refer to the Procurement families]*

### **Enhanced management**

In addition to facilitating assessment, the Suppliers Portal is a source of reference and valuable information for our procurement managers.

Following its redesign in 2022, a new interface was developed in 2023 to visualise, manage and extract information related with the audits conducted by CIE Automotive on current or prospective suppliers. This new feature enhances the procurement teams' management efforts and adds exclusive ESG audits to the range of traditional audits. The company's traditional audits also include a pass/fail ESG section.

Chairman and CEO's [statement](#page-2-0)

#### **Common responsibility, [shared benefits](#page-64-0)**

**2023 [highlights](#page-5-0) 1**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**4**

Image /page/122/Picture/24 description: The image shows the CIE Automotive logo. On the left is a stylized letter C, formed by two curved shapes that do not quite meet, creating a gap. To the right of the symbol is the text "CIE Automotive" in a simple, sans-serif font. The word "CIE" is slightly bolder than "Automotive".

Image /page/122/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large quotation mark and the number 23.

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| Gestión de Actividad | Gestión del Entorno | Gestión ASG | Minerales Conflictivos | Seguro de Responsabilidad Civil y Daños |
|----------------------|---------------------|-------------|------------------------|-----------------------------------------|
|                      |                     |             |                        |                                         |
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Image /page/123/Figure/12 description: This image is a pie chart showing the distribution of different categories. ESG is 25%, Environment is 20%, Conflict minerals is 20%, Activity is 35%, and Other: civil liability and damage insurance is N.A.

#### **Questionnaires**

Registering suppliers need to answer five questionnaires:

- **Business management:** suppliers in possession of valid quality management certifications are prioritised.
- **Environmental management**: the Portal gives additional points to suppliers with environmental management certification and those that control their waste and emissions, among other aspects.
- **ESG management**: supplier candidates are asked to provide information about their ESG certifications and compliance with the United Nations Global Compact requirements.
- **Conflict mineral management**: suppliers are required to abstain from using the so-called conflict minerals (tin, tungsten, tantalum and gold) and if they do use them, they must guarantee that they do not come from areas of armed conflict, such as the Democratic Republic of the Congo.
- **Property risk and civil liability insurance**: CIE Automotive's risks are minimised if it can verify that its suppliers are covered against potential contingencies.

#### **QUESTIONNAIRES**

#### **QUESTIONNAIRE CATEGORIES AND WEIGHTINGS**

## Direct suppliers are **required to register with the ESG portal**

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0)**

**Record [earnings](#page-53-0)**

**Common responsibility, [shared benefits](#page-64-0)**

**Our response to [the environmental](#page-141-0)** 

**challenge**

**Responsible [management](#page-183-0)**

About [this report](#page-229-0)

[Data tables](#page-261-0)

**1**

**2**

**3**

**4**

**5**

**6**

Image /page/123/Picture/14 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved shapes, one above the other, with a gap between them. The text "CIE Automotive" is in a simple, sans-serif font.

Image /page/123/Figure/15 description: The image shows two documents side-by-side. The document on the left is titled "Minerales Conflictivos" and contains a list of items. The document on the right is titled "Seguro de Responsabilidad Civil y Daños" and also contains a list of items.

Image /page/123/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters on the left side of the image. To the right of the words is a large gray quotation mark, followed by the number "23" in bold, black letters.

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#### **Responsible supply chain**

The data gleaned from the Suppliers Portal reveals the following information about the suppliers that have completed the registration process:

- 75% of suppliers have a code of conduct.
- 25% are ISO 14001-certified, so complying with environmental standards.
- 100% of the suppliers registered on the portal report to not using mineral conflicts or, in the event they use them in their productive processes, guarantee they are not sourced from conflict-affected areas.
- 100% of registered suppliers declare that they are not involved or complicit in any form of child or compulsory labour.

CIE Automotive is in a position to state that its global supply chain is free of transactions or suppliers that pose a significant risk of presenting incidents of child or forced labour, unfair treatment, discrimination or any other practices that imply putting profits ahead of social and/or environmental concerns.

#### **Accolades**

Every year, CIE Automotive acknowledges its best-performing suppliers in the ESG area, as well as along conventional criteria including supply, quality, claims and customer incidents.

In 2023, it awarded a total of eight prizes to the suppliers from different countries that stood out for their ESG scores on the Suppliers Portal. Aligned with the decentralised management model, the local procurement teams were asked to lead execution of this initiative, evidencing an increase in their commitment and awareness around these matters.

**100% of the suppliers registered on the portal report to not using** 

**mineral conflicts** or, in the event they use them in their productive processes, guarantee they are not sourced from conflict-affected areas

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0)**

**Record [earnings](#page-53-0)**

**Common responsibility, [shared benefits](#page-64-0)**

**Our response to [the environmental](#page-141-0)** 

**challenge**

**Responsible [management](#page-183-0)**

About [this report](#page-229-0)

[Data tables](#page-261-0)

**1**

**2**

**3**

**4**

**5**

**6**

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CIE Automotive

Image /page/124/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large number 23 with a quotation mark above it.

{125}------------------------------------------------

CIE Automotive extends its ESG commitments to its suppliers. This requires additional supply chain management and document updates so as to reflect its targets, in line with prevailing legislation, and multiply its impact.

# Management system and inclusion of ESG aspects

#### **Living documents in response to evolving ESG challenges**

The OEMs and Tier 1 suppliers' growing sensitivity around ESG matters is forcing CIE Automotive to revise its supply chain procedures, policies and standards every year.

In 2023, it updated its Global Supply Chain Manual and General Purchasing Terms and Conditions to include its customers' chief demands. Together these two documents guide the company's suppliers.

#### **Global Supply Chain Manual**

This manual is a true reflection of the supply chain system and procedures. It details graphically and in plain language the Mission, Purchasing Policy, the various product and service purchasing categories, the purchasing flowchart and the associated internal procedures and the ESG requirements suppliers must meet in order to work with CIE Automotive.

New commitments were added in 2023, specifically addressing:

- Due diligence
- Emissions reduction requirements
- Decarbonisation targets

#### **General Purchasing Terms and Conditions | Supplier ESG Document**

The company's General Purchasing Terms and Conditions require group suppliers to endorse the company's ESG commitments if they want to work with CIE Automotive, no matter where in the world they are located.

New conditions were added in 2023, specifically:

- 
- 

• Modern slavery: CIE Automotive wants to ensure that there is no place for modern slavery in its supply chain, in other words, that no person is forced to work in subhuman conditions they cannot refuse on account of coercion, threats or the abuse of power.

• Use of private of public security forces: Suppliers may not hire or use private or public security forces to protect the company if, due to a lack of training or control by the supplier, their deployment could give rise to human rights violations.

CIE Automotive revised and updated its **supply chain ESG procedures, policies and requirements in 2023**

Chairman and CEO's [statement](#page-2-0)

#### **Common responsibility, [shared benefits](#page-64-0)**

**2023 [highlights](#page-5-0) 1**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**4**

Image /page/125/Picture/29 description: The image is mostly white with a blurry green shape on the left side.

Image /page/125/Picture/30 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The "C" is black, while the text is in a sans-serif font and also black.

Image /page/125/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters. To the right of the words is a large number "23" in black, with a gray quotation mark above it.

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The company regularly reviews and updates other documents, such as its Procurement Policy and Conflict Minerals Policy.

#### **Conflict Minerals Policy**

The Conflict Minerals Policy was introduced in 2021 to reinforce the company's requirements around this issue, even though the Global Supply Chain Manual and General Purchasing Terms and Conditions already stipulated the ban, which it enforced via the "Mineral Conflicts" questionnaire within the Suppliers Portal.

The company revised the policy in 2023 to specify Conflict Affected and High-Risk Areas (CAHRAs).

In 2023, 100% of the suppliers CIE Automotive works with who are registered in the Suppliers Portal reported to either not using mineral conflicts or, if used in their productive processes, to being able to guarantee that they were not sourced from conflict regions.

### *Alignment with the due diligence directive*

Aligned with the EU's new corporate sustainability due diligence directive and following the recommendations issued by the OECD, CIE Automotive has begun to learn about and develop a due diligence process in order to identify, prevent and manage the impact the company's operations could have on human rights and the environment along the supply chain, including its suppliers in a specific protocol.

To that end it has included a specific section within the Ethics Framework section of its Global Supply Chain Manual urging its suppliers to participate in this process, introducing a due diligence report and five guidelines for correct compliance: establishing robust business management systems; identifying suppliers that supply mineral conflicts; designing a strategy for mitigating the risks detected; carrying out an external audit; and reporting on due diligence efforts in the group's annual reports.

The due diligence response is currently in the process of being implemented, as follows:

**1. Developing a control list** for identifying internal and external human rights and environmental risks.

**2. Prioritising risks** as a function of their severity, probability and urgency.

**3. Defining mitigating actions** as a function of the results of the monitoring effort.

**4. Documenting the process**, defining the internal and external risks and providing training across the affected areas of the firm and to third parties.

**5. Integrating human rights and environmental risks** into the overall supply chain risk map with a view to subsequently

controlling them.

The company will prioritise development of its response to this directive in 2024.

## **Due diligence will be a cornerstone of supplier**

management in 2024

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0)**

**Record [earnings](#page-53-0)**

**Common responsibility, [shared benefits](#page-64-0)**

**Our response to [the environmental](#page-141-0)** 

**challenge**

**Responsible [management](#page-183-0)**

About [this report](#page-229-0)

[Data tables](#page-261-0)

**1**

**2**

**3**

**4**

**5**

**6**

Image /page/126/Picture/21 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" in a simple, sans-serif font. The letter "C" is formed by two curved shapes, one above the other, creating a crescent-like appearance. The text is aligned horizontally with the letter "C" and is in a dark color, likely black or a dark gray.

Image /page/126/Picture/0 description: The image shows the words "ANNUAL REPORT" in large, bold, black letters on the left side of the image. To the right of the words is a large number "23" in black, with a gray quotation mark above the "2". There is a dashed line running horizontally through the middle of the "2".

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Image /page/127/Figure/17 description: The image is a bar graph that shows the percentage of something over time. The x-axis represents the years from 2017 to 2023, and the y-axis represents the percentage from 60 to 100. The percentage in 2017 is 89.9%, in 2018 is 90.4%, in 2019 is 91.6%, in 2020 is 92.3%, in 2021 is 92.3%, in 2022 is 92.3%, and in 2023 is 92.2%.

Image /page/127/Figure/19 description: The image is a bar graph that shows percentages from 2017 to 2023. In 2017, the percentage is 78.2%. In 2018, the percentage is 79.3%. In 2019, the percentage is 79.0%. In 2020, the percentage is 79.2%. In 2021, the percentage is 79.9%. In 2022, the percentage is 78.5%. In 2023, the percentage is 78.2%.

CIE Automotive uses a GLOCAL (global management with local application) procurement model, spearheaded by the corporate procurement function and executed by the various buyer teams that furnish the company with goods and services sourced locally (onshoring) and regionally (nearshoring).

This decentralised approach is highly efficient as it reduces logistics costs and tariffs, mitigates foreign currency risk and favours flows by overcoming cultural, linguistic and time zone differences. In parallel it favours sustainable procurement by reducing the emissions derived from transportation.

Thanks to this management approach, at year-end 2023, 92.2% of the suppliers used by CIE Automotive were local firms and accounted for 78.2% of the total procurement volume.

## The GLOCAL procurement model **generates value locally and reduces the group's environmental impact**

# GLOCAL procurement model

#### **SHARE OF LOCAL SUPPLIERS**

**SHARE OF PROCUREMENT VOLUME SOURCED FROM LOCAL SUPPLIERS** 

*(\*) 96.0% in discontinued German forging companies. (\*\*) 74.9% in discontinued German forging companies.*

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0) 1**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/127/Picture/22 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter "C" on the left and the text "CIE Automotive" on the right. The "C" is made up of two curved shapes that do not quite meet, forming an incomplete circle. The text "CIE Automotive" is in a simple, sans-serif font, with "CIE" in a bolder weight than "Automotive".

Image /page/127/Picture/0 description: The image shows the text "ANNUAL REPORT" on the left side and the number "23" on the right side. The number 23 has a quotation mark above it and a dashed line through it.

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#### **BENCHMARK MANAGEMENT**

Providing our customers, suppliers and society at large a management example and benchmark.

Image /page/128/Figure/34 description: The image shows a black icon of a presentation board with a bar graph on it. The bar graph has three bars of different heights, indicating different values. The presentation board is supported by two legs.

#### **OPERATIONAL EXCELLENCE**

Managing our operations effectively, seeking out operational excellence.

#### **VALUE CREATION**

Fostering value creation, quality of living, personal and product/service safety, environmental care, social responsibility and internal and external customer orientation.

#### **ECONOMIC RATIONALE**

Seeking out financial logic, striving to minimise the total cost.

Image /page/128/Picture/30 description: The image contains a black and white graphic. On the left side of the image, there is text that reads "ONAL LENCE g our". To the right of the text, there is a graphic of a hand with the index finger pointing upwards. A check mark is superimposed on the hand.

Image /page/128/Picture/31 description: The image shows a black square with a white checklist icon. The checklist has a bookmark at the top left corner. There are two checkmarks on the left side of the checklist and two horizontal lines on the right side.

**PROFESSIONAL GROWTH** 

Helping the people working in procurements to grow professionally and personally.

Image /page/128/Picture/15 description: The image shows a black and white icon of a browser window with a star on top of it. The browser window has a tab at the top and three dots in the upper left corner. The star is in a white circle and is located in the lower right corner of the browser window.

#### PROCUREMENT MISSION

Acquiring, in the global supply market, the materials and services needed to ensure smooth manufacturing operations for CIE Automotive.

To facilitate the purchase of goods and services on the best possible terms for the group companies, CIE Automotive has formulated a Procurement Mission and is guided by a Procurement Policy. The scope of this policy spans the entire process, from negotiations and project adjudication to the purchase of services and products.

For the global supply chain to work smoothly, there has to be a corporate procurement policy and a group-wide strategy.

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**1**

Image /page/128/Picture/26 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" in a sans-serif font. The letter "C" is formed by two curved shapes, one above the other, creating a crescent-like appearance. The text "CIE" is in a bold font, while "Automotive" is in a lighter font.

Image /page/128/Picture/27 description: The image shows a black and white icon of a receipt with a euro symbol on top of it. The receipt is on the left side of the image, and the euro symbol is on the right side of the image. The receipt has several horizontal lines on it, which represent the items that were purchased. The euro symbol is a circle with a horizontal line through it.

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{129}------------------------------------------------

**OBJECTIVITY, TRANSPARENCY, FAIRNESS** and **NON-DISCRIMINATION** in relations with all suppliers and partners.

**ALIGNMENT** between the **STRATEGY** and efforts of the Procurement Department and the established **CORPORATE OBJECTIVES.** 

**COMMITMENT**, across the entire supply chain, to supporting and delivering the **10 PRINCIPLES OF THE UNITED NATIONS GLOBAL COMPACT**, of which CIE Automotive is a signatory.

Striving, **INTERNALLY AND EXTERNALLY, to CREATE AWARENESS** around the importance of environmental protection efforts, in keeping with health and safety regulations and labour rights.

Implementation of **PROCEDURES AND CONTROLS** designed to ensure objective and fair adjudication.

Performance of **SUPPLIER SELECTION** on the basis of objective criteria that measure product and service quality, as well as **ESG CRITERIA**.

Image /page/129/Picture/10 description: The image shows a document icon with a check mark. The document is orange and has a folded corner. The check mark is inside a white scalloped circle.

**ENSURING** that the **QUALITY** of the products and services purchased meet the group's technical, safety, environmental and human rights standards and, together, move us close to decarbonisation.

Image /page/129/Picture/12 description: The image is an icon of a document with a network symbol on it. The document is orange with a white network symbol. The network symbol is made up of three circles connected by lines.

Identification and crystallisation of **GROUP SYNERGIES.** 

Image /page/129/Picture/14 description: The image shows a document icon with a handshake symbol on it. The document is orange, and the handshake is white.

**DEVELOPMENT** of long-term **COLLABORATION and INNOVATION AGREEMENTS** with suppliers.

Image /page/129/Picture/16 description: The image shows a white check mark inside a white circle with two arrows rotating around it. The circle is placed on a document with a folded corner. The document and the circle are in a light orange color.

**SEARCH FOR MUTUAL UNDERSTANDING** and benefits in supplier relations.

Image /page/129/Picture/18 description: The image shows an icon of a document with two gears on top of it. The document is orange and the gears are white.

Contribution to **SUPPLIERS' PROCESS DEVELOPMENT.** 

Image /page/129/Picture/20 description: The image shows two orange icons stacked vertically. The top icon is a rounded rectangle with a gear symbol inside. The bottom icon is a document with a folded corner.

**MAXIMISATION** of the **MOTIVATION** and ENGAGEMENT of the CIE Automotive professionals devoted to procurement, providing them with the training needed to do an excellent job.

Image /page/129/Picture/22 description: The image shows an orange square with rounded corners. Inside the square is a white recycling symbol, consisting of three arrows forming a triangle.

**PROMOTE SUSTAINABLE PURCHASES**, in

goods, energy, alternatives to dangerous or toxic chemicals, etc., in accordance with CIE Automotive's Corporate Policies and Commitments.

#### **PROCUREMENT POLICY**

The Procurement Policy applies to all 11 procurement families and its scope spans the search for alternatives, supplier selection, negotiations, project adjudication and the purchase of services and products.

and CEO's

**2023**

**Ready**

Image /page/129/Picture/3 description: The image shows a document with text on the left side and icons with text on the right side. On the left side, there is a list of items including "Chairman and CEO's statement", "2023 highlights", "Ready for change", "Record earnings", "Common responsibility, shared benefits", "Our response to the environmental challenge", "Responsible management", "About this report", and "Data tables". On the right side, there are icons with text including "OBJECT DISCRI partne", "ALIGNN the Pro CORPOR", "COMM suppor UNITED Autom", "Striving CREATI environ health", "Implem design", and "ESG Perforn objecti quality".

About

**1**

**2**

**3**

**4**

**5**

**6**

Image /page/129/Picture/25 description: The image contains the number 130 in a simple, sans-serif font. The numbers are dark gray and are set against a light gray background.

Image /page/129/Picture/26 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter "C" on the left, followed by the words "CIE Automotive" in a sans-serif font. The letter "C" is formed by two curved shapes, one above the other, creating a crescent-like appearance. The word "CIE" is in a bold font, while "Automotive" is in a lighter font.

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#### **Investments**

- **•** Machinery
- **•** Equipments
- **•** Buildings
- **•** Others

Image /page/130/Figure/3 description: This image shows a diagram that categorizes different types of purchases into two main categories: productive purchases and non-productive purchases. The productive purchases category includes raw materials (steel, aluminum, plastic, alloying materials, raw material tools), components (bar-turning, stamping, forging, foundry, motor components, sintering, thermoforming, tissue, injection & overinjection, glass), subcontracting (HT, superficial coating, foundry, forging, stamping, machining, inspection & assembly, cutting, welding), and tooling (control tooling, machining, HT & welding, stamping tooling, moulds, tube forming, spare parts, repairing & modifications). The non-productive purchases category includes MRO (pneumatic, hydraulic, mechanical, electrical, electronics, technical service, fire extinction, general maintenance), environment (waste processing, sanitary, environmental consumables), other consumptions (chemical, packaging, cutting tools, industrial supply, welding, office consumables, ppes&clothes, industrial gas, hardware & software), energy (water, electricity, gas, fuels), and logistics (transport, storage).

- **•** Waste procesing
	-
	-
	-

- 
- 
- 
- 
- 
- 
- 
- 
- 
- 

#### **Professional Services**

- **•** Consulting
- **•** Audit
- **•** Industrial design
- **•** Insurance
- **•** Data procesing
- **•** Comunication
- **•** Cleaning
- **•** Medical service
- **•** Travelling
- **•** Human resources
- **•** Security services
- **•** Marketing

#### **PROCUREMENT FAMILIES**

*\*MRO: machine, repair and overhaul \*HT: heat treatments*

Image /page/130/Picture/6 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved lines that do not fully connect, creating a gap in the middle. The text "CIE Automotive" is written in a simple, sans-serif font.

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#### **ESG STANDARDS**

- Registration in the ESG Suppliers Portal
- Compliance with the ESG standards required by CIE Automotive

Image /page/131/Figure/16 description: The image shows an orange icon of a rubber stamp and a document. The stamp is on the left side of the image, and the document is on the right side. The document has several horizontal lines on it, suggesting that it is a list or a form. The stamp is positioned as if it is about to be used on the document.

#### **COMPLIANCE**

• Compliance with the legislation prevailing in the supplier's market

Image /page/131/Figure/19 description: The image shows an orange icon with a euro symbol inside a circle, followed by an equals sign. The icon has a gradient effect, with the color becoming lighter towards the right.

**FINANCIAL HEALTH**

• Track record of financial stability; no credit risk

minimum
rs of production
services.

Image /page/131/Picture/30 description: The image shows a stylized letter C in black against a white background. The C is not a complete circle, but rather an arc that is open at the bottom right. The top of the C has a small, curved extension pointing upwards and to the right, giving it a slightly crescent-like appearance. Below the C, there is some text that is not fully visible.

#### **COMMITMENT TO ETHICS**

• Supplier conduct must be aligned with the Code of Conduct and the firms must apply equivalent ethics standards, specifically addressing how to prevent corruption, bribery and conflicts of interest.

**QUALITY**

- ISO 9001 certification is a minimum requirement for suppliers of production materials and logistics services.
- Quality audits

CIE Automotive SUPPLIER

#### **Supplier certification**

CIE Automotive's suppliers must meet certain certification requirements depending on the product or service they provide.

More than 90% of CIE Automotive's direct suppliers are IATF 16949 or ISO 9001 certified. CIE Automotive additionally values environmental management (ISO 14001) and occupational health and safety management (ISO 45001) certification.

Suppliers that do not hold these certifications are required to draw up a plan for obtaining them or presenting accreditation from a third party attesting that they meet CIE Automotive's requirements.

As for indirect or non-productive suppliers, 51% of those registered on the Suppliers Portal have ISO 9001 or equivalent certification.

By means of the Global Supply Chain Manual and the audits undertaken, the procurement teams help train suppliers on the quality aspects required under IATF 16949 and ISO 9001. The procurement teams provide technical assistance to help suppliers adapt for CIE Automotive's quality standards.

#### **REQUIREMENTS FOR BECOMING A CIE AUTOMOTIVE SUPPLIER**

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0)**

**Record [earnings](#page-53-0)**

**Common responsibility, [shared benefits](#page-64-0)**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**1**

**2**

**3**

**4**

Image /page/131/Picture/26 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved lines that do not fully connect, creating an open shape. The text "CIE Automotive" is written in a simple, sans-serif font.

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# Supply chain risk management

CIE Automotive strives to anticipate supply chain risks by implementing transparency procedures and auditing its suppliers regularly. ESG aspects are playing an increasingly important role in that process.

### **Supplier audits**

CIE Automotive assesses its suppliers' financial health in order to ensure their ability to deliver throughout the duration of its projects.

Supplier evaluations take the form of process audits that assess and score them on several parameters, including planning, reception, training and skills, process, maintenance, inspection, packaging, storage, continuous improvement and environmental performance, customer satisfaction, documentation and ESG criteria.

The results of the audits may be shared with the supplier. On other occasions it is the supplier that conducts a self-assessment which is then corroborated by qualified CIE Automotive professionals.

Thanks to this system of self-assessment and onsite audits, in 2023 the company conducted 698\* audits, compared to 582 in 2022, an increase of 20%.

In 2024, the group has set itself the target of increasing that figure by 10%, stepping up the number of onsite audits in particular.

### *External verification of ESG health using artificial intelligence*

Between self-assessments and onsite audits, **in 2023 the company conducted 698 audits, growth of 20% from 2022**

In 2023, CIE Automotive reached an agreement with the one of world's most important ESG ratings companies for the verification of supplier ESG compliance covering over 50% of its global procurement spend. The scope of this exercise, which began in 2022 when it was associated exclusively with governance considerations, has been widened to include:

• The Red Flags Grid (fines, human rights, environment, business

l predictive

- conduct, corporate governance)
- Country risk
- Default risk
- ESG scoring: analytic and predictive
- Scope1 & 2 emissions

The information provided by this rating company, which uses artificial intelligence and internal and external databases to check the suppliers' information, allows the group to contrast and complement the information it obtains from its Suppliers Portal.

By way of conclusion, just 3 of all the suppliers evaluated presented risks in any of the above-listed areas; an action plan has been established to monitor their progress and the company is searching for alternative for these suppliers in the event the risks cannot be addressed.

*(\*) One of them was carried out in the business of discontinued German forging companies.*

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0)**

**Record [earnings](#page-53-0)**

**Common responsibility, [shared benefits](#page-64-0)**

**Our response to [the environmental](#page-141-0)  challenge Responsible [management](#page-183-0)**

About [this report](#page-229-0)

[Data tables](#page-261-0)

**1**

**2**

**3**

**4**

**5**

**6**

Image /page/132/Picture/25 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter "C" on the left and the words "CIE Automotive" on the right. The letter "C" is black and is made up of two curved shapes that do not quite meet. The words "CIE Automotive" are in a simple, sans-serif font and are also black.

Image /page/132/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters on the left side of the image. To the right of the words is a large number "23" in black, with a gray apostrophe above it.

{133}------------------------------------------------

Image /page/133/Figure/16 description: The image is a scatter plot showing the relationship between 'Impact index' and 'Compliance ESG' for different categories. The x-axis represents the 'Impact index', ranging from 0 to 1.0, while the y-axis represents 'Compliance ESG', ranging from 0% to 120%. Each category is represented by a data point with a label indicating the category name and its corresponding 'Compliance ESG' percentage. The categories and their respective 'Compliance ESG' percentages are as follows: Logistics (83%), MRO (89%), Investements (80%), Subcontracts (98%), Tooling (93%), Energy (73%), Other consumption (72%), Prof. services (56%), Components (98%), and Raw material (97%). The size of the data points may vary, possibly indicating another dimension of data. The plot also includes the note 'Considered purchasing value >0.5MM€/year by supplier'.

To prevent and mitigate potential risks, CIE Automotive updates its supply chain ESG risk matrix every year. This exercise revealed growing commitment by suppliers in 2023.

The companies that supply CIE Automotive with raw materials, parts, subcontracted services and tooling, i.e., the productive procurement families, are the most committed, with all of them presenting ESG compliance scores of over 92%, unchanged from 2022.

### *Supply chain ESG risk matrix*  Chairman **ESG RISK MATRIX**

In 2023 it is worth highlighting the significant improvement recorded in indirect procurement families such as energy (where ESG compliance jumped from 63% to 73% in 2023) and MRO (from 73% to 89%).

In 2023, the population of critical direct or raw material suppliers (by virtue of representing over 50% of total purchases) numbered 250.

The ESG risk mapping process in 2023 revealed growing **commitment by suppliers**

and CEO's [statement](#page-2-0) **2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**1**

Image /page/133/Picture/19 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is made up of two curved shapes that are black. The text "CIE Automotive" is in a sans-serif font and is also black.

Image /page/133/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large quotation mark and the number 23.

{134}------------------------------------------------

**4.6**

# **Serving the COMMUNITIES that host us**

**PROGRESS MADE IN 2023**

Receipt of the tax transparency seal from the Haz Foundation.

Consolidation of the CIE STEM PLANET initiative designed to raise digital skillsets through educational robotics in its second year in operation.

#### **CHALLENGES FOR 2024**

Analysis of the community work model and distribution to the group

cial content.

factories.

Increased publication of social content.

**CIE Automotive's commitment to technological innovation, sustainability and efficiency is helping decarbonise the transport sector, while contributing to development in the communities where CIE Automotive has its factories and pays taxes. Aside from the progress implied by its business activities, it also carries out community projects locally in an attempt to give back to society.**

Chairman and CEO's [statement](#page-2-0)

**2023 1 2023 highlights**

**Ready 2 Ready for change**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/134/Picture/20 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is made up of two curved black shapes that are separated by a white space. The text "CIE Automotive" is in a simple, sans-serif font.

<span id="page-134-0"></span>Image /page/134/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is the number "23".

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## A source of progress for the community

CIE Automotive's activities generate benefits for the communities where it does business. Not only does the company create employment and generate business for local suppliers, it acts as agent of change through the taxes it pays.

In 2023, the company met its tax obligations in all jurisdictions, so helping to finance the public expenditure and services provided by the various authorities in the interests of their citizens. In total, the company paid 4.2 million euros of income tax in 2023.

> *(\*) Figures under IFRS, before consolidation adjustments, excluding dividends, impairment losses on equity investments and gains on the sale of businesses. (\*\*) Excludes the payment of tax related with dividend withholdings.*

#### **COUNTRY-BY-COUNTRY PROFITS AND CORPORATE INCOME TAX PAID\***

| Tax jurisdiction         | 2022                               |                                       | 2023                               |                                       |
|--------------------------|------------------------------------|---------------------------------------|------------------------------------|---------------------------------------|
| € m                      | Profit/(loss)<br>before income tax | Income tax paid<br>(cash criterion)** | Profit/(loss)<br>before income tax | Income tax paid<br>(cash criterion)** |
| MEXICO                   | 98.7                               | 38.8                                  | 102.2                              | 25.0                                  |
| INDIA                    | 75.5                               | 16.5                                  | 86.1                               | 21.1                                  |
| BRAZIL                   | 54.7                               | 4.6                                   | 67.6                               | 5.3                                   |
| CHINA                    | 73.1                               | 11.5                                  | 50.8                               | 11.1                                  |
| GERMANY                  | 21.1                               | 0.2                                   | 50.3                               | 0.5                                   |
| SPANISH COMMON TERRITORY | 26.3                               | 4.1                                   | 36.0                               | 7.3                                   |
| ITALY                    | 19.3                               | 2.1                                   | 18.8                               | 6.0                                   |
| BASQUE FORAL TERRITORY   | -4.0                               | 0.0                                   | 15.6                               | 0.1                                   |
| ROMANIA                  | 8.3                                | 1.2                                   | 9.2                                | 0.7                                   |
| SLOVAKIA                 | 6.9                                | 0.0                                   | 8.0                                | 0.2                                   |
| LITHUANIA                | 4.9                                | 0.5                                   | 7.7                                | 0.8                                   |
| US                       | 11.9                               | -1.1                                  | 6.5                                | 0.3                                   |
| FRANCE                   | 38.9                               | 0.8                                   | 6.2                                | 2.3                                   |
| CZECH REPUBLIC           | -0.1                               | 0.5                                   | 5.8                                | 0.9                                   |
| NAVARRE FORAL TERRITORY  | 1.5                                | 0.5                                   | 1.8                                | 0.4                                   |
| HUNGARY                  | 0.0                                | 0.0                                   | 1.8                                | 0.0                                   |
| RUSSIA                   | -11.1                              | 0.1                                   | 1.4                                | 0.0                                   |
| PORTUGAL                 | 1.2                                | -0.1                                  | 1.2                                | 0.2                                   |
| UNITED KINGDOM           | 0.0                                | 0.0                                   | 0.5                                | 0.0                                   |
| MOROCCO                  | 0.1                                | 0.0                                   | 0.2                                | 0.0                                   |
| NETHERLANDS              | 51.8                               | 0.1                                   | 0.2                                | -0.1                                  |
| BARBADOS                 | 0.6                                | 0.0                                   | 0.0                                | 0.0                                   |
| SOUTH KOREA              | 0.0                                | 0.0                                   | 0.0                                | 0.0                                   |
| GUATEMALA                | 0.0                                | 0.0                                   | 0.0                                | 0.0                                   |
| TOTAL (€ m)              | 479.6                              | 80.2                                  | 477.9                              | 82.1**                                |

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**1**

Image /page/135/Picture/18 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter "C" on the left and the words "CIE Automotive" on the right. The letter "C" is black and is made up of three curved segments. The words "CIE Automotive" are in a sans-serif font, with "CIE" in bold and "Automotive" in a lighter weight.

Image /page/135/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters. To the right of the words is a large gray quotation mark and the number 23 in bold, black letters.

{136}------------------------------------------------

Aware of the importance of its tax contribution, the company's Code of Professional Conduct prohibits the evasion of taxes, the improper generation of tax benefits and the non-payment of social security contributions.

To make this commitment public and cooperate more closely with the tax authorities, in 2021, CIE Automotive endorsed the Spanish tax authority's Code of Good Tax Practices. That code was created to establish a climate of cooperation with the tax authorities around tax practices based on mutual trust.

In that same spirit, the company publishes an annual Tax Contribution Report.

### *Tax transparency seal from the Haz Foundation*

In July 2023, CIE Automotive obtained the Haz Foundation's T for Transparency seal, making it the only non-Ibex 35 company to boast this stamp.

The company earned the foundation's three-star seal, the highest category, certifying its transparency around 90% of the 12 indicators used to analyse different practices in the area of responsible taxation. Specifically, CIE Automotive scored a total of 22 out of a maximum of 24 points, implying a compliance level of 92%.

The indicators analysed measure aspects such as cooperation with the tax authorities; the role of the board in promoting and supervising good tax practices; the transparent disclosure of taxes paid and accrued country by country; presence in tax havens; and legal proceedings with the tax authorities.

## **CIE Automotive is the only non-Ibex company to boast**

the Haz Foundation's tax transparency seal

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0) 1**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

#### **Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/136/Picture/21 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" in a sans-serif font. The "C" is formed by two curved shapes, one above the other, creating a circular form with a gap in the middle. The text is in black, and the background is white.

Image /page/136/Picture/22 description: The image shows a black and white design. On the left side, there is a stylized letter 't' in white against a black background. To the right of the 't', there are three black stars arranged in a triangular pattern against a white background.

Image /page/136/Picture/0 description: The image shows the words "ANNUAL REPORT" in large, bold, black letters. To the right of the words is a large number "23" with a gray quotation mark above it.

{137}------------------------------------------------

### *Membership of the Spain-India Council Foundation's Board of Trustees*

With 25 factories in India, CIE Automotive was keen to strengthen its ties with the country from an institutional standpoint, which is why it joined the Board of Trustees of the Spain-India Council Foundation, a non-profit organisation that seeks to increase mutual knowledge between the two countries. It encompasses all the efforts made by various sectors to enhance their scientific, technological, research, cultural and academic interests in India and to promote economic, trade and business cooperation between the two countries, promoting initiatives, networking and specific activities considered priorities by the Trustees.

## CIE Automotive sought to strengthen its ties to India, **where it has 25 factories**

#### **Government grants received**

In 2023 CIE Automotive received €1.7 million of grants related to income, 0.2% more/less than in 2022. Of the total received, it obtained €0.6 million in Spain and €1.1 million between Italy, Portugal, China and Hungary.

The receipt of grants is also contemplated in CIE Automotive's Code of Conduct, which prohibits applying for subsidies, tax exemptions or government funds on a fraudulent basis..

#### **Policy advocacy and relations with local authorities**

In the course of its activities, CIE Automotive engages with the public authorities. These interactions are at all times framed by strict observance of prevailing legislation and the utmost transparency, in keeping with the principles laid down in its Code of Professional Conduct.

The company is not associated with any form of political ideology in Spain or anywhere else and it forbids contributions to political parties or their representatives or candidates in the name or on behalf of the company that could have or be seen to have political implications.

Image /page/137/Picture/8 description: The image shows a gray flag waving in the wind. The flag has three horizontal stripes, with a gray stripe on the top, a white stripe in the middle, and a gray stripe on the bottom. In the center of the white stripe is a gray wheel with eight spokes.

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready for change**

**Record earnings**

**Common responsibility, shared benefits**

**Our response to [the environmental](#page-141-0)** 

**challenge**

**Responsible [management](#page-183-0)**

About [this report](#page-229-0)

[Data tables](#page-261-0)

**1[2](#page-15-0)[3](#page-53-0)[4](#page-64-0)56**

Image /page/137/Picture/13 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved shapes, one above the other, with a gap in between. The text "CIE Automotive" is in a simple, sans-serif font.

Image /page/137/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters on the left side of the image. To the right of the words is a large number "23" in bold, black letters, with a gray quotation mark above it.

{138}------------------------------------------------

SERNAUTO - the Spanish association of automotive equipment and components manufacturers. Member of the Management Board.

AEC – the Spanish quality association.

ADP - Association for management progress.

EGVIA - the European Green Vehicles Initiative Association.

M2F (Move to Future) - a Spanish automotive and mobility technology platform. Membership of the Governing Board.

TECNALIA - a private applied research centre Member of the Management Board.

ACICAE - the Basque automotive cluster. Chair of the Management Board.

CEAGA - the Galician automotive cluster.

AIC - Automotive Intelligence Center. Vice-Chair of the Management Board.

TASKFORCE PILOT TESTING ADVANCED MANUFACTURING IN THE BASQUE REGION. Member of the Executive Committee.

ACMA – the Automotive Component Manufacturers Association of India.

BACC – the Baltic Automotive Components Cluster.

FVEM – the Vizcaya confederation of metal companies.

Basque Ecodesign Center – Founder.

**ASSOCIATIONS TO WHICH CIE AUTOMOTIVE BELONGS** CIE Automotive has made itself a valued ally for the OEMs and Tier 1 suppliers **by committing to achieving net zero emissions before 2025** 

# Our role in the transformation of the automotive sector

As a prominent member of the automotive parts industry, CIE Automotive works to conduct its activities in a responsible manner so as to benefit the sector, its stakeholders and society in general.

At the forefront of the decarbonisation thrust, CIE Automotive has made itself a valued ally for the OEMs and Tier 1 suppliers through its commitment to achieving net zero emissions before 2050. Evidencing this commitment, as early as 2011 it became one of the founding partners of the Basque Ecodesign Center, a partnership involving private sector companies and the regional authorities, and since 2021 has been part of the Basquevolt initiative for the production of solid-state batteries.

In parallel, the company is helping to shape the mobility of tomorrow through its institutional presence in different forums and associations. It participates actively in Spain's automotive suppliers association, Sernauto, from which it advocates for a strategy for the decarbonisation and digitalisation of the stock of vehicles in Europe in order to maintain the industry, create quality work and preserve the existing productive fabric with as little fallout as possible. The company also plays an active role in Forética, Spain's foremost corporate sustainability and social responsibility organisation, where it works on a number of areas in its capacity as member of the Transparency, Integrity and Good Governance Cluster, the Climate Change Cluster and the Social Impact Cluster.

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready for change**

**Record earnings**

#### **Common responsibility, shared benefits**

**Our response to [the environmental](#page-141-0)  challenge 1[2](#page-15-0)[3](#page-53-0)[4](#page-64-0)56**

**Responsible [management](#page-183-0)**

> About [this report](#page-229-0)

[Data tables](#page-261-0)

Image /page/138/Picture/30 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter "C" on the left and the words "CIE Automotive" on the right. The letter "C" is black, and the words "CIE Automotive" are also black. The background is a light orange color.

Image /page/138/Picture/0 description: The image shows the text "ANNUAL REPORT" stacked on top of each other, followed by the number "23" in a larger font size. To the right of the number is a forward slash, followed by the text "Common responsibility, shared benefits".

shared benefits

{139}------------------------------------------------

# Community work

Under its Community Work Policy, CIE Automotive pledges to address the difficulties and needs of its communities by providing solutions articulated around three lines of action:

- **Donations:** ad-hoc financial support for non-governmental organisations and similar organisations for the pursuit of their social activities.
- **Sponsorships:** whether carried out at the corporate or individual local company level, these initiatives are framed by the principles laid down in the Community Work Policy.
- **Community investment:** long-term investments aimed at giving back to the communities where the company does business.

Image /page/139/Figure/14 description: This image shows a world map with data for different regions. For North America, the total is 34,642, with 408 employees participating and 1,004 work hours devoted. For Brazil, the total is 146,312, with 517 employees participating and 162 work hours devoted.

In 2023, the company donated over €1 million to community work programmes which involved over 5,000 employees and more than 12,000 equivalent work hours.

#### **Community work by region**

CIE Automotive's approach to community work is hands-on and decentralised. Its factories' employees, familiar with their communities' needs, suggest the best way to help. The fact that more than 90% of the company's factories are managed by local managers

faci
In 2
cor
Dev

facilitates nimble responses to social emergencies. In 2023, over 5,000 employees contributed to community work projects aligned with the Sustainable Development Goals.

#### **COMMUNITY WORK: KEY PERFORMANCE INDICATORS**

#### **COMMUNITY WORK BY REGION**

Image /page/139/Figure/20 description: The image shows data for Asia and Europe. For Asia, the data includes 541,683, 3,517, and 9,856. For Europe, the data includes 320,218, 575, and 1,282.

No. of work hours devoted

|                                                 | 2022      | 2023      |
|-------------------------------------------------|-----------|-----------|
| Total amount earmarked to<br>community work (€) | 1,804,614 | 1,042,854 |
| No. of employees<br>volunteering                | 3,680     | 5,017     |
| No. of work hours devoted to<br>community work  | 8,300     | 12,304    |

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0)**

**Record [earnings](#page-53-0)**

**Common responsibility, [shared benefits](#page-64-0)**

**Our response to [the environmental](#page-141-0)** 

**challenge**

**Responsible [management](#page-183-0)**

About [this report](#page-229-0)

[Data tables](#page-261-0)

**1**

**2**

**3**

**4**

**5**

**6**

Image /page/139/Picture/16 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved shapes, one above the other, with a gap in between. The text "CIE Automotive" is in a simple, sans-serif font.

Image /page/139/Picture/0 description: The image shows the words "ANNUAL REPORT" on the left side of the image. To the right of the words is a large number "23".

{140}------------------------------------------------

CIE Automotive is firmly committed helping deliver the Sustainable Development Goals, especially the goals addressing quality education, gender equality and the reduction of inequalities, boosting diversity and championing environmental respect, and these are the areas on which it focused its community work.

In 2023, it consolidated the CIE STEM PLANET programme, designed to raise digital skillsets through learning about robots, which entered its second year in operation.

This is a free, ambitious and innovative programme, funded entirely by CIE Automotive, designed to stimulate scientific vocations and the acquisition of digital skills in primary and secondary schools. It is currently being pilot-tested in schools in the Basque region.

Impr
to
prog

Under the programme, the company has donated advanced technology such as educational robots and a digital teacher training and support platform which can be configured to enable personalised learning by over 2,000 participants. The goal is to be able to use the platform to measure and demonstrate those students' progress on digital skills.

In addition to the agreed activities, including oversight of teacher training, question solving and monitoring visits to the participating schools, in 2023 the company made certain improvements designed to deliver better performance, notably including:

- Training pill for teachers with explanatory videos on the platform.
- Improvements to the teacher evaluation experience.
- Fine-tuning of the platform's curricular content.

## **Improvements were made to the CIE STEM PLANET**  programme during the year

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready for change**

**Record earnings**

#### **Common responsibility, shared benefits**

**Our response to [the environmental](#page-141-0)  challenge 1[2](#page-15-0)[3](#page-53-0)[4](#page-64-0)56**

**Responsible [management](#page-183-0)**

> About [this report](#page-229-0)

[Data tables](#page-261-0)

Image /page/140/Picture/16 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of two curved shapes, one above the other, that are open on the right side. The words "CIE Automotive" are in a simple, sans-serif font.

Image /page/140/Picture/0 description: The image shows the words "ANNUAL REPORT" in a bold, sans-serif font. To the right of the words is a large number "23" with a quotation mark above it.

{141}------------------------------------------------

# **Our response to the environmental challenge [Environmental management policy and model](#page-143-0)**

Environmental management policy and model

climc

C

**[Climate neutrality roadmap](#page-145-0)** 

**[Carbon footprint measurement](#page-151-0)** 

**[Pollution control](#page-155-0)**

**[Circular economy](#page-160-0)** 

**Contribution to the [decarbonisation of transport](#page-164-0)**

**[Environmental risk](#page-167-0)  management** 

Image /page/141/Picture/15 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter 'C' on the left and the text 'CIE Automotive' on the right. The 'C' is formed by two curved lines that do not fully connect, creating an incomplete circle. The text 'CIE Automotive' is in a simple, sans-serif font, with 'CIE' slightly larger than 'Automotive'.

Chairman and CEO's [statement](#page-2-0)

**Ready [for change](#page-15-0)**

**Common responsibility, [shared benefits](#page-64-0)**

**2023 1 2023 highlights**

> **Our response to the environmental challenge**

**Record [earnings](#page-53-0) 3**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**2**

**4**

<span id="page-141-0"></span>Image /page/141/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is the number 23.

{142}------------------------------------------------

*We aspire to become climate neutral before 2050. Along the way we are embracing technology that can reduce our environmental footprint, encouraging efficient use of resources and collaborating with our suppliers to accelerate our decarbonisation process.* 

Image /page/142/Picture/13 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter "C" on the left and the text "CIE Automotive" on the right. The letter "C" is black, and the text is also black. The background is green.

Image /page/142/Picture/14 description: The image shows a close-up of white text on a green background. The text appears to be part of a larger word, with the letters 'ng' visible on the top line and 'ting' on the line below. The text is bold and slightly angled.

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0) 1**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

{143}------------------------------------------------

**5.1**

# **Environmental management policy and model**

**CIE Automotive is firmly committed to sustainable development and fighting climate change. In its Environmental Policy it expressly states its alignment with the Sustainable Development Goals and establishes environmental protection and responsible use of natural resources as top priorities. To put it into practice, it has an ISO 14001-certified environmental management model that has been certified and accepted by the main OEMs and Tier 1 suppliers worldwide.** 

CIE Automotive relies on eco-design when it develops products and processes, focusing on efficiency, and provides the resources needed to reduce their adverse impacts.

In its industrial activities it works tirelessly towards continuous improvement by means of prevention and preservation, risk minimisation, environmental footprint (of products and processes) shrinkage, the efficient use of natural resources, waste minimisation, circular use of materials and collaboration by all of the people involved in the various processes.

Image /page/143/Picture/16 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of two curved shapes, one above the other, with a gap between them. The words "CIE Automotive" are in a sans-serif font.

Chairman and CEO's [statement](#page-2-0)

**2023 1 2023 highlights**

**Ready 2 Ready for change**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

<span id="page-143-0"></span>Image /page/143/Picture/0 description: The image shows a green background with the words "ANNUAL REPORT" in white on the left side. On the right side, there is a large white number "23" with a dashed line underneath it.

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#### **ENVIRONMENTAL POLICY PRIORITIES**

#### **Environmental management model**

CIE Automotive's approach to environmental management is decentralised: the corporate Environmental Department is tasked with setting the standards and supervising implementation of the environmental strategy worldwide, while the productive facilities are in charge of strategy execution by means of annual risk assessments factory by factory under ISO 14001 and monitoring of the KPIs established in the Strategic Plan. In 2023, 95% of CIE Automotive's factories were ISO 14001-certified.

CIE Automotive's environmental challenge extends beyond its perimeter. It collaborates with its suppliers to reduce their emissions, purchases and generates renewable energy and cooperates with its customers to develop and manufacture parts targeted at electric vehicles, so helping to decarbonise transport.

Framed by its commitment to making low-emission vehicles, CIE Automotive is developing new parts and subassembly solutions to support the OEMs with this process. As a result of its sustainability strategy and R&D initiatives, the company is already supplying specific products for the manufacture and assembly of zero- or lowemission vehicles. In collaboration with its customers it is taking a life cycle approach, building in end of life and parts reparability criteria into its designs.

In addition, CIE Automotive is working on a number of R&D projects together with other companies in its value chain with a view to reducing its environmental footprint. For

example, it is redesigning forged items to reduce their use of energy and extend the useful life of the machining tools. It is also redefining its packaging specifications so as to be able to use returnable cardboard boxes and introducing biomaterials and recycled plastic.

#### **Membership of associations that champion climate neutrality**

On the institutional front, from the Management Board of Sernauto (Spain's automotive suppliers association), CIE Automotive is encouraging climate neutrality initiatives and is collaborating to set more ambitious targets in the sector.

Image /page/144/Figure/3 description: The image shows a list of environmental protection measures. The list includes protecting the environment, fighting climate change, protecting people's health, using natural resources rationally, preventing the pollution of air, water and other natural resources, reducing carbon emissions, and protecting biodiversity, forests, rivers and oceans. On the left side of the image, there are some texts including Chairman and CEO's statement, 2023 highlights, Ready for change, Record earnings, Common responsibility, shared benefits, Our response to the environmental challenge, Responsible management, About this report, and Data tables.

The group is a founding partner of the Basque Ecodesign Center, where it collaborates with a number of government agencies and different industrial sectors to promote circularity, decarbonisation and climate action.

CIE Automotive gets involved in new mobility solutions focused on zero-emissions vehicles from the earliest stages of development. As a result of this approach, it has been participating in Basquevolt, the Basque initiative for the production of solid-state batteries, since 2021.

It also belongs to Forética's Climate Change Cluster, a business platform whose mandate is to mainstream the main global climate change trends and debates in to the Spanish business community.

Lastly, it is a member of AEC, the Spanish Quality Association, which has a number of taskforces in the environmental area to influence the development of new legislation and provide guidelines and training to help Spanish industry manage climate change.

#### **Involvement of senior management**

The company's Board of Directors and Management Committee are involved in the effort to fight climate change. The Board of Directors is ultimately responsible for activities related with the environment. The Board's ESG Committee is in charge of environmental issues. The chairwoman of this committee has climate change management experience and knowledge.

The company's CEO is engaged with the sustainable growth impetus and ultimately responsible for execution of the Strategic Plan, of which the ESG Plan is an integral part.

The Cross-Group ESG Committee reports and makes proposals to CIE Automotive's Board's ESG Committee. The HSEQ Director sits on the committee and manages the deployment of the environmental aspects of the Business Strategy. By bringing its engineering and environmental areas under the same Director, CIE Automotive ensures that all its environmental targets get analysed from the earliest phases of the research and development effort.

**1**

**2**

**3**

**4**

**5**

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Image /page/144/Picture/17 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter "C" on the left and the words "CIE Automotive" on the right. The "C" is made up of two curved lines that do not quite meet, creating an incomplete circle. The words "CIE Automotive" are in a simple, sans-serif font.

Image /page/144/Picture/0 description: The image shows the words "ANNUAL REPORT" on the left side of the image. To the right of the words is a large number "23" with a gray quotation mark above the number.

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Image /page/145/Figure/2 description: The image shows the number 5.2 in a large, bold, black font. The background is white, and there is a green triangle in the lower left corner of the image.

# **Climate neutrality roadmap**

**At the heart of CIE Automotive's environmental strategy lies the goal of achieving zero net greenhouse gas emissions before 2050. The new roadmap, rolled out in 2023, sets overall targets for the medium and long term and the steps the factories need to take to achieve them. To become net zero it is vital to collaborate with the company's suppliers, an effort reinforced last year with the Supply Chain Race 2 Zero programme.** 

In 2022, CIE Automotive took a qualitative leap in its climate change effort by endorsing the Paris Agreement, which commits it to setting a series of science-based environmental targets based on an ambitious long-term goal: generating net zero greenhouse gas emissions before 2050, so contributing to limiting global warming to 1.5º C with respect to pre-industrial temperatures. The company has further committed to having the above-mentioned targets approved by the Science Based Targets initiative (SBTI) to ensure they are based on science and aligned with the goal of keeping global warming within 1.5 o C.

With that end goal in mind, in 2023 the company embarked on a new environmental roadmap, approved by the Board of Directors in December 2022, which echoes and extends the targets set in its 2025 Business Plan and establishes the steps the factories need to take to achieve climate neutrality.

To deliver the commitment of having its medium-term targets certified by SBTi, the group needs to reduce its Scope 1 and Scope 2 emissions by around 67% by 2035 and its Scope 3 emissions also by at least two-thirds, around 67%.

#### Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready for change**

**Record earnings**

**Common responsibility, shared benefits**

**Our response to [the environmental](#page-141-0)  challenge 1[2](#page-15-0)[3](#page-53-0)[4](#page-64-0)56**

**Responsible [management](#page-183-0)**

> About [this report](#page-229-0)

[Data tables](#page-261-0)

<span id="page-145-0"></span>Image /page/145/Picture/0 description: The image shows the words "ANNUAL REPORT" on the left side of the image. On the right side of the image is a large number "23".

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| Annual<br>target | 2030 Agenda<br>target | Delivery in<br>2023* |
|------------------|-----------------------|----------------------|
| 2%               | 20%                   | -4%                  |
| 2%               |                       | -2%                  |
| 5%               | 100%                  | -26%                 |
| ole              |                       | 87%                  |
| 5%               | 90%                   | 11%                  |
| 2%               |                       | -12%                 |

Image /page/146/Figure/3 description: This image shows a table with information about energy, waste, and water. For energy, the annual target is 2% for reduction in energy consumption within the organization, and the delivery in 2023 is -4%. The annual target is 2% for reduction in direct GHG emissions (Scope 1), and the delivery in 2023 is -2%. The annual target is 5% for reduction in indirect GHG emissions (Scope 2, from energy generation) and increase in use of electricity generated from renewable sources, and the delivery in 2023 is -26%. For waste, the recycled input materials used is 87%. The annual target is 5% for decrease in the total volume of waste generated and increase in the percentage of waste sent for recycling, and the delivery in 2023 is 11%. For water, the annual target is 2% for reduction in water consumption and increased use of recycled water, and the delivery in 2023 is -12%.

*(\*) Includes emissions from discontinued German forging companies until June 30, 2023.*

**GOALS OF THE NEW ENVIRONMENTAL ROADMAP** Zero net greenhouse gas emissions before 2050 Implementation of the Supply Chain Race 2 Zero programme Limiting global warming to 1.5°C above pre-industrial temperatures by defining science-based targets for the medium and long term Delivery of the 2025 Strategic Plan's short-term targets Chairman and CEO's [statement](#page-2-0) **2023 [highlights](#page-5-0) Ready [for change](#page-15-0) Record [earnings](#page-53-0) Common responsibility, [shared benefits](#page-64-0) Our response to [the environmental](#page-141-0)  challenge Responsible [management](#page-183-0)** About [this report](#page-229-0) [Data tables](#page-261-0) **1 2 3 4 5 6**

Image /page/146/Picture/6 description: The image shows the CIE Automotive logo. On the left is a stylized letter C, formed by two curved black shapes that do not fully connect, creating a crescent-like form. To the right of this symbol is the text "CIE Automotive" in a simple, sans-serif font. The word "CIE" is slightly bolder than "Automotive".

Image /page/146/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large number "23" with a quotation mark above it.

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#### **KEY AREAS OF ENVIRONMENTAL INVESTMENT**

Image /page/147/Picture/6 description: The image contains three green icons. Each icon features a building with a "C" on it. The first icon has a scales of justice symbol in a green circle in front of the building. The second icon has a lightning bolt symbol in a green circle in front of the building. The third icon has the letters "R&D" in a green circle in front of the building.

#### **Compliance with standards and regulations**

CIE Automotive stays ahead of and finances compliance with all climate change-related regulations in all of the countries it operates in by using outside consultants to keep it abreast of any regulatory developments that could affect its activities.

#### **Budget earmarked to energy efficiency**

Each factory's business plan includes a specific budget allocation for enhancing its approach to climate change, including energy efficiency.

There are currently 31 energy efficiency projects which are being tracked over the Intranet to ensure that the initiatives succeed.

#### **Budget earmarked to low carbon products R&D**

CIE Automotive has identified light-weighting, electrification and lower-carbon products during the production phase as the key demands coming from the market and its customers. Based on an analysis of those factors it has rolled out a portfolio of R&D projects and assigned them a specific budget.

#### **Decarbonisation plans**

Work has begun on drawing up decarbonisation plans factory by factory in order to ensure that all of CIE Automotive's policies, guidelines and commitments materialise at the operating level.

#### **Environmental investments**

The new climate change strategy and the need to adapt the various facilities for new legislation country by country involves a series of investments and expenses.

To that end, in 2023, the company invested in minimising its environmental impact and in environmental protection and restoration work, in addition to incurring expenditure on waste removal and environmental consultancy, measurement and certification work.

The combined amounts of investments and expenses accrued in 2023 in relation to environmental protection work totalled €9.7 million (€11.6 million in 2022).

Image /page/147/Picture/19 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter "C" on the left and the words "CIE Automotive" on the right. The "C" is black and appears to be made up of two curved shapes that do not quite meet. The words "CIE Automotive" are in a simple, sans-serif font, with "CIE" in a bolder font than "Automotive".

Image /page/147/Picture/20 description: The image shows a green icon that appears to be a warehouse with a letter 'C' on the front. In front of the warehouse is a green circle with a white cloud and a downward-pointing arrow inside it, suggesting a download or cloud-related function.

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0)**

**Record [earnings](#page-53-0)**

**Common responsibility, [shared benefits](#page-64-0)**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**1**

**2**

**3**

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#### **TOP DOWN INITIATIVES BEING ROLLED OUT AT THE FACTORIES**

Image /page/148/Figure/8 description: The image shows a diagram of sustainable practices. The diagram includes the following elements: Eco-design, taking a life cycle approach; Eco-efficiency; Electrification of the vehicle fleet; Photovoltaic facilities; Use of recycled/secondary materials; Supply Chain Race 2 Zero; Improvement in the gross to net weight ratio; Reduced waste generation; Industry 4.0; Renewable electricity; and Replacement of forklifts.

## To execute the environmental roadmap, **best practices from all regions were shared**

### **Coordination**

The rollout of the new roadmap required an intense communication and coordination effort with all of the factories around the world. To ensure the company continues to hit its energy efficiency and emissions, water consumption and waste reduction targets, among others, the company presented the new roadmap and shared best environmental practices in all of its markets.

As is shown, energy measures are a core part of the work plan. From step one, eco-design, the idea is to reduce the use of materials and energy during the manufacturing process and the product's life.

One of the main focuses of introducing Industry 4.0 technology is to achieve energy efficiency and optimise processes. Logically, ecoefficiency is its own separate line of initiative.

The efforts to install photovoltaic power and electrify the company's fleet are similarly directed.

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0)**

**Record [earnings](#page-53-0)**

**Common responsibility, [shared benefits](#page-64-0)**

**Our response to [the environmental](#page-141-0)** 

**challenge**

**Responsible [management](#page-183-0)**

About [this report](#page-229-0)

[Data tables](#page-261-0)

**1**

**2**

**3**

**4**

**5**

**6**

Image /page/148/Picture/10 description: The image shows the CIE Automotive logo. On the left is a stylized letter C, formed by two curved black shapes. To the right of the C is the text "CIE Automotive" in a simple, sans-serif font. The word "CIE" is slightly larger and bolder than the word "Automotive".

Image /page/148/Picture/0 description: The image shows the text "ANNUAL REPORT" on the left side and a large number "23" on the right side. There is a quotation mark above the number 23.

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|                                                                                                         | Europe<br>A tie because five factories<br>are already climate neutral: | CIE Mecasur, CIE Norma, CIE Orbelan,<br>CIE Plasfil y CIE Recylan |
|---------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------|-------------------------------------------------------------------|
| Factories towards<br>neutrality.<br>Best performance in<br>carbon neutrality at<br>the operating level. | North America                                                          | Golde Puebla                                                      |
|                                                                                                         | Brazil                                                                 | CIE Jardim Sistemas                                               |
|                                                                                                         | China                                                                  | Golde Changchun                                                   |
|                                                                                                         | India                                                                  | CIE Aluminium Casting Aurangabad HPDC                             |
| Race 2 Zero factories<br>and suppliers.<br>Best performance<br>and progress in<br>Scope 3 emissions.    | Europe                                                                 | CIE Mar Sk                                                        |
|                                                                                                         | North America                                                          | CIE Newcor RGI                                                    |
|                                                                                                         | Brazil                                                                 | CIE Autocom                                                       |
|                                                                                                         | China                                                                  | Golde Changchun                                                   |
|                                                                                                         | India                                                                  | CIE Bill Forge Bangalore                                          |

#### **AWARDS BY CATEGORY**

### *Supply Chain Race 2 Zero programme*

Despite the investments made and progress achieved at each factory, CIE Automotive is aware that it cannot become climate neutral and help curb climate crisis without the help of its suppliers. According to its recent measurements, 80% of its carbon footprint stems from the raw materials it uses.

To address this issue, the company launched the Supply Chain Race 2 Zero initiative under which its suppliers share their emissions data and abatement efforts with CIE Automotive, while the company mentors them and provides them with technical solutions in the event of difficulties. The goal is to identify and anticipate potential technical barriers in the supply chain and set deadlines for shaping a decarbonised offering.

*[Further information in Carbon footprint measurement and suppliers]*

Image /page/149/Picture/16 description: The image shows a green truck with a plant symbol on its side. The truck is facing right and has two wheels. The plant symbol is white and has two leaves. The background is white.

#### **Environmental performance awards**

Among the steps taken to galvanise the factories around achievement of climate neutrality, it is worth highlighting the newly created Environmental Awards. The goal is to reward the factories that stood out during the year for bringing down their emissions in

line with the targets set in the 2025 Strategic Plan, inspiring others to join them in their decarbonisation pathways.

A total of fourteen companies received awards in two categories.

The company did not receive any significant fines for non-compliance with environmental laws or regulations in 2023. Significant fines are those of €30,000 or more. In India, the group had to compensate for environmental impacts in the amount of INR 3,135 million (approximately €34,000)

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0) 1**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/149/Picture/22 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of two curved shapes, one above the other, with a gap between them. The words "CIE Automotive" are in a sans-serif font.

Image /page/149/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters, with the word "ANNUAL" stacked on top of the word "REPORT". To the right of the words is a large number "23" in bold, black letters, with a gray quotation mark above the number.

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# *Environmental Performance Awards 2023*

CIE ALUMINIUM CASTING INDIA LIMITED

**INFORME**

**FORME ANUAL 23** 

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**5.3**

# **Carbon footprint measurement**

**Measuring our corporate environmental footprint is the first step towards achieving climate neutrality is to measure the company's environmental footprint, whose first category is climate change, and, therefore, the company's carbon footprint. Measuring so to launch an action plan that can be monitored by means of continuous remeasurement. In addition to its regulatory requirements, this exercise allows CIE Automotive to identify critical areas, establish goals and targets and measure its progress towards net zero. In 2023, it added to the calculation the emissions related to its stock of vehicles and those derived from employee commuting.**

CIE Automotive measured its environmental footprint for the second year in 2023, an exercise that included all its facilities around the world other than its roof system factories. This measurement includes Scope 1, Scope 2 and Scope 3 emissions (refer to the Scope 3 exclusions).

Image /page/151/Picture/15 description: The image shows the CIE Automotive logo. On the left is a stylized letter C, formed by two curved shapes facing each other. To the right of the C is the text "CIE Automotive" in a simple, sans-serif font.

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0) 1**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

<span id="page-151-0"></span>Image /page/151/Picture/0 description: The image shows the words "ANNUAL REPORT" in white on a green background, with a large white number "23" partially visible to the right of the words. A white quotation mark is above the number 23.

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*(\*) Includes emissions from discontinued German forging companies until June 30, 2023. (\*\*)The environmental footprint due to impacts is not included within the scope of the NFS 2023 verification assignment.*

## **17 categories are considered**  in measuring the environmental footprint

#### The scope of CIE Automotive's **ENVIRONMENTAL FOOTPRINT BY IMPACT\*** environmental footprint spans from raw material generation to when the

parts and subassemblies leave its facilities. The measurement analyses 17 categories, from ozone layer destruction to soil transformation.

Having analysed our carbon footprint, our emissions across all three scopes totalled 4,670,518.77 tonnes of CO2e of the total, Scope 1 emissions represent 2% and Scope 2 emissions account for 5%, with Scope 3 emissions accounting

for 93% of the total.

| Total environmental footprint**: 1,670,734,993.1 points |                      |
|---------------------------------------------------------|----------------------|
|                                                         | % of total footprint |
| Climate change (human health)                           | 8.1%                 |
| Ozone depletion                                         | 0.1%                 |
| Human toxicity                                          | 36.1%                |
| Photochemical oxidant formation                         | 0.0%                 |
| Particulate matter formation                            | 8.2%                 |
| Ionising radiation                                      | 0.0%                 |
| Climate change (ecosystems)                             | 5.0%                 |
| Terrestial acidification                                | 0.0%                 |
| Freshwater eutrophication                               | 0.2%                 |
| Terrestial ecotoxicity                                  | 0.1%                 |
| Freshwater ecotoxicity                                  | 0.1%                 |
| Marine ecotoxicity                                      | 0.0%                 |
| Agricultural land occupation                            | 1.5%                 |
| Urban land occupation                                   | 0.4%                 |
| Natural land transformation                             | 0.4%                 |
| Metal depletion                                         | 32.5%                |
| Fossil depletion                                        | 7.5%                 |

Chairman

and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready** Innov **for change 2** 

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**1**

Image /page/152/Picture/15 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is black, and the words "CIE Automotive" are also black. The background is a green color.

Image /page/152/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large number "23" with a quotation mark above it.

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Image /page/153/Figure/3 description: The image shows a diagram of the environmental footprint measurement of CIE Automotive, which is cradle to gate. The diagram shows the different stages of the product life cycle, from raw material extraction to end of life. The diagram also shows the different environmental impacts associated with each stage of the product life cycle. The diagram is divided into three sections: cradle to gate, gate to gate, and cradle to cradle. The cradle to gate section includes the stages of raw material extraction, 1st distribution, transformation, 2nd distribution, and production. The gate to gate section includes the stages of distribution to customer and use. The cradle to cradle section includes the stage of end of life. The diagram also includes a list of environmental impacts, such as climate change, ozone depletion, human toxicity, photochemical oxidant formation, particulate matter formation, ionizing radiation, terrestrial acidification, freshwater eutrophication, terrestrial ecotoxicity, freshwater ecotoxicity, marine ecotoxicity, agricultural land occupation, urban land occupation, natural land transformation, metal depletion, and fossil depletion. The image also includes the text "Chairman and CEO's statement", "2023 highlights", "Ready for change", "Record earnings", "Common responsibility, shared benefits", "Our response to the environmental challenge", "Responsible management", "About this report", and "Data tables".

The scope of CIE Automoti
environmental footp
measurement is cradle to g

**SCOPE OF CIE AUTOMOTIVE'S ENVIRONMENTAL FOOTPRINT THE 17 IMPACTS ANALYSED** 

Image /page/153/Picture/6 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is black, while the text is in a lighter shade of gray.

Image /page/153/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large number "23" with a quotation mark above it.

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#### **Measurement methodology**

The scope of CIE Automotive's environmental footprint measurement, which, as noted earlier, has climate change - and therefore its carbon footprint - as its first category, spans from cradle to gate, i.e., it covers upstream operations, from resource extraction until the end product leaves the company, having been manufactured in our factories. The reasons for not continuing downstream to the end of the products' useful life are multiple and are related with the supply and supplier structure in the automotive sector:

- In most of our sales agreements with customers, it is the customer who is tasked with collecting the product at the CIE Automotive factory in question, using its own logistics flows, over which CIE Automotive has neither control, responsibility or information.
- The OEMs work around platforms. In other words, a given part is used in different models, with different characteristics and, therefore, different emissions. In addition, a given part of the propulsion or transmission system is used in different models, making it impossible to determine its performance in use.
- Lastly, the vehicles assembled by the OEMs are, often, supplied to different countries and markets with totally different end-of-life regulations and strategies. CIE Automotive has no control over that distribution and therefore is not able to calculate the footprint associated with this step in its products' life cycle.

CIE Automotive's customers ask it for environmental footprint data up to the company's gates and include those figures in their full measurements with the rest of the downstream phases without any double counting.

The company uses the ReCIPE life cycle impact methodology to calculate its environmental footprint, to which end it is receiving assistance from the Basque regional government's environmental management company, IHOBE.

Within the universe of activities of each company, based on the assessment that their impact is smaller, the following aspects were excluded from the analysis:

#### **Upstream**

- Consumption at central/sales offices outside of manufacturing facilities.
- Capital goods (vehicles, machinery, tools, etc.).
- Displacement of employees to go to work.
- Business travel.
- Upstream assets leased.
- Trips to the organisation by visitors or customers.

#### **Downstream**

- Transport and distribution.
- Processing of products sold.
- Use of products sold.
- End-of-life treatment of products sold.
- Assets leased in subsequent phases.
- Franchises.
- Investments.

## To calculate the environmental footprint, **the company uses the ReCIPE methodology and has the collaboration of IHOBE**

The downstream exclusions are not really exclusions as they are not included in CIE Automotive's footprint scope (from cradle to gate) for the reasons itemised earlier and in order to prevent double counting by the customer, who is the party with the information and responsibility for the downstream phases of our production.

The company currently uses widely acknowledged databases such as Ecoinvent. For its electricity emissions factors, it uses updated databases in each country where it consumes electricity. One of the goals of the Supply Chain Race 2 Zero project is to compile real information about each significant product or service directly from our suppliers. However, the large majority of our suppliers are not yet prepared to provide robust, real data that they can regularly update. Note that a one-off figure is not sufficient; supplier emissions information needs to be updated as they advance on their decarbonisation and emissions-abatement plans. This is part of the coaching and mentoring work we are doing under the umbrella of this supplier programme.

In 2023 surveys were undertaken in at least two factories per region in order to assess the volume of emissions associated with employee commutes to work. The analysis performed in 2023, such that the calculations are based on emissions data for 2022, indicate commute-related emissions ranging from 3.10% of the total in Europe to 0.11% in Asia.

|   | Chairman<br>and<br>CEO's<br>statement             |
|---|---------------------------------------------------|
| 1 | 2023<br>highlights                                |
| 2 | Ready<br>for change                               |
| 3 | Record<br>earnings                                |
| 4 | Common<br>responsibility,<br>shared benefits      |
| 5 | Our response to<br>the environmental<br>challenge |
| 6 | Responsible<br>management                         |

> About [this report](#page-229-0)

[Data tables](#page-261-0)

Image /page/154/Picture/33 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is black, while the words "CIE Automotive" are in a light gray color.

Image /page/154/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters. To the right of the words is a large number "23" with a gray quotation mark above it.

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**5.4**

# **Pollution control**

**CIE Automotive's environmental management system is designed to control its impacts and pollution by identifying the main risks and launching actions locally to eliminate or mitigate them, as required under applicable regulations. Since 2021, the base year for comparative purposes, energy efficiency gains have reduced relative emissions by 52%,**  to 337,937.72 metric tonnes of CO<sup>2</sup>e per €1,000 **of revenue.**

CIE Automotive's environmental management systems are based on the ISO 14001 standard and ensure pollution does not exceed the thresholds stipulated in prevailing regulations. To control pollution and make the company more efficient and competitive, it carries out audits and works to reduce energy consumption across its facilities.

The company includes environmental cost as a function of revenue as a key performance indicator in its global dashboard. That indicator includes the cost of emissions calculated in terms of emission allowances (EUA), even though the company does not participate in the global emission trading scheme.

In 2023, the company conducted energy audits at different factories, marking the first step in rationalising their real consumption levels, cutting nominal consumption levels using new technology and detecting incidents and inefficiencies.

An agreement has also been reached to certify factories in Europe, Asia and the Americas under ISO50001 so as to make energy efficiency a key component of the company's strategy.

Image /page/155/Picture/19 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of two curved lines that do not quite meet, creating a gap in the middle. The words "CIE Automotive" are in a simple, sans-serif font.

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready for change**

**Record earnings**

**Common responsibility, shared benefits**

**Our response to [the environmental](#page-141-0)  challenge 1[2](#page-15-0)[3](#page-53-0)[4](#page-64-0)56**

**Responsible [management](#page-183-0)**

> About [this report](#page-229-0)

[Data tables](#page-261-0)

<span id="page-155-0"></span>Image /page/155/Picture/0 description: The image shows the words "ANNUAL REPORT" in white text on the left side of the image. On the right side of the image is a large white number "23" with a dashed line underneath the number. The background of the image is green.

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#### **ENERGY CONSUMPTION**

#### **EMISSIONS FOREGONE AS A RESULT OF THE PURCHASE OF ENERGY GENERATED FROM RENEWABLE SOURCES**

The effort to reduce emissions includes **the purchase of renewable energy to power the company's facilities** 

To increase efficiency, it launched 50 initiatives for reducing its energy consumption. Specifically, it tackled a number of Industry 4.0 projects to boost energy efficiency and took steps to electrify its internal vehicles. It created an in-house taskforce to analyse the roadmap for

replacing natural gas at the furnaces used by CIE Automotive, some of the options being to replace gas-fired furnaces with electric furnaces or to use biogas, oxy-combustion or green hydrogen. It also looked at replacing gas heating with heat pumps or electric heating systems.

*[For further information on energy consumption by region, refer to the detailed table provided in "Data tables"]*

*The criteria used to calculate the percentage of renewable energy consumed was modified in 2023 to make it more restrictive: in markets with standardised and official guarantee of origin certificates, the percentages only include the renewable energy backed by such certificates, plus energy purchases under PPAs. and self-generation.*

*(\*) Includes emissions from discontinued German forging companies until June 30, 2023.*

| Gigajoules                                                              | 2021         | 2022         | 2023*        |
|-------------------------------------------------------------------------|--------------|--------------|--------------|
| Direct energy<br>consumption                                            | 1,922,653.06 | 1,695,060.74 | 1,760,684.76 |
| Indirect energy consumption from renewable<br>and non-renewable sources | 3,885,073.74 | 3,932,206.88 | 4,196,857.92 |
| Indirect energy consumption from<br>non-renewable sources               | 1,971,005.79 | 1,695,803.31 | 1,816,574.38 |
| Indirect energy consumption from renewable<br>sources                   | 1,914,067.96 | 2,236,403.56 | 2,380,283.54 |
| TOTAL                                                                   | 5,807,726.80 | 5,627,267.62 | 5,957,542.68 |

| CO2e ™                      | 2021       | 2022       | 2023*      |
|-----------------------------|------------|------------|------------|
| Indirect emissions foregone | 139,340.49 | 216,814.45 | 228,707.23 |

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0) 1**

**Ready [for change](#page-15-0) Record 2**

**[earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/156/Picture/21 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter "C" on the left and the text "CIE Automotive" on the right. The letter "C" is formed by two curved shapes that do not fully connect, creating an incomplete circle. The text "CIE Automotive" is written in a simple, sans-serif font. The background color is a light green.

Image /page/156/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters. Above the words is a large gray quotation mark and the number 23 in black.

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### The company is developing a number of **self-generation projects in Europe and India Purchase of INSTALLED PHOTOVOLTAIC PANEL CAPACITY**

## **renewable energy**

The effort to reduce emissions includes the purchase of renewable energy to power the company's facilities in every market where so doing it possible. In Spain, Portugal and Lithuania, 100% of the power consumed is green. In 2023 it forwent emissions equivalent to 228.707,23 CO2e ™ thanks to the purchase of power generated from renewable sources.

### **Self-generation**

Framed by that same goal or reducing harmful emissions and lowering its energy bills, the company is developing a number of selfgeneration projects in Europe and India by installing photovoltaic solar panels.

In India, the group is taking strategic steps to shore up its use of green energy. Since 2023, 63% of all the energy used at the factories in the Indian region of Maharashtra is solar power, thanks to CIE Automotive's investment in Strongsun Solar - for the supply of photovoltaic power to CIE India's forging division in Urse and its magnetic products division in Bhosari, respectively - and in INR, for supply to the forging division.

Note also that in the state of Karnataka (India), where Bill Forge has its factories, around 85% of the energy consumed comes from green sources, specifically a mix of wind and sun.

| Factory                                            | Country |
|----------------------------------------------------|---------|
| CIE Aluminium Casting<br>Aurangabad plant 3 (HPDC) | IN      |
| CIE Aluminium Casting Pantnagar<br>plant 1 (HPDC)  | IN      |
| CIE India Composites Kanhe                         | IN      |
| CIE India Forging Division (Pune)                  | IN      |
| CIE India - MPD                                    | IN      |
| CIE India G&T Pune                                 | IN      |
| CIE India Stampings - Kanhe                        | IN      |
| CIE India Stampings - Nashik                       | IN      |
| CIE India Stampings - Rudrapur                     | IN      |
| CIE India Stampings - Zaheerabad                   | IN      |
| CIE Galfor                                         | ES      |
| CIE Mecauto                                        | ES      |
| CIE Orbelan                                        | ES      |
| CIE Plasfil                                        | PT      |
| CIE Stratis                                        | PT      |
| CIE Norma                                          | SP      |
| CIE Egaña                                          | SP      |

| Factory                                            | Country | Energy<br>produced<br>2021 | Energy<br>produced<br>2022 | Energy<br>produced<br>2023 |
|----------------------------------------------------|---------|----------------------------|----------------------------|----------------------------|
| CIE Aluminium Casting<br>Aurangabad plant 3 (HPDC) | IN      | 305,084                    | -                          | -                          |
| CIE Aluminium Casting Pantnagar<br>plant 1 (HPDC)  | IN      | -                          | 667,360                    | -                          |
| CIE India Composites Kanhe                         | IN      | 416,130                    | 438,537                    | 488,014                    |
| CIE India Forging Division (Pune)                  | IN      | 1,230,929                  | 1,305,475                  | 1,355,887                  |
| CIE India - MPD                                    | IN      | 921,166                    | 873,682                    | 945,646                    |
| CIE India G&T Pune                                 | IN      | 473,460                    | 462,854                    | 609,043                    |
| CIE India Stampings - Kanhe                        | IN      | 342,988                    | 1,383,439                  | 1,260,069                  |
| CIE India Stampings - Nashik                       | IN      | 546,260                    | 972,586                    | 1,030,969                  |
| CIE India Stampings - Rudrapur                     | IN      | 124,852                    | 131,882                    | 345,675                    |
| CIE India Stampings – Zaheerabad                   | IN      | 907,869                    | 872,344                    | 974,503                    |
| CIE Galfor                                         | ES      | 221,360                    | 195,765                    | 196,818                    |
| CIE Mecauto                                        | ES      | 243,391                    | 316,933                    | 299,980                    |
| CIE Orbelan                                        | ES      | 66,236                     | 64,570                     | 67,155                     |
| CIE Plasfil                                        | PT      | 1,082,660                  | 1,111,360                  | 1,594,900                  |
| CIE Stratis                                        | PT      | 196,130                    | 184,060                    | 328,150                    |
| CIE Norma                                          | SP      | -                          | -                          | 349,360                    |
| CIE Egaña                                          | SP      | -                          | -                          | 289,498                    |

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0)**

**Record [earnings](#page-53-0)**

**Common responsibility, [shared benefits](#page-64-0)**

**Our response to [the environmental](#page-141-0)** 

**challenge**

**Responsible [management](#page-183-0)**

About [this report](#page-229-0)

[Data tables](#page-261-0)

**1**

**2**

**3**

**4**

**5**

**6**

Image /page/157/Picture/12 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved shapes, one above the other, with a gap in between. The text "CIE Automotive" is in a simple, sans-serif font.

Image /page/157/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters, with a large gray quotation mark and the number 23 in black to the right of the words.

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#### **EMISSIONS\***

#### **BREAKDOWN OF TOTAL GROSS GLOBAL EMISSIONS BY COUNTRY. SCOPE 1&2 EMISSIONS**

#### **BREAKDOWN OF TOTAL GROSS GLOBAL EMISSIONS BY REGION. SCOPE 3 EMISSIONS\*\***

#### **Emissions**

Thanks to the measures taken to curb emissions across CIE Automotive facilities, purchase renewable power and self-generate clean energy, the Company managed to reduce its Scope 1 and 2 emissions by 20.54%, to 337,937.7 TM CO2e, compared to 2022.

Its Scope 3 emissions, i.e., those produced by its supply chain, totalled 4.350.970,9 TM CO2e, which is 93% of the total. In light of that percentage, CIE Automotive, is working to help its suppliers reduce their carbon footprints through its Supply Chain Race 2 Zero project.

#### *[For further information, refer to the section on Suppliers]*

*[For further information on emissions by region, refer to the detailed table provided in the "Data tables and glossary" section.]*

*(\*\*) Scope 3 emissions are not included within the scope of the NFRS 23 verification engagement.*

*(\*) Includes emissions from discontinued German forging companies until June 30, 2023.*

| MT CO₂e                            | 2021        | 2022        | 2023        |
|------------------------------------|-------------|-------------|-------------|
| Direct emissions (Scope 1)         | 114,760.6   | 101,153.0   | 99,072.8    |
| Indirect emissions (Scope 2)       | 389,477.3   | 324,162.5   | 238,864.9   |
| Total Scope 1 and 2                | 504,238.0   | 425,315.5   | 337,937.7   |
| Other indirect emissions (Scope 3) | 3,638,882.0 | 3,891,205.0 | 4,350,970.9 |
| Total Scope 1, 2 and 3             | 4,647,357.9 | 4,741,836.0 | 4,688,908.7 |

|                | MT CO2 e  |
|----------------|-----------|
| India          | 136,312.3 |
| Mexico         | 60,639.5  |
| US             | 31,827.1  |
| Spain          | 24,825.4  |
| China          | 24,061.5  |
| Germany        | 15,407.5  |
| Brazil         | 12,010.4  |
| Romania        | 10,200.8  |
| Italy          | 7,584.6   |
| Czech Republic | 9,110.8   |
| Morocco        | 1,715.7   |
| Lithuania      | 1,620.1   |
| Slovakia       | 973.6     |
| France         | 905.7     |
| Portugal       | 308.2     |
| Russia         | 79.9      |

*TM* CO2e

Asia 1,622,282.1

North America 1,315,438.1

1,313,438.1

Europe 1,063,741.3

South America 349,509.4

349,509.4

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0)**

**Record [earnings](#page-53-0)**

**Common responsibility, [shared benefits](#page-64-0)**

**Our response to [the environmental](#page-141-0)** 

**challenge**

**Responsible [management](#page-183-0)**

About [this report](#page-229-0)

[Data tables](#page-261-0)

**1**

**2**

**3**

**4**

**5**

**6**

Image /page/158/Picture/13 description: The image shows the CIE Automotive logo. On the left is a stylized letter C, formed by two curved black shapes. To the right of the symbol is the text "CIE Automotive" in a simple, sans-serif font. The word "CIE" is slightly larger and bolder than the word "Automotive".

Image /page/158/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large number "23" with a gray quotation mark above the number.

{159}------------------------------------------------

The factories are located in industrial areas at a sufficient distance from residential districts so as **not to pose a noise pollution problem**

**Carbon offset**

CIE Automotive's effort to reduce its emissions is based on continuous improvement of its processes. It is only contemplates offsets in the exceptional cases in which there is no technical alternative; for example, it purchases offsets from the airlines to mitigate the CO2 emissions associated with

its business travel.

Note that the commitments assumed and short- and medium-term targets set do not contemplate the company's carbon offsets.

### **Noise pollution**

Noise pollution can be a relevant issue, depending on factory technologies and locations. However, CIE Automotive's factories are located in industrial areas at a sufficient distance from residential districts so as not to pose a problem.

Light pollution is not a relevant consequence of CIE Automotive's activities.

### **Biodiversity**

Given that CIE Automotive carries out its business activities in industrial areas/estates, it believes that its impact on biodiversity is not significant and therefore not material for the purpose of the group's reporting effort. No information is therefore provided with respect to biodiversity in this report.

However, in collaboration with the Basque Ecodesign Center, a project is underway to generate more advanced methodology for analysing biodiversity risks, which is expected to add value in 2025.

**[for change](#page-15-0)**

Chairman and CEO's [statement](#page-2-0) **2023 [highlights](#page-5-0) Ready 1 2**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

#### **Our response to [the environmental](#page-141-0)  challenge 5**

About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

160

Image /page/159/Picture/17 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved shapes, one above the other, with a gap in between. The text "CIE Automotive" is in a sans-serif font.

Image /page/159/Picture/18 description: The image is a light green graphic with white squares and lines. The squares are arranged in columns and rows, resembling windows on a building. The white lines are curved and form a shape at the bottom of the graphic.

Image /page/159/Picture/0 description: The image shows the words "ANNUAL REPORT" in black, with a large grey quotation mark and the number "23" in black to the right of the words.

{160}------------------------------------------------

**5.5 Circular economy** 

The company develops its products using eco-design and efficiency criteria, taking a life cycle approach, so that improved product recyclability, disassembly and waste sorting is built into its product blueprints.

The industrialisation of any product entails an assessment of the environmental aspects of its production, from raw materials to waste disposal. In choosing materials, the company relies on guides and lessons learned and specifically complies with regulations regarding the labelling of polymeric materials to facilitate their sorting and recycling.

Image /page/160/Figure/17 description: The image shows a diagram of a circular economy. The diagram has two main flows: a circular flow and a linear flow. The circular flow is represented by green arrows, and the linear flow is represented by gray arrows. The diagram also shows a company boundary, which is represented by an orange square. Inside the company boundary, there are three arrows: a green arrow representing circular inflow, a gray arrow representing linear inflow, and a black arrow representing waste. The diagram also shows the percentage of circular inflow, the percentage of recovery potential, and the percentage of actual recovery. The text in the image includes the following: "CIRCULAR ECONOMY", "Circular inflow", "Linear inflow", "Non-renewable virgin resource", "Company boundary", "% circular inflow", "% recovery potential", "% actual recovery", "Circular outflow", "Linear outflow", and "Non-recoverable products and waste streams".

To enhance its circular economy strategy, the 2025 Strategic Plan contemplates a series of circularity-specific KPIs, based on the World Business Council for Sustainable Development (WBCSD) and its Circular Transition Indicators. The information gathered will tell the company, for example, how many times the water drawn gets used, which waste can be recycled and which cannot and what effects the factories' manufacturing activities have on biodiversity.

*[For further information, refer to section eco-efficiency and circularity]*

**CIE AUTOMOTIVE AND THE**

**Production at CIE Automotive follows circular economy criteria: its products are designed with circularity in mind, resources are used efficiently and waste is minimised and recycled. In 2023, the company carried out a range of projects related with** 

**recyclability.**

Chairman and CEO's statement

**2023 highlights**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

Image /page/160/Figure/7 description: The image shows the text "Our response to the environmental challenge" in bold black font. To the left of the text is a large, light gray number 5.

About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**1**

Image /page/160/Picture/19 description: The image shows the CIE Automotive logo. On the left is a stylized letter C, formed by two curved black shapes. To the right of the C is the text "CIE Automotive" in a simple, sans-serif font. The text is black.

<span id="page-160-0"></span>Image /page/160/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters. To the right of the words is a large number "23" with a gray quotation mark above it.

{161}------------------------------------------------

# Consumption of water and material

resources

CIE Automotive uses water extensively in making parts that require material transformation at high temperatures. The use of water at its factories is not relevant by comparison with other manufacturing industries. Although the company has a clear commitment to reducing water consumption as a general KPI, the ratio of water consumption per product made is actually very low.

In order to minimise water discharges, the company has proprietary water treatment systems that enable its recirculation and recovery. The wastewater that reaches public treatment plants through wastewater pipes has therefore already been treated by the company.

One of the circular transition indicators calculated by CIE Automotive is the volume of water reused in the production facilities. That recirculation is concentrated primarily in the refrigeration circuits.

Water consumption totalled 1,625,246.72 megalitres/year in 2023, and water intensity was 0.40, compared to 0.41 in 2022.

The CAPEX and OPEX related with water are very low and are not subject to any specific monitoring. However, the company does have several water minimisation projects underway in collaboration with customers, related for example with dry machining.

Image /page/161/Picture/28 description: The image shows a partial view of a clock face with a hand pointing towards the upper right. The clock face is white, and the background is a light gray.

#### **WATER CONSUMPTION AND WITHDRAWAL**

| m³/ year           |
|--------------------|
| Surface water      |
| Underground water  |
| Rainwater          |
| Municipal networks |
| TOTAL              |

#### **VOLUME OF WATER RECIRCULATED**

³/ year

**TOTAL**

*[For further information on consumption by region, refer to the detailed* 

*table provided in the "Data tables and glossary" appendix]*

*(\*) Includes emissions from discontinued German forging companies until June 30, 2023.*

| m³/ year           | 2021        | 2022        | 2023*       |
|--------------------|-------------|-------------|-------------|
| Surface water      | 196,216.0   | 243,200.0   | 238,183.3   |
| Underground water  | 346,149.2   | 361,348.6   | 354,171.0   |
| Rainwater          | 18,842.0    | 10,278.0    | 10,849.0    |
| Municipal networks | 1,037,669.0 | 1,042,342.6 | 1,022,043.4 |
| TOTAL              | 1,598,876.2 | 1,657,169.2 | 1,625,246.7 |

| m³/ year | 2021         | 2022         | 2023*        |
|----------|--------------|--------------|--------------|
| TOTAL    | 64,204,133.8 | 56,215,145.2 | 49,373,561.4 |

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

#### **Our response to [the environmental](#page-141-0)  challenge 5**

About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**1**

Image /page/161/Picture/24 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is made up of two curved shapes, one above the other, that do not quite meet in the middle. The text "CIE Automotive" is in a simple, sans-serif font.

Image /page/161/Picture/0 description: The image shows the text "ANNUAL REPORT 23 Our response to the".

environmental challenge

{162}------------------------------------------------

# Raw materials

The company reviews all of its processes constantly to ensure the responsible use of raw materials. A good example of this practice is the concerted effort to reduce the gross weight of the products it makes. That effort translates into the use of fewer materials and lowers the generation of waste and consumption of energy and other products needed in the manufacturing process.

At present, 35% of the raw materials used by the group are recycled.

### **Plastic**

Some of the company's parts are made from thermoplastics (PP, PA, PC, ABS, PC/ABS, joints, etc.) and others, fewer, from thermostable plastics. The company also uses plastic to wrap its products In total, the company used 61,243.65 MT of plastic\*.

To reduce the use of plastic in its packaging, the company is working on projects with its customers for the use of returnable boxes. These initiatives will be included in the companies' decarbonisation plans.

#### **MATERIAL CONSUMPTION**

*[For further information on consumption by region, refer to the detailed table provided in the "Data tables and glossary" appendix]*

## To reduce the use of plastic in its packaging, the company is working on **projects for the use of returnable boxes**

*(\*) Includes emissions from discontinued German forging companies until June 30, 2023.*

To reduce the use of p
the
**projects for the u**

| Kg                      | 2021            | 2022            | 2023*           |
|-------------------------|-----------------|-----------------|-----------------|
| Raw materials used      | 1,448,043,709.2 | 1,230,298,192.7 | 1,532,506,681.7 |
| Raw materials recovered | 1,230,298,192.7 | 551,193,852.4   | 417,722,719.8   |

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0)**

**Record [earnings](#page-53-0)**

**Common responsibility, [shared benefits](#page-64-0)**

**Our response to [the environmental](#page-141-0)** 

**challenge**

**Responsible [management](#page-183-0)**

About [this report](#page-229-0)

[Data tables](#page-261-0)

**1**

**2**

**3**

**4**

**5**

**6**

Image /page/162/Picture/11 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of two curved shapes that do not quite meet, creating a gap in the middle. The words "CIE Automotive" are written in a simple, sans-serif font.

Image /page/162/Picture/0 description: The image shows the words "ANNUAL REPORT" in large, bold, black letters on the left side of the image. To the right of the words is a large number "23" in black, with a gray quotation mark above the "2". There is a dashed line running horizontally through the middle of the "2".

{163}------------------------------------------------

# Waste management

CIE Automotive deploys a recycling system that enables the internal recovery of thousands of tonnes of remains deriving from its various productive processes. The waste generated that cannot be recycled is collected by expert handlers which prioritise recycling over the landfill disposal method. In 2023\*, 1.69% was sent to landfills 87.35% was reused and the remaining 10.96% was directed to other forms of disposal.

### **Aluminium**

The injection moulding and machining processes generate sizeable amounts of remains such as sprue, risers, starting pieces, etc. from the injection moulding process and shavings from the machining process. In both instances, the company reuses these remnants in the casting process.

#### **Plastic**

The plastics division recycles sprue and other remains returned by its injection moulding process.

#### **Steel**

This is the material with the highest associated volume of waste. As it cannot be recycled in full within the group's factories, it is delivered to a number of different local suppliers for full reuse.

Image /page/163/Picture/10 description: The image shows a gray recycling bin with a white recycling symbol on it. The recycling symbol is made up of three arrows that form a triangle.

Responsibility for waste generation does not end when that waste is removed from CIE Automotive's facilities. In addition to its waste minimisation plans, the company has devised a new waste classification system sorted by method of elimination, thereby seeking to reduce its environmental impact.

### **Food waste**

Regardless of the fact that, due to the group's main activity as a manufacturer of automotive parts and components, this is not a material issue, CIE Automotive carries out different measures to avoid food waste. For example, the start-up of some biogas generation facilities from the food waste generated.

*[For further information on waste generation by region, refer to the detailed table provided in the "Data tables and glossary" appendix]*

#### **WASTE MANAGEMENT**

*(\*) Includes emissions from discontinued German forging companies until June 30, 2023.*

| MT                                 | 2021      | 2022      | 2023*     |
|------------------------------------|-----------|-----------|-----------|
| Hazardous waste<br>disposed of     | 17,457.9  | 17,462.1  | 21,441.7  |
| Non-hazardous waste<br>disposed of | 355,293.2 | 324,307.3 | 358,629.6 |
| TOTAL                              | 372,751.1 | 341,770.0 | 380,071.2 |

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0)**

**Record [earnings](#page-53-0)**

**Common responsibility, [shared benefits](#page-64-0)**

**Our response to [the environmental](#page-141-0)** 

**challenge**

**Responsible [management](#page-183-0)**

About [this report](#page-229-0)

[Data tables](#page-261-0)

**1**

**2**

**3**

**4**

**5**

**6**

Image /page/163/Picture/16 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter "C" on the left and the text "CIE Automotive" on the right. The letter "C" is made up of two curved shapes, one above the other, that do not quite meet. The text "CIE Automotive" is in a simple, sans-serif font.

Image /page/163/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large number "23" with a quotation mark above the number.

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**5.6**

# **Contribution to the decarbonisation of transport**

**CIE Automotive's business is making a decisive contribution to the decarbonisation of road transport insofar as its parts are being incorporated into zeroemission vehicles. As a result, CIE Automotive's business qualifies as eligible for EU Taxonomy purposes as it is a priority for the region's the climate mitigation and climate change adaptation objectives.**

Image /page/164/Picture/14 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the text "CIE Automotive" on the right. The letter C is made up of two curved shapes, one above the other, that do not quite meet in the middle. The text "CIE Automotive" is in a simple, sans-serif font.

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0) 1**

**Ready** Ready **for change 2** 

**Our response to the environmental 5** challenge **challenge**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

<span id="page-164-0"></span>Image /page/164/Picture/0 description: The image shows the words "ANNUAL REPORT" on the left side of the image. On the right side of the image is the number 23.

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The EU Taxonomy is a classification system establishing the conditions that an economic activity has to meet in order to qualify as environmentally sustainable; specifically an activity must make a substantial contribution to one or more of the six environmental objectives established by the European Union, without having a significant detrimental impact (the Do No Significant Harm principle) on the other five, while meeting certain minimum social safeguards, defined as ILO Core Labour Conventions, the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights.

The ultimate goal of the Taxonomy is to redirect investment flows towards climate neutrality (net zero GHG emissions) via a two-pronged plan: helping players in the financial sector to decarbonise their securities and credit portfolios and giving non-financial companies (such as CIE Automotive) increased access to financing for technology, products and services in line with the guidelines set in the green transition framework.

Following an analysis of its activities, CIE Automotive concluded that its productive processes, despite applying a range of methodologies, are encompassed by economic activity code NACE C29.3.2. Manufacture of other parts and accessories for motor vehicles.

That economic activity is identified in Commission Delegated Regulation 2023/2485 of 27 June 2023, within the climate change mitigation objective, under code **3.18. Manufacture of automotive and mobility components**, which is defined as follows:

*Manufacture, repair, maintenance, retrofitting, repurposing and upgrade of mobility components for zeroemission personal mobility devices and of automotive and mobility systems, components, separate technical units, parts and spare parts as defined in Article 3, points (18) to (21) and (23) of Regulation (EU) 2018/858 of the European Parliament and of the Council, type approved, designed, and constructed for use only in vehicles and buses of category M1, M2, M3, N1, N2 and N3, and in Article 3, points (15) to (18) and (21) in Regulation (EU) 168/2013 of the European Parliament and of the Council, type approved, designed, and constructed for use only in vehicles of category L meeting the criteria set out in this Section and which are essential for delivering and improving the environmental performance of the vehicle.*

As a result, as defined in the Regulation, CIE Automotive's economic activity is Taxonomyeligible in 2023. Given that this activity is being reported for the first time this year, as prescribed in Article 5 of Commission

Delegated Regulation 2023/2485 of 27 June 2023, this year the Group only has to report eligibility; the alignment disclosures will be mandatory next year.

In addition, in order to comply with the Regulation's requirements, the Group assessed the materiality of the three KPIs - turnover, CapEx and OPEX - in relation to the rest of the activities described in the Regulations, as outlined next.

#### **TURNOVER**

The key performance indicator (KPI) related to turnover is calculated as the percentage of turnover derived from Taxonomy-aligned activities (numerator) over total company turnover (denominator). Turnover is defined as the revenue recognised pursuant to International Accounting Standard (IAS) 1, paragraph 82(a), as adopted by Commission Regulation (EC) No 1126/2008.

CIE Automotive, S.A. reports an eligible turnover KPI associated with activity 3.18 equivalent to 13.4% (turnover of 531,588 thousand euros). This percentage is arrived at by assigning each automotive part made by each of our factories to each of the original equipment makers that exist in the world. To obtain the percentage of electric vehicles made by all the platforms, CIE Automotive relied on information reported by IHS Markit, one of the largest data and analytics providers for many industries, with a solid presence in the automotive sector. IHS Markit provides the percentages of pure electric vehicles manufactured globally by each platform. CIE Automotive uses those percentages and the sales figures by platform as the basis for estimating turnover associated with zeroemissions vehicles.

### **COMPLIANCE WITH REGULATION (EU) 2020/852 ON CLIMATE TAXONOMY** Chairman

and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0) 1**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) Common responsibility, [shared benefits](#page-64-0) 3 4**

#### **Our response to [the environmental](#page-141-0)  challenge 5**

About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/165/Picture/20 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The "C" is formed by two curved black shapes that do not quite meet, creating an opening. The text "CIE Automotive" is in a simple, sans-serif font, with "CIE" in a bolder typeface than "Automotive".

Image /page/165/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters. To the right of the words is a large gray quotation mark and the number 23 in black.

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#### **CapEx**

The CapEx KPI is measured as the percentage of fixed assets invested in eligible economic activities (numerator) over total assets acquired in the course of 2023 (denominator). That denominator (Total CapEx) is defined as additions to tangible and intangible assets during the financial year considered before depreciation, amortisation and any remeasurements, including those resulting from revaluations and impairments, for the relevant financial year and excluding fair value changes. It also includes additions resulting from business combinations. Accordingly, Total CapEx covers the costs recognised in keeping with IAS 16, IAS 38, IAS 40, IAS 41 and IFRS 16. In 2023, the CIE Automotive Group's CapEx totalled 311,884 thousand euros.

With respect to activity 3.18. Manufacture of automotive and mobility components, the Group attempted to estimate how much of its CapEx is associated with that activity. That was not possible, however, since the physical assets used to make a part for use in an electric vehicle (eligible activity) are for the most part the same assets as are used to make parts for use in a non-electric vehicle (non-eligible activity). The company is working to develop and improve its methodology and technological toolkit to enable it to directly identify the CapEx associated directly with the eligible activity.

As for the rest of its CapEx, the Group assessed whether the activities described in the Regulations are activities carried out by CIE Automotive, concluding that the amount of associated CapEx is not material.

Likewise, in an attempt to comply with the Regulation requirements, the Tables include the most significant activities, even though the KPI reported by the company is equivalent to 0%, specifically, activities 7.3 Installation, maintenance and repair of energy efficiency equipment and 7.6 Installation, maintenance and repair of renewable energy technologies, which account for just 323 thousand euros, just 0.1% of the company's Total CapEx.

It was concluded, therefore, that eligible CapEx under the Taxonomy is equivalent to 0%, so that alignment was not assessed for these activities; nevertheless, the eligible figures are provided in the section titled "Data tables and glossary".

### **OpEx**

The OpEx KPI is defined as the percentage of Taxonomy-eligible OpEx (numerator) over total qualifying OpEx (denominator). That denominator covers direct noncapitalised costs that relate to research and development, building renovation measures, short-term lease, maintenance and repair, and any other direct expenditures relating to the day-to-day servicing of assets of property, plant and equipment by the undertaking or third party to whom activities are outsourced that are necessary to ensure the continued and effective functioning of such assets.

In 2023, the CIE Automotive Group's qualifying OpEx amounted to 60,045 thousand euros, equivalent to 1.7% of the CIE Automotive Group's total OpEx in 2023 (3,567 million euros), so that the Group's qualifying OpEx is considered non-material and, as prescribed in section 1.1.3.2 of Annex I of the Commission Delegated Regulation of 6 July 2021, the numerator is therefore disclosed as being equal to zero, although the denominator is disclosed.

|   | Chairman<br>and<br>CEO's<br>statement             |  |
|---|---------------------------------------------------|--|
| 1 | 2023<br>highlights                                |  |
| 2 | Ready<br>for change                               |  |
| 3 | Record<br>earnings                                |  |
| 4 | Common<br>responsibility,<br>shared benefits      |  |
| 5 | Our response to<br>the environmental<br>challenge |  |
| 6 | Responsible<br>management                         |  |
|   | About                                             |  |

[this report](#page-229-0)

[Data tables](#page-261-0)

Image /page/166/Picture/15 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved shapes that do not fully connect, creating an incomplete circle. The text "CIE Automotive" is in a simple, sans-serif font.

Image /page/166/Picture/16 description: The image is a light gray illustration of a road winding through a landscape with stylized trees on either side. The road is depicted as a broad, curving path that starts from the lower left corner and extends upwards and towards the right. The trees are simple, rounded shapes with short trunks, giving them a cartoonish appearance. The overall tone of the image is soft and minimalist, with a focus on basic shapes and a muted color palette.

Image /page/166/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters. To the right of the words is a large number "23" with a gray quotation mark above the number.

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**5.7**

# **Environmental risk management**

The risk of accidents is covered by the company's civil liability insurance, while the company underwrites gradual pollution risk for the following factories in Spain: CIE Alcasting (aluminium), CIE Amaya (machining), CIE Galfor (forging), CIE Inyectametal (aluminium) and CIE Vilanova (aluminium). The last three facilities have integrated pollution prevention control (IPPC) permits. The claims limit on that gradual pollution insurance policy for those five factories is €3 million.

To reinforce the management of its environmental and safety risks, CIE Automotive is working on a joint project with the technical department at its insurance broker, which is part of a bigger project addressed in the "Customer satisfaction" section. Specifically, a series of risks are being evaluated and prioritised in accordance with criteria established by the broker's risk engineers with the idea of formulating plans for their elimination, or at least mitigation. In 2023, this project focused on factories in North America, Brazil and India, prioritising the largest facilities or those with most assets involved. There were also follow-up visits to factories already inspected in prior years.

Climate change also poses a threat to the company's ability to attain its strategic targets. To that end, CIE Automotive includes climate change risk in its risk mapping process, addressing not only the risks deriving from the company's impact on the environment and climate change, but also the risks posed to the company by the environment and climate change, and the interrelationship between the two.

Image /page/167/Picture/16 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter "C" on the left and the text "CIE Automotive" on the right. The "C" is made up of two curved black shapes that do not quite meet, forming an incomplete circle. The text "CIE Automotive" is in a simple, sans-serif font, with "CIE" in a bolder weight than "Automotive". The logo is in black and white.

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0) 1**

**Ready 2 ready for change**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

<span id="page-167-0"></span>Image /page/167/Picture/1 description: The image shows the words "ANNUAL REPORT" in white on a green background. To the right of the words is a large white number "23" with a quotation mark above it.

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#### **RISK ANALYSIS AND TARGET AND SCENARIO GENERATION**

The chart depicts the environmental governance regime, which includes the establishment and implementation of policies, the management of environmental and climate risks, the oversight and execution of measures and the tracking of mitigation plans using indicators and other monitoring tools.

Image /page/168/Figure/3 description: This image is a diagram of a corporate structure. At the top is the "Annual General Meeting" which feeds into the "Board of Directors". The Board of Directors feeds into three committees: "Appointments and Remuneration Committee", "Audit and Compliance Committee", and "ESG Committee (Environmental, Social and Governance)". The ESG Committee and the Appointments and Remuneration Committee feed into the "Chief Executive Officer". The Chief Executive Officer feeds into the "Executive Committee" and the "Cross-Group ESG Committee". The Executive Committee and the Cross-Group ESG Committee feed into "CIE Automotive". CIE Automotive is fed by "Network Services + Business units". The diagram also includes "Authorisation and reporting", "Implementation", "Policy", "Environmental Risks", and "Performance monitoring". The diagram also includes a list of items: "Chairman and CEO's statement", "2023 highlights", "Ready for change", "Record earnings", "Common responsibility, shared benefits", "Our response to the environmental challenge", "Responsible management", "About this report", and "Data tables". The diagram also includes a list of KPIs: "KPIs", "Environmental footprint", "ISO standard", and "Decarbonisation guidelines".

It shows how the regime involves every part of the company, from the company's shareholders to the business units. The details of the system and how it works are set down in the regulations of the Board and its committees, including the ESG Committee, which are available for public consultation on the company's website, within the corporate governance section.

This governance model is the upper layer in the climate risk management model described next.

Image /page/168/Picture/5 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved shapes, one above the other, with a gap in between. The text "CIE Automotive" is in a simple, sans-serif font.

Image /page/168/Picture/0 description: The image shows the words "ANNUAL REPORT" in black font on the left side of the image. To the right of the words is a large number "23" in black font, with a gray quotation mark above the number.

{169}------------------------------------------------

Image /page/169/Figure/23 description: The image shows a diagram illustrating the relationship between governance, risks, opportunities, and financial impacts. At the top of the diagram is a green box labeled "GOVERNANCE". Below this, there are two boxes labeled "TRANSITION RISKS" and "PHYSICAL RISKS". The "TRANSITION RISKS" box lists "Political and legal", "Technology", "Market", and "Reputation". The "PHYSICAL RISKS" box lists "Acute" and "Chronic". Arrows connect both of these boxes to a box labeled "RISKS". There is also a box labeled "OPPORTUNITIES". Both the "RISKS" and "OPPORTUNITIES" boxes are connected by an arrow to a green box labeled "BUSINESS PLAN RISK MANAGEMENT", which is connected by an arrow to a box labeled "FINANCIAL IMPACTS". At the bottom of the diagram, there are three boxes labeled "STATEMENT OF PROFIT OR LOSS", "CASH FLOW", and "BALANCE SHEET". These boxes are connected to each other by double-headed arrows. There are also two boxes labeled "INCOME" and "EXPENSES", which are connected by an arrow to the "STATEMENT OF PROFIT OR LOSS" box.

---

Image /page/169/Figure/21 description: The image shows a diagram with several text boxes. One box is labeled "OPPORTUNITIES" and contains a list of items: "Resource efficiency", "Energy sources", "Products/Services", "Markets", and "Resilience". Two other boxes are labeled "ASSETS AND LIABILITIES" and "CAPITAL AND FINANCING".

Under development

---

# Climate risk map

### **RISK MAPPING: PROCEDURE AND SCOPE**

In response to demands from our stakeholders and in line with the 2025 Strategic Plan, in 2023, CIE Automotive updated and broadened its climate risk map, a process which involved a bigger number of its professionals. Specifically, in 2023, the company assessed 12 risks, gathering input from

145 professionals in total.

The climate risk map is integrated within CIE Automotive's enterprise risk management (ERM) system, which follows ISO 31000 methodology, so as to provide reasonable assurance that all significant climate risks are duly identified, evaluated, prevented and continuously monitored. Those risks are approved at the board level and managed in keeping with defined risk

tolerance thresholds.

The climate risk assessment contemplates transition and physical risks and also focuses on the opportunities that climate change could generate.

The accompanying chart depicts the classification of risks and opportunities considered in this process so that they can be assessed, including their financial impact, and subsequently managed and mitigated. The

process of measuring the financial impact of these risks is currently under development so as to cater to the needs and requirements brought to us by our stakeholders in recent years and those we expect to face in the coming years.

Chairman and CEO's [statement](#page-2-0) **2023 [highlights](#page-5-0) 1**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

#### **Our response to [the environmental](#page-141-0)  challenge 5**

About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/169/Picture/19 description: The image shows the logo for CIE Automotive. On the left is a stylized letter C, formed by two curved black shapes. To the right of the C is the text "CIE Automotive" in a simple, sans-serif font.

Image /page/169/Picture/0 description: The image shows the words "ANNUAL REPORT" on the left side of the image. To the right of the words is a large number "23" with a quotation mark above it.

{170}------------------------------------------------

Image /page/170/Figure/19 description: The image is a diagram illustrating a risk assessment process. It starts with "Regulations" and "Analysis" (split into "Internal" and "External"), both feeding into a "Risk list". A table labeled "SCENARIOS" with columns "OPTIM", "MED", and "PESSIM" and rows for the years 2020, 2030, and 2050 is connected to the "Risk list". The "Risk list" also connects to "Variable" (Transition Physical), which in turn leads to "Risks" (Transition Physical). "Governance" is positioned at the top, influencing the "Variable". Several factors feed into "Governance", including "IPCC", "WWF", "AIE", "Internal", and "Regulatory". "Sector" (with "Sernauto", "ACICAE", "S&P IHS", and "EGVIA"), "GDP" (with "Car ownership", "Exchange rate", "Age of vehicle fleet", and "Purchasing power"), and "Studies" (Public and private in collaboration with anlaysts) also feed into "Governance". "Governance" also influences "Opportunities". The "Risks" branch out into two paths: one involving "Key individual", "Weighting", "Map", and "Mitigation measures", and another involving "Key individual", "Weighting", "Map", and "Mitigation measures", as well as "Exposure + Vulnerability", "Adaptability", "Risk ranking", "Financial impact", and "Under development". Text at the bottom provides definitions for "IPCC", "WWF", "IEA", and "GDP".

The risk and opportunity assessment process is depicted schematically in the chart above. It shows the types of physical and transition risks, the method used to identify risks and how they are modelled for different scenarios.

Those scenarios cover quantitative variables, such as the trend in GDP by country, car ownership indices and S&P IHS production data in the case of transition risks. They also contemplate qualitative variables. Other quantitative variables such as temperature changes, heat stress, changes in precipitation types and patterns (rain, hail, snow and ice) and water stress are used for physical and transition risks but are more important to the former.

The scenarios contemplate time horizons that start from current data or from 2020 in the absence of more recent data and run to 2030 and 2050, the deadline by which CIE Automotive has pledged to be climate neutral.

The process also considers qualitative variables derived from sector analyses and studies sourced from organisations such as ACICAE, SERNAUTO and EGVIA, and from public and private studies by different consultancy firms and analysts who collaborate with CIE Automotive.

Based on this information, the Environment Department selects and describes the risks identified as most material for the company. The entire process is supervised by the governance layer outlined above.

To categorise the risks, the organisation identifies key individuals with different backgrounds and duties and deep knowledge and involvement at the local or factory levels and at the country or regional levels and at the overall group level. Once the weightings are applied, the climate risk map takes shape *[refer to section "Climate risks evaluated in 20223"]* and the corresponding mitigation

measures are presented and duly and coherently associated with the Strategic Plan, which is available on the website in both standard format and in the form of streamed presentation by management.

A detailed procedure is being drawn up for tackling physical risks so as to consider exposure and vulnerability separately (this aspect was prioritised in 2023). Adaptability criteria will be layered in subsequently to create a ranking of risks and the last step will be to assess the financial impact of the various climate risks. Note that the financial impact assessment aspect has yet to be comprehensively regulated so that this process will also need to factor in the definitive regulations.

Chairman and CEO's

[statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

Image /page/170/Figure/7 description: The image shows the number 5 in gray on the left side of the image. To the right of the number 5 is the text "Our response to the environmental challenge" in bold black font.

About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**1**

Image /page/170/Picture/21 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved shapes, one above the other, with a gap in between. The text "CIE Automotive" is in a simple, sans-serif font.

Image /page/170/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters. To the right of the words is a large number "23" with a gray quotation mark above the number.

{171}------------------------------------------------

Image /page/171/Figure/16 description: This image is a flowchart that describes a risk assessment process. The process begins with two types of variables: quantitative and qualitative. Quantitative variables include GDP, car ownership, S&P IHS, age of vehicle fleet, and purchasing power. Qualitative variables include the world is changing, the automotive world is changing, and the world of suppliers is changing. The variables feed into risk variables, which then feed into weighting at CIE Central. The output of weighting at CIE Central is a risk assessment matrix, which plots probability against impact. The matrix is divided into three zones: low risk, medium risk, and high risk. The risk assessment matrix is used to determine the financial impact and risk mitigation strategies. The process is overseen by governance, which is informed by the divisional, CEO, and strategic plan.

The transition risk assessment is based on an internal and external context analysis. This analysis considers qualitative and quantitative variables, the latter mostly external. The qualitative factors analysed were classified as follows:

- The world is changing
- The automotive world is changing
- The supplier world is changing

This is evident in the 2025 Strategic Plan documents and in section 2.1 of this report, where the associated opportunities are also analysed.

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**1**

Image /page/171/Picture/18 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of two curved lines that do not quite meet, forming an incomplete circle. The words "CIE Automotive" are in a simple, sans-serif font.

Image /page/171/Picture/0 description: The image shows the words "ANNUAL REPORT" in large, bold, black letters on the left side of the image. To the right of the words is a large number "23" in black, with a gray quotation mark above and to the left of the number.

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| 5 - Very high                                                                                            | 4 - High                                                                 | 3 - Medium                                                                                                      | 2 - Low                                                                                        | 1 - Very low                                              |
|----------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------|-----------------------------------------------------------|
| Materialisation of the<br>risk would affect the<br>organisation imminently<br>(in the next three years). | Materialisation of the<br>risk would affect the<br>organisation by 2030. | Materialisation of the<br>risk would affect the<br>organisation in 10 years'<br>time, between 2030 and<br>2040. | Materialisation of the<br>risk would affect the<br>organisation in 20 years'<br>time, by 2040. | Materialisation<br>risk would not aff<br>organisation unt |

Image /page/172/Figure/18 description: The image shows a horizontal bar divided into two sections. The left section is yellow and labeled "2 - Low", with the text "Materialisation of the risk would affect the organisation in 20 years' time, by 2040" below it. The right section is green and labeled "1 - Very low", with the text "Materialisation of the risk would not affect the organisation until 2050" below it.

The climate risk map was drawn up using the same methodology as the main risk map, which is updated annually. It applies across the entire organisation, stems from the ERM and is the responsibility of the company's key management personnel, management team and specific local managers with expertise in environmental management at the factory level, who are tasked with evaluating the various identified risks:

Image /page/172/Picture/10 description: The image is a green circle with the number 1 in white in the center.

## *Risk mapping: procedure and scope*

*Based on the probability of occurrence in the future, by 2050, in line with the company's goal of being climate neutral by that year:* 

*From the standpoint of residual risk: considering the measures already in place at CIE Automotive in order to mitigate the potential impact of their materialisation.* **<sup>1</sup>**

Image /page/172/Picture/12 description: The image shows the number 2 in white, centered on a green square with rounded corners.

In total, 145 people participated in drawing up this year's climate risk map (the same number as in 2022). The participants answered a questionnaire considering each risk factor over a time horizon to 2050 and their geographic and technology purviews in providing their answers so that some respondents were in a position to assess a given risk for more than one technology and/or market.

**145 people participated in drawing up** this year's climate risk map

Chairman and CEO's [statement](#page-2-0) **2023 [highlights](#page-5-0) Ready [for change](#page-15-0) Record [earnings](#page-53-0) Common responsibility, [shared benefits](#page-64-0) Our response to [the environmental](#page-141-0)  challenge 1 2 3 4 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/172/Picture/16 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved shapes, one above the other, with a gap between them. The text "CIE Automotive" is in a simple, sans-serif font.

Image /page/172/Picture/17 description: The image is a green rectangle with rounded corners. Inside the rectangle, there is a white icon of a sun partially covered by a cloud, with a small dot below the cloud and a white arrow pointing to the right at the bottom.

Image /page/172/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black font on the left side of the image. To the right of the words is a large number "23" in black font with a dashed line running through the middle of the number. To the left of the number is a gray quotation mark.

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|                          | 5 – Very severe                                                                                                                           | 4 – Severe                                                                                                            | 3 – Significant                                                                                                 | 2 – Moderate                                                                               | 1 – Very moderate                                                           |
|--------------------------|-------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------|
| Economic<br>impact       | Very severe adverse<br>impact on EBITDA. An<br>adverse impact on<br>P&L of >5%.                                                           | A severe adverse<br>impact on EBITDA. An<br>adverse impact on<br>P&L of >3.5% but <5%.                                | A significant reduction<br>in EBITDA guidance. An<br>adverse impact on P&L<br>of >1.5% but <3.5%.               | A slight reduction in<br>EBITDA guidance. An<br>adverse impact on<br>P&L of >0% but <1.5%. | No change in existing<br>EBITDA.                                            |
| Organisational<br>impact | Materialisation of<br>the risk requires<br>intervention by the<br>Board of Directors.                                                     | Materialisation of<br>the risk requires<br>intervention by the<br>CEO.                                                | Materialisation of the risk<br>can be resolved at the<br>corporate level.                                       | Materialisation of the<br>risk can be resolved<br>at the division level.                   | Materialisation<br>of the risk can be<br>addressed at the<br>factory level. |
| Reputational<br>impact   | Reputational<br>damage stemming<br>from several actions<br>that have a severe<br>impact on the<br>company's image<br>and its share price. | Reputational<br>damage stemming<br>from several actions<br>that impact the<br>company's image<br>and its share price. | Occurrence of an event<br>that is picked up by<br>high-profile media and<br>reaches the regulator/<br>analysts. | Occurrence of an<br>event that is picked<br>up by the local<br>media.                      | No impact.                                                                  |

**3** *Based on their impact along three dimensions: economic, organisational and/or reputational.*

*(\*) P&L = Statement of profit or loss*

Chairman

### and CEO's [statement](#page-2-0) **2023**

**[highlights](#page-5-0) 1**

**Ready 2 ready for change**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**Based on**

Image /page/173/Picture/16 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved shapes that do not fully connect, creating an open "C" shape. The text "CIE Automotive" is written in a simple, sans-serif font, with "CIE" in a bolder typeface than "Automotive".

Image /page/173/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large number "23" with a quotation mark above it.

{174}------------------------------------------------

| PELIGROS | FREQUENCY | CLIMATE ELEMENT | CLIMATE HAZARD CATEGORY                              |
|----------|-----------|-----------------|------------------------------------------------------|
| Physical | Chronics  | Temperature     | Temperature variations (air, fresh water, sea water) |
| Physical | Chronics  | Temperature     | Thermal stress                                       |
| Physical | Chronics  | Temperature     | Temperature variability                              |
| Physical | Chronics  | Temperature     | Thawing permafrost                                   |
| Physical | Acute     | Temperature     | Heat wave                                            |
| Physical | Acute     | Temperature     | Cold wave/frost                                      |
| Physical | Acute     | Temperature     | Forest fire                                          |
| Physical | Chronics  | Wind            | Variations in wind patterns                          |
| Physical | Acute     | Wind            | Cyclone, hurricane, typhoon                          |
| Physical | Acute     | Wind            | Storm (including snow, dust or sand storms)          |
| Physical | Acute     | Wind            | Twister                                              |
| Physical | Chronics  | Water           | Variations in precipitation types and patterns       |
| Physical | Chronics  | Water           | Precipitation or hydrological variability            |
| Physical | Chronics  | Water           | Ocean acidification                                  |
| Physical | Chronics  | Water           | Salt intrusion                                       |
| Physical | Chronics  | Water           | Rising sea levels                                    |
| Physical | Chronics  | Water           | Water stress                                         |
| Physical | Acute     | Water           | Drought                                              |
| Physical | Acute     | Water           | Heavy precipitation (rain, hail, snow or ice)        |
| Physical | Acute     | Water           | Floods (coastal, fluvial, pluvial, underground)      |
| Physical | Acute     | Water           | Glacial lake overflow                                |
| Physical | Chronics  | Solid mass      | Coastal erosion                                      |
| Physical | Chronics  | Solid mass      | Soil degradation                                     |
| Physical | Chronics  | Solid mass      | Soil erosion                                         |
| Physical | Chronics  | Solid mass      | Solifluction                                         |
| Physical | Acute     | Solid mass      | Avalanche                                            |
| Physical | Acute     | Solid mass      | Landslide                                            |
| Physical | Acute     | Solid mass      | Land subsidence                                      |

Image /page/174/Figure/3 description: The image shows a diagram related to environmental challenges and strategic planning. On the left, there's a world map with several location markers. To the right of the map is a risk assessment matrix, with 'PROBABILITY' on the y-axis (ranging from 1 to 5) and 'IMPACT' on the x-axis (ranging from 1 to 5). The matrix is color-coded, with green indicating 'Low risk', yellow indicating 'Medium risk', and red indicating 'High risk'. Below the map and matrix, there's a flow diagram that starts with 'TRANSITION RISKS', followed by a plus sign, then 'MITIGATING MEASURES', another plus sign, and finally 'STRATEGIC INITIATIVES'. Above these three elements is a green box labeled 'Strategic Plan'. Each of the 'TRANSITION RISKS', 'MITIGATING MEASURES', and 'STRATEGIC INITIATIVES' sections has a series of boxes with arrows pointing to them, suggesting a list of items or actions related to each category. On the left side of the image, there is a list of text labels including 'CEO'S statement', '2023 highlights', 'Ready for change', 'Record earnings', 'Common responsibility, shared benefits', 'Our response to the environmental challenge', 'Responsible management', 'About this report', and 'Data tables'.

### **RIKS ANALYSIS. Transition risks**

The transition risk assessment followed similar methodology. Here the company saw fit to incorporate more quantitative

variables from a range of recognised and standardised sources, some of which are detailed below.

| MATE HAZARD CATEGORY                                 |
|------------------------------------------------------|
| Temperature variations (air, fresh water, sea water) |
| Thermal stress                                       |
| Temperature variability                              |
| Thawing permafrost                                   |
| Heat wave                                            |
| Cold wave/frost                                      |
| Forest fire                                          |
| Variations in wind patterns                          |
| Cyclone, hurricane, typhoon                          |
| Storm (including snow, dust or sand storms)          |
| Twister                                              |
| Variations in precipitation types and patterns       |
| Precipitation or hydrological variability            |
| Ocean acidification                                  |
| Salt intrusion                                       |
| Rising sea levels                                    |
| Water stress                                         |
| Drought                                              |
| Heavy precipitation (rain, hail, snow or ice)        |
| Floods (coastal, fluvial, pluvial, underground)      |
| Glacial lake overflow                                |
| Coastal erosion                                      |
| Soil degradation                                     |
| Soil erosion                                         |
| Solifluction                                         |
| Avalanche                                            |
| Landslide                                            |
| Land subsidence                                      |

#### **CLIMATE HAZARD CATEGORY**

Chairman and CEO's

**2023**

About

**1**

**2**

**3**

**4**

**5**

**6**

Image /page/174/Picture/8 description: The image shows the CIE Automotive logo. On the left is a stylized letter C, formed by two curved black shapes. To the right of the C is the text "CIE Automotive" in a simple, sans-serif font. The word "CIE" is slightly larger and bolder than "Automotive".

Image /page/174/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters. To the right of the words is a large number "23" with a gray quotation mark above it.

{175}------------------------------------------------

All of this brings us to the above-mentioned risk assessment project, launched in 2023 to strengthen the process and align it with our stakeholders' latest demands and round it out by adding financial impact measurement, along with subsequent control and oversight. However, as already underlined, the last steps of this endto-end process (shown below) will take place in the future, adapting for the implementation of recently announced new regulations and requirements.

Image /page/175/Figure/4 description: This image shows a diagram of a process. The diagram is divided into three sections: Risks, Adaptability, and Financial Impact. The Risks section includes the following steps: Data Extraction, Presentation to Divisions and Plants, and Feedback Incorporation. The Adaptability section includes the following steps: Adaptability Seminar and Plant Survey. The Financial Impact section includes the following steps: Risk Ranking and Financial Impact. The diagram also includes the following text: Risks + Exposure + Vulnerability, Adaptability, Developing, Next Steps, Ready for change, Record earnings, Common responsibility, shared benefits, Our response to the environmental challenge, Responsible management, and About.

In keeping with above schematic depicting the overall process to be developed and implemented.

The entire process is monitored via the

# **internal management tool, SAP GRC**

Image /page/175/Picture/10 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter "C" on the left, followed by the words "CIE Automotive" in a simple, sans-serif font. The letter "C" is formed by two curved shapes that do not fully connect, creating an open, incomplete circle. The color of the logo is black against a white background.

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

[this report](#page-229-0)

[Data tables](#page-261-0)

**1**

**2**

**3**

**4**

**5**

**6**

Image /page/175/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters. To the right of the words is a large number "23" with a gray quotation mark above it.

{176}------------------------------------------------

Image /page/176/Figure/2 description: Below is a description of the areas of focus in 2023 and again for 2024. The image shows a diagram with three phases. Phase 1 includes the following elements: RISK (List of dangers that apply to CIE), EXPOSURE (Exact location of each factory (coordinates)), DATA WEBS (Historical and forward-looking data for each risk, organized by geography), POSSIBLE TOOLS (COPERNICUS, WWF (water), INFORM, PREPDATA), and PHYSICAL RISK BY ASSET. Phase 2 includes VULNERABILITY OF DIRECT ASSETS, VULNERABILITY OF INDIRECT ASSETS, VULNERABILTY (Vulnerability to each risk at each factory), and INHERENT PHYSICAL RISK BY ASSET. Phase 3 includes ADAPTABILITY OF DIRECT ASSETS, ADAPTABILITY OF INDIRECT ASSETS, ADAPTABILITY (Capacity to adapt for each risk at each plant), and RESIDUAL PHYSICAL RISK BY ASSET. The image also includes three tables labeled 1, 2, and 3, each showing data for CIE FACTORY, FACT-01, FACT-02, FACT-03, and FACT-..., with columns for OPTIM, CURRENT TREND, and PESSIM for the years 2020, 2030, and 2050. The tables show PHYSICAL RISK BY ASSET, INHERENT PHYSICAL RISK BY ASSET, and RESIDUAL PHYSICAL RISK BY ASSET. The image also includes the text: Chairman and CEO's statement, 2023 highlights, Ready for change, Record earnings, Common responsibility, shared benefits, Our response to the environmental challenge, Responsible management, About this report, and Data tables.

Compliance Committee in turn reports on its technology and it quantifies the theoretic approval to the Board of Directors.

The climate risk map can be viewed globally, by region, by technology, by region and

impact, in euros, on EBITDA of the potential materialisation of each risk. In a new addition this year, for certain risks the map also displays all of the controls launched in

This whole process is jointly organised by the corporate Environment and Compliance Departments and the results are presented to the Audit and Compliance Committee for validation and approval; the Audit and

each region and for each technology during the year, making it possible to visualise internal control delivery by factory with a breakdown by control, control owner and control evidence.

Image /page/176/Picture/8 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is black, while the words "CIE Automotive" are in a sans-serif font.

Image /page/176/Picture/0 description: The image shows the words "ANNUAL REPORT" in black, with a large gray quotation mark and the number "23" in black to the right of the words. The number "23" has a dashed line running through it.

{177}------------------------------------------------

#### **TRANSITION RISKS**

**PHYSICAL RISKS**

Image /page/177/Figure/15 description: The image is a risk assessment matrix. The x-axis is labeled "IMPACT" and ranges from 0 to 5. The y-axis is labeled "PROBABILITY" and ranges from 0 to 5. The matrix is divided into three risk levels: low risk (green), medium risk (yellow), and high risk (red). There are 12 numbered points plotted on the matrix. Point 1 is at (3, 3.5), point 2 is at (2, 3.5), point 3 is at (1.5, 3.5), point 4 is at (3.5, 2.7), point 5 is at (3.5, 2), point 6 is at (1, 3.5), point 7 is at (0.5, 2), point 8 is at (3, 1), point 9 is at (1, 1), point 10 is at (0.5, 3), point 11 is at (2, 1), and point 12 is at (2.5, 1).

| 1.  | Margin risks                | TRAN |
|-----|-----------------------------|------|
| 2.  | Market/product mix risks    |      |
| 3.  | Supply chain risks          |      |
| 4.  | Investment risks            |      |
| 5.  | Political and legal risks   |      |
| 6.  | Technology risks            |      |
| 7.  | Location risks              |      |
| 8.  | Reputational risks          |      |
| 9.  | Manufacturing process risks |      |
| 10. | Acute physical risks        | PHY  |
| 11. | Chronic physical risks      |      |
| 12. | Water stress risks          |      |

Below is a list of the most relevant climate risks to which the group is exposed and which are evaluated in the course of drawing up its risk map:

All the risks assessed presented a probability of **occurrence or potential impact of less than 3**

#### **CLIMATE RISK MAP**

## Climate risks assessed in 2023

The heat map shows that none of the risks assessed presents a probability of occurrence of over 3 or an impact of over 3. Nevertheless, here we describe the most important risks and how the company is planning to mitigate them, an effort that is complemented, as explained, by the group's Strategic Plan.

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0) 1**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/177/Picture/18 description: The image shows the logo for CIE Automotive. On the left is a stylized letter C, formed by two curved black shapes. To the right of the C is the text "CIE Automotive" in a simple, sans-serif font.

Image /page/177/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters. To the right of the words is a large gray quotation mark followed by the number 23 in bold, black letters.

{178}------------------------------------------------

**MARKET/ PRODUCT MIX RISKS MARGIN RISKS SUPPLY CHAIN RISKS**

Risks inherent to the business and market shifts: Changes in the automotive market could lead to a shift in the product mix, specifically towards climate-neutral solutions, such as vehicle electrification. As a result, some technologies could lose share in the overall business mix, potentially intensifying competition for the remaining volumes and, by extension, driving a reduction in volumes or margins in certain products or technologies.

It is still too early to tell when the automotive sector will revisit prepandemic production and sales levels, all the more so considering the various market developments mentioned throughout this report and the fact that market changes are currently unfolding with such great speed. The company plans to reinforce the flexibility of its model to adapt to unfolding and future customer needs and emerging trends. Product portfolio diversification will give it a unique ability to adapt relative to its competitors. A portfolio in which more than eight out of every 10 products are independent of a vehicle's propulsion system and therefore not impacted by the sector electrification trend. For the rest of its parts, the company is working from the technological and market standpoints to make the most of the opportunities emerging in the battery, engine/motor, power electronics and gearshift areas. As for the risk associated with products for which there is no clear substitute in zero-emission cars, CIE Automotive plans to increase its presence in those that have a bigger role to play in the vehicle light-weighting trend (forged chassis and suspension parts) and in machined shafts and gears. It also wants to actively pursue business in technologies that customers are likely to outsource in order to focus on new challenges, such as connectivity, automated driving and the provision of embedded software solutions. In parallel, the company will continue to focus on its innovation effort in these same areas which is expected to give the company a winning edge in the coming years, positioning it to take advantage of the opportunity to consolidate the resulting market. The transition towards a low-carbon economy will highlight the efforts companies like CIE Automotive have been making for years to introduce eco-design concepts from the earliest stages of product development

and build circularity into all of their processes. What does look likely is that over a medium-term horizon the automotive companies stand to emerge stronger from the crisis to the extent they can adapt to the new scenario, foreseeably characterised by the following factors, on which CIE Automotive is already specifically working:

• Concentration processes: fewer players but companies that are larger, more diversified and more resilient in the face of future

- Reduction of surplus capacity.
- crises.
- prepare for sector transformation.
- Greater financial control and discipline.
- Eco-efficiency and circularity.
- Commitment to mitigating environmental impacts.

• Strategic alliances designed to share the investment needed to

CIE Automotive's business model has already proven its resilience and counter-cyclical credentials in the face of numerous crises thanks to the combination of geographic, technological and customer diversification, framed by a decentralised management model and strict financial discipline. Lastly, in the shorter term, the company is currently focused on locking in access to the raw materials it needs, to which end it is reinforcing its GLOCAL (global management with local application) purchasing model, coupled with its multi-location footprint, to be close to the OEMs and not have to depend on global supply chains.

### **Action plan and risk mitigation**

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

> **Ready [for change](#page-15-0)**

**Record [earnings](#page-53-0)**

**Common responsibility, [shared benefits](#page-64-0)**

**Our response to [the environmental](#page-141-0)** 

**challenge**

**Responsible [management](#page-183-0)**

About [this report](#page-229-0)

[Data tables](#page-261-0)

**1**

**2**

**3**

**4**

**5**

**6**

Image /page/178/Picture/17 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter "C" on the left and the words "CIE Automotive" on the right. The letter "C" is made up of two curved black shapes that do not quite meet, forming an incomplete circle. The words "CIE Automotive" are in a simple, sans-serif font, with "CIE" in a slightly bolder font than "Automotive".

lus capacity.

Image /page/178/Picture/0 description: The image shows the words "ANNUAL REPORT" on the left side of the image. To the right of the words is a large quotation mark and the number 23.

{179}------------------------------------------------

Image /page/179/Picture/11 description: The image shows a green icon of a stack of money with a euro symbol on it, with a bar graph on top of the money. Next to the icon are the words "INVESTMENT RISKS" and "TECHNOLOGY RISKS".

Image /page/179/Picture/25 description: The image shows a green icon with a triangle containing an exclamation point, and a speedometer. To the right of the icon is the text "ACUTE RI".

Risks associated with greater uncertainty regarding returns on investment: the changes needed to achieve carbon neutrality could spell higher investments in different volume and margin scenarios to those navigated to date. Those investments may make it possible to process more sustainable materials, use more sustainable and climate-neutral sources of energy, devise more circular manufacturing processes or deliver parts with better eco-design and sustainability attributes. Manufacturing technology is what CIE Automotive does. That is why it is essential to monitor how it evolves, that being one of the most recurring and important tasks performed by each division. Thanks to that constant monitoring, the company sees a bright future for the technologies it is active in. In some of those technologies, the challenge lies with taking advantage of the growth opportunities being thrown up by emerging trends; in others, they key lies with maximising competitiveness by leveraging innovation, Industry 4.0 tools and the cost efficiency that sets the group apart. In sum, to turn the risk posed by new trends into an opportunity to attain leadership.

In all areas of the group, CIE Automotive implements cuttingedge technology into its facilities and management models with the aim of rendering its productive processes more efficient and responding to the automotive sector's needs by embracing ecoefficiency, circularity and climate mitigation measures. Also as a result of that monitoring, when designing its investment plans, the company contemplates the various trends that are shaping the automotive sector, such as emission standard requirements, new

comfort-driven mobility concepts and vehicle electrification. To fund those investments in R&D, to which the group earmarks around 2% of revenue each year, CIE Automotive has a number of different sources of financing at the regional, national and supranational levels. Moreover, the company hopes to avail of Next Generation EU funds to finance specific projects related with green transition and digital transformation, specifically including projects to develop new battery structure, fuel cell and range extender concepts and materials; new concepts and features related with the refashioning of car interiors, led by the CIE Comfort division; and certain Industry 4.0 projects.

### **Action plan and risk mitigation**

**ACUTE RISKS** These risks arise as a result of extreme climate events (such as prolonged droughts or flooding).

The risk of accidents is covered by the company's civil liability insurance. In December 2019, the company began to specifically underwrite gradual pollution risk for certain factories in Spain, with a claims limit of €3 million. To reinforce the management of its environmental and safety risks, the company has embarked on a joint project with the technical experts from its insurance firms. Specifically, a series of risks are being evaluated and monitored in accordance with criteria established by the various participating companies with the idea of formulating plans for their elimination or at least mitigation.

### **Action plan and risk mitigation**

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0) 1**

- **Ready [for change](#page-15-0) 2**
- **Record [earnings](#page-53-0) 3**
- **Common responsibility, [shared benefits](#page-64-0) 4**

#### **Our response to [the environmental](#page-141-0)  challenge 5**

About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/179/Picture/22 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter "C" on the left and the words "CIE Automotive" on the right. The letter "C" is black and appears to be made up of two curved shapes. The words "CIE Automotive" are in a simple, sans-serif font and are also black.

Image /page/179/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters on the left side of the image. To the right of the words is a large number "23" in black, with a gray quotation mark above it.

{180}------------------------------------------------

Image /page/180/Figure/5 description: This figure shows a box plot of the 2 metre temperature in degrees Celsius for CIE Automotive factories. The x-axis shows the factory number, ranging from 1 to 35, and then to 100. The y-axis shows the temperature, ranging from -30 to 40 degrees Celsius. Each factory has a box plot showing the range of temperatures. The box plots are colored in black, gray, and orange.

**CHRONIC RISKS**

These are the risks of more gradual changes with long-lasting effects, such as global warming, rising sea levels, protracted heatwaves or droughts, loss of biodiversity and changes in land or soil productivity.

This is another example of the utility provided by quantitative variables: the chart depicts the change in temperature in our locations, on average and at the extremes (2 metres above ground).

> CIE Automotive has set specific environmental targets to be met by each of its facilities and

operating regions. Those targets are aligned with the United Nations 2030 Agenda and recent Spanish legislation on climate change and the energy transition (Law 7/2021, of 20 May 2021) and are based

on the Global Reporting Initiative (GRI) standards. In addition, in support of the Paris Agreement's targets for curbing global warming, it belongs to Forética's Climate Change Cluster, a platform whose mission is to get Spanish businesses to address the main global climate change trends and debates and become an authority on corporate environmental matters.

**Action plan** 

Chairman and CEO's [statement](#page-2-0) **2023 [highlights](#page-5-0) Ready [for change](#page-15-0) Record [earnings](#page-53-0) Common responsibility, [shared benefits](#page-64-0) Our response to [the environmental](#page-141-0)  challenge Responsible [management](#page-183-0)** About [this report](#page-229-0) [Data tables](#page-261-0) **1 2 3 4 5 6**

Image /page/180/Picture/11 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of two curved shapes, one above the other, that do not quite meet. The words "CIE Automotive" are in a simple sans-serif font.

Image /page/180/Picture/0 description: The image shows the words "ANNUAL REPORT" in black, with a large grey quotation mark and the number 23 in black to the right of the words.

{181}------------------------------------------------

Image /page/181/Figure/13 description: The image shows a world map and three line graphs representing different pathways: Optimistic, Current Trend, and Pessimistic. The world map is a heat map, with areas colored from yellow to red, indicating varying levels of intensity. The line graphs each display three lines labeled 'Min', 'Average', and 'Max' from 2020 to 2050. The Optimistic Pathway graph has green lines, the Current Trend Pathway graph has orange lines, and the Pessimistic Pathway graph has red lines. All three graphs have a y-axis ranging from 0 to 6.

**WATER STRESS RISKS**

Risks that affect the availability of water for production processes, i.e., the possibility that, given the availability of water, there could be a shortage for manufacturing and auxiliary processes (cooling, cleaning, etc.). Climate change in particularly vulnerable areas could lead to chronic water stress, impeding access to quality water.

This risk is a clear example of how new variables can inject robustness into our assessment: using the WWF tool (*https://riskfilter.org/water/home*), we were able to analyse the physical risk scenarios related with water. Below is the risk weighting for CIE Automotive's sites for a combination of physical risks: water scarcity, flooding, water quality, and ecosystem services status.

The chart above shows the trend in this risk over time in three scenarios: the optimistic pathway, the current pathway and the pessimistic pathway.

The company has analysed the situation across its various factories and at the water basins near their locations. In addition, in order to increase circularity, particularly with respect to the use of water,

each factory has launched initiatives to reduce the use of water and increase its reuse by installing filtering and treatment facilities, some of which have resulted in drastic improvements in circularity.

### **Action plan and risk mitigation**

**2050 HORIZON**

Current pathway trend.

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0) 1**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/181/Picture/19 description: The image shows the CIE Automotive logo. On the left is a stylized letter C, formed by two curved black shapes that do not quite meet. To the right of the C is the text "CIE Automotive" in a simple, sans-serif font. The word "CIE" is slightly larger and bolder than the word "Automotive".

he availability of water, there could be a shortage
rly vulnerable areas could lead to chronic water

Image /page/181/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large quotation mark and the number 23.

{182}------------------------------------------------

## The entire process is monitored via the **internal management tool, SAP GRC**

The next steps in assessing the company's climate risks will be:

#### **TRANSITION RISKS**

- Improving scenario generation and variable selection.
- Advancing on measurement of the financial impact, adapting for the deployment of standards and requirements.

#### **PHISICAL RISKS**

- Completing the scope of the analysis shown in the schematics above as under development.
- Advancing on measurement of the financial impact, adapting for the deployment of standards and requirements.

![icon of a browser with a weather icon and an alert](image.png)

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready for change**

**Record earnings**

**Common responsibility, shared benefits**

**Our response to** 

**Responsible [management](#page-183-0)**

**[the environmental](#page-141-0)  challenge 1[2](#page-15-0)[3](#page-53-0)[4](#page-64-0)56**

> About [this report](#page-229-0)

[Data tables](#page-261-0)

Image /page/182/Picture/15 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is black, and the words "CIE Automotive" are also black. The background is green.

Image /page/182/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters. To the right of the words is a large number "23" in black with a gray quotation mark above it.

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# **Responsible management**

**Co**

### **[Corporate governance model](#page-185-0)**

**[Corporate governance bodies](#page-187-0)**

**[Ethics framework](#page-199-0)**

**[Risk management](#page-205-0)**

**Corporate crime [prevention model](#page-217-0) [Internal control model](#page-223-0)**

**[Integration of ESG aspects](#page-226-0)**

Image /page/183/Picture/17 description: A close-up shot of a dark, draped fabric, possibly clothing, filling most of the circular frame. The fabric has a textured surface with folds and creases, suggesting a heavy material. The lighting is subdued, with shadows and highlights creating depth and dimension in the fabric's texture. The overall tone is somber and muted due to the dark color palette.

Image /page/183/Picture/19 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter 'C' on the left and the text 'CIE Automotive' on the right. The 'C' is formed by two curved lines that do not fully connect, creating an incomplete circle. The text 'CIE Automotive' is in a simple, sans-serif font, with 'CIE' slightly larger than 'Automotive'.

e
ent

Chairman and CEO's [statement](#page-2-0)

**2023 1 highlights**

**Ready 2** [for change](#page-15-0)

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible management 6**

<span id="page-183-0"></span>Image /page/183/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is the number 23, with a quotation mark above the number 2.

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*Guided by management based on moral principles. Doing things well, while minimising risks, makes us credible to our customers, attractive to investors and trustworthy in the eyes of our stakeholders.*

Chairman and CEO's [statement](#page-2-0)

**2023 1** [highlights](#page-5-0)

**Ready 2** [for change](#page-15-0)

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/184/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large number "23".

Image /page/184/Picture/1 description: The image is a dark, blurry, and indistinct photograph. A thin, white diagonal line is visible across the image, running from the upper right to the lower left. The background is a uniform dark green, with no discernible features or objects.

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**6.1**

# **Corporate governance model**

**Guided by its moral principles, CIE Automotive has built a corporate governance structure with a view to ensuring its long-term sustainability and generating value for its stakeholders. This model, built around transparency, is based on a body of rules and regulations that determine how its governing bodies work, how it engages with its stakeholders and which risk management mechanisms to use.**

Image /page/185/Picture/14 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the text "CIE Automotive" on the right. The letter C is made up of two curved shapes, one above the other, that do not quite meet in the middle. The text "CIE Automotive" is in a simple, sans-serif font.

Chairman and CEO's [statement](#page-2-0)

**2023 1** [highlights](#page-5-0)

**Ready 2** [for change](#page-15-0)

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

<span id="page-185-0"></span>Image /page/185/Picture/0 description: The image shows the words "ANNUAL REPORT" in large, bold, white letters on the left side of the image. To the right of the words is a large number "23" in white. The background is dark and blurry.

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## **CIE Automotive is a member of the Transparency, Integrity and Good Governance Cluster**, a business platform coordinated by Forética in Spain

coordina

The most significant components of this body of rules and regulations are the Bylaws, the rules regulating the company's governing bodies, the Code of Professional Conduct, the Internal Securities Markets Code of Conduct and the Corporate Crime Prevention Manual. These tests are in turn complemented and rounded out by the universe of corporate policies approved at the Board level.

CIE Automotive reviews its rules and regulations regularly in order to keep them aligned with the securities market regulator's requirements and recommendations, prevailing legislation and best practices in the corporate governance field. In 2023, it modified the Whistleblowing Channel Rules to facilitate the notification of breaches and guarantee the confidentiality of whistleblowers, in line with new legislation, and updated its Director Remuneration Policy to align it with market trends.

Towards the end of 2023, it also embarked on a project to enable it to comply with all of the parameters proposed by Transparency International Spain (the leading organisation in transparency) in the areas of compliance, anti-corruption and good governance, a task that involves changes in the following areas:

- The Whistleblowing Channel and system at the global level, in accordance with Law 2/2023 in Spain, with the goal of establishing a common system for all group companies, albeit with scope for catering to idiosyncratic circumstances in appendices.
- The criminal risk map and the criminal risk, fraud and corruption prevention policies.
- A new basic anti-trust guide.
- Identification and introduction of a range of recommendations for preventing the various kinds of harassment.
- Review and improvement where necessary of the corporate governance policies and ESG.

In parallel, the controls over the risk management system were revised, expanding the risk map with input from a

Both the rules and regulations formulated by the group and its Annual Corporate Governance Reports and Annual Director Remuneration Reports are published on the corporate website, in keeping with the technical and legal formalities and specifications stipulated by Spain's securities market regulator, the CNMV, in Circular 3/2015 (of 23 June 2015).

higher number of professionals. Lastly, the company deployed its criminal risk map in new markets, including Italy, Romania and Slovakia, and carried out its criminal risk assessment in Portugal, leaving only preparation of the country's criminal risk map outstanding for early 2024. CIE Automotive is a member of the Transparency, Integrity and Good Governance Cluster, a business platform coordinated by Forética in Spain with the aim of championing a sustainable corporate governance model and addressing a range of topics related with the management of ESG matters, providing information about key trends in the field and creating a venue for firms to engage and exchange know-how.

### **Participation in Forética**

In 2023 the Cluster's work focused on the keys to helping organisations integrate ESG considerations into their governance and decision-making, addressing core issues to that end such as non-financial information/ sustainability reporting, the new Corporate Sustainability Reporting Directive, supply

chain management from the ESG perspective and ESG governance and management in boardrooms, among other topics.

**responsibility, [shared benefits](#page-64-0)**

Chairman and CEO's [statement](#page-2-0) **2023 [highlights](#page-5-0) Ready [for change](#page-15-0) Record [earnings](#page-53-0) Common 1 2 3 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/186/Picture/21 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left, followed by the text "CIE Automotive" on the right. The letter C is formed by two curved lines that do not fully connect, creating an incomplete circle shape. The text "CIE" is in a bold, sans-serif font, while "Automotive" is in a lighter, sans-serif font.

Image /page/186/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large number "23" with a quotation mark above it.

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**6.2**

CIE Automotive

# **Corporate governance bodies**

**CIE Automotive's most important governance bodies are the Annual General Meeting and the Board of Directors.**

Image /page/187/Picture/15 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of two curved shapes, one above the other, with a gap between them. The words "CIE Automotive" are in a sans-serif font.

Chairman and CEO's [statement](#page-2-0)

**2023 1** [highlights](#page-5-0)

**Ready 2** [for change](#page-15-0)

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

<span id="page-187-0"></span>Image /page/187/Picture/0 description: The image shows the words "ANNUAL REPORT" on the left side of the image, and the number "23" on the right side of the image. The number 23 is large and white, and the words "ANNUAL REPORT" are smaller and white.

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The AGM took place on 4 May 2023 and **was attended by 400 shareholders**, in person or via proxy, representing

# **87.1% of the company's share capital**

# Annual General Meeting

The Annual General Meeting (AGM) is highest decision-making body at which CIE Automotive's shareholders exercise their influence. Its duties and powers are regulated in the Articles of Association and the AGM Regulations.

As per those Regulations, shareholders of record within at least five days of the scheduled meeting date are entitled to attend the AGM. The members of the Board of Directors are obliged to attend the Meeting under article 10 of the AGM Regulations. The quorum for calling the AGM to order is that stipulated in article 196 of the Spanish Corporate Enterprises Act.

In 2023 the AGM took place on 4 May and was attended by 400 shareholders, in person or via proxy, representing 87.1% of the company's share capital.

To ensure the attendees were duly identified and could exercise their rights as shareholders, in the run-up to the AGM, they were asked to register and record their requests for information or clarification; those requests were answered during the AGM.

### **Resolutions ratified at the Annual General Meeting**

- Examination and approval of the separate financial statements and directors' report of CIE Automotive, S.A. and of the consolidated financial statements and directors' report for 2022.
- Grant of discharge to the Board of Directors.
- Approval of the proposed distribution of profit for 2022.
- Examination and approval of the non-financial statement of the group comprising CIE Automotive S.A. and its subsidiaries for 2022.
- Grant of authorisation to the Board of Directors 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, and the reduction of share capital to cancel own shares, delegating powers for the execution thereof in the Board of Directors.
- Ratification and appointment of Ms. Abanti Sankaranarayanan as proprietary director. • Approval of the minutes of the meeting.
- Approval of the Director Remuneration Policy for 2024-2026.
- Approval of changes to the terms of the long-term variable remuneration scheme tied to the company's share price performance of which the CEO is the beneficiary.
- Approval of the maximum amount of remuneration payable to the directors in their capacity as such.
- Submission of the Annual Report on Director Remuneration at CIE Automotive, S.A. to advisory vote.
- Delegation of powers to execute the aforementioned resolutions.

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0) 1**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

#### **Responsible [management](#page-183-0) 6**

Image /page/188/Picture/27 description: The image shows the CIE Automotive logo. On the left is a stylized letter C, formed by two curved shapes facing each other. To the right of the C is the text "CIE Automotive" in a simple, sans-serif font.

Image /page/188/Picture/0 description: The image shows the words "ANNUAL REPORT" on the left side of the image. To the right of the words is a large number "23" with a quotation mark above it.

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| Appointments<br>and Remuneration<br>Committee | Audit and<br>Compliance<br>Committee | ESG<br>Committee |
|-----------------------------------------------|--------------------------------------|------------------|
| Chairwoman                                    | Member                               | Member           |
| Member                                        | Member                               | Chairwoman       |
| Member                                        | Chairwoman                           | Member           |
|                                               | Member                               | Member           |
|                                               | Member                               |                  |
| Member                                        |                                      |                  |
|                                               | Member                               | Member           |

|                                 | Position                | Class<br>of director | Appointments<br>and Remuneration<br>Committee | Audit and<br>Compliance<br>Committee | ESG<br>Committee |
|---------------------------------|-------------------------|----------------------|-----------------------------------------------|--------------------------------------|------------------|
| Antonio María Pradera Jáuregui  | Chairman                | Proprietary          |                                               |                                      |                  |
| Fermín del Río Sanz de Acedo    | Deputy chairman         | Executive            |                                               |                                      |                  |
| Jesús María Herrera Barandiarán | Chief Executive Officer | Executive            |                                               |                                      |                  |
| Arantza Estefanía Larrañaga     | Member                  | Independent          | Chairwoman                                    | Member                               | Member           |
| María Eugenia Girón Dávila      | Member                  | Independent          | Member                                        | Member                               | Chairwoman       |
| Elena María Orbegozo Laborde    | Member                  | Independent          | Member                                        | Chairwoman                           | Member           |
| Íñigo Barea Egaña               | Member                  | Proprietary          |                                               |                                      | Member           |
| Javier Fernández Alonso         | Member                  | Proprietary          |                                               | Member                               |                  |
| Jacobo Llanza Figueroa          | Member                  | Proprietary          |                                               |                                      |                  |
| Francisco José Riberas Mera     | Member                  | Proprietary          | Member                                        |                                      |                  |
| Jon Riberas Mera                | Member                  | Proprietary          |                                               |                                      |                  |
| María Teresa Salegui Arbizu     | Member                  | Proprietary          |                                               | Member                               | Member           |
| Abanti Sankaranarayanan         | Member                  | Proprietary          |                                               |                                      |                  |
| Shriprakash Shukla              | Member                  | Proprietary          |                                               |                                      |                  |
| José Ramón Berecibar Mutiozabal | Secretary, non-member   |                      |                                               |                                      |                  |

# Board of Directors

#### **BOARD OF DIRECTORS (AS OF 31 DECEMBER 2023)**

CIE Automotive's Board of Directors is made up of 14 members, including its Chairman, who does not carry out executive duties. Two are executive directors, three are independent and nine are proprietary.

The balance between independent and proprietary directors in the boardroom is correlated with the breakdown between floating capital (in the hands of ordinary shareholders) and stable capital (shares held by significant shareholders). The independent directors chair and represent the majority of members of the Appointments and Remuneration Committee, the Audit and Compliance Committee and the ESG Committee.

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0)**

**Record [earnings](#page-53-0)**

**Common responsibility, [shared benefits](#page-64-0)**

**Our response to [the environmental](#page-141-0)** 

**challenge**

About [this report](#page-229-0)

#### **Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**1**

**2**

**3**

**4**

**5**

Image /page/189/Picture/11 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of two curved lines that do not quite meet, creating a gap in the middle. The words "CIE Automotive" are written in a simple, sans-serif font.

Image /page/189/Picture/0 description: The image shows the text "ANNUAL REPORT" on the left side and the number "23" on the right side. There is a quotation mark above the number 23.

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#### **Diversity**

The recent director additions have reinforced the boardroom's expertise in financial management, the automotive sector, ESG matters, strategy, new mobility and the electric vehicle, multinational management, IT, digitalisation and data management, areas that are essential to the industry's transformation.

In terms of boardroom gender diversity, at year-end 2023 there were five women and nine men on the Board of Directors, implying a female presence of 35%. Although that percentage has been increasing in recent years with the newest additions, the company has yet to reach the 40% recommended in the Code of Good Governance for Listed Companies.

Twelve of the directors are Spanish and two are Indian.

### **Board functioning**

The Board of Directors' modus operandi is set down in the company's Articles of Association and Board Regulations. In 2023, the Board of Directors met on 6 occasions and all the meetings were presided by its Chairman.

#### **Audit and Compliance Committee**

Comprised of five members (three independent directors and two proprietary directors), this committee's purview is to oversee the financial and non-financial reporting process and ensure the independence and effectiveness of the internal audit function. Its duties include revising the internal control and financial, tax and non-financial risk management systems, selecting, appointing and replacing the auditor and taking receipt of information from the auditor, whose independence it must safeguard..

This committee held 5 meetings in 2023.

#### **Appointments and Remuneration Committee**

Made up of four directors (three independent and one proprietary), this committee is tasked, among other duties, with formulating and reviewing the criteria for selecting director candidates, evaluating the directors' performance, proposing and monitoring the director remuneration system, in particular the amounts of their annual pay, and overseeing new director selection procedures.

It met on 4 occasions in 2023.

#### **ESG Committee**

This committee is made up of five members (three independent directors and two proprietary directors) and its mission is to push through CIE Automotive's ESG strategy.

It met on 3 occasions in 2023.

To optimise its efficiency, the Board of Directors organises its work through committees.

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0)**

**Record [earnings](#page-53-0)**

**Common responsibility, [shared benefits](#page-64-0)**

**Our response to [the environmental](#page-141-0)** 

**challenge**

**Responsible [management](#page-183-0)**

About [this report](#page-229-0)

[Data tables](#page-261-0)

**1**

**2**

**3**

**4**

**5**

**6**

Image /page/190/Picture/17 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left and the words "CIE Automotive" on the right. The "C" is black, and the words "CIE Automotive" are in a sans-serif font.

Image /page/190/Picture/0 description: The image shows the text "ANNUAL REPORT" on the left side and the number "23" on the right side. The number 23 is large and bold, and there is a gray quotation mark above it.

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Image /page/191/Picture/12 description: This image shows a man with short, graying hair, wearing a dark suit jacket over a light blue patterned shirt and a red and blue patterned tie. He has a light complexion and a slight smile. The background is a soft, gradient white.

**ANTONIO MARÍA PRADERA JAUREGUI** CHAIRMAN (PROPRIETARY)

A Road Engineering graduate from Madrid's Polytechnic University, Mr. Pradera began his career in 1979 as a director at Banco Bilbao, where he worked until 1985. In 1988, he was named executive director of Nerisa, where he stayed until 1993, when he moved to SEAT as director of strategy. He played an important role in the creation of INSSEC in 1995, where he served as chief executive until 2010. He served as the Executive Chairman of CIE Automotive from 2012 until 2017, working in the strategy and financial design departments; he also chaired Global Dominion Access, S.A. Since May 2015, he has been a director at Tubacex and since June 2015, a director at Corporación Financiera Alba. On 31 December 2017, he stepped down from his executive duties at CIE Automotive, thus reinforcing the company's corporate governance practices.

Image /page/191/Picture/14 description: This is a headshot of an older man with white hair and a white mustache. He is wearing a dark suit jacket and a blue patterned tie. The background is a light gray color.

**FERMÍN DEL RÍO SANZ DE ACEDO** VICE-CHAIRMAN (EXECUTIVE DIRECTOR)

A business studies graduate (San Sebastian). He began his career as tax advisor in 1975 and is the founder of Norgestión (a consultancy specialised in mergers & acquisitions, tax law and finance). He provided services to this firm until 2008. He has also headed up ADEGI (the Guipuzcoa business association) and been a member of CONFEBASK, the Basque committee of business owner associations. He chaired Autometal S.A. in the past and has sat on the boards of a number of companies in the manufacturing industry, including Fegemu S.A., Viveros San Antón, S.A. and Global Dominion Access S.A. He is currently a member of the board of Alai Extrusión, S.A. Basquevolt and Marcos Larrañaga y Cia, S.A.

Image /page/191/Picture/17 description: This is a close-up shot of a man with curly gray hair, wearing a dark suit jacket and a white shirt. He is smiling, and his face is well-lit. The background is a soft, gradient white.

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**JESÚS MARÍA HERRERA BARANDIARAN** CHIEF EXECUTIVE OFFICER (EXECUTIVE DIRECTOR)

A graduate of business studies and economics from the Basque University, Mr. Herrera also holds a Master of International Expansion (from Euroforum). He joined CIE Automotive as CFO in 1991, also heading up the HR function for CIE Orbelan. In 1995, he was named deputy manager and in 1998 he was promoted to general manager. In 2000, he took over management of CIE Brazil and in 2002, of CIE Plasfil. That same year he was named global director of CIE Plástico, a position he held until 2005, when he took up the general manager spot at CIE America. He has been the CEO of Autometal S.A. since 2010 and in 2011 he was named COO for the entire Group; just a year later he would be named general manager of CIE Automotive. Lastly, in 2013, the Board of Directors appointed him CEO of CIE Automotive. He is also a director at Global Dominion Access, S.A.

### **DIRECTOR RESUMES**

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0) 1**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/191/Picture/20 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" in a simple, sans-serif font. The letter "C" is formed by two curved shapes, one above the other, creating a crescent-like appearance. The text is aligned horizontally with the letter "C" and is in a dark color, likely black or a dark gray.

Image /page/191/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters on the left side of the image. To the right of the words is a large number "23" in black, with a gray quotation mark above the number.

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**ARANTZA ESTEFANÍA LARRAÑAGA** LEAD INDEPENDENT DIRECTOR (INDEPENDENT DIRECTOR)

Arantza graduated in law with highest honours from Deusto University. From 2000 to 2019, she has been Managing Partner of the Bilbao office of Uría Menéndez Abogados S.L.P., member of the Board of Directors, the Professional Practice Management Committee and the Criminal Risk Prevention Committee of the firm. She has been an independent director of Repsol, S.A. since May 31st, 2019, a member of its Sustainability Committee since that date, and a member of the Remuneration Committee since November 24th, 2021, to which date she was a member of its Nomination Committee. Since July 2021, she has been a Director and Secretary of the Board of Directors of its subsidiaries Repsol Industrial Transformation, S.L. Sociedad Unipersonal and Repsol Customer Centric, S.L. Since 8 May 2020, she has been an independent director of Global Dominion Access, S.A., having chaired its Audit Committee until May 12, 2021. She is currently a member of the Audit Committee and a member of the Sustainability Committee. Since May 2019, she has been a member of the group of experts of the Economic and Social Council of the Basque Country, chairing the Economic Committee of said body since December 2019. She is Secretary of the Board of Directors of Bilbao Exhibition Centre S.A.

Image /page/192/Picture/13 description: This is a headshot of a woman with long, wavy brown hair. She is smiling and wearing a red top. Her left hand is raised to her face, and she is wearing a ring on her ring finger. The background is white.

**MARÍA EUGENIA GIRÓN DÁVILA** DIRECTOR (INDEPENDENT)

Image /page/192/Picture/15 description: This is a portrait of a woman with shoulder-length blonde hair. She is smiling and has fair skin. She is wearing a gray and white patterned scarf or top. The background is a solid white color.

Senior Industrial Engineering qualification from ICAI and Master's in Business Administration from Harvard Business School. She has been a Director at Loewe and CEO of Carrera y Carrera after leading the "Management Buy in" process. She is Vice Chair of the International Board of Trustees of Oceana and member of the Board of Trustees of la Real Fábrica de Tapices and IE University as well as President of the Diversity Foundation. She is a member of the jury of the European Innovation Council Accelerator of the European Commission and the Green Deal. She is also Co-Chair of Women Corporate Directors and a member of the Board of Board Members and Directors. She is currently Executive Director of IE University Premium & Prestige Observatory, and a member of the advisory board of companies in the premium sector.

**ELENA MARÍA ORBEGOZO LABORDE** DIRECTOR (INDEPENDENT)

Bachelor's degree in Mathematical Sciences. She has spent part of her professional career in a multinational company which provides technology services, focused on Information Management and Bigdata. Ms. Elena María Orbegozo Laborde is a forward-thinking account manager with a demonstrated background of achievements in the IT sector over a career of over 30 years. Ambitious and dynamic change manager, dedicated to ongoing business improvement, focused on revenue enhancement and the streamlining of business operations. Focused to profit

optimization.

Chairman and CEO's [statement](#page-2-0)

**[shared benefits](#page-64-0)**

**2023 [highlights](#page-5-0) 1**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) Common responsibility, 3 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

#### **Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/192/Picture/10 description: This image shows a woman with blonde hair wearing a light-colored blazer. She has fair skin and is looking directly at the camera with a neutral expression. The background is a plain white color.

Image /page/192/Picture/19 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of two curved shapes that do not quite meet, creating a gap in the middle. The words "CIE Automotive" are written in a simple, sans-serif font.

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**ÍÑIGO BAREA EGAÑA**  DIRECTOR (PROPRIETARY)

Aeronautical Engineer from the Polytechnic University of Madrid and the École Nationale Supérieure de l'Aéronautique et de l'Espace and MBA from IESE Business School, Iñigo Barea began his professional experience as an engineer specialising in propulsion systems integration at Airbus. After working for the strategic consulting firm A.T. Kearney, where he worked on various international projects focused on improving operational efficiency, in 2020 he joined the technology company Just Eat, where he currently holds the position of general manager of Just Eat Spain.

Image /page/193/Picture/14 description: This is a headshot of a middle-aged man with short, dark hair and a fair complexion. He is wearing a suit jacket and a blue tie with a small pattern. The background is a plain, light gray color.

**JAVIER FERNÁNDEZ ALONSO**  DIRECTOR (PROPRIETARY)

Degree in Business Administration and Management with Honours from Deusto University, with a major in Finance. In 2000, he began his professional career in investment banking and mergers and acquisitions at Goldman Sachs in London and later, in 2002, he joined ABN AMRO in Madrid. In 2006, he joined the Investment Department of Corporación Financiera Alba and was appointed Deputy Chief Investment Officer in 2007, Chief Investment Officer in 2012 and Managing Director in 2020, a position he currently holds. He is currently, on behalf of Alba, a member of the Board of Directors of CIE Automotive, Ebro Foods, Profand Fishing Holding, Viscofan and the Rioja and Rioja Acquisition vehicles (Naturgy). Previously, he was a Director, among others, of Acerinox, ACS, Dragados, ACS Servicios y Concesiones, Euskaltel, Parques Reunidos and Clínica Baviera. In addition, he is a Director of the group's private equity vehicle and a member of the Investment Committee of two funds managed by Artá Capital.

Image /page/193/Picture/17 description: This is a headshot of a middle-aged man with dark hair and a light complexion. He is wearing a gray suit jacket, a light blue shirt, and a red tie. He is smiling slightly and looking directly at the camera. The background is a plain white color.

A graduat
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banking, s
at Banque
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Chairmar

#### **JACOBO LLANZA FIGUEROA** DIRECTOR (PROPRIETARY))

A graduate of economic and business science from the University of Paris. Jacobo built his career in investment banking, starting out in 1989 in a number of positions at Banque Indosuez and Bancapital, before going on to create and run AB Asesores Moneda in 1992, an AB Asesores group company. Following the sale of this firm to Morgan Stanley in 1999, he joined Dresdner Kleinwort Wasserstein, where he worked as managing director of equities & derivatives for Latam, Eastern Europe, Africa and the Middle East. In 2002, he joined Alantra (formerly N+1), where he is currently a Managing Partner and Executive Chairman, as well as CEO of Alantra Asset Management.

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

#### **Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**1**

Image /page/193/Picture/20 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of two curved shapes that do not quite meet, creating a gap in the middle. The words "CIE Automotive" are written in a simple, sans-serif font.

Image /page/193/Picture/0 description: The image shows the words "ANNUAL REPORT" in large, bold, black letters. To the right of the words is a large number "23" with a quotation mark above it.

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Image /page/194/Picture/11 description: This is a headshot of a man with gray hair, wearing a dark blue suit and a purple tie. He has a light complexion and appears to be middle-aged or older. The background is a plain white color.

**FRANCISCO JOSÉ RIBERAS MERA**  DIRECTOR (PROPRIETARY)

Francisco J. Riberas Mera was born in Madrid, June 1st, 1964. He holds a degree in Law (1987) and in Economics and Business Administration (1988) from the University Pontificia de Comillas (ICADE E-3), Madrid. In 1989 he began his professional career working in Business Management at Gonvarri Group. He then became Director of Corporate Development, and was subsequently named CEO. In 1997 he promoted the creation of Gestamp, assuming his role of Executive Chairman and shaping along these years what Gestamp is today. He is member of the Board of Telefónica, CIE Automotive and Wallbox. Furthermore, Riberas is also board member in other companies of the family holding, ACEK, such as Gonvarri Group, Acek Energías Renovables and Inmobiliaria Acek. Francisco J. Riberas is thepresident of SERNAUTO -the Spanish Association of Automotive Suppliers-, and Fundación Consejo España-China.

Image /page/194/Picture/14 description: This is a portrait of a middle-aged man with short, graying hair and a neatly trimmed beard. He is wearing a blue suit jacket and a blue tie with white polka dots. The background is plain white. The man is looking directly at the camera with a slight smile.

**JON RIBERAS MERA** DIRECTOR (PROPRIETARY)

Image /page/194/Picture/16 description: This is a headshot of a woman with shoulder-length brown hair. She has fair skin and is smiling broadly, revealing her teeth. She is wearing a dark-colored top, possibly a jacket or blazer. The background is a soft, neutral color, likely white or light gray.

Jon Riberas was born in Madrid in 1968. He has a degree in Law (1991) and a degree in Economics and Business Administration (1992) from the Pontificial University of Comillas (ICADE E-3). In 1992, he began his professional career in the Business Development area of Grupo Gonvarri, to later assume functions as CEO. In 2005, he founded ACEK Renewables. In 2010, he was appointed Executive Chairman of Gonvarri Industries and Co-Chairman of Corporación ACEK, the family holding. Currently, he is Co-Chairman of the family holding, Executive Chairman of Gonvarri Industries, Executive Chairman of GRI Renewable Industries, Vice president and member of the Board of Directors of Gestamp, and member of the Board of Directors of CIE Automotive and Global Dominion.

#### **MARÍA TERESA SALEGUI ARBIZU** DIRECTOR (PROPRIETARY)

A graduate of economic and business science from Deusto University. Ms. Salegui began her career at the transport firm La Guipuzcoana (1988-2002), where she worked as general manager, a position she also held at DHL Express Iberia (2002-2004). She is currently the chairwoman of Addvalia Capital and Perth Espacio y Orden and and currently sits on the board of Baztango.

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0) 1**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/194/Picture/20 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter "C" on the left and the words "CIE Automotive" on the right. The letter "C" is made up of two curved shapes that are black. The words "CIE Automotive" are in a sans-serif font and are black.

Image /page/194/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large quotation mark and the number 23.

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Image /page/195/Picture/13 description: This is a headshot of a man with graying hair and a beard. He is wearing a gray suit jacket and a white shirt. The background is a light gray color.

**SHRIPRAKASH SHUKLA** DIRECTOR (PROPRIETARY)

Mr. SP Shukla is a nationally recognised business leader who combines the best of academic excellence (IIT BHU & IIM Ahmedabad) along with a stellar career in establishing emerging high-tech sectors of the Indian economy. He is currently serving as the Chairman on the Boards of several Mahindra Group companies engaged in Defence, Aerospace and Agri sectors. He is also Chairman of CIE Automotive India Ltd. Mr. Shukla is among the top-most industry leaders in India with over four decades of rich, varied experience in managing large projects and operations across diverse industries, including Automotive Tyres & Components, Telecom, Defence & Aerospace, Steel and Agri sectors.

## At the end of 2023, **five women and nine men** sat on the Board of Directors

Image /page/195/Picture/11 description: This is a portrait of a woman with dark hair and brown skin. She is wearing gold earrings and has a small red dot on her forehead. She is smiling slightly and looking directly at the camera. The background is a plain white wall.

**ABANTI SANKARANARAYANAN** DIRECTOR (PROPRIETARY)

Abanti Sankaranarayanan, leads Group Public Affairs (India & international), Group Sustainability and Group Risk & Economist functions at Mahindra and Mahindra Ltd., and is also a member of the Group Executive Board. She is also Member of the Executive Council of Society of Indian Automobile Manufacturers (SIAM) and Chair, CII Working Group for Transportation, and also the Co Chair of the Federation of Indian Chambers of Commerce & Industry Committee on Environment & Climate Change for 2024. Prior to joining Mahindra, she was Head of the Strategy and Corporate Affairs function at Diageo India and a member of its Executive Committee. Prior to Diageo, Abanti served as a member of the Tata Administrative Service (TAS) where she held key roles managing some of the bestknown consumer brands of the Tata Group in India, United Kingdom and the United States. Abanti's contribution to the business have been recognized by Fortune India (The Most Powerful Women in Business; 2012, 2014, 2015 and 2016), IMPACT (50 Most Influential Women in Media, Marketing and Advertising; 2014, 2015, 2016 and 2017), India Today (India's 25 Most Influential Women, 2013) and Fast Company, New York (100 Most Creative People in Business, 2012). Abanti is an Economics Graduate from St. Stephen's College, Delhi and an MBA from Indian Institute of Management (IIM), Ahmedabad.

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/195/Picture/20 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is black, and the words "CIE Automotive" are in a sans-serif font.

Image /page/195/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters on the left side of the image. To the right of the words is a large gray quotation mark and the number 23 in bold, black letters.

Image /page/195/Picture/1 description: The image shows the number 23 in bold, dark font, followed by a forward slash and the words "Responsible management" in a lighter, thinner font.

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#### **Director performance evaluation**

In keeping with recommendation #36 of Spain's Code of Good Governance for listed companies, the company's Board of Directors assesses its performance once a year, focusing on the areas mentioned next and adopting, where necessary, an action plan to correct weakness detected.

- 1. The quality and efficiency of the functioning of the Board
- 2. Boardroom composition
- 3. The composition and functioning of the Board committees
- 4. ESG aspects
- 5. Communication policy
- 6. Succession planning
- 7. The performance of the Chairman and CEO
- 8. The performance and contribution of each director
- 9. Other aspects

The assessment report compiled in January 2023 by the appraiser Evaluación de Consejos (EdC) (whose methodology and findings were outlined in detail in the 2022 Annual Report) concluded that the aggregate quantitative results indicated strong satisfaction with the performance of the Board of Directors and its committees, higher than the average at similar companies. The individual areas identified in the report as presenting more room for improvement, even though the results were better than are customary for comparable companies, were:

- Succession planning
- Communication policy

The findings of that report were shared with the Board of Directors during its meeting on 24 February 2023, as a result of which the CEO was put in charge of the company's communication policy. In addition, the Appointments and Remuneration Committee drew up CIE Automotive, S.A.'s Succession and Contingency Plan for submission to the Board of Directors for approval. That plan was approved by the Board of Directors on 14 December 2023.

Elsewhere, the Lead Independent Director, duly exercising her duties, communicated constantly with the rest of the independent directors throughout the year, echoing any concerns they had and sharing them with the Chairman or Vice Chairman.

In 2023 the company also focused on director training around sustainability matters in general, governance and the latest reporting, taxonomy and environmental regulations, without neglecting company issues. A specific session was provided to all members of the Board, another more generalist session was given online to the entire organisation, including the directors, and the members of the ESG Committee, along with the members of the Cross-Group ESG Committee received a separate exclusive session. All of which in line with the company's commitment to making firm progress on integrating these aspects into its business model and corporate strategy.

Chairman and CEO's [statement](#page-2-0) **2023 [highlights](#page-5-0) Ready [for change](#page-15-0) Record [earnings](#page-53-0) Common responsibility, [shared benefits](#page-64-0) Our response to [the environmental](#page-141-0)  challenge Responsible [management](#page-183-0) 1 2 3 4 5 6**

> About [this report](#page-229-0)

[Data tables](#page-261-0)

Image /page/196/Picture/22 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter "C" on the left and the text "CIE Automotive" on the right. The "C" is made up of two curved black shapes that do not quite meet, forming an incomplete circle. The text "CIE Automotive" is in a simple, sans-serif font, with "CIE" in a bolder weight than "Automotive". The logo is in black and white.

Image /page/196/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large number "23" with a quotation mark above the number.

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Service Network Steering Committee

INDIA

CEO Ander Arenaza

Aluminium / Stamping / Forging / Composites / Magnets & Gears Manoj Menon

> Forging Hari Krishnan

Roof Systems Aitor Zazpe

#### CHINA

Stamping / Forging Justino Unamuno

Roof Systems Aitor Zazpe

**Service Network**

EUROPE

Aluminium / Machining Ander Arenaza

Plastic / Roof Systems Aitor Zazpe Stamping / Forging

Justino Unamuno

Image /page/197/Figure/2 description: This image shows the management team as of December 31, 2023. The management team directly oversees management of the Business Units and coordination with the Corporate Areas with authority across all of CIE Automotive, including the Network Services. The CEO is Jesús Ma Herrera. The Corporate Development is Lorea Aristizabal. The ESG & Compliance is Susana Molinuevo. The Controlling & Taxes is María Miñambres. The Finance & Treasury is Irache Pardo. The Sales is Mikel Orbegozo. The Supply Chain is Irache Pardo. The Engineering Quality & Enviroment is Iñigo Loizaga. The R&D is Jose Esmoris. The Human Resources is Aitor Zazpe. The UNITED STATES General Manager is Fernando Ortega. The Plastic is Joe Carroll. The Machining is James M. Smith. The Roof Systems is Aitor Zazpe. The MEXICO General Manager is Óscar González. The Controlling is Juvenal Guerrero. The Pemsa Celaya is Óscar González. The Pemsa Saltillo is José Enríquez. The Stamping/Aluminium is Jose Luis Castelo. The Machining is Edmundo Fernández. The Forging is Guillermo Ramírez. The Plastic is José Enríquez. The BRAZIL Corporative Director is Ignacio M. Conde. The Controlling is Julio Sanches. The Autometal Diadema is Amable Barrasa. The Plastic is Alexandre Colomar. The Stamping is Valdir Pereira. The Forging/Aluminium/Machining is Xabier Sainz. The Casting is Felipe Gurgel. The EUROPE Aluminium/Machining is Ander Arenaza. The Plastic/Roof Systems is Aitor Zazpe. The Stamping/Forging is Justino Unamuno.

Roof Systems Aitor Zazpe

Finance & Treasury Irache Pardo

#### Controlling & Taxes María Miñambres

198

Image /page/197/Picture/5 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter "C" on the left and the words "CIE Automotive" on the right. The letter "C" is made up of two curved shapes that are open on the right side. The words "CIE Automotive" are written in a simple, sans-serif font.

1, 2023

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## Director and officer remuneration

*(\*) Directors receiving remuneration: two executive directors, three independent directors and the chairman*

#### **DIRECTOR AND KEY MANAGEMENT REMUNERATION**

#### *https://www.cieautomotive.com/web/investors-website.*

At the Annual General Meeting held in March 2023, a new Director Remuneration Policy was approved for 2024-2026. The goal of the new text is once again to ensure that the remuneration earned by CIE Automotive's directors is proportionate to the dedication and responsibilities assumed and aligned with market practices at comparable companies in Spain and abroad and with the long-term interests of all of the company's shareholders.

#### **Director remuneration**

Although the new Director Remuneration Policy is similar in structure to the outgoing policy, there have been a few changes. The terms of the long-term bonus tied to the company's share price performance accrued by the CEO have been adjusted to reflect the radical change in the socio-economic context and the company's share price performance since 2018, when the bonus was approved.

The Director Remuneration Policy stipulates that the fixed annual stipend for directors shall only be paid to non-executive directors that are particularly dedicated to the company, i.e., the chairman of the Board of Directors and the independent directors. The ceiling on director remuneration was increased at the 2023 AGM.

As under the outgoing policy, the full-time executive directors' remuneration regime is similar to that of the company's executives. Their remuneration comprises: fixed remuneration, a short-term, results-based bonus and, in the case of the CEO, a longterm bonus, conditional upon staying in the post for 10 years. The executive directors may also receive in-kind remuneration in the form of use of a company car.

The remuneration earned by the executive directors varies along with their responsibilities and the specific characteristics of the duties they perform and is reviewed annually by the Board of Directors at the recommendation of the Appointments and Remuneration Committee.

It is up to the Board of Directors, at the recommendation of the Appointments and Remuneration Committee (based on prior verification of attainment of the established targets), to determine the level of delivery of the short-term bonuses and their amount.

The executive directors' remuneration may be topped up by health and life insurance, in line with market practice at comparable companies in terms of market capitalisation, size, ownership structure and international presence.

It should be noted that the variable remuneration of the group formed by the most important members of the Group's management includes a % of it linked to ESG performance. This group is included in Note 22 "Expenses for employee benefits" of the 2023 Consolidated Annual Accounts, as beneficiaries of a long-term incentive.

https://

For further details, refer to the notes headed Employee benefits expense and Related-party transactions in the group's consolidated financial statements for the year ended 31 December 2023 and to the 2023 Annual Director Remuneration Report and the Remuneration Policy itself, all of which are published on the corporate website:

|      | Total no. of people        | Men | Average remuneration € | Women | Average remuneration € |
|------|----------------------------|-----|------------------------|-------|------------------------|
| 2022 | Directors* 6               | 3   | 2,751,906              | 3     | 100,000                |
|      | Key management personnel 9 | 5   | 1,607,112              | 4     | 480,214                |
| 2023 | Directors* 6               | 3   | 8,494,919              | 3     | 100,000                |
|      | Key management personnel 9 | 5   | 1,112,086              | 4     | 383,883                |

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0)**

**Record [earnings](#page-53-0)**

**Common responsibility, [shared benefits](#page-64-0)**

**Our response to [the environmental](#page-141-0)** 

**challenge**

**Responsible [management](#page-183-0)**

About [this report](#page-229-0)

[Data tables](#page-261-0)

**1**

**2**

**3**

**4**

**5**

**6**

Image /page/198/Picture/17 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is black, while the text is in a lighter color.

Image /page/198/Picture/0 description: The image shows the text "ANNUAL REPORT" on the left side and the number "23" on the right side. The number "23" is large and bold, and there is a dashed line running through the middle of the number. There is also a gray square with a quotation mark in the upper left corner of the image.

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**6.3**

# **Ethics framework**

**CIE Automotive upholds and follows a set of values, codes and mechanisms to ensure that its conduct is honest and ethical. This ethics framework translates into a solid set of rules which are continually reviewed. In 2023 the company enhanced its Whistleblowing Channel by implementing a notification platform on its website so that whistleblowers can communicate possible breaches in a confidential manner. It also started to revise and update most of the policies comprising the ethics framework, including the Code of Professional Conduct.**

Image /page/199/Picture/14 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the text "CIE Automotive" on the right. The letter C is made up of two curved shapes, one above the other, that do not quite meet in the middle. The text "CIE Automotive" is in a simple, sans-serif font.

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**1**

<span id="page-199-0"></span>Image /page/199/Picture/0 description: The image shows the words "ANNUAL REPORT" on the left side of the image. On the right side of the image is a large number "23" with a quotation mark above it.

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# Code of Professional Conduct

Image /page/200/Figure/7 description: The image shows six icons related to ethics and compliance. The first icon shows a scale and the text "Ethical and lawful conduct." The second icon shows a building and the text "Ethical relations with authorities and third parties." The third icon shows a person and the text "Respect for people and society." The fourth icon shows a magnifying glass and the text "Transparency, integrity and confidentiality." The fifth icon shows a heart with a checkmark and the text "Workplace health and safety." The sixth icon shows a euro symbol and the text "Compliance with tax obligations and proper use of public funds."

Image /page/200/Figure/11 description: The image contains three sections. The first section has a gray circle with a gray globe inside. To the left of the circle is a gray square with the letter C inside. To the right of the circle is the text "Adequate use of firm resources and assets." The second section has a gray circle with a gray "i" inside. To the left of the circle is a gray square with the letter C inside. To the right of the circle is the text "Data protection." The third section has a gray circle with a gray lock inside. To the left of the circle is a gray square with the letter C inside. To the right of the circle is the text "Respect for intellectual and industrial property rights."

#### **CIE AUTOMOTIVE'S RULES OF CONDUCT**

The Code of Professional Conduct itself contemplates **how its implementation should be supervised and how to proceed in the event of breaches**

CIE Automotive carries out its business and professional activities in accordance with a Code of Professional Conduct that serves as an ethics guide at all levels of the organisation. All of its employees are required to familiarise themselves with it and failure to comply with it can lead to penalties, as prescribed under applicable legislation.

Aside from its employees, the company expects its business partners (joint venturers, suppliers, customers, contractors and other partners) to align their behaviour with the Code of Professional Conduct and apply equivalent standards of ethics to those upheld by CIE Automotive.

The Code of Professional Conduct itself contemplates how its implementation should be supervised and how to proceed in the event of breaches. Specifically, it tasks the Board of Director's ESG Committee with due oversight of implementation of the Code of Professional Conduct and details how to make enquiries and report improprieties and breaches through the Whistleblowing Channel.

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0)**

**Record [earnings](#page-53-0)**

**Common responsibility, [shared benefits](#page-64-0)**

**Our response to [the environmental](#page-141-0)** 

**challenge**

**Responsible [management](#page-183-0)**

About [this report](#page-229-0)

[Data tables](#page-261-0)

**1**

**2**

**3**

**4**

**5**

Image /page/200/Picture/10 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of two curved shapes that do not quite meet, creating a gap in the middle. The words "CIE Automotive" are written in a simple, sans-serif font.

Image /page/200/Picture/0 description: The image shows the words "ANNUAL REPORT" on the left side of the image. On the right side of the image is a large number 23.

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### *A cutting-edge platform for the Whistleblowing Channel*

CIE Automotive has mechanisms, protocols and tools for enabling and facilitating the notification of wrongdoings or unethical behaviour at the company or breaches of its Code of Conduct. In 2023 it reinforced this internal reporting channel by integrating an IT platform into its corporate website to secure the reporting process and simplify case management by the company.

This cutting-edge platform is user-friendly and available in all the languages of the company's markets. If gives users the possibility of opening up a secure communication channel for filing a report and providing additional information in different formats (in writing, voice messages, etc.). All of the information is confidential and if the whistleblower so wishes, anonymous.

The new online channel meets all the stipulations of Spanish Law 2/2023, of 20 February 2023, on the protection of persons reporting regulatory breaches and incidents of corruption and aligned with applicable international legal requirements derived from the European Whistleblowing Directive.

Adaptation for this new piece of legislation has involved modification of the Whistleblowing Channel Rules, which set down the system's general principles and procedures.

In 2023 the company received 56 complaints through its Whistleblowing Channel, 21 more than in 2022. Those complaints were related with:

- People management with respect to work scheduling for everyday factory work purposes (20 complaints).
- Workplace harassment (16): inappropriate attitudes on the part of managers vis-a-vis factory workers.
- Fraud and corruption (seven): malpractice at several factories by procurement, engineering and production staff who breached CIE Automotive's general purchasing terms for their own benefit. Although the amounts involved were not material and the scale of the contracts with the suppliers in question did not have a material impact on earnings at the factories involved, the events harmed the group's image and violated its ethics commitment.
- Breach of the Code of Professional Conduct (six): failure on the part of certain employees to uphold the rules of conduct.
- Business management (four): related with the company's dealings with its stakeholders.
- Discrimination (two): failure to guarantee equal opportunities.
- Sexual harassment (one): inappropriate attitudes on the part of managers vis-a-vis factory workers.

In 2022, by comparison, the reports were related with workplace harassment (13), people management with respect to work scheduling (nine), fraud and corruption (five), sexual harassment (three), business management (two), breaches of the Code of Professional Conduct (two) and discrimination (one).

In all of the cases reported in 2023 and notified to the ESG Committee, the opportune actions were taken to analyse, monitor and remedy or close the cases.

Those actions included nine dismissals: three related with the cases of fraud and corruption reported, two with the Code of Professional Conduct breaches, two with the business management cases, as well as one person who participated in the workplace harassment cases and one person involved in the discrimination reports.

In addition, executives and HR professionals intervened to address the workplace and sexual harassment and discrimination reports and prevent their recurrence via enhanced education on the company's values and Code of Professional Conduct rules.

Chairman

and CEO's [statement](#page-2-0) **2023 [highlights](#page-5-0) Ready [for change](#page-15-0) Record [earnings](#page-53-0) 1 2 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/201/Picture/26 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left and the words "CIE Automotive" on the right. The "C" is black, while the text is in a dark, sans-serif font.

Image /page/201/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large number "23" with a quotation mark above the number. A dashed line is visible in the middle of the number 2.

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# **ESG policies**  ESG Procurement Human rights Community work Tax policy

| ESG policies<br>(Environmental, Social and Governance)             |
|--------------------------------------------------------------------|
| ESG                                                                |
| Procurement                                                        |
| Supplier ESG commitment                                            |
| Human rights                                                       |
| Anti-corruption and anti-fraud                                     |
| Community work                                                     |
| Governance policies                                                |
| Internal control over financial reporting (ICFR)                   |
| Risk control and management                                        |
| Corporate governance                                               |
| Director remuneration                                              |
| Tax policy                                                         |
| Reporting to and communicating with<br>shareholders and the market |
| Shareholder remuneration policy                                    |
| Director selection and board diversity policy                      |
| Policy for engaging and interacting with<br>the account auditor    |
| Compliance and criminal risk prevention                            |
| Remuneration Policy for Members of the Board of Directors          |

## Corporate policies

**CORPORATE POLICIES**

At year-end, the company was in immersed in the process of **reviewing and updating the universe of corporate policies** 

CIE Automotive's ethics framework is implemented by means of a series of corporate policies which are drawn up by the corresponding departments. Those policies are binding upon all members of the organisation. These policies were approved by the Board of Directors for the first time in December 2015 and revised, updated and reapproved between 2019 and February 2021. In 2023 the company approved a new Director Remuneration Policy, which is in force until 2026, and at year-end was immersed in the process of reviewing and updating the universe of corporate policies comprising its ethics framework, which is nearly complete and will finalise when the updated policies are presented to the Board of Directors for approval in early 2024.

All of CIE Automotive's corporate policies can be accessed via the corporate website.

**[shared benefits](#page-64-0)**

#### Chairman and CEO's [statement](#page-2-0) **2023 [highlights](#page-5-0) Ready [for change](#page-15-0) Record [earnings](#page-53-0) Common responsibility, 1 2 3 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

#### **Responsible [management](#page-183-0) 6**

Image /page/202/Picture/20 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved lines that do not completely enclose the shape. The text "CIE Automotive" is in a simple, sans-serif font.

Image /page/202/Picture/0 description: The image shows the words "ANNUAL REPORT" on the left side of the image. To the right of the words is a large quotation mark and the number 23.

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# Anti-corruption and bribery effort

CIE Automotive is committed to combatting corruption in all its forms, including extortion and bribery, and to developing specific and exemplary policies in this arena. That commitment is tangible in its endorsement of the ten principles enshrined in the United Nations Global Compact.

In addition to the Code of Professional Conduct, whose calls for tackling fraud and corruption, the company has an official Anti-Corruption and Anti-Fraud Policy which stipulates that dealings with public officials and authorities must be governed by the principles of transparency, integrity, objectivity, impartiality and lawfulness.

The company is politically neutral and does not finance, either directly or indirectly, political parties or their representatives or candidates, either in Spain or abroad.

One of the Internal Audit Department's duties is to oversee that the group companies are operating lawfully and in keeping with the defined corporate values.

As was the case in 2022, no public legal cases were brought against the organisation or its employees in relation with corruption in 2023.

#### **Measures to combat money laundering**

The group introduced its Corporate Crime Prevention Model in 2015 and updated it in October 2019 to introduce a Support Unit with independent intervention and control powers within the organisation, whose mandate is to oversee compliance therewith. The company leverages that model to articulate its effort to thwart money laundering, as well as providing training on the Code of Professional Conduct and application of the various corporate policies.

In order to prevent or minimise the probability of occurrence of inappropriate or illicit conduct and ensure that any such conduct is brought to a halt, if detected, and accountability duly sought, in 2021, CIE Automotive drew up a Compliance and Criminal Risk Prevention Policy.

### **Measures to prevent corruption and bribery**

Each country has its own local Corporate Crime Prevention Manual, which is aligned with the corporate version.

Every time the criminal risk map is introduced to a new market, specific training is provided to brief employees about the company's policies and procedures and remind the factories about applicable local legislation.

In 2023 the company deployed its criminal risk map in new markets, specifically Italy, Romania and Slovakia. The year before it had extended the map to Spain, France and Germany, in Europe, and to India, and completed the annual updates of its risk maps in the US, Mexico, Brazil, China and the Czech Republic, thus completing coverage of the countries that account for the bulk of the group's business activities. CIE Automotive, S.A. is committed to complying stringently with anti-trust law. To that end is promises to achieve its business objectives by ethical, legitimate, faultless and lawful means, complying with all applicable laws. CIE Automotive did not receive any fines related with anti-trust infringements or derived from cartel operations, price-setting, exclusivity agreements, monopolistic practices or other

In 2023, following updates to local legislation in some of the company's business markets, new crimes, such as attacks on moral integrity, were added to the maps.

#### **Anti-trust law**

conduct that could limit free competition in 2023.

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0) 1**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) Common responsibility, [shared benefits](#page-64-0) 3 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

#### **Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/203/Picture/25 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of two curved lines that do not quite meet, forming an incomplete circle. The words "CIE Automotive" are written in a simple, sans-serif font.

Image /page/203/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large number "23" with a quotation mark above it.

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## Defence of human rights

## **No complaints were received** about human rights abuses in 2023 or 2022

ights abus

CIE Automotive defends the universal rights set down in the United Nations Global Compact, which the company endorsed in 2015.

That commitment has translated into the Human Rights Policy, through which it formally undertakes to respect those universal rights in everything it does, applying the policy not only to its employees but also its customers, suppliers and the communities surrounding its facilities and any of their indigenous peoples.

To that end it formally repudiates child labour, compulsory labour and workplace discrimination; fosters respect for the freedom of association and right to collective bargaining; and complies with prevailing legislation in all its business markets, framed by the internationally recognised human rights and its own Human Rights Policy.

The Human Rights Policy complies with the provisions contained in the International Labour Organisation's fundamental conventions on the freedom of association and the right to collective bargaining.

Note that the company did not receive any complaints related with human rights violations, understood as breaches of the right to decent work and a living wage, in keeping with the United Nations Declaration, in either 2023 or 2022.

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0) 1**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/204/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large number "23" with a quotation mark above the number.

Image /page/204/Picture/21 description: The image is a graphic with a gray background on the left side and a white background on the right side. In the upper left corner, there is a logo that says "CIE Automotive". To the left of the logo is a stylized "C" shape. Below the logo is a white graphic of a balance scale. At the bottom of the image are three horizontal white bars.

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**6.4**

# **Risk management**

**CIE Automotive updates and enhances the enterprise risk management (ERM) system in place to mitigate the risks that, were they to materialise, could jeopardise delivery of its strategic targets. The ERM, which is set out in detail in the company's Risk Control and Management Policy, follows ISO 31000 methodology.** 

Image /page/205/Picture/14 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved shapes that are open on the right side. The text "CIE Automotive" is in a sans-serif font.

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Common responsibility, [shared benefits](#page-64-0)**

**Ready [for change](#page-15-0) 2**

> **Our response to [the environmental](#page-141-0)  challenge**

**Record [earnings](#page-53-0) 3**

> **Responsible [management](#page-183-0)**

> > About [this report](#page-229-0)

[Data tables](#page-261-0)

**1**

**4**

**5**

**6**

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# Enterprise risk management system

CIE Automotive's ERM provides reasonable assurance regarding delivery of its objectives by preventing, identifying, assessing and continually monitoring all significant risks, specifically addressing strategic, operational, financial, environmental, social, governance and compliance risks. These risks, which are approved at the Board level, are managed in keeping with defined risk appetite and tolerance thresholds.

The ERM, framed by the Risk Control and Management Policy, follows ISO 31000 methodology and is supervised by the Board of Directors, which delegates its supervision and correct functioning in its Audit and Compliance Committee.

Thanks to the unflagging support of the senior executives and management team, and underpinned by rigorous strategic planning, CIE Automotive seeks to create an environment conducive to working with risks in check. The goal is to manage these risks actively with the aim of, by means of correct management and value creation, allowing new opportunities to rise.

Image /page/206/Figure/16 description: The image shows four triangular icons, each paired with a text description. The first icon, located in the upper-left corner, features a pair of binoculars and is associated with the text 'Creation of a constructive vision of the concept of risk.' The second icon, in the upper-right corner, depicts a person with a star on their chest and is accompanied by the text 'Committed and competent risk management professionals.' The third icon, in the lower-left corner, displays the letters 'A,' 'B,' and 'C' and is paired with the text 'Use of a shared language.' The fourth icon, in the lower-right corner, shows a megaphone and is associated with the text 'Transparent communication throughout the entire organization.'

communication throughout the

Image /page/206/Picture/21 description: The image shows the CIE Automotive logo. On the left is a stylized letter C, which is black. To the right of the C is the text "CIE Automotive" in black.

#### **ENTERPRISE RISK MANAGEMENT SYSTEM - PRINCIPLES**

CIE Automotive's enterprise risk management system follows **ISO 31000 methodology and is supervised by the Board of Directors**

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0) 1**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

#### **Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/206/Picture/0 description: The image shows the words "ANNUAL REPORT" on the left side of the image. To the right of the words is a large number "23" with a quotation mark above it.

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| 2 - Low                                                                                     | 1 - Very low                                                                                      |
|---------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|
| 10-30%                                                                                      | <10%                                                                                              |
| Risk materialised<br>between 1 and 4<br>times in last 10 years.                             | Risk that has not<br>materialised or at<br>least not for over 10<br>years.                        |
| Materialisation of the<br>risk would affect the<br>organisation within<br>five years' time. | Materialisation of the<br>risk would affect the<br>organisation in more<br>than five years' time. |

Image /page/207/Picture/4 description: The image shows a risk mapping procedure and scope. It includes the following information: Each year, the company's senior executives and management team are tasked with evaluating the risks identified in the ERM and drawing up the risk map for the entire organization, classifying those risks into three categories - irrelevant, low risk or high risk - based on a dual assessment. From the standpoint of residual risk: considering the controls already in place at CIE Automotive in order to mitigate the potential impact of their materialisation. Based on the probability of occurrence (past and future). The image also includes a table with the following information: Materialised in the past, Materialisation in the future, 5 - Very high, 4 - High, 3 - Medium, 2 - Low, 1 - Very low, > 80%, 61% - 80%, 31% - 60%, 10-30%, <10%, Risk materialised over 5 times in last 2 years, Risk materialised over 5 times in last 5 years, Risk materialised over 5 times in last 10 years, Risk materialised between 1 and 4 times in last 10 years, Risk that has not materialised or at least not for over 10 years, Materialisation of the risk would affect the organisation imminently (in the current year), Materialisation of the risk would affect the organisation within a year (next year), Materialisation of the risk would affect the organisation within two years' time, Materialisation of the risk would affect the organisation within five years' time, Materialisation of the risk would affect the organisation in more than five years' time.

The ERM system ensures that all **risks are duly prevented, identified, assessed and strictly controlled**

Image /page/207/Figure/2 description: This image shows a list of items. The first item is "Chairman and CEO's statement". The second item is "2023 highlights" and is labeled with the number 1. The third item is "Ready for change" and is labeled with the number 2. The fourth item is "Record earnings" and is labeled with the number 3. The fifth item is "Common responsibility, shared benefits" and is labeled with the number 4. The sixth item is "Our response to the environmental challenge" and is labeled with the number 5. The seventh item is "Responsible management" and is labeled with the number 6. The eighth item is "About this report". The ninth item is "Data tables".

Image /page/207/Picture/6 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of two curved shapes, one above the other, with a gap between them. The words "CIE Automotive" are in a simple, sans-serif font.

ith evaluating the risks identified
ose risks into three categories –

in place at CIE Automotive in order

Image /page/207/Picture/0 description: The image shows the words "ANNUAL REPORT" in large, bold, black letters on the left side of the image. To the right of the words is a large number "23" in black, with a gray quotation mark above the "2". There is a dashed line running horizontally through the middle of the "2".

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|                          | 5 – Very severe                                                                                                                           | 4 – Severe                                                                                                            | 3 – Significant                                                                                                 | 2 – Moderate                                                                               | 1 – Very moderate                                                           |
|--------------------------|-------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------|
| Economic<br>impact       | Very severe adverse<br>impact on EBITDA. An<br>adverse impact on<br>P&L* of >5%.                                                          | A severe adverse<br>impact on EBITDA. An<br>adverse impact on<br>P&L of >3.5% but <5%.                                | A significant reduction<br>in EBITDA guidance. An<br>adverse impact on P&L<br>of >1.5% but <3.5%.               | A slight reduction in<br>EBITDA guidance. An<br>adverse impact on<br>P&L of >0% but <1.5%. | No change in existing<br>EBITDA.                                            |
| Organisational<br>impact | Materialisation of<br>the risk requires<br>intervention by the<br>Board of Directors.                                                     | Materialisation of<br>the risk requires<br>intervention by the<br>CEO.                                                | Materialisation of the risk<br>can be resolved at the<br>corporate level.                                       | Materialisation of the<br>risk can be resolved<br>at the division level.                   | Materialisation<br>of the risk can be<br>addressed at the<br>factory level. |
| Reputational<br>impact   | Reputational<br>damage stemming<br>from several actions<br>that have a severe<br>impact on the<br>company's image<br>and its share price. | Reputational<br>damage stemming<br>from several actions<br>that impact the<br>company's image<br>and its share price. | Occurrence of an event<br>that is picked up by<br>high-profile media and<br>reaches the regulator/<br>analysts. | Occurrence of an<br>event that is picked<br>up by the local<br>media.                      | No impact.                                                                  |

**3** *Based on their impact along three dimensions: economic, organisational and reputational.*

*(\*) P&L = Statement of profit or loss*

A total of 338 people participated in drawing up this general risk map, 12 more than in 2022.

All who participated responded considering the impact of each risk factor over a time horizon to 2025, except for climate risk where the time horizon runs to 2050, in respect of their technical or geographic expertise, which means that some of them may have assessed a given risk factor for more than one region and more than one type of technology.

The process is coordinated by the Compliance Department which presents the results of this annual exercise to the Audit and Compliance Committee for validation and approval; the Audit and Compliance Committee in turn reports its approval to the Board of Directors.

As in prior years, the analysis of the international and national contexts across the company's locations, based on benchmark studies and analyses such as World Economic Forum reports, forms the basis of the overall risk, which is presented top down, by region, by technology and by region and technology. It estimates, in euros, the impact on EBITDA of the potential materialisation of each risk, according to the defined parameters, and the trend in the key risk factors over the past two years in all of the foregoing categories.

The entire process is monitored via the internal management tool, SAP GRC.

ε

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**1**

Image /page/208/Picture/21 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved lines that do not completely enclose a circle. The text "CIE Automotive" is in a simple, sans-serif font.

Image /page/208/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters. To the right of the words is a large gray quotation mark followed by the number 23 in bold, black letters.

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# Risks assessed in 2023

Below is a list of the main risks to which the group is exposed which are evaluated in the course of drawing up the general risk map, classified by the areas that are critical to the company:

Twenty risks were assessed in 2023, which is the same number as in 2022. A new compliance risk was added: the reliability of the non-financial reporting process. The HR-related risks were updated and reduced from five in 2022 to four this year as talent attraction and retention were rolled into one.

### **Society**

- Reputational damage as a result of activities not linked directly to the company's operations.
- Non-alignment of the supply chain with the group's ESG commitments.
- 
- Change in market trends. Failure to meet customer expectations.
- Management of M&A-led growth. Cybersecurity and
- data protection.
- Geopolitical risk.
- Fiabilidad del reporting no financiero

### **Environment**

• Impact of climate change on delivery of the company's strategic objectives.

### **Human rights**

• Code of Professional Conduct breaches by group employees.

Image /page/209/Picture/29 description: The image shows a gray icon of a euro symbol and a bar graph. The euro symbol is in the upper left corner of the image, and the bar graph is in the lower right corner. The bar graph has three bars of different heights.

Image /page/209/Picture/30 description: The image shows a gray icon of a euro symbol next to a bar graph. The euro symbol is in a circle, and the bar graph has three bars of different heights.

-

Image /page/209/Picture/50 description: The image is blank and contains no visual elements.

Image /page/209/Picture/33 description: The image contains a single black dot centered on a white background. The dot is small and round.

Image /page/209/Picture/34 description: The image is a blank white square.

### **Corruption and bribery**

• Criminal risk.

• Failure to comply with legislation in any of the company's operating markets.

• Breach of any of the 10 principles enshrined in the United Nations Global Compact, of which the company has been a signatory since 2015 and/or failure to contribute to delivery of the Sustainable Development Goals (SDGs) with which the company is most aligned.

#### **Finance**

• Reliability of the financial information disclosed.

• An aggressive tax strategy or risks considered manageable becoming unmanageable\*.

• Financial risk understood as market risk (including foreign exchange and interest rate risk), liquidity risk and credit risk.

#### **People**

• Ability to guarantee the workplace health and safety of group employees.

• Erosion of the corporate culture, the bedrock of the company's successful business model.

• Lack of human resources needed to maintain growth.

• Attract and retain quality talent.

#### **RISKS ASSESSED**

Image /page/209/Picture/15 description: The image shows a gray globe icon with white grid lines. The globe is a sphere with curved lines running horizontally and vertically across its surface, creating a grid-like pattern. The lines are white, contrasting with the gray of the globe. The globe is centered in the image and takes up most of the space.

#### Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

Image /page/209/Picture/4 description: The image shows the number 2 and the words "Ready for change" in gray.

**Record earnings**

**Common responsibility, shared benefits**

**Our response to [the environmental](#page-141-0)  challenge 1[2](#page-15-0)[3](#page-53-0)[4](#page-64-0)56**

#### **Responsible [management](#page-183-0)**

About [this report](#page-229-0)

[Data tables](#page-261-0)

210

Image /page/209/Picture/35 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved shapes that do not fully connect, creating an open "C" shape. The text "CIE Automotive" is in a simple, sans-serif font.

Image /page/209/Picture/0 description: The image shows the text "ANNUAL REPORT" on the left side and the number "23" on the right side. There is a gray quotation mark above the number 23.

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Image /page/210/Figure/12 description: The image is a risk assessment matrix. The x-axis is labeled "IMPACT" and ranges from 0 to 5. The y-axis is labeled "PROBABILITY" and ranges from 1 to 5. There are six numbered risks plotted on the matrix: 1, 2, 3, 4, 5, and 6. Risk 1 is at coordinates (2, 4), risk 2 is at (3, 4), risk 3 is at (3.5, 3), risk 4 is at (1, 3), risk 5 is at (3, 2), and risk 6 is at (2, 2). The matrix is color-coded, with green indicating low risk, yellow indicating medium risk, and red indicating high risk. The text on the right side of the image lists the risks: 1. Change in market trends, 2. Geopolitical risks, 3. Inorganic Growth Management, 4. Financial risks, 5. Cybersecurity, 6. Sustainable supply chain.

- Change in market 1. Change in mar trends
- Geopolitical 2. Geol risks
- Inorganic Growth 3. Inorganic Growth Management
- Financial 4. Final risks
- 5. Cybersecurity
- Sustainable supply 6.

High risk

Low risk Medium risk High risk

## Risk map

Before being placed on the risk map, the risks are filtered to exclude from the assessment risks for which no extraordinary measures are required on account of their nature or the company's risk appetite. That is the case of risks classified as low probability and low impact.

The 2023 risk map once again reaffirmed the risk factor that is most intrinsic to the sector and its performance, namely shifting market trends, as well as one that is specific to the trajectory, growth and future of CIE Automotive, namely management of its M&Aled growth.

The 2023 mapping exercise also evidenced great concern within the organisation about geopolitical risk and its impact on delivery of its strategic targets.

The mapping exercise also highlighted concern over cybersecurity and the financial damage its mismanagement could pose, as well as importance of sustainable supply chain management.

Another development in 2023 was the return to the fore of financial risk, specifically the need to control exposure to variations in interest and exchange rates and commodity prices.

Note, that the actions taken and controls applied in 2023 successfully mitigated one key risk factor, which was afforded priority treatment in recent years and no longer ranks among those of greatest concern, namely care for the company's most important asset, its people, along with the associated risks: having a sufficiently deep team of trained and well-prepared professionals and adequate succession planning.

Chairman and CEO's [statement](#page-2-0) **2023 [highlights](#page-5-0) Ready [for change](#page-15-0) Record [earnings](#page-53-0) Common responsibility, [shared benefits](#page-64-0) Our response to [the environmental](#page-141-0)  challenge Responsible [management](#page-183-0) 1 2 3 4 5 6**

> About [this report](#page-229-0)

[Data tables](#page-261-0)

Image /page/210/Picture/15 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of two curved shapes that do not quite meet, forming an incomplete circle. The words "CIE Automotive" are in a simple, sans-serif font.

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Image /page/211/Picture/11 description: The image shows the title "KEY RISKS: DESCRIPTION AND ACTION PLANS" in gray. Below the title is a line graph in orange, and the text "CHANGE IN MARKET TRENDS".

The automotive industry is undergoing disruptive changes for which the company needs to be prepared by maintaining the flexibility required to adapt to customers' unfolding or future demands, suppliers' needs and increasingly stringent regulations.

New automotive technologies (e.g. in the area of connectivity and autonomous driving) are reducing demand for some of our core products while creating demand for new systems and parts.

*[For more detailed information about the key market trends, refer to chapter 2. Sector background]*

Throughout the pages of this report, the reader has been told about CIE Automotive's distinctive

business model which has proven highly consistent in dynamic and challenging environments over the past several years and is expected to remain similarly resilient in the face of the challenges that loom. The key to tackling the current trend shifts lies with coordinating all of the group's departments end to end. The unit that handles R&D and market studies analyses the trends that are shaping the sector exhaustively and continually (for more information, refer to chapter 2.1.3) and shares its findings with the sales area and the various divisions. That enables an informed assessment of their potential impact and formulation of the action plans that the company has been feeding into its strategic plans since 2015. That assessment also factors in the challenges highlighted in chapter 2, specifically:

- Economic slowdown.
- Increase in borrowing costs.
- Significant CAPEX in EVs.
- Price war in EVs.

This process also taps the opportunities itemised in that same chapter.

Collaboration on R&D projects, sometimes on a standalone basis and other times in partnership with customers, has proven crucial in areas such as electrification, the circular economy, vehicle light-weighting,

safety and Industry 4.0. These projects have led to major collaboration with traditional customers and kept the company aligned with market trends. In tandem the sales area has worked intensely to penetrate the sector's newcomers, adapting its approach to their idiosyncrasies. This effort has paid off with the company already producing at scale for customers with business models that are radically different from those of its traditional customer base and new developments in the pipeline.

The company has also responded proactively to the growing importance of climate action, as is evident in its unification of the engineering and environmental departments. As a result it now builds sustainability, decarbonisation, circular economy and ecodesign considerations in at the earliest stages of new product and project development.

CIE Automotive constantly reinforces the flexibility of its model characterised by geographical, customer and technology diversification - to adapt to its customers' current and future needs and emerging automotive trends. Portfolio diversification, with over 80% of products independent of the vehicle propulsion system, gives it an ability to adapt that sets it apart from its competitors.

In terms of the risk associated with products with no clear substitute in zero-emission vehicles, the company is looking to increase its presence in areas that make a significant contribution to vehicle light-weighting such as forged chassis and suspension parts. It also plans to focus on axle and gear machining and to outsource traditional technologies in order to free up resources to focus on new challenges such as connectivity, autonomous driving and software solutions.

### **Action plan**

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0) 1**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/211/Picture/29 description: The image shows the CIE Automotive logo. On the left is a stylized letter C, formed by two curved black shapes. To the right of the C is the text "CIE Automotive" in a simple, sans-serif font. The text is black.

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CIE Automotive has set itself annual sales targets with a specific focus on new-energy vehicles (NEV). The 2025 Strategic Plan focuses on comfort, tapping the growing importance of this feature in users' buying decisions.

The company has invested in employee training and skill-building in order to tackle the sector's digitalisation and is working with technology firms and training centres to attract talent with these skillsets. It is also worth highlighting the boost given to the training area within the Pilot Testing Advanced Manufacturing Taskforce led by the Basque regional government.

CIE Automotive stands out for its commitment to decarbonisation and circularity in all processes, aligning itself with the push for a more sustainable economy. Its Supply Chain Race 2 Zero project is working to help decarbonise the supply chain and achieve net zero

emissions by 2050.

CIE Automotive's business model, underpinned by its geographic diversity and decentralised management model, has proven its resilience throughout a succession of crises. The company engages its entire supply chain, detecting opportunities with customers and bringing those needs and opportunities to its suppliers.

In the near term it is focused on ensuring a smooth supply of raw materials, reinforcing its GLOCAL (global management with local application) procurement model and continuing with its multilocation footprint so as to reduce dependence on global supply chains and stay close to the OEMs.

**FINANCIAL**

**RISK**

The group's business activities expose it to various types of financial risk: market risk (including exchange rate risk, cash flow interest rate risk and price risk), credit risk, liquidity risk and commodity price risk.

> The group's overall risk management programme focuses on the unpredictability of financial

markets and seeks to minimise potential adverse effects on its financial performance. The group arranges derivative financial instruments to hedge certain exposures.

In the broadest sense, financial risk management is designed to control exposure to variations in interest and exchange rates and commodity prices. This effort, supervised by the group's Finance Department,

translates into the purchase of financial instruments that allow it, to the extent possible, benefit from favourable movements in exchange and interest rates while limiting some or all of its exposure to unfavourable developments.

*[For further information, refer to the group's consolidated financial statements and directors' report for the year ended 31 December* 

*2023]*

**Action plan** 

Chairman and CEO's [statement](#page-2-0) **2023 [highlights](#page-5-0) 1**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

Image /page/212/Picture/24 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of two curved shapes, one above the other, that are open on the right side. The words "CIE Automotive" are in a simple, sans-serif font.

Image /page/212/Picture/0 description: The image shows the words "ANNUAL REPORT" in black, stacked on top of each other on the left side of the image. To the right of the words is a large number "23" in black, with a gray quotation mark above and to the left of the number.

Image /page/212/Picture/1 description: The image shows the number 23 in bold, dark font, followed by a forward slash and the words "Responsible management" in a lighter, thinner font.

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As envisaged in the Strategic Plan, the recent, current and foreseeable pace of M&A-led growth requires tighter control over operations and investments. The integration of new firms into the group requires an initial effort in order to adjust their respective cultures and ways of doing things to align them with CIE Automotive's management methods and profitability thresholds. In addition, the fact of having local partners (joint ventures and/or alliances with private and public companies and organisations) could generate conflict and wariness that can affect business performance directly or generate international compliance vulnerabilities.

> CIE Automotive works hard to embed its business model and corporate culture at newly

- 
- acquired companies. The most noteworthy initiatives on this front include:
- Involving the management team in M&A transactions.

• Defining and implementing a clear management model designed to enable the company to assume

- control over new acquirees rapidly.
- 

• Fostering the readiness and availability of key internal managers to tackle new integrations.

2023 once again showed how a long list of potential external shocks, ranging from extreme meteorological phenomena, inflation fuelled by energy price volatility and migratory and demographic challenges, to the wars in Ukraine and Gaza and tensions between the US and China, expose governments to litany of risks they may not be ready to handle amidst social and institutional weaknesses.

States under financial pressure as a result of the above-listed shocks could seek budget balance by passing laws and introducing levies to stem their fiscal deficits. Those forces are pushing interest rates and inflation higher, affecting GDP and employment and, as a result, the population's purchasing power and access to credit, ultimately denting consumer spending and the purchase of cars.

**MANAGEMENT OF M&A-LED GROWTH GEOPOLITICAL RISK** Chairman and CEO's [statement](#page-2-0) **2023 [highlights](#page-5-0) Ready [for change](#page-15-0) Record [earnings](#page-53-0) Common responsibility, [shared benefits](#page-64-0) Our response to [the environmental](#page-141-0)  challenge Responsible [management](#page-183-0)** About [this report](#page-229-0) [Data tables](#page-261-0) **1 2 3 4 5 6**

Furthermore, in a new global geopolitical order, legal and compliance teams will be forced to deal across borders with regulatory requirements that are ambiguous, and/or conflicting, and/or uneconomical.

> The company is focused on locking in access to the raw materials it needs, to which end it is reinforcing

its GLOCAL (global management with local application) purchasing model, coupled with its multi-location footprint, to be close to the OEMs and not have to depend on global supply chains. In other words, a "local production for local supply" strategy.

The GLOCAL approach brings other advantages such as a reduction in the company's carbon footprint, a lower reverse logistics (returns) impact and reduced vulnerability to regulatory changes due to their application over different time horizons and swings.

CIE Automotive's decentralised management approach ensures its decision-making is quick, simple and direct. Each region and division takes the decisions that best serve their prevailing interests at any given time with the support of the firm's Corporate Areas and Network Services vested with a group-wide remit: Europe, North America, Brazil and Asia.

Despite classification into major regions and divisions (the main technologies), the factories, albeit guided by the company's strategy, have full operational autonomy and are managed by local teams, so dissipating business continuity risks for the company as a whole as a result of armed conflicts, the related international sanctions or other similar risks.

**Action plan**

### **Action plan**

Image /page/213/Picture/21 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is made up of two curved shapes that do not quite meet, creating an incomplete circle. The text "CIE Automotive" is in a simple, sans-serif font.

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The project comprises three phases:

- Scenario identification (completed in 2021).
- Risk quantification (completed in 2022).
- ECOR assessment, methodology used by the consultant to calculate the financial impact of cybersecurity risks (scheduled for completion in the first half of 2024).

Noteworthy from the work performed in 2023:

- Specific risk-by-risk analysis as a function of probability of occurrence and impact for each IT group.
- Definition of an IT security control plan with three stringency levels.
- Mapping of the maturity level of the baseline controls of each IT group with the specific risks to calculate the residual risk.
- Development of the associated scorecard in PowerBI.

Having completed the initially defined three phases, in 2024 the plan

is to:

• Execute the defined risk management methodology and gather information from the various IT group heads.

• Develop the defined baseline controls, prioritising those with a bigger impact on each IT group's security.

• Update the values used to calculate risk and the status of the

• Assess the adequacy of the baseline controls for evaluating

- 
- 
- controls applied.
- potential acquisitions.

An IT security officer has been appointed as part of the group's reinforced commitment to this function. Lastly, to encourage awareness of IT security risks across the organisation, the company continued to provide group-wide training in 2023, an effort that will carry over to 2024.

**CYBERSECURITY** Cybersecurity, understood as the shielding of IT assets by handling threats that could jeopardise the information that is processed, stored and distributed over interconnected IT systems, has emerged as one of the biggest risks facing companies today. Customers are making increasing security demands of their suppliers. It is vital to pay particular attention to users and possible improper usage; service outsourcing and potential sources of loss or damage (theft, fire, etc.).

The shift to more flexible working arrangements is leaving communication networks more exposed to potential attacks.

**Action plan**

**Action plan** CIE Automotive launched a cybersecurity consultancy project to map out the potential IT system risks to which the group is exposed in 2021.

Chairman and

CEO's [statement](#page-2-0) **2023 [highlights](#page-5-0) Ready [for change](#page-15-0) Record [earnings](#page-53-0) Common responsibility, [shared benefits](#page-64-0) Our response to [the environmental](#page-141-0)  challenge Responsible [management](#page-183-0) 1 2 3 4 5 6**

> About [this report](#page-229-0)

Image /page/214/Picture/26 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" in a sans-serif font. The "C" is formed by two curved shapes, one above the other, creating a crescent-like appearance. The text is in black, and the background is white.

Image /page/214/Picture/0 description: The image shows the words "ANNUAL REPORT" in large, bold, black letters on the left side of the image. To the right of the words is a large number "23" in black, with a gray quotation mark above the number.

Image /page/214/Picture/1 description: The image shows the number 23 in bold, black font on the left side of the image. To the right of the number 23 is a forward slash followed by the words "Responsible management" in a thin, light gray font.

**CYBERSECURITY**

{215}------------------------------------------------

Raising awareness and educating all CIE Automotive employees about ESG matters should be

seen as a major opportunity. Also an opportunity for the procurement managers, guided by ongoing implementation of the successful GLOCAL supply chain management model, to work even harder to encourage suppliers to meet ESG compliance requirements. The ultimate goal is to create a solid, flexible and resilient supply chain aligned with the SDGs.

Risk mitigation involves:

- Renewing ISO 20400 Sustainable Procurement certification annually so obtaining external verification of correct management of ESG matters.
- Continuing to apply common procedures aligned with each country's legal requirements and the group's ESG strategy.
- Providing the organisation with an objective ESG scoring system for the supply chain via the Supplier Portal and specific indicators.

• Monitoring the supply chain's ESG indicators quarterly. Each factory has to identify additional actions to implement in order to

• Continuing to provide all buyer teams with ongoing training.

• Providing local suppliers with ESG training via specific sessions

• Encouraging ESG audits worldwide. Each factory conducts physical audits of their critical suppliers as part of the effort to

- achieve the group's targets.
- 
- and meetings.
- verify actual compliance.
- targets aligned with the 2050 goals.
- aligned with the OECD standards.

• Supply Chain Race 2 Zero. Corporate push with local implementation to rally commitment around emissions-cutting

• Introducing a due diligence requirement in the supply chain

Image /page/215/Picture/39 description: The image shows a graphic of a gear with circular arrows inside of it, next to the words "SUSTAINABLE SUPPLY CHAIN".

Here the risk is that the supply chain may not be aligned with the group's ESG commitments, our customers' requirements or the European Due Diligence Directive.

A sustainably-managed supply chain and supplier alignment are key to the company's ability to deliver its ESG commitments and to its business, with pressure from customers growing all the time.

From as soon as we sign a contract with a customer, we commit to ensuring the sustainable management of our supply chain, to which end we are obliged to manage its ESG aspects in a systematic manner, so as to contribute to the creation of sustainable productive environments in which human and labour rights are guaranteed, the environment is protected and business is done ethically.

The new EU Directive puts the onus on organisations to carry out supplier due diligence. Specifically they must identify, end, prevent, mitigate and report on the negative effects on human rights and the environment of their own operations, those of their subsidiaries and those of the constituents of their value chains.

### **Action plan**

*[For further information, refer to the section titled "Change begins with our SUPPLIERS" and in "Supply Chain Race 2 Zero" and "GLOCAL procurement model" sections]*

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0) 1**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

#### **Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/215/Picture/31 description: The image shows the CIE Automotive logo. On the left is a stylized letter C, formed by two curved shapes that do not fully connect, creating an incomplete circle. To the right of the symbol is the text "CIE Automotive" in a simple, sans-serif font. The logo is in black against a white background.

Image /page/215/Picture/0 description: The image shows the words "ANNUAL REPORT" in large, bold, black letters on the left side of the image. To the right of the words is a large gray quotation mark, followed by the number "23" in large, bold, black letters. A dashed line runs horizontally through the middle of the number "2".

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## Risks mitigated in 2023

Continued application throughout 2023 of CIE Automotive's human capital management model has reduced the perceived importance of the HR-related risks. More specifically, in 2023 we continued to provide our people with additional training to give them the skills needed to take on new challenges; we evaluated our partners using our internal professional development tool; we stepped up international exchanges (including the Ulysses programme); and each factory manager actively managed its staff with a view to ensuring a flow of future-proof backgrounds. Indeed, generational

diversity was one of the classes of diversity analysed in the diversity assessments which have already been conducted at over 90% of our

locations.

Lastly, we actively managed two acquisitions, one in Hungary and the other in Brazil, bringing new profiles and backgrounds into the group which are bound to be key to its future, as has been the case so often in the past.

*[For further information, refer to Our TEAM: the people behind the* 

*transformation]*

**HUMAN CAPITAL FOR GROWTH**

Management of the current and projected pace of growth requires consolidation and development of the company's finest asset, its people. That is why it is fundamental to agree a unified training and promotion plan with the aim of planning, appraising and enhancing professionals' current and future skillsets so as to facilitate delivery of CIE Automotive's strategic objectives.

Thanks to the actions taken in 2023, CIE Automotive managed to mitigate the probability of materialisation of the following risk, ranked as a priority in 2022, and, therefore, no longer deemed in need of priority attention in the 2023 risk map.

### **Mitigation actions**

#### Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0) 1**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

Image /page/216/Picture/6 description: The image shows the number 4, followed by the words "Common responsibility, shared benefits".

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/216/Picture/21 description: The image shows the CIE Automotive logo. On the left is a stylized letter C, formed by two curved black shapes. To the right of the C is the text "CIE Automotive" in a simple, sans-serif font. The text is black.

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**6.5**

# **Corporate crime prevention model**

CIE Automotive put its Criminal Risk Prevention Model (hereinafter, the "Model") in place in 2015. The Audit and Compliance Committee delegates the dayto-day tasks associated with the Model (ongoing monitoring of procedures, rules, controls and any other functions deemed appropriate) in a Support Unit made up of:

• The Secretary of the Board of Directors, who is tasked with presiding, managing and

- coordinating the Support Unit.
- various functions.
- 

• The Chief Compliance Officer, who executes the

• Any professionals called on for their expertise.

The Unit has independent intervention and control powers within the organisation and its mandate is to oversee compliance with the Model. The company relies on the Model to mitigate the risk of money laundering.

Image /page/217/Picture/17 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter "C" on the left and the words "CIE Automotive" on the right. The "C" is made up of two curved shapes that do not quite meet, creating an incomplete circle. The words "CIE Automotive" are in a simple, sans-serif font, with "CIE" in a slightly bolder font than "Automotive".

Chairman and CEO's [statement](#page-2-0)

**Ready [for change](#page-15-0)**

**Record [earnings](#page-53-0)**

**Common responsibility, [shared benefits](#page-64-0)**

**2023 1 2023 highlights**

> **Our response to [the environmental](#page-141-0)  challenge**

**Responsible [management](#page-183-0)**

> About [this report](#page-229-0)

[Data tables](#page-261-0)

**2**

**3**

**4**

**5**

**6**

#### <span id="page-217-0"></span>**ANNUAL REPORT** [23](https://annualreport.cieautomotive.com/2023/) Responsible management

{218}------------------------------------------------

As a result, the Support Unit has also been tasked with the following roles:

- Monitoring the controls established in the Model and, in general, compliance with the Model and with the principles enshrined in the Code of Professional Conduct.
- Proposing to the Audit and Compliance Committee any complementary measures it deems necessary to guarantee due delivery of the desired objectives.
- Providing reasonable assurance that the universe of values embodied by the Code of Professional Conduct is current, proposing any updates and additions that may be deemed necessary to the Audit and Compliance Committee.
- Informing the Audit and Compliance Committee periodically about the results of the analyses conducted.

CIE Automotive was a runner-up in "Best international compliance project" category in the Expansión Compliance Awards. These awards, which are sponsored by Deloitte Legal and Iberdrola, with Esade as academic partner, reward globally applicable projects that facilitate efficient and suitable management of an organisation's existing global risks, allowing it to tackle common and specific risks faced.

In selecting CIE Automotive as finalist, the jurors rated the scope and scale of the criminal compliance initiative, the technology used, the applicable rules and the oversight and monitoring model.

*Finalist in the Expansión Compliance Awards*

• Notifying the Audit and Compliance Committee clearly and immediately of any Model breaches that come to light in the course of its review work.

CIE Automotive analyses the level of maturity attained by Model from time to time. During the last update, carried out between 2019 and 2020, it decided to identify the most significant subsidiaries in terms of criminal compliance, analyse the differences with respect to the legislation applicable in Spain and adapt the model to suit each country's characteristics. Since then, the Model has been introduced in most of the company's business markets: Spain, France, Germany, Czechia, Italy, Romania, Slovakia, US, Mexico, Brazil, India and China.

In 2023 the Model was implemented in Italy, Slovakia and Romania and the regulatory framework in Portugal was analysed. Except in Portugal, where this will happen in 2024, an individual criminal risk map was prepared, joining and consolidating the body of risk maps for the other countries that have been added to its scope since 2020.

As in 2022, this work began with a regulatory benchmarking exercise to map out the regulations applicable in each jurisdiction, followed by the design of the corporate standards for controlling the main criminal risks to which the various regions are exposed.

To design the new versions, the company started from the Model developed and implemented in Spain, the various mandatory requirements under local legislation, best national and international practices and suggestions for improving the Model gathered from the various jurisdictions. Once that was done a series of questionnaires were sent to the subsidiaries to identify criminal risks, individuals/functions and controls for subsequent analysis and inclusion, along with the suggestions for improvement and other specific considerations.

In addition, new criminal risk controls were launched in 2023 to cover newly added risks and reflect the global rollout of the Model between 2020 and 2023.

## **In 2023 the Model was implemented in Italy, Slovakia and Romania** and

the regulatory framework in Portugal was analysed

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0)**

**Common** 

**Record [earnings](#page-53-0) 2 3**

**responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

#### **Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**1**

Image /page/218/Picture/23 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved shapes that do not fully connect, creating an incomplete circle. The text "CIE Automotive" is in a sans-serif font, with "CIE" in a bolder typeface than "Automotive".

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# Criminal risk management system

CIE Automotive's criminal risk management Model and system is integrated within its broader ERM, which is regulated by the Risk Control and Management Policy and follows ISO 31000 methodology so as to provide reasonable assurance that all significant risks are duly identified, evaluated, prevented and monitored. Those criminal risks are approved at the Board level and managed in keeping with defined risk appetite and tolerance thresholds.

The process is coordinated by the Compliance Department and the results are presented to the Audit and Compliance Committee for validation and approval; the Audit and Compliance Committee in turn reports on its assessment to the Board of Directors.

Image /page/219/Picture/12 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is made up of two curved shapes that are stacked on top of each other. The text "CIE Automotive" is in a sans-serif font.

As in 2021 and 2022, in 2023, the company **drew up a specific criminal risk map**

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready for change**

**Our response to [the environmental](#page-141-0)  challenge**

**Record earnings Common responsibility, shared benefits 1[2](#page-15-0)[3](#page-53-0)[4](#page-64-0)56**

**Responsible [management](#page-183-0)**

> About [this report](#page-229-0)

[Data tables](#page-261-0)

Image /page/219/Picture/0 description: The image shows the text "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the text is a large number "23" with a dashed line underneath. A forward slash separates the number from the text "Responsible management" on the right side of the image.

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# Criminal risks assessed in 2023

As in 2021 and 2022, in 2023, the company drew up a specific criminal risk map to ensuring ongoing adequate management, so responding to the demands of our stakeholders and honouring one of the commitments made in our 2025 Strategic Plan.

The criminal risk map can be configured to provide results at the global level but also broken down by region, by technology and by region and technology. It estimates, in euros, the impact on EBITDA (framed by the defined parameters) of the potential materialisation of each risk and includes all of the controls launched at each factory during the year, indicating their current performance status, along with the corresponding evidence. The entire process is monitored via the internal management tool, SAP GRC.

A total of 271 people participated in drawing up the criminal risk map, 38 more than in 2022, and the exercise involved 12 countries, three more than in 2022: the US, Mexico, Brazil, India, China and the European markets - Spain, France, Germany, Czechia, Italy, Romania and Slovakia. Each respondent considered a time horizon of 2025 and their

specific area of geographic influence. The company's aim is to come up with a national assessment for each country in which it has business operations within the horizon of its 2025 Strategic Plan.

The criminal risks assessed in 2023 are the result of benchmarking exercises to identify the regulations applicable in each national jurisdiction. To design this new version of the risk map, the company started from the Model developed and implemented in Spain, the various mandatory requirements under local legislation, best national and international practices and suggestions for improving the Model gathered from the various jurisdictions.

Following that analysis, 37 potential crimes were evaluated by the various professionals identified for that task; some but not all of them are offences itemised in Spain's Criminal Code. Given that the company still has to analyse some of its markets, the aggregate 2023 map is not quite yet a global map but rather a map that rolls up the 37 offences identified in the 12 countries where this work has been completed. The global risk map, assuming the group's current footprint, will be a reality by 2025, so delivering the target set down in the 2025 Strategic Plan.

# Criminal risk map

On the basis of the boundary described above and the residual risk assessment approach, the map reveals that none of the criminal risks evaluated presents a medium or high probability of materialisation or would have a significant or severe impact on EBITDA if they were to materialise. Indeed, most of the assessments highlight the credibility of the existing Model, based on global monitoring of the controls performed at the factory, technology and country levels, as well as on continuous specific training.

Image /page/220/Picture/20 description: The image shows a white scale of justice against a gray background. The scale is symmetrical, with two triangular pans suspended from a central beam. The beam is supported by a vertical post that rests on a horizontal base.

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0) 1**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

#### **Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/220/Picture/22 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" in a simple, sans-serif font. The letter "C" is formed by two curved shapes, one above the other, creating a crescent-like form. The text is aligned horizontally with the letter "C" and is in a dark color, likely black or a dark gray.

Image /page/220/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters on the left side of the image. To the right of the words is a large number "23" in black. A gray quotation mark is above the number.

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### **KEY RISKS: DESCRIPTION AND ACTION PLANS**

**RISKS WITH LOW PROBABILITY OF OCCURRENCE AND MODERATE POTENTIAL IMPACT**

Image /page/221/Figure/13 description: The image shows a stylized icon of a plant sprouting from the ground, enclosed within a circle. The plant has a single stem and two leaves. The color scheme is a gradient of orange, with the bottom of the circle and the ground area being a lighter shade, gradually darkening towards the plant and the upper part of the circle. The overall design is simple and clean, suggesting themes of growth, nature, or sustainability.

Image /page/221/Picture/14 description: The image shows two folders, one slightly behind the other, with a padlock icon superimposed on the front folder. The folders are depicted in a light orange gradient, while the padlock is a solid orange color. The padlock is positioned in the lower right corner of the front folder, suggesting security or restricted access to the folder's contents.

Exercising the due control required under Spain's Criminal Code requires the

company to implement continuous control mechanisms and to appoint internal control bodies to follow up on the controls implemented and any possible criminal risks. Framed by those legislative requirements, CIE Automotive has defined a control structure made up of: (i) the Board of Directors, as the highest decision-making body; (ii) the Audit and Compliance Committee, as oversight and control body; and (iii) the Support Unit.

CIE Automotive has vested the control and oversight duties in the Audit and Compliance Committee, as it has the autonomy and independence in terms of control powers and the ability to act required under the control framework.

The Compliance Department is responsible for continuously reviewing and updating the internal control system and ensuring compliance with internal and external regulations and the policies and procedures in place for mitigating the main corruption and fraud risks. It is also in charge of the Model and establishment, development and updating CIE Automotive's ethics framework.

All of CIE Automotive factories use an IT tool to guarantee performance of the required internal controls. That tool is the SAP GRC (Governance, Risk and Compliance) suite, which permits the automated and manual analysis of the level of performance of the controls conducted at the factory level and tracks incidents

and any resulting action plans, enabling traceability, as outlined in greater detail in the Internal Control Systems section.

New internal controls were launched in 2023 to mitigate some of the main criminal risks identified in the regions with a tailored risk map and training was undertaken in the following areas:

• Corporate liability and anti-corruption, launched between the end of 2020 and 2021, provided to 600 people in total, including the company's directors, key management personnel, the global management team and the members of the local management committees. Since then, all newcomers to those groups have also been receiving the corporate liability and anti-corruption training.

• Code of Professional Conduct, provided to over 6,000 people online in 2021 and to the rest of CIE Automotive's people worldwide in the form of brochures and a final assessment.

• ESG training, provided to over 6,500 people online in 2023 and to the rest of CIE Automotive's people worldwide in the form of brochures

- 
- 
- and a final assessment.

It is important to note that each time the Model is introduced into a new country, specific criminal risk training is provided to all of the people it applies to. That refresher training involves a reminder of the company's in-house policies, manuals, procedures and controls and provides an update on applicable local legislation and related

developments.

DISCRIMINATION

DAMAGE TO NATURAL RESOURCES

CONFIDENTIALITY BREACHES

### **Action plan**

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0) 1**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/221/Picture/31 description: The image shows the CIE Automotive logo. On the left is a stylized letter C, formed by two curved black shapes. To the right of the C is the text "CIE Automotive" in a simple, sans-serif font. The text is black.

Image /page/221/Picture/0 description: The image shows the words "ANNUAL REPORT" on the left side of the image. To the right of the words is a large number "23" with a quotation mark above it.

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# Criminal risks mitigated in 2023

Thanks to the actions taken in 2023, CIE Automotive managed to mitigate the probability of materialisation of discriminatory actions, ranked as a priority in 2022, and, therefore, no longer deemed in need of priority attention in the 2023 criminal risk map.

The key actions taken included tighter control over and monitoring of the existing controls, the introduction of new controls following the model's reassessment and, importantly, the ongoing training provided on these risks by the Compliance Department as well as the various HR teams at the factory level, with support from the corporate HR Department.

Chairman and CEO's [statement](#page-2-0) **2023 [highlights](#page-5-0) Ready [for change](#page-15-0) Record [earnings](#page-53-0) Common responsibility, [shared benefits](#page-64-0) 1 2 3 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/222/Picture/7 description: The image shows a scale of justice behind a triangular warning sign with an exclamation point in the center. The scale and the warning sign are both orange.

Image /page/222/Picture/12 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the text "CIE Automotive" on the right. The letter C is made up of two curved shapes, one above the other, that do not quite meet in the middle. The text "CIE Automotive" is in a simple, sans-serif font.

Image /page/222/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large quotation mark followed by the number 23.

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**6.6**

# **Internal control model**

**CIE Automotive's internal control system, which it reviews, updates and improves continually, is based on the three lines of defence approach and provides coverage from risk identification right through to the internal audit function. The Compliance Department, as part of the second line of defence, is responsible for the system's regular review and continuous improvement. It also ensures compliance with internal and external rules and with the policies and procedures designed to mitigate the potential risks.**

Image /page/223/Picture/13 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" in a simple, sans-serif font. The letter "C" is formed by two curved shapes, one above the other, creating a crescent-like appearance. The text is aligned horizontally with the letter "C" and is in a dark color, likely black or a dark gray.

Chairman and CEO's [statement](#page-2-0)

**Common responsibility, [shared benefits](#page-64-0)**

**2023 1 2023 highlights**

**Ready 2 Ready for change**

> **Our response to [the environmental](#page-141-0)  challenge**

**Record [earnings](#page-53-0) 3**

> **Responsible [management](#page-183-0)**

> > About [this report](#page-229-0)

[Data tables](#page-261-0)

**4**

**5**

**6**

<span id="page-223-0"></span>**ANNUAL REPORT**

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Risk supervision and management is performed using the Risk Management and Process Control modules of the SAP GRC tool which operates across all of the group's productive facilities, irrespective of whether they have an SAP enterprise resource planning (ERP) system or not.

Each risk is assigned specific controls, many of which are automatic; their performance is allocated to different owners and in the event of incidents, traceable, timed action plans are triggered. In all, the Compliance Department supervises over 250 controls, applied at the individual factory, business division and corporate office levels, under the scope of its internal control over financial reporting (ICFR) and internal control over non-financial reporting (ICNFR) systems. The ICNFR system includes controls over ESG, criminal, compliance, IT and data protection risks.

Image /page/224/Figure/3 description: This image shows a diagram of the lines of defense in a company. The diagram is divided into four sections: the first line of defense, the second line of defense, the third line of defense, and external audit. The first line of defense is operational management. The second line of defense is governance and operational. Governance includes ethical framework, statutory compliance, and criminal liability. Operational includes risk management, internal control (ICFR\* & NFRS\*\*), operational corporate crime, ESG, and GDPR\*\*\*. The third line of defense is internal audit. The external audit is external audit. The diagram also includes text that describes the responsibilities of each line of defense. The first line of defense must assess, control, and mitigate risks and implement effective internal controls. The second line of defense facilitates and supervises the Operational Management Unit's implementation of effective internal control and risk management. The third line of defense proves the effectiveness of internal control and risk management mechanisms to government agencies, including how the 1st and 2nd line defenses work. The diagram also includes the text "BOARD OF DIRECTORS / AUDIT AND COMPLIANCE COMMITTEE / ESG COMMITTEE" and "SENIOR MANAGEMENT" at the top. On the left side of the image are the following items: Chairman and CEO's statement, 2023 highlights, Ready for change, Record earnings, Common responsibility, shared benefits, Our response to the environmental challenge, Responsible management, and About this report. The numbers 1 through 6 are next to the items 2023 highlights through Responsible management. At the bottom of the image are the following notes: (\*) ICFR: Internal control over financial reporting, (\*\*) NFRS: Internal control over non-financial reporting, and (\*\*\*) GDPR: General Data Protection Regulation.

The results are reviewed as part of the Internal Audit Department's annual audit plan as well as being submitted to senior management for review and approval.

All of the internal audit work is performed through the Audit Management module within SAP GRC, in place across the various local internal audit areas in Brazil, Mexico, India and Europe. Having risk management, internal control and internal audit integrated within the same control tool (i.e., SAP GRC) creates synergies by unlocking work efficiencies and generating value for the business divisions by sharing experiences and success stories.

**LINES OF DEFENCE** 

## The Compliance Department **supervises over 250 controls**

#### [Data tables](#page-261-0)

Image /page/224/Picture/7 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter "C" on the left and the words "CIE Automotive" on the right. The "C" is black and appears to be made up of two curved shapes. The words "CIE Automotive" are in a simple, sans-serif font, with "CIE" in a slightly bolder font than "Automotive".

Image /page/224/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters on the left side of the image. To the right of the words is a large number "23" in black, with a gray quotation mark above it.

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### *Process mining project*

Process mining is a technique designed to discover, monitor, and improve real business processes (such as purchase order and payment management processes) by extracting readily available knowledge from the event logs of information systems. With process mining, aided by artificial intelligence, it is possible to quickly visualise, identify and quantify bottlenecks and inefficiencies across the business, so delivering the following benefits, among others:

- Increased efficiency by removing bottlenecks, improving cycle times and streamlining processes.
- Cost reduction associated with duplicity, rework and manual processes.
- Improved compliance by detecting non-compliant processes or possible cases fraud.
- ¡Continuous business optimisation by improving processes and monitoring them in real-time.

In 2023, with the aim of making the company's internal control system more efficient, CIE Automotive embarked on a process mining project with Celonis (the tool provider) and the consultancy, Deloitte.

The goal of this project is to establish use cases that, by interconnecting all of the company's ERPs around the world, help generate value in the company's business processes by detecting inefficiencies and optimising processes. In short, the idea is to improve processes by detecting bottlenecks, identifying the best routes to achieving a given objective, as well as flagging any potential cases of fraud. . This translates into the establishment of numerical indicators and scorecards that make it easier for the business and corporate managers to understand and monitor the data.

In 2023 the company managed to implement process mining in the production SAP environments in Europe and at Datasul in Brazil and the tool is

under development in the S/4 HANA environment of the roof systems division (with global reach) and the SAP environments in Mexico, India and in other environments in Europe.

Image /page/225/Figure/18 description: The image shows a gray rectangle with two check marks at the top and four circles in a vertical line below them. To the right of the circles is a white rectangle.

Chairman

and CEO's [statement](#page-2-0) **2023 [highlights](#page-5-0) Ready 2 Ready for change Record [earnings](#page-53-0) Common 1 3**

**responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

#### **Responsible [management](#page-183-0) 6**

Image /page/225/Picture/20 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" in a sans-serif font. The letter "C" is formed by two curved shapes, one above the other, creating a crescent-like appearance. The text "CIE" is in a bold font, while "Automotive" is in a lighter font.

Image /page/225/Figure/22 description: The image shows a gray icon of a computer screen displaying various types of data visualizations. On the left side of the screen, there are two sets of horizontal bars stacked vertically, followed by two vertical bar graphs. To the right of these, there is a single vertical line, followed by a line graph that shows an upward trend. Finally, there is a pie chart on the right side of the screen. The computer screen is supported by a base, which is also gray.

Image /page/225/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large number "23" with a gray quotation mark above the number.

Image /page/225/Picture/1 description: The image shows the number 23 in large, bold, black font on the left side of the image. To the right of the number 23, there is a forward slash followed by the words "Responsible management" in a smaller, thinner, black font.

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**6.7**

# **Integration of ESG aspects**

**Beyond the financial objectives intrinsic to its business activity and value creation purpose, CIE Automotive integrates other moral, social and environmental considerations, aligned with the United Nations 2030 Agenda, into its processes and actions. In 2023 the company continued to make progress on these aspects, as measured by the goals established in its 2025 Strategic Plan.**

Image /page/226/Picture/14 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the text "CIE Automotive" on the right. The letter C is made up of two curved shapes, one above the other, that do not quite meet in the middle. The text "CIE Automotive" is in a simple, sans-serif font.

Chairman and CEO's [statement](#page-2-0)

**2023 1 2023 highlights**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

<span id="page-226-0"></span>Image /page/226/Picture/0 description: The image shows the words "ANNUAL REPORT" in white on the left side of the image. To the right of the words is a large white number "23" with a gray quotation mark above it.

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Image /page/227/Figure/20 description: The image is a circular diagram illustrating a process related to climate change, stakeholders, and customers. The diagram is divided into several sections, each representing a different aspect of the process. The central part of the diagram contains the words "CLIMATE CHANGE" surrounded by "STAKE HOLDERS" and "CUSTOMER". The outer ring of the diagram is divided into numbered sections, each with a title. Starting from the top and moving clockwise, the sections are: 5-STRATEGIC PLANNING, 6-BUSINESS PLAN TARGETS, BUDGETS, 7-COMPLIANCE, 8-CUSTOMER SATISFACTION MANAGEMENT, 15-MANAGEMENT CONTROL AND FINANCIAL RESOURCES, 10-QUALITY, 11-ENVIRONMENT, 12-HEALTH AND SAFETY, 9-PURCHASING AND SUPPLIERS MANAGEMENT, 14-COMMUNICATION, 16-OBTAIN AND TRANSFER TECHNOLOGICAL KNOW-HOW, 17-EMPLOYEE'S SKILLS AND PROFILE DEVELOPMENT, 18-DEVELOP EMPLOYEE'S PARTICIPATION, 19-INFORMATION SECURITY, 2-SALES, 3-INDUSTRIALISATION OF NEW REFERENCES, 4-MASS PRODUCTION SHOP FLOOR AND DELIVERIE'S MANAGEMENT, 1-INNOVATION AND DEVELOPMENT, 13-MANAGEMENT OF COMMITMENT WHIT STAKEHOLDERS.

#### **CIE AUTOMOTIVE PROCESS MAP**

# Integration in the process map

The company's ESG criteria are seamlessly integrated into all of its activities and decisions. The group's process map, updated for the eleventh time in 2022, has climate change front and centre, while also featuring some of the core aspects of CIE Automotive's culture:

- **Mission, vision and values**
- **Stakeholders**
- **Process map**
- **Policies**
	- Quality
	- Environment
	- Health and safety
	- IT security

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready for change**

**Record earnings**

**Common responsibility, shared benefits**

**Our response to [the environmental](#page-141-0)  challenge 1[2](#page-15-0)[3](#page-53-0)[4](#page-64-0)56**

#### **Responsible [management](#page-183-0)**

About [this report](#page-229-0)

Image /page/227/Picture/22 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved shapes, one above the other, with a gap in between. The text "CIE Automotive" is in a simple, sans-serif font.

Image /page/227/Picture/0 description: The image shows the text "ANNUAL REPORT" stacked vertically on the left side of the image. To the right of this text is a large number "23" with a quotation mark above it. A diagonal line separates the number from the text "Responsible management" on the right side of the image.

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Image /page/228/Figure/25 description: The image shows a series of horizontal bar graphs representing ESG scores for various companies. The companies are listed on the left side of the image, and the scores are displayed on the right side of the image. The bar graphs are color-coded, with green representing high scores and red representing low scores. The companies listed are CDP, Ecovadis, Moody's, MSCI, Sustainalytics, FTSE Russell, ISS-Corporate, Glass Lewis, Clarity AI, and Bloomberg. The scores for each company are as follows: CDP (Solicited. Clients' request), Ecovadis (68, Solicited. Clients' request), Moody's (95, Solicited. Linked to financial facilities), MSCI (82, Unsolicited), Sustainalytics (47, Unsolicited), FTSE Russell (94, Unsolicited), ISS-Corporate (97, Unsolicited), Glass Lewis (n.a, Unsolicited), Clarity AI (n.a, Unsolicited), and Bloomberg (65, Unsolicited), (70, Unsolicited).

In 2023 the company made fresh progress on a number of its ESG targets, while delivering the 79 specific KPIs set down in its 2025 Strategic Plan.

- **New SDG 7:** CIE Automotive added SDG 7 "Affordable and clean energy" to its contributions to the 2030 Agenda in 2023. This commitment has translated into investments in clean energy, the implementation of technology to reduce energy consumption across its facilities and a constant search for energy efficiencies.
- **ESG training at the global level.** To get everyone at CIE Automotive to see and understand the importance of its ESG goals, the company has an online platform that explains its strategic approach and provides ESG training to its employees (to more than 6,500 online and to everyone worldwide via printed brochures).
- **New Whistleblowing channel:** In 2023 CIE Automotive rolled out a new online platform to make it easier for its employees and other stakeholders to confidentially report inappropriate or criminal conduct, so complying with Directive (EU) 2019/1937 of the European Parliament and of the Council of 23 October 2019 on the protection of persons who report breaches of Union law and its transposition into law in the various European jurisdictions where the Company operates on the protection of persons who report breaches of Union law.
- **Expansion of the international criminal risk map.** In 2023 the company took new steps in building a truly global criminal risk map by adding three new markets: Italy, Romania and Slovakia. The analysis has also been completed in Portugal where the map will be implemented in the first quarter of 2024.
- **Expansion of the Supply Chain Race 2 Zero project:** This is the company's effort to help its suppliers decarbonise by supporting and monitoring suppliers who are having difficulties reducing their emissions.
- **Update of the materiality matrix:** The matrix was updated in 2023 thanks to the feedback gleaned from over 1,500 employee surveys and information collected from customers, analysts and investors.

| SECTOR<br>POSITIONING<br>ON ESG<br>(PERCENTILE) | ESG<br>ADVISORS   |
|-------------------------------------------------|-------------------|
|                                                 |                   |
|                                                 | PROXY<br>ADVISORS |
|                                                 | ESG<br>DATASET    |

### ESG achievements in 2023 Chairman [statement](#page-2-0)

#### **Sector outperformance on ESG scores**

CIE Automotive's ESG performance is tangible in the scores awarded by a number of independent sustainability agencies. Most of these scores, except for those associated with financing operations, have not been solicited by the company. These specialists rate CIE Automotive on aspects related with its environmental impact, social practices and governance structure.

CIE Automotive's scores are strong and reflect outperformance relative to most of its sector peers. The results confirm the effectiveness of the measures taken in recent years to address crucial ESG matters.

Note that CIE Automotive climbed a whole notch on the CDP's ESG ratings, from C to B, on the basis of the data for 2023, implying an increase in score of over 30 points, from 34 to 68.

and CEO's

**2023 [highlights](#page-5-0) 1**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/228/Picture/24 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter 'C' on the left and the text 'CIE Automotive' on the right. The 'C' is formed by two curved lines that do not fully connect, creating an incomplete circle. The text 'CIE Automotive' is in a simple, sans-serif font, with 'CIE' slightly larger than 'Automotive'.

Image /page/228/Picture/0 description: The image shows the text "ANNUAL REPORT" on the left side and the number "23" on the right side. The number 23 has a dashed line running through it and a quotation mark above it.

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# About this report

CIE Automotive's Annual Report provides comprehensive and detailed information about the performance of CIE Automotive, S.A. and its subsidiaries along the economic, financial, environmental, social and governance dimensions in 2023 in all of the countries in which it operates. The scope of the financial and non-financial information is, therefore, global.

In order to facilitate comparability, the document also provides information for prior years. The reader should note that in October 2023 the group sold the German forging business that was owned by Forging Germany GmbH (formerly, Mahindra Forgings Europe AG) and its subsidiaries, to an investee of Mutares United Gmbh.

And in May 2023 it completed the acquisition, through Autometal, of 100% of Iber-Oleff Brasil Lda. in Brazil.

In 2023 the group also acquired the Hungarian company Salgglas, which specialises in the manufacture of safety glass for cars.

Chairman

**[highlights](#page-5-0)**

and CEO's [statement](#page-2-0) **2023 1**

**Ready Ready for change 2**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> *About this report*

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/229/Picture/16 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of two curved lines that do not quite meet, forming an incomplete circle. The words "CIE Automotive" are in a simple, sans-serif font.

Image /page/229/Picture/17 description: The image shows a gray circle with a white "i" symbol on it. The "i" is in a sans-serif font and is positioned on the left side of the circle. The circle is cropped on the right side, so only a portion of it is visible.

<span id="page-229-0"></span>Image /page/229/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large number "23" with a quotation mark above the number 2.

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### **METHODOLOGY**

This report expounds on the relevant topics identified as a result of the materiality assessment conducted annually on the basis of questionnaires and analysis carried out to detect the topics deemed most important due to their significance for the company and its stakeholders and due to their perceived level of attention within the

organisation.

Throughout the entire process of collecting and presenting its financial and non-financial information, CIE Automotive bears in mind the principles of transparency, materiality, comparability, timeliness, clarity and

reliability needed to assure the quality of the

information reported.

The techniques used to measure and calculate the data provided, along with any estimates made, are explained in the corresponding tables or chapters of the report as necessary to facilitate reader

comprehension.

#### **Non-financial reporting process**

 This report, which is appended to the consolidated management report as a separate document, includes constitutes CIE Automotive's 2023 non-financial statement (NFS) and provides information about the environmental, social and governance (ESG) activities of CIE Automotive S.A. and its investees during the year across the 18 countries where it does business. The Chinese joint venture, SAMAP, is excluded from the scope as it is accounted for using the equity method.

However, in order to confirm that, despite being an equity-accounted investee, the ESG risks to which the group is exposed through its joint venture in China are not material for CIE Automotive, a self-assessment was conducted on the basis of the contents of Spanish Law 11/2018 on non-financial and diversity reporting. That assessment revealed the existence of a working methodology at the joint venture around ESG matters, with specific targets and indicators, that is aligned with CIE Automotive's methodology.

The non-financial disclosures were prepared in keeping with Spanish Law 11/2018 and the non-binding guidelines on nonfinancial reporting issued by the European Commission on 5 July 2017 (EU Guidelines 2017/C 215/01) and the GRI Standards.

The non-financial statement, which is part of this Annual Report, was assured KPMG Auditores, S.L., which also audited the group's annual financial statements. The Audit and Compliance Committee is tasked with ensuring that firm's independence.

The non-financial information, which is part of the NFS, included in this report was compiled with the input and oversight of the heads of all of the various departments and areas:

- The Compliance Department is ultimately responsible for its preparation and coordination, albeit ably assisted by the Cross-Group ESG Committee.
- The Board of Directors is ultimately responsible for approving its issue, along with the management report. The Board of Directors is kept regularly abreast of the most significant environmental, social and governance matters by the ESG Committee.

To round out the information about the group's activities throughout the year, a number of other statutory reports are available for download on the corporate website: separate and consolidated annual financial statements and management report, Annual Corporate Governance Report and Annual Report on Board Remuneration, along with all of the presentations published about different aspects of the group or in the specific website tabs devoted to specific stakeholder groups.

The scope of the social and environmental impact information included in this Report is the same as the financial scope considered in CIE Automotive, S.A.'s consolidated financial statements, in addition to the forged parts business in Germany (carried on by Schöneweiss & Co. GmbH, Gesekschmiede Schneider GmbH, Falkenroth Umformtechnik GmbH and Jeco Jellinghaus GmbH ), assets classified as held for sale in 2023 that were part of the group until July 2023.

Therefore, **all of the tables containing non-financial information throughout the report (except those providing year-end data) include the data for the discontinued German forging operations until 30 June 2023.**

**For a better understanding of the information, the "Data tables" section discloses the information for the discontinued German operations separately.**

f

Chairman and CEO's [statement](#page-2-0) **2023 [highlights](#page-5-0) Ready [for change](#page-15-0) Record [earnings](#page-53-0) Common responsibility, [shared benefits](#page-64-0) 1 2 3 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> About [this report](#page-229-0)

#### **Responsible [management](#page-183-0) 6**

Image /page/230/Picture/0 description: The image shows the words "ANNUAL REPORT" on the left side of the image. To the right of the words is a large number "23" with a quotation mark above it.

{231}------------------------------------------------

### **MATERIALITY**

This report aims to provide information that is material for the company and its stakeholders in order to understand expectations and plan appropriate responses. In 2023, the company updated its materiality assessment so as to identify the matters of greatest importance for the company and its stakeholders. During that process it consulted internal and external sources and considered a time horizon aligned with the current 2025 ESG Plan.

To update the assessment, the group analysed internally the topics considered material for CIE Automotive, sector and customer sustainability trends and commitments, regulatory developments and the demands of analysts, investors and other stakeholders.

Review of sustainability trends and

#### **ANALYST AND INVESTOR DEMANDS**

Review of the information requested by analysts and investors

Image /page/231/Figure/8 description: The image shows a diagram with a central circle containing the letters "C" and "E". Radiating outward from the central circle are lines connecting to various analysis categories. Clockwise from the top, these categories include "PEERS ANALYSIS" with the description "Review of material topics by 3 peers of CIE Automotive", "SUSTAINABILITY STANDARDS" with the description "Review of sustainability trends commitments", "ANALYST DEMANDS" with the description "Review of requested investors", "REGULATORY AND STATUTORY ANALYSIS" with the description "Analysis of the legal obligations affect CIE Automotive", "STAKEHOLDER RELATIONS" with the description "Analysis of customer requirements", "EMPLOYEES" with the description "World ESG workshops", and "MEDIA ANALYSIS" with the description "Identification of the key issues covered by the press by means of media clippings".

Analysis of the legal obligations that affect or could

### In 2023, the company **updated its materiality assessment**

Image /page/231/Figure/3 description: The image shows a list of topics. The first topic is "Chairman and CEO's statement". The second topic is "2023 highlights" and is labeled with the number 1. The third topic is "Ready for change" and is labeled with the number 2. The fourth topic is "Record earnings" and is labeled with the number 3. The fifth topic is "Common responsibility, shared benefits" and is labeled with the number 4. The sixth topic is "Our response to the environmental challenge" and is labeled with the number 5. The seventh topic is "Responsible management" and is labeled with the number 6.

*About [this report](#page-229-0)*

Image /page/231/Picture/11 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of three curved black lines that do not quite connect, forming an incomplete circle. The words "CIE Automotive" are in a simple, sans-serif font, with "CIE" in a bolder weight than "Automotive".

Image /page/231/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large number "23" with a gray quotation mark above the number.

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| RANKING | TOPIC                                                             | ESG AREA      |
|---------|-------------------------------------------------------------------|---------------|
| 1       | Responsible supply chain management                               | Social        |
| 2       | Expert talent management                                          | Social        |
| 3       | Customer satisfaction                                             | Social        |
| 4       | New forms of mobility                                             | Environmental |
| 5       | Geopolitics                                                       | Governance    |
| 6       | Innovation to drive efficiency                                    | Environmental |
| 7       | Risk management                                                   | Governance    |
| 8       | Strong corporate governance                                       | Governance    |
| 9       | Circular economy: efficient use of resources and waste management | Environmental |
| 10      | Respect for human rights                                          | Social        |
| 11      | Workplace health and safety                                       | Social        |
| 12      | Climate change                                                    | Environmental |
| 13      | Ethics and compliance                                             | Governance    |
| 14      | Employee wellbeing                                                | Social        |
| 15      | Environmental impact                                              | Environmental |
| 16      | Equality, diversity and inclusion                                 | Social        |
| 17      | Privacy and data protection                                       | Governance    |
| 18      | Community relations                                               | Social        |
| 19      | Product quality and safety                                        | Social        |
| 20      | Growth and responsible investment                                 | Governance    |
| 21      | Stakeholder engagement                                            | Social        |
| 22      | Reputation                                                        | Governance    |
| 23      | Transparency                                                      | Governance    |

#### **Material topics MATERIAL TOPICS RANKED BY IMPORTANCE**

## **in 2023**

The 2023 update revealed a shift in the perceived importance of some of the key matters identified as material in 2022. In line with growing regulations and stakeholder demands (mainly the sector and public organisations), new forms of mobility (closely related with the latest market trends), geopolitics (both of which are risks flagged in the risk map) and sustainable supply chain management emerged as more significant and now occupy prominent spots on the ranking of material ESG topics.

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready [for change](#page-15-0)**

**Record [earnings](#page-53-0)**

**Common responsibility, [shared benefits](#page-64-0)**

**Our response to [the environmental](#page-141-0)** 

**challenge**

**Responsible [management](#page-183-0)**

*About [this report](#page-229-0)*

[Data tables](#page-261-0)

**1**

**2**

**3**

**4**

**5**

Image /page/232/Picture/7 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of two curved black shapes that do not quite meet, forming an incomplete circle. The words "CIE Automotive" are written in a simple, sans-serif font, with "CIE" in a slightly bolder font than "Automotive".

Image /page/232/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large number "23" with a quotation mark above the number 2.

23 / About this report

{233}------------------------------------------------

Image /page/233/Figure/8 description: The image is a scatter plot that maps different factors based on their importance and management level. The x-axis represents "MANAGEMENT" and ranges from 2.7 to 3.4, while the y-axis represents "IMPORTANCE" and ranges from 2.0 to 4.0. The plot contains 23 numbered data points, each representing a different factor. These factors are:
1. Responsible supply chain management
2. Expert talent management
3. Customer satisfaction
4. New forms of mobility
5. Geopolitics
6. Innovation to drive efficiency
7. Risk management
8. Strong corporate governance
9. Circular economy: efficient use of resources and waste management
10. Respect for human rights
11. Workplace health and safety
12. Climate change
13. Ethics and compliance
14. Employee wellbeing
15. Environmental impact
16. Equality, diversity and inclusion
17. Privacy and data protection
18. Community relations
19. Product quality and safety
20. Growth and responsible investment
21. Stakeholder engagement
22. Reputation
23. Transparency

The data points are color-coded based on their area: environmental (green), governance (red), and social (blue). The positions of the points on the plot indicate their relative importance and management level. For example, point 3 (Customer satisfaction) is located at the top-right corner, indicating high importance and high management, while point 22 (Reputation) is located at the bottom-left corner, indicating low importance and low management.

#### The importance ascribed to each **MATERIALITY MATRIX** material topic, coupled with the perception of how well each one is being managed, yielded the following materiality matrix, which in turn formed the basis of the 2025 Strategic Plan and the contents of this Annual Report.

All ESG topics that lie above the dividing line are matters whose importance is greater than the level of attention they are currently receiving and therefore constitute the ESG matters the company needs to focus on. The greater the distance between the ESG topic in question and the dividing line, the more the company needs to prioritise it.

*Explanatory note of the matrix: in the questionnaires for updating the materiality analysis, the minimum scale score is 1 and the maximum is 4. Given the results atomized between scores 2 and 3, without extremes, the resulting matrix is shown on their axes starting from a value of 2.7, which means that all issues have been valued on that scale from 1 to 4, above 2.7*

Chairman and CEO's [statement](#page-2-0) **2023 [highlights](#page-5-0) Ready [for change](#page-15-0) Record [earnings](#page-53-0) Common responsibility, [shared benefits](#page-64-0) Our response to [the environmental](#page-141-0)  challenge Responsible [management](#page-183-0) 1 2 3 4 5 6**

#### *About [this report](#page-229-0)*

[Data tables](#page-261-0)

Image /page/233/Picture/11 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The "C" is formed by two curved shapes that do not fully connect, creating a gap in the middle. The text "CIE Automotive" is in a simple, sans-serif font.

Image /page/233/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large number "23" with a gray quotation mark above the number.

{234}------------------------------------------------

## **Contact details**

*(\*) Also included on the corporate website.*

Image /page/234/Figure/3 description: This image contains information about CIE Automotive S.A. The registered name is CIE Automotive S.A. The registered office is Alameda Mazarredo, 69 – 8º 48009 Bilbao, (Bizkaia). The telephone number is Spain : +34 946 054 835. The website is www.cieautomotive.com. The share capital is 29,951,871.00€. The number of shares is 119,807,484. The par value is €0.25/share. The business activity is Manufacture of automotive parts. CIE Automotive is present in 17 countries its shares are listed on the Spanish stock market. There are dedicated channels for each stakeholder group. For ESG and community relations, contact Susana Molinuevo at esg@cieautomotive.com. For professionals, contact Aitor Zazpe at hr@cieautomotive.com. For investor relations and business partners, contact Lorea Aristizabal at ir@cieautomotive.com. For customers and sector, contact Mikel Orbegozo at sales@cieautomotive.com. For supply chain, contact Irache Pardo at purchasing@cieautomotive.com. For financiers, contact Irache Pardo at financierocie@cieautomotive.com. For public relations, contact compliance@cieautomotive.com.

Image /page/234/Picture/6 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of two curved shapes that are open on the right side. The words "CIE Automotive" are written in a sans-serif font.

s for
group:\*

elations:
ng@cieautomotive.com

tomotive.com

business partners:
cieautomotive.com

:
@cieautomotive.com

ing@cieautomotive.com

cie@cieautomotive.com

tive.com

Image /page/234/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large gray quotation mark followed by the number 23 in black.

{235}------------------------------------------------

**EBITDA**:

Earnings before interest, tax, depreciation and

amortisation.

**Adjusted EBITDA**:

EBITDA for the last 12 months (LTM) including 50% of the EBITDA of the Chinese JV, SAMAP, which, on the basis of the existing agreements with the other venturer, is

accounted for using the equity method.

**EBIT**:

Earnings before interest and tax.

#### **Net Profit**:

Profit attributable to owners of the parent.

#### **Net debt (ND)**:

Borrowings from banks and other financial institutions less cash and cash equivalents and less other current financial assets.

#### **Adjusted net debt**:

Net debt including 50% of the net debt of the Chinese JV, SAMAP, which, on the basis of the existing agreements with the other venturer, is accounted for using the equity method.

#### **Fixed assets**:

Property, plant and equipment, intangible assets, including goodwill, rights of use over leased assets (IFRS 16), investments accounted for using the equity method and assets and liabilities held for sale.

#### **Maintenance capex**:

CAPEX desi
handling a

EBITDA – Inte
– IFRS 16 leas

CAPEX designed to update the facilities with a view to handling anticipated organic market growth.

#### **Cash flow from operations**:

EBITDA - Interest expense paid - Tax paid - Maintenance CAPEX - IFRS 16 leases / EBITDA corrected for the impact of IFRS 16.

## **GLOSSARY**

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0) 1**

**Ready [for change](#page-15-0) 2**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> *About [this report](#page-229-0)*

**Responsible [management](#page-183-0) 6**

Image /page/235/Picture/25 description: The image shows the logo for CIE Automotive. On the left is a stylized letter C, formed by two curved black shapes. To the right of the C is the text "CIE Automotive" in a simple, sans-serif font.

Image /page/235/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large number "23" with a quotation mark above the number 2.

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| Contents of Law 11/2018 on non-financial and diversity reporting                                                                                                                                                                                                                                                                              | GRI  | MATERIALITY | SECTION                                                                                                                                                                                                                                                                 | PAGE                                                                                                                        |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------|-------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                               | 1    | Yes         | Contact details                                                                                                                                                                                                                                                         | 231                                                                                                                         |
| Brief description of the undertaking's business model, including<br>disclosures related to:<br>1) their business environment;<br>2) their organisation and structure;<br>3) the markets where their operate;<br>4) their objectives and strategies;<br>5) the main trends and factors that may affect their future<br>development             | 3-3  | Yes         | We create value for our shareholders                                                                                                                                                                                                                                    | 78-81                                                                                                                       |
|                                                                                                                                                                                                                                                                                                                                               | 2-1  | Yes         | Contact details<br>Geographical balance                                                                                                                                                                                                                                 | 235<br>30                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                               | 2-6  | Yes         | A genuine business model<br>Contact details<br>Geographical balance<br>Corporate gobernance bodies                                                                                                                                                                      | 29-35, 189-198                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                               | 2-22 | Yes         | Chairman and CEO's statement                                                                                                                                                                                                                                            | 3-5                                                                                                                         |
| A description of the policies pursued by the undertaking in<br>relation tothose matters, including:<br>1) The due diligence processes implemented in order to identify,<br>evaluate, prevent and mitigate significant risks and adverse<br>impacts.<br>2) The monitoring and control processes, specifying which<br>measures have been taken. | 3-3  | Yes         | Excellence with and for our customers<br>Our team: the people behind the transformation<br>Change begins with our suppliers<br>Our response to the environmental challenge<br>Responsible management<br>Compromisos que nos inspiran<br>The commitments that inspire us | 82-86<br>100, 102, 107-111<br>120-122, 126- 131<br>144-146, 150, 156, 161<br>187, 189, 197, 199-207, 227-<br>37-40<br>32-44 |
| The outcomes of those policies, including the pertinent non-<br>financial key performance indicators that are most useful in:<br>1) monitoring and assessing progress<br>2) supporting comparability across companies and sectors,<br>relying on broadly recognised national, EU-based or international<br>frameworks for each issue          | 3-3  | Yes         | Excellence with and for our customers<br>Our team: the people behind the transformation<br>Change begins with our suppliers<br>Our response to the environmental challenge<br>Responsible management<br>Our sustainable growth strategy                                 | 82<br>90-103, 108-112<br>116-117, 120-132<br>142-146, 149-150<br>190-191, 199<br>46-53                                      |

### **TRACING COMPLIANCE WITH SPAIN'S LAW ON** Chairman **NON-FINANCIAL INFORMATION AND DIVERSITY REPORTING**

and CEO's [statement](#page-2-0)

### **2023 [highlights](#page-5-0)**

**Ready** 2 [for change](#page-15-0)

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> *About [this report](#page-229-0)*

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/236/Picture/14 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is made up of two curved black shapes, one above the other, with a gap in between. The text "CIE Automotive" is in a simple, sans-serif font, with "CIE" in bold and "Automotive" in a lighter weight.

Image /page/236/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters on the left side of the image. To the right of the words is a large number "23" in black, with a gray quotation mark above the number.

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|   |                                                   | Contents of Law 11/2018 on non-financial and diversity reporting                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | GRI | MATERIALITY | SECTION                                                                                                                     | PAGE                                             |
|---|---------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----|-------------|-----------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------|
| 1 | Chairman<br>and<br>CEO'S<br>statement             | The principal risks related to those matters linked to the<br>undertaking's operations including, where relevant and<br>proportionate, its business relationships, products or services<br>which are likely to cause adverse impacts in those areas; and<br>- How the undertaking manages those risks;<br>- Explaining the processes used to identify and assess those risks,<br>using broadly recognized national, EU-based or international<br>frameworks for each issue.<br>- Reporters must include information about any impacts<br>identified, providing a breakdown of those impacts, in particular<br>in relation to the principal short-, medium- and long-term risks. | 3-3 | Yes         | Risk management<br>Change begins with our suppliers<br>Environmental risk management<br>Corporate crime prevention model    | 207-217<br>133-134<br>168-183<br>218-223         |
| 2 | 2023<br>highlights                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |     |             |                                                                                                                             |                                                  |
| 3 | Ready<br>for change                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |     |             |                                                                                                                             |                                                  |
| 4 | Record<br>earnings                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |     |             |                                                                                                                             |                                                  |
| 5 | Common<br>responsibility,<br>shared benefits      | Non-financial key performance indicators relevant to the                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |     |             |                                                                                                                             |                                                  |
| 6 | Our response to<br>the environmental<br>challenge | undertaking's particular business that are comparable, useful,<br>relevant and consistent.<br>- In order to facilitate comparability of non-financial disclosures,<br>over time and among undertakings, reporters should rely<br>particularly on nonfinancial KPIs that that are generally applicable                                                                                                                                                                                                                                                                                                                                                                           |     |             |                                                                                                                             |                                                  |
|   | Responsible<br>management                         | and meet the European Commission's guidelines in this respect<br>and specifically the Global Reporting Initiative standard. Reporters<br>should specify which national, EUbased or international reporting                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |     |             | Excellence with and for our customers<br>Our team: the people behind the transformation<br>Change begins with our suppliers | 82<br>90-103, 108-112<br>116-117, 120-132        |
|   | About<br>this report<br>Data tables               | framework they rely on in each instance.<br>- Undertakings must provide relevant key performance indicators<br>for each section of their non-financial statements.<br>- These indicators should be useful taking into account their<br>specific circumstances. The KPIs should be consistent with<br>metrics actually used by the group in its internal management<br>and risk assessment processes.<br>- Regardless, the information provided should be accurate,<br>comparable and verifiable.<br>Other information of use about how the document was prepared                                                                                                                | 3.3 | Yes         | Our response to the environmental challenge<br>Responsible management<br>Our sustainable growth strategy<br>Materiality     | 142-146, 149-150<br>190-191, 199<br>46-53<br>232 |
|   |                                                   | - Reporting practice.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |     |             |                                                                                                                             |                                                  |

Image /page/237/Picture/4 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the text "CIE Automotive" on the right. The letter C is made up of two curved black shapes that do not quite meet, forming an incomplete circle. The text "CIE Automotive" is in a simple, sans-serif font and is also black.

Image /page/237/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters on the left side of the image. To the right of the words is a large number "23" in black with a gray quotation mark above it.

{238}------------------------------------------------

| Contents of Law 11/2018 on non-financial and diversity reporting                                                                                                                                                                                                                                                                                                                                              | GRI        | MATERIALITY | SECTION                                            | PAGE             |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|-------------|----------------------------------------------------|------------------|
| ENVIRONMENTAL MATTERS                                                                                                                                                                                                                                                                                                                                                                                         |            |             |                                                    |                  |
| ENVIRONMENT   OVERALL                                                                                                                                                                                                                                                                                                                                                                                         |            |             |                                                    |                  |
| 1) Detailed information about the current and foreseeable impacts of the undertaking's activities on the environment and, as appropriate, on health and safety, and environmental assessment and certification processes.<br>2) The resources dedicated to preventing environmental risks.<br>3) Application of the principle of prevention, the amount of provisions and guarantees for environmental risks. | 3-3        | Yes         | Our response to the environmental challenge        | 142-151, 156-164 |
|                                                                                                                                                                                                                                                                                                                                                                                                               | 2-23       | Yes         | Ethics framework                                   | 142-151, 156-164 |
| POLLUTION                                                                                                                                                                                                                                                                                                                                                                                                     |            |             |                                                    |                  |
| 1) Measures to prevent, reduce or repair the carbon emissions that seriously impact the environment;                                                                                                                                                                                                                                                                                                          | 3-3, 305-7 | Yes         | Pollution control                                  | 156-160          |
| 2) Taking into consideration any form of air pollution specific to the business, including noise and light pollution.                                                                                                                                                                                                                                                                                         | 3-3        | Yes         | Pollution control                                  | 156-160          |
| Contents of Law 11/2018 on non-financial and diversity reporting                                                                                                                                                                                                                                                                                                                                              | GRI        | MATERIALITY | SECTION                                            | PAGE             |
| CIRCULAR ECONOMY, PREVENTION AND WASTE MANAGEMENT                                                                                                                                                                                                                                                                                                                                                             |            |             |                                                    |                  |
| Circular economy                                                                                                                                                                                                                                                                                                                                                                                              | 3-3        | Yes         | Eco-efficiency and circularity<br>Circular economy | 50-53<br>161     |
| Circular economy                                                                                                                                                                                                                                                                                                                                                                                              | 3-3        | Yes         | Circular economy                                   | 164              |
| Waste: Measures for the prevention, recycling, reuse and other<br>forms of recovering and eliminating waste                                                                                                                                                                                                                                                                                                   | 306-1      | Yes         | Circular economy                                   | 164              |
|                                                                                                                                                                                                                                                                                                                                                                                                               | 306-2      | Yes         | Circular economy                                   | 164              |
|                                                                                                                                                                                                                                                                                                                                                                                                               | 306-3      | Yes         | Data tables                                        | 267-269          |
|                                                                                                                                                                                                                                                                                                                                                                                                               | 306-4      | Yes         | Data tables                                        | 267-269          |
|                                                                                                                                                                                                                                                                                                                                                                                                               | 306-5      | Yes         | Data tables                                        | 267-269          |
| Initiatives undertaken to eliminate food waste                                                                                                                                                                                                                                                                                                                                                                | N.A.       | No          |                                                    | N.A.             |

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready** 2 [for change](#page-15-0)

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> *About [this report](#page-229-0)*

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

**1**

Image /page/238/Picture/13 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved shapes that do not fully connect, creating an incomplete circle. The text "CIE Automotive" is written in a clean, sans-serif font, with "CIE" in a bolder typeface than "Automotive".

Image /page/238/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black font. To the right of the words is a large number "23" with a quotation mark above it.

{239}------------------------------------------------

| Water consumption and supply, in keeping with local limitations                 | 3.3   | Yes | Circular economy<br>Environmental management tables | 161-162<br>265 |
|---------------------------------------------------------------------------------|-------|-----|-----------------------------------------------------|----------------|
|                                                                                 | 302-1 | Yes | Environmental management tables                     | 265            |
| Consumption of raw materials and measures taken to use them<br>more efficiently | 302-3 | Yes | Circular economy                                    | 161            |
|                                                                                 | 301-1 | Yes | Raw materials                                       | 163            |
|                                                                                 | 301-2 | Yes | Raw materials<br>Environmental management tables    | 163<br>266     |

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0) 1**

**Ready** 2 [for change](#page-15-0)

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> *About [this report](#page-229-0)*

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/239/Picture/15 description: The image shows the logo for CIE Automotive. On the left is a stylized letter C, formed by two curved shapes facing each other. To the right of the C is the text "CIE Automotive" in a sans-serif font.

Image /page/239/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large quotation mark and the number 23.

{240}------------------------------------------------

|   | Contents of Law 11/2018 on non-financial and diversity reporting | GRI                                                                                                                                                                           | MATERIALITY                                                                                        | SECTION           | PAGE                                                                                                                 |                    |
|---|------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------|-------------------|----------------------------------------------------------------------------------------------------------------------|--------------------|
|   | Chairman<br>and<br>CEO's<br>statement                            | 3-3                                                                                                                                                                           | Yes                                                                                                | Pollution control | 156-160                                                                                                              |                    |
| 1 | 2023<br>highlights                                               | Direct and indirect energy consumption, measures taken to<br>enhance energy efficiency and use renewable sources                                                              | 302-1                                                                                              | Yes               | Pollution control<br>Data tables                                                                                     | 156, 157<br>270    |
| 2 | Ready<br>for change                                              |                                                                                                                                                                               | 302-3                                                                                              | Yes               | Pollution control<br>Data tables                                                                                     | 156, 157<br>273    |
| 3 | Record<br>earnings                                               | CLIMATE CHANGE                                                                                                                                                                |                                                                                                    |                   |                                                                                                                      |                    |
| 4 | Common<br>responsibility,<br>shared benefits                     | The important aspects of the greenhouse gas emissions<br>generated as a result of the undertaking's activity, including<br>through use of the goods and services it produces. | 3-3                                                                                                | Yes               | Pollution control                                                                                                    | 156-157            |
| 5 | Our response to<br>the environmental<br>challenge                |                                                                                                                                                                               | 305-1                                                                                              | Yes               | Emissions<br>Environmental management tables                                                                         | 159<br>271         |
|   |                                                                  |                                                                                                                                                                               | 305-2                                                                                              | Yes               | Emissions<br>Environmental management tables                                                                         | 159<br>271         |
| 6 | Responsible<br>management                                        |                                                                                                                                                                               | 305-4                                                                                              | Yes               | Environmental management tables                                                                                      | 274                |
|   | About<br>this report<br>Data tables                              | The measures adopted to adapt for the consequences of climate<br>change                                                                                                       | 3-3, 201-2                                                                                         | Yes               | Climate neutrality roadmap                                                                                           | 146-150            |
|   |                                                                  | Any medium- and long-term GHG emission-cutting targets<br>voluntarily adhered to and the measures implemented to that<br>end.                                                 | 3-3, 305-5                                                                                         | Yes               | Climate neutrality roadmap                                                                                           | 146-150            |
|   |                                                                  | EU Taxonomy Regulation                                                                                                                                                        | CIE Automotive's<br>own methodology<br>developed based<br>on Article 8 of the<br>European Taxonomy | Yes               | Contribution to the decarbonisation of transport<br>Template Annex II Commission Delegated Regulation (EU) 2021/2178 | 165-167<br>275-278 |

Image /page/240/Picture/4 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" in a simple, sans-serif font. The letter "C" is formed by two curved shapes, one above the other, creating a gap in the middle. The text is aligned horizontally with the letter "C".

Image /page/240/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large quotation mark and the number 23.

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| Contents of Law 11/2018 on non-financial and diversity reporting                    | GRI  | MATERIALITY | SECTION | PAGE |
|-------------------------------------------------------------------------------------|------|-------------|---------|------|
| BIODIVERSITY PROTECTION                                                             |      |             |         |      |
| Measures taken to preserve or restore biodiversity                                  | N.A. | No          |         |      |
| Impacts caused by the undertaking's activities or operations on<br>protected areas. | N.A. | No          |         |      |
| SOCIAL AND EMPLOYEE MATTERS                                                         |      |             |         |      |

### EMPLOYMENT

| Total number and breakdown of employees by gender, age, country, job category and abilities.                   | 3-3                                                                                                           | Yes | Employment and diversity                              | 90-94, 100, 102                                            |
|----------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|-----|-------------------------------------------------------|------------------------------------------------------------|
|                                                                                                                | 405-1                                                                                                         | Yes | Employment and diversity<br>Consejo de Administración | 90-94, 263<br>190                                          |
| Total number and breakdown by contract category.                                                               | 2-7                                                                                                           | Yes | Employment and diversity                              | 100                                                        |
| Average headcount during the year by permanent/temporary/ part-time contracts by gender, age and job category. | 2-7                                                                                                           | Yes | Employment and diversity                              | There were changes in headcount so that only figures are r |
| Number of dismissals by gender, age and job category.                                                          | 3-3, 401-1<br>withrespect to<br>the distribution of<br>registrations and<br>deregistrations by<br>age and sex | Yes | Employment tables                                     | 263                                                        |
| Average earnings and trend broken down by gender, age, job category or equivalent metric.                      | 3-3                                                                                                           | Yes | Employment and diversity<br>Employment tables         | 94<br>264                                                  |

|  | PAGE                                                                                                                                    |
|--|-----------------------------------------------------------------------------------------------------------------------------------------|
|  | N.A.                                                                                                                                    |
|  | N.A.                                                                                                                                    |
|  | 90-94, 100, 102                                                                                                                         |
|  | 90-94, 263<br>190                                                                                                                       |
|  | 100                                                                                                                                     |
|  | There were no significant<br>changes in the group's<br>headcount during the year,<br>so that only the year-end<br>figures are reported. |
|  | 263                                                                                                                                     |
|  | 94<br>264                                                                                                                               |

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0) 1**

**Ready** 2 [for change](#page-15-0)

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> *About [this report](#page-229-0)*

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/241/Picture/15 description: The image shows the CIE Automotive logo. On the left is a stylized letter C, formed by two curved shapes facing each other. To the right of the symbol is the text "CIE Automotive" in a simple sans-serif font.

Image /page/241/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black font, with the word "ANNUAL" stacked on top of the word "REPORT". To the right of the words is a large number "23" in bold, black font, with a gray quotation mark above the number.

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|                                                                                                                       | Contents of Law 11/2018 on non-financial and diversity reporting                                                                                                                                   | GRI                                                                                                             | MATERIALITY       | SECTION                                       | PAGE      |
|-----------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------|-------------------|-----------------------------------------------|-----------|
| Chairman and CEO'S statement<br><br>2023<br>1 highlights                                                              | Wage gap, remuneration per equivalent job or company average.                                                                                                                                      | 3-3, GRI 405-2 with respect to the ratio of women's and men's salaries by category and by geographical location | Yes               | Employment and diversity<br>Employment tables | 94<br>264 |
| 2 Ready<br>for change                                                                                                 | Average remuneration for directors and executives, including bonuses, attendance fees, termination benefits, long-term savings/pension benefits and any other compensation, broken down by gender. | 3-3                                                                                                             | Yes               | Corporate governance bodies                   | 199       |
|                                                                                                                       |                                                                                                                                                                                                    | 2-19                                                                                                            | Yes               | Corporate governance bodies                   | 199       |
| 3 Record<br>earnings                                                                                                  |                                                                                                                                                                                                    | 2-20                                                                                                            | Yes               | Corporate governance bodies                   | 199       |
| 4 Common<br>responsibility, shared benefits                                                                           | Implementation of policies regarding the right to disconnect from work.                                                                                                                            | 3-3                                                                                                             | Yes               | Employment and diversity                      | 102       |
|                                                                                                                       | Employees with disabilities.                                                                                                                                                                       | 3-3, 405-1                                                                                                      | Yes               | Employment and diversity                      | 91        |
| 5 Our response to the environmental challenge                                                                         | ORGANISATION OF WORKING HOURS                                                                                                                                                                      |                                                                                                                 |                   |                                               |           |
| 6 Responsible<br>management                                                                                           | Organisation of working hours.                                                                                                                                                                     | 3-3                                                                                                             | Yes               | Employment and diversity                      | 101-102   |
|                                                                                                                       | Absenteeism (in hours).                                                                                                                                                                            | 3-3                                                                                                             | Yes               | Employment and diversity                      | 102       |
| About<br>this report                                                                                                  | Measures designed to facilitate work-life balance and sharing of caring responsibilities.                                                                                                          | 3-3                                                                                                             | Yes               | Employment and diversity                      | 101-102   |
| Contents of Law 11/2018 on non-financial and diversity reporting                                                      | GRI                                                                                                                                                                                                | MATERIALITY                                                                                                     | SECTION           | PAGE                                          |           |
| OCCUPATIONAL HEALTH AND SAFETY                                                                                        |                                                                                                                                                                                                    |                                                                                                                 |                   |                                               |           |
| Occupational health and safety.                                                                                       | 3-3                                                                                                                                                                                                | Yes                                                                                                             | Health and safety | 109-111                                       |           |
| Occupational health and safety.                                                                                       | 403-5                                                                                                                                                                                              | Yes                                                                                                             | Health and safety | 111-112                                       |           |
| Workplace accidents, specifying frequency and severity and             work-related illnesses, broken down by gender. | 403-9                                                                                                                                                                                              | Yes                                                                                                             | Health and safety | 111-112                                       |           |
| Workplace accidents, specifying frequency and severity and             work-related illnesses, broken down by gender. | 403-10                                                                                                                                                                                             | Yes                                                                                                             | Health and safety | 111-112                                       |           |

[Data tables](#page-261-0)

Image /page/242/Picture/5 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved shapes, one above the other, with a gap in between. The text "CIE Automotive" is in a simple, sans-serif font.

Image /page/242/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large number "23" with a quotation mark above the number 2.

{243}------------------------------------------------

### MANAGEMENT-EMPLOYEE RELATIONS

| How management-employee dialogue is organised, including<br>procedures for informing and consulting employees and<br>negotiating with them.                                                    | 3-3        | Yes | A good place to work | 102, 107 |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|-----|----------------------|----------|
| Percentage of employees covered by collective bargaining<br>agreements by country.                                                                                                             | 2-30       | Yes | A good place to work | 107      |
| Assessment of collective bargaining agreements, particularly<br>with respect to workplace health and safety.                                                                                   | 3-3, 403-4 | Yes | A good place to work | 107      |
| Mechanisms and procedures that the company has in place to<br>promote the involvement of workers in the management of the<br>company, in terms of information, consultation and participation. | 3-3        | Yes | A good place to work | 102, 107 |

Chairman and CEO's [statement](#page-2-0)

**2023** 1 [highlights](#page-5-0)

**Ready** 2 [for change](#page-15-0)

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> *About [this report](#page-229-0)*

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/243/Picture/15 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of two curved shapes that do not quite meet, creating an incomplete circle. The words "CIE Automotive" are written in a simple, sans-serif font.

| PAGE     |
|----------|
|          |
| 109-111  |
| 111-112  |
| 111-112  |
| 111-112  |
|          |
| 102, 107 |
| 107      |
| 107      |
| 102, 107 |
|          |

Image /page/243/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black font, with the word "ANNUAL" stacked on top of the word "REPORT". To the right of the words is a large number "23" in bold, black font, with a gray quotation mark above the number.

{244}------------------------------------------------

| Contents of Law 11/2018 on non-financial and diversity reporting                                                                                                                                                                                         | GRI                                                                                                                                               | MATERIALITY | SECTION                                                              | PAGE                 |  |  |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|-------------|----------------------------------------------------------------------|----------------------|--|--|
| TRAINING                                                                                                                                                                                                                                                 |                                                                                                                                                   |             |                                                                      |                      |  |  |
| Training policies in place.                                                                                                                                                                                                                              | 404-2                                                                                                                                             | Yes         | Employment and diversity<br>A good place to work                     | 90<br>103, 105       |  |  |
| Total training hours by job category.                                                                                                                                                                                                                    | 3-3, 404-1 with<br>respect to with<br>respect to total<br>hours of training<br>training by gender<br>and professional<br>professional<br>category | Yes         | A good place to work                                                 | 103                  |  |  |
| Accessibility for persons with disabilities.                                                                                                                                                                                                             | 3-3                                                                                                                                               | Yes         | Employment and diversity                                             | 95-97                |  |  |
| EQUALITY                                                                                                                                                                                                                                                 |                                                                                                                                                   |             |                                                                      |                      |  |  |
| Measures taken to foster equal treatment of and opportunities for<br>men and women                                                                                                                                                                       | 3-3                                                                                                                                               | Yes         | Employment and diversity                                             | 92                   |  |  |
| Equality Plans (Chapter III of Organic Law 3/2007, of 22 March<br>2007, on effective gender equality), measures taken to foster<br>employment, antisexual/gender harassment protocols,<br>integration of and accessibility for persons with disabilities | 3-3                                                                                                                                               | Yes         | Employment and diversity                                             | 92                   |  |  |
| Non-discrimination policies and diversity management policies                                                                                                                                                                                            | 3-3                                                                                                                                               | Yes         | Employment and diversity<br>A good place to work<br>Ethics framework | 92<br>108<br>200-203 |  |  |

| Measures taken to foster equal treatment of and opportunities for<br>men and women                                                                                                                                                                       |     |     |                                                                      |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----|-----|----------------------------------------------------------------------|
| Equality Plans (Chapter III of Organic Law 3/2007, of 22 March<br>2007, on effective gender equality), measures taken to foster<br>employment, antisexual/gender harassment protocols,<br>integration of and accessibility for persons with disabilities | 3-3 | Yes | Employment and diversity                                             |
| Non-discrimination policies and diversity management policies                                                                                                                                                                                            | 3-3 | Yes | Employment and diversity<br>A good place to work<br>Ethics framework |

Chairman

and CEO's [statement](#page-2-0) **2023 [highlights](#page-5-0) 1**

**Ready Ready for change**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> *About [this report](#page-229-0)*

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/244/Picture/14 description: The image shows the logo for CIE Automotive. On the left is a stylized letter C, formed by two curved shapes facing each other. To the right of the C is the text "CIE Automotive" in a sans-serif font.

Image /page/244/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large quotation mark followed by the number 23.

{245}------------------------------------------------

| Contents of Law 11/2018 on non-financial and diversity reporting                                                                                                                                            | GRI        | MATERIALITY | SECTION                                                              | PAGE                      |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|-------------|----------------------------------------------------------------------|---------------------------|
| HUMAN RIGHTS                                                                                                                                                                                                |            |             |                                                                      |                           |
| Human rights due diligence procedures, processes and<br>arrangements for preventing human rights abuses and any<br>measures taken to mitigate, manage and repair possible abuses<br>that have materialised. | 3-3        | Yes         | Defence of human rights                                              | 205                       |
|                                                                                                                                                                                                             | 2-23       | Yes         | Defence of human rights                                              | 99, 205                   |
|                                                                                                                                                                                                             | 2-26       | Yes         | Defence of human rights                                              | 99, 205                   |
| Claims of human rights abuses.                                                                                                                                                                              | 3-3, 406-1 | Yes         | Defence of human rights                                              | 202, 205                  |
| Promotion of and compliance with the provisions contained in the<br>International Labour Organisation's fundamental conventions on<br>the freedom of association and the right to collective bargaining.    | 407-1      | Yes         | Defence of human rights                                              | 205                       |
| Elimination of workplace discrimination.                                                                                                                                                                    | 3-3        | Yes         | Employment and diversity<br>A good place to work<br>Ethics framework | 92<br>108<br>200-203, 205 |
| Elimination of workplace discrimination.                                                                                                                                                                    | 406-1      | Yes         | Defence of human rights                                              | 205                       |
| Elimination of forced or compulsory labour                                                                                                                                                                  | 409-1      | Yes         | Ethical labour relations<br>ESG supplier portal                      | 108<br>125                |
| Effective abolition of child labour                                                                                                                                                                         | 408-1      | Yes         | Ethical labour relations<br>ESG supplier portal                      | 108<br>125                |

### Chairman and CEO's [statement](#page-2-0) **2023 [highlights](#page-5-0) 1**

**Ready Ready for change**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> *About [this report](#page-229-0)*

**Responsible [management](#page-183-0) 6**

[Data tables](#page-261-0)

Image /page/245/Picture/12 description: The image shows the logo for CIE Automotive. On the left is a stylized letter C, formed by two curved shapes facing each other. To the right of the C is the text "CIE Automotive" in a sans-serif font.

Image /page/245/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters on the left side of the image. To the right of the words is a large number "23" in black with a gray quotation mark above it.

{246}------------------------------------------------

|                | Chairman<br>and<br>CEO's<br>statement             | Contents of Law 11/2018 on non-financial and diversity reporting                                 | GRI                                                   | MATERIALITY | SECTION                                                                                          | PAGE                 | PAGE           |
|----------------|---------------------------------------------------|--------------------------------------------------------------------------------------------------|-------------------------------------------------------|-------------|--------------------------------------------------------------------------------------------------|----------------------|----------------|
|                |                                                   |                                                                                                  | CORRUPTION AND BRIBERY                                |             |                                                                                                  |                      | 140-141<br>203 |
| 1              | 2023<br>highlights                                |                                                                                                  | 3-3                                                   | Yes         | Anti-corruption and bribery effort<br>Stakeholder engagement                                     | 204<br>70            | 140-141<br>203 |
| 2              | Ready<br>for change                               | Measures taken to prevent corruption and bribery.                                                | 2-23                                                  | Yes         | Anti-corruption and bribery effort                                                               | 204                  | 140-141<br>203 |
| 3              | Record<br>earnings                                |                                                                                                  | 2-26                                                  | Yes         | Anti-corruption and bribery effort<br>Stakeholder engagement                                     | 204<br>70            | 140-141<br>203 |
| 4              | Common<br>responsibility,<br>shared benefits      |                                                                                                  | 205-2                                                 | Yes         | Anti-corruption and bribery effort<br>Stakeholder engagement                                     | 204<br>70            | 140-141        |
|                | Our response to                                   |                                                                                                  | 205-3                                                 | Yes         | Anti-corruption and bribery effort<br>Stakeholder engagement                                     | 204<br>70            | 140-141        |
| 5              | the environmental<br>challenge                    | Measures taken to combat money laundering.                                                       | 3-3, 2-23,<br>2-26, 205-2                             | Yes         | Corporate crime prevention model<br>Anti-corruption and bribery effort<br>Stakeholder engagement | 218-219<br>204<br>70 | 140-141        |
| 6              | Responsible<br>management                         | Contributions to non-profit entities.                                                            | 2-28                                                  | Yes         | Community work                                                                                   | 140                  | 70<br>203      |
|                | About<br>this report                              |                                                                                                  |                                                       |             |                                                                                                  |                      | 70<br>203      |
| 70<br>203      |                                                   |                                                                                                  |                                                       |             |                                                                                                  |                      |                |
| 139<br>140-141 |                                                   |                                                                                                  |                                                       |             |                                                                                                  |                      |                |
|                | Chairman<br>and<br>CEO's<br>statement             | Contents of Law 11/2018 on non-financial and diversity reporting                                 | GRI                                                   | MATERIALITY | SECTION                                                                                          | PAGE                 |                |
|                |                                                   | OUTSOURCING AND SUPPLIERS                                                                        |                                                       |             |                                                                                                  |                      |                |
| 1              | 2023<br>highlights                                |                                                                                                  | 2-6                                                   | Yes         | Change begins with our suppliers                                                                 | 120-125, 130         |                |
|                |                                                   | - Inclusion in the purchasing policy of social, gender equality and<br>environmental matters.    | 3-3                                                   | Yes         | Change begins with our suppliers                                                                 | 130                  |                |
| 2              | Ready<br>for change                               | - Contemplation of social and environmental records in supplier<br>and subcontractor engagement. | 204-1                                                 | Yes         | Change begins with our suppliers                                                                 | 128                  |                |
|                |                                                   |                                                                                                  | 308-1                                                 | Yes         | Change begins with our suppliers                                                                 | 123                  |                |
| 3              | Record<br>earnings                                |                                                                                                  | 414-1                                                 | Yes         | Change begins with our suppliers                                                                 | 128-132              |                |
| 4              | Common<br>responsibility,<br>shared benefits      | Supervision and audit systems and their outcomes.                                                | 2-6                                                   | Yes         | Gestión de los riesgos de la cadena de suministro                                                | 133                  |                |
|                |                                                   | CONSUMERS                                                                                        |                                                       |             |                                                                                                  |                      |                |
| 5              | Our response to<br>the environmental<br>challenge | Consumer health and safety measures.                                                             | 3-3                                                   | No          |                                                                                                  |                      |                |
|                |                                                   | Consumer claims, complaints and remediation systems.                                             | 3-3                                                   | No          |                                                                                                  |                      |                |
| 6              | Responsible<br>management                         | TAX INFORMATION                                                                                  |                                                       |             |                                                                                                  |                      |                |
|                | About<br>this report                              | Country-by-country profits.<br>Corporate income tax paid.<br>Data tables                         | 3-3                                                   | Yes         | A source of progress for the community                                                           | 136                  |                |
|                |                                                   |                                                                                                  | 207-4                                                 | Yes         | A source of progress for the community                                                           | 138                  |                |
|                |                                                   | Government grants received                                                                       | 201-4 with respect<br>to public subsidies<br>received | Yes         | A source of progress for the community                                                           | 138                  |                |

[Data tables](#page-261-0)

Image /page/246/Picture/5 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved shapes, one above the other, with a gap in between. The text "CIE Automotive" is in a simple, sans-serif font.

Image /page/246/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters on the left side of the image. To the right of the words is a large number "23" in black, with a gray quotation mark above the number.

{247}------------------------------------------------

|   | Chairman<br>and<br>CEO's<br>statement             | Contents of Law 11/2018 on non-financial and diversity reporting                                    | GRI        | MATERIALITY | SECTION                                                                   | PAGE           |
|---|---------------------------------------------------|-----------------------------------------------------------------------------------------------------|------------|-------------|---------------------------------------------------------------------------|----------------|
|   |                                                   | SOCIETY                                                                                             |            |             |                                                                           |                |
| 1 | 2023<br>highlights                                | COMMITMENT TO SUSTAINABLE DEVELOPMENT                                                               |            |             |                                                                           |                |
| 2 | Ready<br>for change                               | Impact of the undertaking's activities on society in terms of<br>employment and local development.  | 3-3        | Yes         | Community work<br>Corporate policies                                      | 140-141<br>203 |
| 3 | Record<br>earnings                                |                                                                                                     | 201-1      | Yes         | Community work<br>Corporate policies                                      | 140-141<br>203 |
| 4 | Common<br>responsibility,<br>shared benefits      |                                                                                                     | 202-2      | Yes         | Community work<br>Corporate policies                                      | 140-141<br>203 |
|   |                                                   |                                                                                                     | 204-1      | Yes         | Community work<br>Corporate policies                                      | 140-141<br>203 |
| 5 | Our response to<br>the environmental<br>challenge | Impact of the undertaking's activities on society in terms of local<br>communities and territories. | 3-3, 201-1 | Yes         | Community work                                                            | 140-141        |
|   |                                                   |                                                                                                     | 3-3, 204-1 | Yes         | Community work                                                            | 140-141        |
| 6 | Responsible<br>management                         |                                                                                                     | 413-1      | Yes         | Community work                                                            | 140-141        |
|   | About<br>this report<br>Data tables               | Engagement with local community representatives;<br>communication channels in place.                | 2-29       | Yes         | Stakeholder engagement<br>Corporate policies                              | 70<br>203      |
|   |                                                   |                                                                                                     | 204-1      | Yes         | Stakeholder engagement<br>Corporate policies                              | 70<br>203      |
|   |                                                   |                                                                                                     | 413-1      | Yes         | Stakeholder engagement<br>Corporate policies                              | 70<br>203      |
|   |                                                   | Membership of associations and sponsorships                                                         | 3-3, 2-28  | Yes         | Our role in the transformation of the automotive sector<br>Community work | 139<br>140-141 |

Image /page/247/Picture/4 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of two curved shapes, one above the other, with a gap between them. The words "CIE Automotive" are in a sans-serif font.

Image /page/247/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters, with a large gray quotation mark and the number "23" in black to the right of the words.

# **ANNUAL REPORT** <sup>&#</sup>x27;23 *About this report*

{248}------------------------------------------------

| MATERIALITY | SECTION                                           | PAGE         |
|-------------|---------------------------------------------------|--------------|
| Yes         | Change begins with our suppliers                  | 120-125, 130 |
| Yes         | Change begins with our suppliers                  | 130          |
| Yes         | Change begins with our suppliers                  | 128          |
| Yes         | Change begins with our suppliers                  | 123          |
| Yes         | Change begins with our suppliers                  | 128-132      |
| Yes         | Gestión de los riesgos de la cadena de suministro | 133          |
| No          |                                                   | N.A.         |
| No          |                                                   | N.A.         |
| Yes         | A source of progress for the community            | 136          |
| Yes         | A source of progress for the community            | 138          |
| Yes         | A source of progress for the community            | 138          |

Image /page/248/Picture/4 description: The image shows the logo for CIE Automotive. On the left is a stylized letter C, formed by two curved shapes facing each other. To the right of the symbol is the text "CIE Automotive" in a sans-serif font.

Image /page/248/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large quotation mark followed by the number 23.

{249}------------------------------------------------

#### 2 (Translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.)

**Our Independence and Quality Management \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_** We have complied with the independence and other ethical requirements of the International Code of Ethics for Professional Accountants (including international independence standards) of the International Ethics Standards Board for Accountants (IESBA Code of Ethics), which is founded on fundamental principles of professional integrity, objectivity, competence and due care, confidentiality and professional behaviour.

Our firm applies International Standard on Quality Management 1 (ISQM1), which requires the firm 
to design, implement and operate a quality management system that include policies and 
procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

The engagement team was comprised of professionals specialised in reviews of non-financial 
information and, specifically, in information on economic, social and environmental performance.

#### **Our Responsibility \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**

Our responsibility is to express our conclusions in an independent limited assurance report based on the work performed. We conducted our engagement in accordance with the requirements of the Revised International Standard on Assurance Engagements 3000, "Assurance Engagements other than Audits or Reviews of Historical Financial Information" (ISAE 3000 (Revised)), issued by the International Auditing and Assurance Standards Board (IAASB) of the International Federation of 
Accountants (IFAC), and with the guidelines for assurance engagements on the Non-Financial Information Statement issued by the Spanish Institute of Registered Auditors (ICJCE).

The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement, and consequently, the level of assurance provided is also lower.

Our work consisted of making inquiries of management, as well as of the different units and areas of 
the Group that participated in the preparation of the NFIS, reviewing the processes for compiling and 
validating the information presented in the NFIS and applying certain analytical procedures and 
sample review tests, which are described below:

Image /page/249/Figure/2 description: The image shows the first page of a report. The report is titled "Independent Assurance Report on the Consolidated Non-Financial Information Statement of CIE Automotive, S.A. and subsidiaries for 2023". The report is from KPMG Auditores, S.L., and the address is Paseo de la Castellana, 259 C, 28046 Madrid. The report includes a statement from the Chairman and CEO, and highlights from 2023. The highlights include being ready for change, record earnings, common responsibility and shared benefits, a response to the environmental challenge, and responsible management. The report also includes a section about the report itself.

- Meetings with the Group's personnel to gain an understanding of the business model, policies and management approaches applied, the principal risks related to these matters and to obtain the information necessary for the external review.
- Analysis of the scope, relevance and completeness of the content of the NFIS for 2023 based on the materiality analysis performed by the Group and described in the "Materiality" section of
- "About this report", considering the content required by prevailing mercantile legislation. – Analysis of the processes for compiling and validating the data presented in the NFIS for 2023.

#### 3 (Translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.)

- Review of the information relative to the risks, policies and management approaches applied in relation to the material aspects presented in the NFIS for 2023.
- Corroboration, through sample testing, of the information relative to the content of the NFIS for 2023 and whether it has been adequately compiled based on data provided by the information sources.
- Procurement of a representation letter from the Directors and management.

#### **Conclusion \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**

Based on the assurance procedures performed and the evidence obtained, nothing has come to our 
attention that causes us to believe that the NFIS of CIE Automotive S.A. and subsidiaries for the year 
ended 31 December 2023, included in the accompanying Report, has not been prepared, in all material respects, in accordance with prevailing mercantile legislation and selected GRI Standards based on each subject area in the "Tracing compliance with Spain's Law on Non-Financial Information and Diversity reporting" table of the aforementioned Report.

#### **Emphasis of Matter\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**

Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and the Delegated Acts adopted in accordance with this Regulation, stipulate the obligation to disclose information on how and to what extent the undertaking's activities are associated with eligible economic activities in relation to the environmental objectives of sustainable use and protection of water and marine resources, 
transition to a circular economy, pollution prevention and control and protection and restoration of 
biodiversity and ecosystems (the other environmental objectives), and with respect to certain new 
activities included in the climate change mitigation and climate change adaptation objectives, for the 
first time for the 2023 fiscal year, in addition to the information on eligible and aligned activities already required in 2022 in relation to the climate change mitigation and climate change adaptation objectives. Consequently, no comparative information on eligibility has been included in the accompanying Report in relation to the other environmental objectives listed above or to the new activities included in the climate change mitigation and climate change adaptation objectives. 
Furthermore, as much as the information on 2022 was not required to be as detailed as in 2023, the disclosures included in the accompanying Report are not strictly comparable. Additionally, the 
Directors of CIE Automotive, S.A. have included information on the criteria that, in their opinion, 
allow them to comply better with the aforementioned obligations, and which are defined in the "Compliance with Regulation (EU) 2020/852 regarding climate-related taxonomy" section of the accompanying Report. Our conclusion is not modified in respect of this matter.

4

(Translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.)

**Other Matters \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**

On 24 February 2023, a different assurance provider issued a favourable independent assurance report on the Consolidated Non-Financial Information Statement of CIE Automotive S.A. and subsidiaries for 2022.

#### **Use and Distribution\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**

This report has been prepared in response to the requirement established in prevailing mercantile legislation in Spain, and thus may not be suitable for other purposes and jurisdictions.

KPMG Auditores, S.L.

(*Signed on original in Spanish*)

Patricia Reverter Guillot 23 February 2024

### **EXTERNAL ASSURANCE**

[Data tables](#page-261-0)

Image /page/249/Picture/26 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of two curved lines that do not quite meet, forming an incomplete circle. The words "CIE Automotive" are in a simple, sans-serif font.

Image /page/249/Picture/27 description: The image shows the logo for KPMG. The logo consists of the letters "KPMG" in a bold, sans-serif font, with a series of four squares above the letters. The squares are arranged horizontally and appear to be connected or part of a single design element.

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Image /page/249/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large quotation mark followed by the number 23.

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| Chairman<br>and<br>CEO'S<br>statement |                                                   | GRI CONTENT<br>INDEX                         |                          |                                                                     | Statement of use | CIE Automotive reported the information cited in this GRI content index for the period from January 1, 2022 to December 31, 2022<br>with reference to the GRI Standards. |            |
|---------------------------------------|---------------------------------------------------|----------------------------------------------|--------------------------|---------------------------------------------------------------------|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|
|                                       |                                                   | GRI STANDARD                                 | GRI                      | DISCLOSURE                                                          | GRI used         | GRI 1: Foundation 2021                                                                                                                                                   | SECTION    |
| 1                                     | 2023<br>highlights                                | THE ORGANIZATION AND ITS REPORTING PRACTICES |                          |                                                                     |                  |                                                                                                                                                                          |            |
| 2                                     | Ready<br>for change                               | GRI 2: General Disclosures 2021              | 2-1                      | Organizational details                                              |                  | Contact details<br>Geographical balance                                                                                                                                  | 235<br>30  |
| 3                                     | Record<br>earnings                                |                                              | 2-2                      | Entities included in the organization's sustainability<br>reporting |                  | Methodology<br><b>2023 Consolidated Annual Accounts</b>                                                                                                                  | 231        |
| 4                                     | Common<br>responsibility,<br>shared benefits      |                                              | 2-3                      | Reporting period, frequency and contact point                       |                  | Methodology<br>Contact details                                                                                                                                           | 231<br>235 |
| 5                                     | Our response to<br>the environmental<br>challenge |                                              | 2-4                      | Restatements of information                                         |                  | Methodology                                                                                                                                                              | 231        |
| 6                                     | Responsible<br>management                         |                                              | 2-5                      | External assurance                                                  |                  | Methodology<br>External assurance                                                                                                                                        | 231<br>250 |
|                                       | About<br>this report                              |                                              | ACTIVITIES AND EMPLOYEES |                                                                     |                  |                                                                                                                                                                          |            |
|                                       | Data tables                                       |                                              |                          |                                                                     |                  |                                                                                                                                                                          |            |
|                                       |                                                   | GRI 2: General Disclosures 2021              | 2-6                      | Activities, value chain and other business relationships            |                  | A genuine business model<br>Change begins with our suppliers                                                                                                             | 29<br>115  |
|                                       |                                                   |                                              | 2-7                      | Employees                                                           |                  | Our team: the people behind the transformation                                                                                                                           | 89         |

| GRI 2: General Disclosures 2021 | 2-6 | Activities, value chain and other business relationships | A genuine business model<br>Change begins with our suppliers |
|---------------------------------|-----|----------------------------------------------------------|--------------------------------------------------------------|
|                                 |     | 2-7                                                      | Employees                                                    |

Image /page/250/Picture/7 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved shapes that do not fully connect, creating a gap in the middle. The text "CIE Automotive" is in a simple, sans-serif font.

Image /page/250/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large quotation mark and the number 23.

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|                                                        |                                                   | GRI STANDARD                       | GRI                                                | DISCLOSURE                                                                                                                                         | SECTION                                                                   | PAGE      |
|--------------------------------------------------------|---------------------------------------------------|------------------------------------|----------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------|-----------|
| Chairman<br>and<br>CEO's<br>statement                  |                                                   | GOVERNANCE                         |                                                    |                                                                                                                                                    |                                                                           |           |
| 1                                                      | 2023<br>highlights                                |                                    | 2-9                                                | Governance structure and composition                                                                                                               | Corporate governance bodies                                               | 188       |
| 2                                                      | Ready<br>for change                               |                                    | 2-11                                               | Chair of the highest governance body                                                                                                               | Board of Directors                                                        | 190       |
| 3                                                      | Record<br>earnings                                |                                    | 2-12                                               | Role of the highest governance body in overseeing<br>the management of impacts                                                                     | Social responsibility at CIE Automotive                                   | 38        |
| 4                                                      | Common<br>responsibility,<br>shared benefits      |                                    | 2-13                                               | Delegation of responsibility for managing impacts                                                                                                  | Social responsibility at CIE Automotive                                   | 38        |
| 5                                                      | Our response to<br>the environmental<br>challenge | GRI 2: General Disclosures 2021    | 2-14                                               | Role of the highest governance body in sustainability<br>reporting                                                                                 | Methodology                                                               | 231       |
| 6                                                      | Responsible<br>management                         |                                    | 2-16                                               | Communication of critical concerns                                                                                                                 | Code of Professional Conduct                                              | 137       |
|                                                        |                                                   |                                    | 2-17                                               | Collective knowledge of the highest governance body                                                                                                | Board of Directors                                                        | 190       |
|                                                        |                                                   |                                    | 2-18                                               | Evaluation of the performance of the highest<br>governance body                                                                                    | Board of Directors                                                        | 190       |
|                                                        |                                                   |                                    | 2-19                                               | Remuneration policies                                                                                                                              | Director and officer remuneration                                         | 199       |
|                                                        | About<br>this report<br>Data tables               |                                    | 2-20                                               | Process to determine remuneration                                                                                                                  | Decent work: remuneration and stability                                   | 100       |
|                                                        | GRI STANDARD                                      | GRI                                | DISCLOSURE                                         | SECTION                                                                                                                                            | PAGE                                                                      |           |
|                                                        | STRATEGY, POLICIES AND PRACTICES                  |                                    |                                                    |                                                                                                                                                    |                                                                           |           |
| Chairman<br>and<br>CEO'S<br>statement                  |                                                   | 2-22                               | Statement on sustainable development strategy      | Chairman and CEO's statement                                                                                                                       | 3                                                                         |           |
| 1<br>2023<br>highlights                                |                                                   | 2-23                               | Policy commitments                                 | Ethics framework                                                                                                                                   | 200                                                                       |           |
| 2<br>Ready<br>for change                               |                                                   | 2-24                               | Embedding policy commitments                       | The commitments that inspire us                                                                                                                    | 37                                                                        |           |
| 3<br>Record<br>earnings                                |                                                   | 2-25                               | Processes to remediate negative impacts            | Responsible management<br>Environmental risk management                                                                                            | 184<br>168                                                                |           |
| 4<br>Common<br>responsibility,<br>shared benefits      | GRI 2: General Disclosures 2021                   | 2-26                               | Mechanisms for seeking advice and raising concerns | Code of Professional Conduct                                                                                                                       | 137                                                                       |           |
| 5<br>Our response to<br>the environmental<br>challenge |                                                   | 2-27                               | Compliance with laws and regulations               | Total quality model<br>Customer satisfaction and protection<br>Climate neutrality roadmap<br>Anti-corruption and bribery effort<br>Risk management | 86<br>87<br>146<br>204<br>206                                             |           |
| 6<br>Responsible<br>management                         |                                                   | 2-28                               | Membership associations                            | Our role in the ransformation of the automotive sector                                                                                             | 139                                                                       |           |
| About<br>this report                                   |                                                   |                                    |                                                    |                                                                                                                                                    |                                                                           |           |
| Data tables                                            |                                                   |                                    |                                                    |                                                                                                                                                    |                                                                           |           |
|                                                        |                                                   | GRI STANDARD                       | GRI                                                | DISCLOSURE                                                                                                                                         | SECTION                                                                   | PAGE      |
|                                                        | Chairman<br>and<br>CEO's<br>statement             | STAKEHOLDER ENGAGEMENT             |                                                    |                                                                                                                                                    |                                                                           |           |
| 1                                                      | 2023<br>highlights                                | GRI 2: General Disclosures 2021    | 2-29                                               | Approach to stakeholder engagement                                                                                                                 | Stakeholder engagement                                                    | 70        |
| 2                                                      | Ready<br>for change                               | GRI 2: General Disclosures 2021    | 2-30                                               | Collective bargaining agreements                                                                                                                   | Ethical labour relations                                                  | 107       |
| 3                                                      | Record<br>earnings                                | MATERIALITY                        |                                                    |                                                                                                                                                    |                                                                           |           |
| 4                                                      | Common<br>responsibility,<br>shared benefits      | GRI 3: Temas materiales 2021       | 3-1                                                | Process to determine material topics                                                                                                               | Materiality                                                               | 232       |
|                                                        |                                                   | GRI 3: Temas materiales 2021       | 3-2                                                | List of material topics                                                                                                                            | Materiality                                                               | 232       |
| 5                                                      | Our response to<br>the environmental<br>challenge | ECONOMIC DIMENSION                 |                                                    |                                                                                                                                                    |                                                                           |           |
| 6                                                      | Responsible<br>management                         | GRI 201: Economic Performance 2016 | 3-3                                                | Management of material topics                                                                                                                      | Value generated and distributed<br>A source of progress for the community | 69<br>136 |
|                                                        | About<br>this report                              | GRI 201: Economic Performance 2016 | 201-1                                              | Direct economic value generated and distributed                                                                                                    | Value generated and distributed                                           | 69        |
|                                                        | Data tables                                       | GRI 201: Economic Performance 2016 | 201-2                                              | Financial implications and other risks and<br>opportunities due to climate change                                                                  | Environmental risk management                                             | 168       |
|                                                        |                                                   | GRI 201: Economic Performance 2016 | 201-4                                              | Financial assistance received from government                                                                                                      | A source of progress for the community                                    | 136       |

Image /page/251/Picture/4 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter "C" on the left and the words "CIE Automotive" on the right. The "C" is made up of two curved black shapes that do not quite meet, forming an incomplete circle. The words "CIE Automotive" are in a sans-serif font, with "CIE" in a bolder font than "Automotive".

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Image /page/251/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters on the left side of the image. To the right of the words is a large number "23" in black, with a gray quotation mark above the "2". There is a dashed line through the middle of the "2".

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Image /page/252/Picture/4 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" in a sans-serif font. The "C" is formed by two curved shapes that do not fully connect, creating an opening in the letter. The text is aligned horizontally with the "C" symbol.

Image /page/252/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters on the left side of the image. To the right of the words is a large number "23" in black, with a gray quotation mark above the number.

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Image /page/253/Picture/4 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of two curved black shapes that do not quite meet, forming an incomplete circle. The words "CIE Automotive" are in a simple, sans-serif font, with "CIE" in a slightly bolder font than "Automotive."

Image /page/253/Picture/0 description: The image shows the words "ANNUAL REPORT" in black font. Above the word "ANNUAL" is a gray quotation mark, and to the right of the quotation mark is the number "23" in black font.

# **ANNUAL REPORT** [23](https://annualreport.cieautomotive.com/2023/) *About this report*

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| GRI STANDARD                        | GRI   | DISCLOSURE                                                               | SECTION                                | PAGE |
|-------------------------------------|-------|--------------------------------------------------------------------------|----------------------------------------|------|
|                                     | 3-3   | Management of material topics                                            | Employment and diversity               | 90   |
| GRI 202: Market Presence 2016       | 202-2 | Proportion of senior management hired from the local community           | Employment and diversity               | 90   |
|                                     | 3-3   | Management of material topics                                            | Change begins with our suppliers       | 115  |
| GRI 204: Procurement Practices 2016 | 204-1 | Proportion of spending on local suppliers                                | GLOCAL procurement model               | 128  |
|                                     | 3-3   | Management of material topics                                            | Anti-corruption and bribery effort     | 204  |
|                                     | 205-1 | Operations assessed for risks related to corruption                      | Anti-corruption and bribery effort     | 204  |
| GRI 205: Anti-corruption 2016       | 205-2 | Communication and training about anti-corruption policies and procedures | Anti-corruption and bribery effort     | 204  |
|                                     | 205-3 | Confirmed incidents of corruption and actions taken                      | A source of progress for the community | 136  |
|                                     | 3-3   | Management of material topics                                            | A source of progress for the community | 136  |
| GRI 207: Tax 2019                   | 207-1 | Approach to tax                                                          | A source of progress for the community | 136  |
|                                     | 207-2 | Tax governance, control, and risk management                             | Fuente de progreso para la comunidad   | 136  |

Image /page/254/Picture/4 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The "C" is formed by two curved black shapes that do not fully connect, creating an incomplete circle. The text "CIE Automotive" is in a simple, sans-serif font, with "CIE" in a bolder typeface than "Automotive".

|   | PAGE | GRI STANDARD                             | GRI   | DISCLOSURE                                 | SECTION                                                                        | PAGE       | PAGE              |
|---|------|------------------------------------------|-------|--------------------------------------------|--------------------------------------------------------------------------------|------------|-------------------|
|   | 90   | MATERIAL ISSUES: ENVIRONMENTAL DIMENSION |       |                                            |                                                                                |            | 144<br>161        |
|   | 90   | GRI 301: Materials 2016                  | 3-3   | Management of material topics              | Environmental management policy and model<br>Circular economy                  | 144<br>161 | 162<br>265        |
|   | 115  |                                          | 301-1 | Materials used by weight or volume         | Consumption of water and material resources<br>Environmental management tables | 162<br>265 | 265               |
|   | 128  |                                          | 301-2 | Recycled input materials used              | Consumption of water and material resources<br>Environmental management tables | 162<br>265 | 144<br>142<br>161 |
|   | 204  |                                          | 3-3   | Management of material topics              | Environmental management policy and model<br>Pollution control                 | 144<br>156 | 156<br>265        |
|   | 204  | GRI 302: Energy 2016                     | 302-1 | Energy consumption within the organization | Environmental management tables                                                | 265        | 156<br>265        |
|   | 204  |                                          | 302-3 | Energy intensity                           | Environmental management tables                                                | 265        | 265               |
| y | 136  |                                          | 302-4 | Reduction of energy consumption            | Pollution control<br>Environmental management tables                           | 156<br>265 |                   |
| y | 136  |                                          |       |                                            |                                                                                |            |                   |
| y | 136  |                                          |       |                                            |                                                                                |            |                   |
| d | 136  |                                          |       |                                            |                                                                                |            |                   |

Image /page/254/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters, stacked on top of each other. To the right of the words is a large number "23" in black, with a gray quotation mark above it.

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Image /page/255/Picture/4 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter "C" on the left and the words "CIE Automotive" on the right. The "C" is made up of two curved black shapes that do not quite meet, forming an incomplete circle. The words "CIE Automotive" are in a sans-serif font, with "CIE" in a bolder font than "Automotive".

Image /page/255/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters on the left side of the image. To the right of the words is a large number "23" in black, with a gray quotation mark above the number.

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|   |                                                   | GRI STANDARD                      | GRI   | DISCLOSURE                              | SECTION                                                                                       | PAGE              |
|---|---------------------------------------------------|-----------------------------------|-------|-----------------------------------------|-----------------------------------------------------------------------------------------------|-------------------|
|   | Chairman<br>and<br>CEO's<br>statement             |                                   | 3-3   | Management of material topics           | Environmental management policy and model<br>Circular economy                                 | 144<br>161        |
| 1 | 2023<br>highlights                                | GRI 303. Water and Effluents 2018 | 303-3 | Water withdrawal                        | Consumption of water and material resources<br>Environmental management tables                | 162<br>265        |
| 2 | Ready<br>for change                               |                                   | 303-4 | Water discharge                         | Environmental management tables                                                               | 265               |
| 3 | Record<br>earnings                                |                                   | 3-3   | Management of material topics           | Environmental management policy and model<br>Carbon footprint measurement<br>Circular economy | 144<br>142<br>161 |
| 4 | Common<br>responsibility,<br>shared benefits      | GRI 305: Emissions 2016           | 305-1 | Direct (Scope 1) GHG emissions          | Pollution control<br>Environmental management tables                                          | 156<br>265        |
| 5 | Our response to<br>the environmental<br>challenge |                                   | 305-2 | Energy indirect (Scope 2) GHG emissions | Pollution control<br>Environmental management tables                                          | 156<br>265        |
| 6 | Responsible<br>management                         |                                   | 305-4 | GHG emissions intensity                 | Environmental management tables                                                               | 265               |
|   | About<br>this report                              |                                   |       |                                         |                                                                                               |                   |

Image /page/256/Picture/5 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The "C" is made up of two curved shapes that do not quite meet, creating an incomplete circle. The text "CIE" is in bold, while "Automotive" is in a regular font.

Image /page/256/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large number "23" with a quotation mark above the number 2.

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|         | PAGE       |
|---------|------------|
| d model | 144<br>161 |
|         | 164        |
|         | 265        |
|         | 265        |
|         | 265        |
| d model | 144        |
| d model | 144        |
|         | 115        |
|         | 128        |

|                      |                                                     | GRI STANDARD                                       | GRI                                                              | DISCLOSURE                                                | SECTION                                                       | PAGE       |
|----------------------|-----------------------------------------------------|----------------------------------------------------|------------------------------------------------------------------|-----------------------------------------------------------|---------------------------------------------------------------|------------|
|                      | Chairman<br>and<br>CEO's<br>statement               |                                                    | 3-3                                                              | Management of material topics                             | Environmental management policy and model<br>Circular economy | 144<br>161 |
| 1                    | 2023<br>highlights                                  | GRI 306: Waste 2020                                | 306-2                                                            | Management of significant waste-related impacts           | Waste management                                              | 164        |
| 2                    | Ready<br>for change                                 |                                                    | 306-3                                                            | Waste generated                                           | Environmental management tables                               | 265        |
| 3                    | Record<br>earnings                                  |                                                    | 306-4                                                            | Waste diverted from disposal                              | Environmental management tables                               | 265        |
|                      | Common<br>4<br>responsibility,<br>shared benefits   |                                                    | 306-5                                                            | Waste directed to disposal                                | Environmental management tables                               | 265        |
|                      | Our response to<br>5 the environmental<br>challenge | GRI 307: Environmental compliance<br>2016          | 3-3                                                              | Management of material topics                             | Environmental management policy and model                     | 144        |
|                      |                                                     |                                                    | 307-1                                                            | Non-compliance with environmental laws and<br>regulations | Environmental management policy and model                     | 144        |
| 6                    | Responsible<br>management                           | GRI 308: Supplier environmental<br>assessment 2016 | 3-3                                                              | Management of material topics                             | Change begins with our suppliers                              | 115        |
| About<br>this report |                                                     | 308-1                                              | New suppliers that were screened using<br>environmental criteria | GLOCAL procurement model                                  | 128                                                           |            |
|                      | Data tables                                         |                                                    |                                                                  |                                                           |                                                               |            |

Image /page/257/Picture/4 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The "C" is made up of two curved shapes that do not quite meet, creating an incomplete circle. The text "CIE" is in bold, while "Automotive" is in a regular font.

Image /page/257/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large number "23" with a quotation mark above the number 2. The number 2 has a dashed line going through it.

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|   |                                             | GRI STANDARD                            | GRI    | DISCLOSURE                                                                              | SECTION                                   | PAGE   |
|---|---------------------------------------------|-----------------------------------------|--------|-----------------------------------------------------------------------------------------|-------------------------------------------|--------|
|   | Chairman and CEO's statement                | MATERIAL ISSUES. SOCIAL DIMENSION       |        |                                                                                         |                                           |        |
| 1 | 2023 highlights                             | GRI 401: Employment 2016                | 3-3    | Management of material topics                                                           | Employment and diversity                  | 90     |
| 2 | Ready for change                            |                                         | 401-1  | New employee hires and employee turnover                                                | Employment and diversity Employment ables | 90 262 |
| 3 | Record earnings                             |                                         | 3-3    | Management of material topics                                                           | Health and safety                         | 109    |
| 4 | Common responsibility, shared benefits      | GRI 403: Health and safety at work 2018 | 403-4  | Worker participation, consultation, and communication on occupational health and safety | Health and safety                         | 109    |
| 5 | Our response to the environmental challenge |                                         | 403-5  | Worker training on occupational health and safety                                       | Health and safety                         | 109    |
|   |                                             |                                         | 403-9  | Work-related injuries                                                                   | Health and safety                         | 109    |
| 6 | Responsible management                      |                                         | 403-10 | Work-related ill health                                                                 | Health and safety                         | 109    |
|   |                                             |                                         |        |                                                                                         |                                           |        |
|   | About this report Data tables               | GRI 404: Training and education 2016    | 3-3    | Management of material topics                                                           | A good place to work                      | 99     |
|   |                                             |                                         | 404-1  | Average hours of training per year per employee                                         | A good place to work                      | 99     |
|   |                                             |                                         |        |                                                                                         |                                           |        |

Image /page/258/Picture/4 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter "C" on the left and the words "CIE Automotive" on the right. The "C" is made up of two curved black shapes that do not quite meet, forming an incomplete circle. The words "CIE Automotive" are in a sans-serif font, with "CIE" in a bolder font than "Automotive".

Image /page/258/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large quotation mark followed by the number 23.

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|   |                                                   | GRI STANDARD                                                      | GRI   | DISCLOSURE                                                                                                           | SECTION                                                                                 | PAGE              |
|---|---------------------------------------------------|-------------------------------------------------------------------|-------|----------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|-------------------|
|   | Chairman<br>and<br>CEO'S<br>statement             |                                                                   | 3-3   | Management of material topics                                                                                        | Employment and diversity                                                                | 90                |
| 1 | 2023<br>highlights                                | GRI 405:<br>Diversity and Equal Opportunity<br>2016               | 405-1 | Diversity of governance bodies and employees                                                                         | Employment and diversity<br>Corporate governance bodies                                 | 90<br>188         |
| 2 | Ready<br>for change                               |                                                                   | 405-2 | Ratio of basic salary and remuneration of women to<br>men                                                            | Employment and diversity                                                                | 90                |
| 3 | Record<br>earnings                                | GRI 406: Non-discrimination 2016                                  | 3-3   | Management of material topics                                                                                        | Defence of human rights                                                                 | 205               |
| 4 | Common<br>responsibility,<br>shared benefits      |                                                                   | 406-1 | Incidents of discrimination and corrective actions<br>taken                                                          | Code of Professional Conduct                                                            | 201               |
| 5 | Our response to<br>the environmental<br>challenge | GRI 407: Freedom of association<br>and collective bargaining 2016 | 3-3   | Management of material topics                                                                                        | Defence of human rights<br>Ethical labour relations                                     | 205<br>107        |
| 6 | Responsible<br>management                         |                                                                   | 407-1 | Operations and suppliers in which the right to<br>freedom of association and collective bargaining<br>may be at risk | Ethical labour relations<br>Change begins with our suppliers<br>Defence of human rights | 107<br>115<br>205 |
|   | About<br>this report                              |                                                                   | 3-3   | Management of material topics                                                                                        | Defence of human rights                                                                 | 205               |
|   | Data tables                                       | GRI 408: Child Labor 2016                                         | 408-1 | Operations and suppliers at significant risk for<br>incidents of child labor                                         | Ethical labour relations<br>ESG Supplier Portal<br>Defence of human rights              | 107<br>123<br>205 |

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Image /page/259/Picture/4 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of two curved black shapes that do not quite meet, forming an incomplete circle. The words "CIE Automotive" are written in a simple, sans-serif font, with "CIE" in a bolder font than "Automotive".

Image /page/259/Picture/0 description: The image shows the words "ANNUAL REPORT" in black font, with a large gray quotation mark and the number "23" in black font to the right of the words.

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|   |                                                   | GRI STANDARD                                | GRI   | DISCLOSURE                                                                                  | SECTION                                                                    | PAGE              |
|---|---------------------------------------------------|---------------------------------------------|-------|---------------------------------------------------------------------------------------------|----------------------------------------------------------------------------|-------------------|
|   | Chairman<br>and<br>CEO's<br>statement             |                                             | 3-3   | Management of material topics                                                               | Defence of human rights                                                    | 205               |
| 1 | 2023<br>highlights                                | GRI 409: Forced or compulsory<br>labor 2016 | 409-1 | Operations and suppliers at significant risk for<br>incidents of forced or compulsory labor | Ethical labour relations<br>ESG Supplier Portal<br>Defence of human rights | 207<br>123<br>205 |
| 2 | Ready<br>for change                               | GRI 412: Human Rights Assessment<br>2016    | 3-3   | Management of material topics                                                               | Ethical labour relations                                                   | 207               |
| 3 | Record<br>earnings                                |                                             | 412-2 | Employee training on human rights policies or<br>procedures                                 | Ethical labour relations                                                   | 207               |
| 4 | Common<br>responsibility,<br>shared benefits      | GRI 413: Local Communities 2016             | 3-3   | Management of material topics                                                               | Community work                                                             | 140               |
|   |                                                   |                                             | 413-1 | Operations with local community engagement,<br>impact assessments, and development programs | Community work                                                             | 140               |
| 5 | Our response to<br>the environmental<br>challenge | GRI 414: Supplier Social Assessment<br>2016 | 3-3   | Political contributions                                                                     | Supply chain risk management                                               | 133               |
|   |                                                   |                                             | 414-1 | New suppliers that were screened using social criteria                                      | Supply chain risk management                                               | 133               |
| 6 | Responsible<br>management                         | GRI 415: Public Policy 2016                 | 3-3   | Management of material topics                                                               | A source of progress for the community                                     | 136               |
|   | About<br>this report                              |                                             | 415-1 | Political contributions                                                                     | A source of progress for the community                                     | 136               |
|   | Data tables                                       | GRI 419: Socioeconomic<br>Compliance 2016   | 3-3   | Management of material topics                                                               | Responsible management                                                     | 184               |
|   |                                                   |                                             | 419-1 | Non-compliance with laws and regulations in social<br>and economic areas                    | Anti-corruption and bribery effort                                         | 204               |

Image /page/260/Picture/4 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The "C" is formed by two curved black shapes that do not fully connect, creating an incomplete circle. The text "CIE Automotive" is in a simple, sans-serif font, with "CIE" in a bolder typeface than "Automotive".

Image /page/260/Picture/0 description: The image shows the words "ANNUAL REPORT" in black font on the left side of the image. To the right of the words is a large number "23" in black font with a gray quotation mark above the number.

{261}------------------------------------------------

#### **TOTAL NUMBER AND BREAKDOWN OF EMPLOYEES BY GENDER, AGE AND JOB CATEGORY**

| Chairman                                               |                                                                   |        |        |
|--------------------------------------------------------|-------------------------------------------------------------------|--------|--------|
| and<br>CEO'S<br>statement                              |                                                                   |        |        |
| 2023<br>1<br>highlights                                |                                                                   |        |        |
| Ready<br>2<br>for change                               |                                                                   |        |        |
| Record<br>3<br>earnings                                |                                                                   |        |        |
| Common<br>4<br>responsibility,<br>shared benefits      |                                                                   |        |        |
| Our response to<br>5<br>the environmental<br>challenge | TOTAL NUMBER AND DISTRIBUTION OF TYPES<br>OF EMPLOYMENT CONTRACTS |        |        |
| Responsible<br>6<br>management                         |                                                                   | 2022   | 2023   |
|                                                        | Indefinite contracts                                              | 21,112 | 20,859 |
| About<br>this report                                   | Temporary contracts                                               | 3,874  | 4,435  |
| Data tables                                            | Total no of people                                                | 24,986 | 25,294 |
|                                                        | Indefinite contracts                                              | 24,843 | 25,182 |
|                                                        | Temporary contracts                                               | 143    | 112    |

|                      |  | Men (M) |        |       |        | Total |       | Women (W) |     |       |  | Total |        | TOTAL |
|----------------------|--|---------|--------|-------|--------|-------|-------|-----------|-----|-------|--|-------|--------|-------|
| 2022                 |  | <30     | 30-50  | >50   | M      |       | <30   | 30-50     | >50 | W     |  |       |        |       |
| Management Committee |  | 0       | 1      | 5     | 6      |       | 0     | 4         | 0   | 4     |  |       | 10     |       |
| Executives           |  | 10      | 601    | 258   | 869    |       | 7     | 83        | 20  | 110   |  |       | 979    |       |
| University graduates |  | 1,413   | 3,539  | 831   | 5,783  |       | 320   | 712       | 141 | 1,173 |  |       | 6,956  |       |
| Tradesmen and women  |  | 3,927   | 7,707  | 2,100 | 13,734 |       | 796   | 1,893     | 618 | 3,307 |  |       | 17,041 |       |
| Total                |  | 5,350   | 11,848 | 3,194 | 20,392 |       | 1,123 | 2,692     | 779 | 4,594 |  |       | 24,986 |       |
|                      |  |         |        |       |        |       |       |           |     |       |  |       |        |       |
|                      |  | Men (M) |        |       |        | Total |       | Women (W) |     |       |  | Total |        | TOTAL |
| 2023                 |  | <30     | 30-50  | >50   | M      |       | <30   | 30-50     | >50 | W     |  |       |        |       |
| Management Committee |  |         | 1      | 5     | 6      |       |       | 4         |     | 4     |  |       | 10     |       |
| Executives           |  | 11      | 598    | 266   | 875    |       | 11    | 82        | 26  | 119   |  |       | 994    |       |
| University graduates |  | 1,290   | 3,557  | 922   | 5,769  |       | 365   | 727       | 162 | 1,254 |  |       | 7,023  |       |
| Tradesmen and women  |  | 4,094   | 7,367  | 2,058 | 13,519 |       | 853   | 2,173     | 722 | 3,748 |  |       | 17,267 |       |

Image /page/261/Picture/7 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of two curved shapes that do not quite meet, forming an incomplete circle. The words "CIE Automotive" are in a simple, sans-serif font.

<span id="page-261-0"></span>Image /page/261/Picture/0 description: The image shows the words "ANNUAL REPORT" on the left side of the image. To the right of the words is a large number "23".

{262}------------------------------------------------

#### **TOTAL NUMBER AND BREAKDOWN OF EMPLOYEES BY COUNTRY**

#### **NUMBER OF DISMISSALS BY GENDER, AGE AND JOB CATEGORY**

| Country              | 2022   | 2023   |
|----------------------|--------|--------|
| Germany              | 793    | 110    |
| Brazil               | 2,901  | 3,385  |
| China                | 1,525  | 1,365  |
| Korea                | 2      | 6      |
| Slovakia             | 558    | 488    |
| Spain                | 2,315  | 2,299  |
| France               | 289    | 270    |
| Netherlands          | 4      | 4      |
| Hungary              | 0      | 359    |
| India                | 7,389  | 7,501  |
| Italy                | 429    | 415    |
| Lithuania            | 225    | 231    |
| Morocco              | 74     | 62     |
| Mexico               | 5,384  | 5,700  |
| Portugal             | 280    | 270    |
| Czech Republic       | 560    | 557    |
| Romania              | 544    | 621    |
| Russia               | 42     | 31     |
| US                   | 1,672  | 1,620  |
| TOTAL CIE AUTOMOTIVE | 24,986 | 25,294 |

|                         | Men |       |     | Total |     | Woman |     |     | Total |  |
|-------------------------|-----|-------|-----|-------|-----|-------|-----|-----|-------|--|
| 2022                    | <30 | 30-50 | >50 | H     | <30 | 30-50 | >50 | M   | TOTAL |  |
| Executives              | 0   | 15    | 6   | 21    | 0   | 3     | 1   | 4   | 25    |  |
| University<br>graduates | 62  | 165   | 35  | 262   | 29  | 39    | 8   | 76  | 338   |  |
| Tradesmen and<br>women  | 427 | 328   | 81  | 836   | 82  | 106   | 29  | 217 | 1,053 |  |
| Total                   | 489 | 508   | 122 | 1,119 | 111 | 148   | 38  | 297 | 1,416 |  |
| 2023                    | <30 | 30-50 | >50 | H     | <30 | 30-50 | >50 | M   | TOTAL |  |
| Executives              | 0   | 7     | 8   | 15    | 0   | 6     | 1   | 7   | 22    |  |
| University<br>graduates | 62  | 141   | 27  | 230   | 33  | 44    | 8   | 85  | 315   |  |
| Tradesmen and<br>women  | 269 | 414   | 124 | 807   | 95  | 138   | 28  | 261 | 1,068 |  |

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0) 1**

**Ready 2** [for change](#page-15-0)

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> *About [this report](#page-229-0)*

**Responsible [management](#page-183-0) 6**

*[Data tables](#page-261-0)*

Image /page/262/Picture/16 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of two curved black shapes that are separated by a white space. The words "CIE Automotive" are written in a simple, sans-serif font. The word "CIE" is in bold, while the word "Automotive" is not.

Image /page/262/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large number "23" with a quotation mark above it.

{263}------------------------------------------------

*\*All of the average annual pre-tax earnings figures provided in the table above are calculated by summing the total number of people employed by CIE Automotive in the category provided in the breakdown, without considering their origin or place of work.*

#### **AVERAGE EARNINGS AND TREND BROKEN DOWN BY GENDER, AGE, JOB CATEGORY OR EQUIVALENT METRIC**

#### **BREAKDOWN OF HIRES AND DEPARTURES BY AGE AND GENDER**

|      | Average annual pre-tax earnings* |        | Age       |        |           | Category   |                         |                        |
|------|----------------------------------|--------|-----------|--------|-----------|------------|-------------------------|------------------------|
|      | Men                              | Women  | <30 years | 30-50  | >50 years | Executives | University<br>graduates | Tradesmen<br>and women |
| 2022 | 18,969                           | 17,997 | 8,837     | 18,883 | 35,166    | 65,514     | 22,424                  | 14,618                 |
| 2023 | 18,960                           | 17,510 | 9,404     | 18,740 | 33,457    | 64,989     | 22,761                  | 14,380                 |

| 2022                                 | Men under<br>the age of 30 | Men aged between<br>30 and 50 | Men over the<br>age of 50 | Total<br>men | Women under<br>the age of 30 | Women aged<br>between 30 and 50 | Women over<br>the age of 50 | Total<br>women | Total  |
|--------------------------------------|----------------------------|-------------------------------|---------------------------|--------------|------------------------------|---------------------------------|-----------------------------|----------------|--------|
| New hires                            | 5,819                      | 2,329                         | 357                       | 8,505        | 956                          | 962                             | 135                         | 2,053          | 10,558 |
| Voluntary<br>and other<br>departures | 4,649                      | 1,863                         | 475                       | 6,987        | 746                          | 756                             | 143                         | 1,645          | 8,632  |
| 2023                                 | Men under<br>the age of 30 | Men aged between<br>30 and 50 | Men over the<br>age of 50 | Total<br>men | Women under<br>the age of 30 | Women aged<br>between 30 and 50 | Women over<br>the age of 50 | Total<br>women | Total  |
| New hires                            | 5,292                      | 2,315                         | 374                       | 7,981        | 1,135                        | 1,116                           | 195                         | 2,446          | 10,427 |
| Voluntary<br>and other<br>departures | 4,389                      | 2,127                         | 457                       | 6,973        | 829                          | 851                             | 200                         | 1,880          | 8,853  |

Chairman and

**responsibility, [shared benefits](#page-64-0)**

CEO's [statement](#page-2-0) **2023 [highlights](#page-5-0) Ready 2** [for change](#page-15-0) **Record [earnings](#page-53-0) Common 1 3**

**challenge**

**Our response to [the environmental](#page-141-0)  5**

**[management](#page-183-0)**

*About [this report](#page-229-0)*

**Responsible 6**

*[Data tables](#page-261-0)*

Image /page/263/Picture/13 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved lines that do not fully connect, creating an incomplete circle. The text "CIE Automotive" is written in a simple, sans-serif font.

Image /page/263/Picture/0 description: The image shows the text "ANNUAL REPORT" in bold black letters on the left side of the image. To the right of the text is a large number "23" in black, with a dashed line running horizontally through the middle of the number. A gray quotation mark is above and to the left of the number "23".

{264}------------------------------------------------

# **Environmental management tables**

*\* The Europe region includes the factories located in Morocco and Russia. \* The Europe region includes the factories located in Morocco and Russia.*

#### **WATER EXTRACTION & CONSUMPTION** | INDICATORS 303-3 / 303-5

**WATER DISCHARGE** | INDICATOR 303-4

Data on environmental consumption and emissions include emissions from German forges until June 30, 2023, and do not include data from Salgglas, which represents less than 0.3% of the group's sales.

| m³/year               | Definition     | 2021          | 2022          | 2023          |
|-----------------------|----------------|---------------|---------------|---------------|
|                       | Superficial    | 28,161.00     | 27,878.00     | 15,320.00     |
|                       | Ground water   | 33,956.00     | 51,575.00     | 40,853.00     |
| Europe*               | Rain water     | 4,386.00      | 5,067.00      | 5,659.00      |
|                       | Water net      | 322,045.00    | 337,399.37    | 325,025.48    |
|                       | Water used     | 388,548.00    | 421,919.37    | 386,857.48    |
|                       | Recycled water | 26,108,223.00 | 25,164,758.00 | 23,184,268.92 |
|                       | Superficial    | 11,002.00     | 7,892.00      | 3,535.00      |
|                       | Ground water   | 59,471.00     | 56,700.00     | 57,989.00     |
| North America         | Rain water     | -             | -             | 0             |
|                       | Water net      | 262,656.55    | 267,266.95    | 247,208.25    |
|                       | Water used     | 333,129.55    | 331,858.95    | 308,732.25    |
|                       | Recycled water | 12,332,109.90 | 11,606,284.64 | 11,641,774.75 |
|                       | Superficial    | -             | -             | 0             |
|                       | Ground water   | 49,665.00     | 51,603.00     | 61,704.00     |
| Brazil                | Rain water     | -             | -             | 260           |
|                       | Water net      | 149,215.00    | 143,775.48    | 154,159.00    |
|                       | Water used     | 198,880.00    | 195,378.48    | 216,123.00    |
|                       | Recycled water | 4,939,268.45  | 4,488,026.00  | 4,876,382.00  |
|                       | Superficial    | 157,053.00    | 207,430.00    | 219,328.35    |
|                       | Ground water   | 203,057.20    | 201,470.60    | 193,625.00    |
| Asia<br>(India/China) | Rain water     | 14,456.00     | 5,211.00      | 4,930.00      |
|                       | Water net      | 303,752.43    | 293,900.75    | 295,650.64    |
|                       | Water used     | 678,318.63    | 708,012.30    | 713,533.99    |
|                       | Recycled water | 20,824,532.45 | 14,956,076.60 | 9,671,135.77  |
|                       | Superficial    | 196,216.00    | 243,200.00    | 238,183.35    |
|                       | Ground water   | 346,149.20    | 361,348.60    | 354,171.00    |
| TOTAL                 | Rain water     | 18,842.00     | 10,278.00     | 10,849.00     |
|                       | Water net      | 1,037,668.98  | 1,042,342.55  | 1,022,043.37  |
|                       | Water used     | 1,598,876.18  | 1,657,169.15  | 1,625,246.72  |
|                       | Recycled water | 64,204,133.80 | 56,215,145.24 | 48,694,678.44 |

- The Europe region includes the factories located in Morocco.

| m³/year            | Definition       | 2023       |
|--------------------|------------------|------------|
| Europe*            | To sewer         | 181,969.61 |
| Europe*            | To river         | 368.00     |
| Europe*            | To waste manager | 30,191.00  |
| Europe*            | Total            | 212,528.61 |
| North America      | To sewer         | 91,510.15  |
| North America      | To river         | -          |
| North America      | To waste manager | 2,494.92   |
| North America      | Total            | 94,005.07  |
| Brazil             | To sewer         | 79,096.00  |
| Brazil             | To river         | 1,772.00   |
| Brazil             | To waste manager | 19,084.84  |
| Brazil             | Total            | 99,952.84  |
| Asia (India/China) | To sewer         | 4,206.00   |
| Asia (India/China) | To river         | 7,705.00   |
| Asia (India/China) | To waste manager | 38,595.91  |
| Asia (India/China) | Total            | 50,506.91  |
| TOTAL              | To sewer         | 356,781.77 |
| TOTAL              | To river         | 9,845.00   |
| TOTAL              | To waste manager | 90,366.67  |
| TOTAL              | Total            | 456,993.44 |

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Ready for change**

**Record earnings**

**Common responsibility, shared benefits**

**Our response to [the environmental](#page-141-0)  challenge 1[2](#page-15-0)[3](#page-53-0)[4](#page-64-0)56**

**Responsible [management](#page-183-0)**

> *About [this report](#page-229-0)*

Image /page/264/Picture/20 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left, followed by the text "CIE Automotive" on the right. The letter C is formed by two curved lines that do not fully connect, creating an incomplete circle shape. The text "CIE Automotive" is in a simple, sans-serif font.

ORS 303-3 / 303-5

Russia.

Image /page/264/Picture/0 description: The image shows the words "ANNUAL REPORT" on the left side and the number "23" on the right side. The number 23 is in a large, bold font, and there is a dashed line running through the middle of the number 2. There is a quotation mark above the number 2.

{265}------------------------------------------------

#### **MATERIAL CONSUMPTION**

| Kg                    | Indicator | Definition           | 2021             | 2022             | 2023             |
|-----------------------|-----------|----------------------|------------------|------------------|------------------|
|                       | GRI 301-1 | Raw material used    | 444,062,256.00   | 220,886,068.00   | 451,775,125.00   |
| Europe*               | GRI 301-2 | Raw material re-used | 194,921,354.00   | 132,819,613.00   | 179,655,308.00   |
|                       |           |                      | 44%              | 60%              | 40%              |
|                       | GRI 301-1 | Raw material used    | 327,388,797.24   | 255,702,164.58   | 373,194,181.60   |
| North America         | GRI 301-2 | Raw material re-used | 12,811,068.86    | 79,101,244.42    | 51,469,768.80    |
|                       |           |                      | 4%               | 31%              | 14%              |
|                       | GRI 301-1 | Raw material used    | 169,957,386.00   | 94,617,087.00    | 164,963,134.10   |
| Brazil                | GRI 301-2 | Raw material re-used | 71,633,082.00    | 75,512,528.00    | 69,176,102.00    |
|                       |           |                      | 42%              | 80%              | 42%              |
|                       | GRI 301-1 | Raw material used    | 506,635,270.00   | 659,168,858.00   | 542,574,241.00   |
| Asia<br>(India/China) | GRI 301-2 | Raw material re-used | 116,362,976.00   | 263,760,467.00   | 117,421,541.00   |
|                       |           |                      | 23%              | 40%              | 22%              |
|                       | GRI 301-1 | Raw material used    | 1,448,043,709.24 | 1,230,374,177.68 | 1,532,506,681.70 |
| TOTAL                 | GRI 301-2 | Raw material re-used | 395,728,480.86   | 551,193,852.42   | 417,722,719.80   |
|                       |           |                      | 27%              | 45%              | 27%              |

Chairman and CEO's [statement](#page-2-0) **2023 [highlights](#page-5-0) Ready 2** [for change](#page-15-0) **Record [earnings](#page-53-0) Common responsibility, [shared benefits](#page-64-0) Our response to [the environmental](#page-141-0)  challenge Responsible [management](#page-183-0) 1 3 4 5 6**

> *About [this report](#page-229-0)*

Image /page/265/Picture/9 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved shapes, one above the other, with a gap in between. The text "CIE Automotive" is in a sans-serif font, with "CIE" in bold.

| 2023          |
|---------------|
| 51,775,125.00 |
| 9,655,308.00  |
| 40%           |
| 73,194,181.60 |
| 469,768.80    |
| 14%           |
| 4,963,134.10  |
| 9,176,102.00  |
| 42%           |
| -2,574,241.00 |
| 7,421,541.00  |
| 22%           |
| 2,506,681.70  |
| 7,722,719.80  |
| 27%           |

Image /page/265/Picture/0 description: The image shows the words "ANNUAL REPORT" in black, with a large gray quotation mark and the number "23" in black to the right of the words.

{266}------------------------------------------------

#### **WASTE MANAGEMENT (I)** | INDICATORS 306-3 / 306-4 / 306-5

|   |                                             | Tonne         | Definition                                                    | 2021       | 2022       | 2023       |
|---|---------------------------------------------|---------------|---------------------------------------------------------------|------------|------------|------------|
|   | Chairman and CEO's statement                |               | Industrial waste treated hazardous                            | 9,675.30   | 9,622.18   | 10,543.02  |
| 1 | 2023 highlights                             |               | Hazardous waste to recycling                                  | 5,270.71   | 4,547.90   | 5,160.95   |
|   |                                             |               | Hazardous waste to disposal                                   | 4,404.59   | 5,074.29   | 5,382.07   |
|   |                                             |               | Hazardous waste to incineration (with energy recovery)        | 1,832.54   | 1,878.69   | 1,323.71   |
|   |                                             |               | Hazardous waste to incineration (without energy recovery)     | 126.66     | -          | 545.42     |
|   |                                             |               | Hazardous waste to landfilling                                | 1,123.19   | 2,221.51   | 1,335.57   |
| 2 | Ready for change                            | Europe*       | Hazardous waste to other disposal operation                   | 1,322.20   | 974.09     | 2,117.374  |
|   |                                             |               | Industrial waste treated no-hazardous                         | 109,328.78 | 97,429.59  | 107,444.71 |
|   |                                             |               | Non-hazardous waste to recycling                              | 108,288.73 | 96,549.70  | 106,691.36 |
| 3 | Record earnings                             |               | Non-hazardous waste to disposal                               | 1,040.05   | 879.89     | 753.346    |
|   |                                             |               | Non-hazardous waste to incineration (with energy recovery)    | 69.54      | 207.36     | 78.8       |
|   |                                             |               | Non-hazardous waste to incineration (without energy recovery) | -          | -          | 0          |
|   |                                             |               | Non-Hazardous waste to landfilling                            | 555.96     | 408.54     | 440.541    |
| 4 | Common responsibility, shared benefits      |               | Non-hazardous waste to other disposal operation               | 414.55     | 263.99     | 234.005    |
|   |                                             |               | TOTAL                                                         | 119,004.08 | 107,051.77 | 117,987.73 |
| 5 | Our response to the environmental challenge |               | Industrial waste treated hazardous                            | 3,063.98   | 3,319.31   | 4,686.08   |
|   |                                             |               | Hazardous waste to recycling                                  | 1,707.53   | 1,983.72   | 2,070.58   |
|   |                                             |               | Hazardous waste to disposal                                   | 1,356.42   | 1,335.59   | 2,615.51   |
|   |                                             |               | Hazardous waste to incineration (with energy recovery)        | 364.31     | 914.85     | 615.421    |
| 6 | Responsible management                      |               | Hazardous waste to incineration (without energy recovery)     | 30.14      | 0.32       | 20.456     |
|   |                                             |               | Hazardous waste to landfilling                                | 655.03     | 52.01      | 69.75      |
|   |                                             |               | Hazardous waste to other disposal operation                   | 306.97     | 286.46     | 1,909.879  |
|   | About this report                           | North America | Industrial waste treated no-hazardous                         | 71,173.13  | 70,468.35  | 88,951.03  |
|   | Data tables                                 |               | Non-hazardous waste to recycling                              | 69,349.60  | 69,813.95  | 87,917.24  |
|   |                                             |               | Non-hazardous waste to disposal                               | 1,823.53   | 654.4      | 1,033.795  |
|   |                                             |               | Non-hazardous waste to incineration (with energy recovery)    | 47.73      | 503.21     | 584.3384   |
|   |                                             |               | Non-hazardous waste to incineration (without energy recovery) | -          | -          | -          |
|   |                                             |               | Non-Hazardous waste to landfilling                            | 1,675.94   | 110.18     | 128.002    |
|   |                                             |               | Non-hazardous waste to other disposal operation               | 99.85      | 19.07      | 321.455    |
|   |                                             |               | TOTAL                                                         | 74,237.11  | 73,787.66  | 93,637.12  |

**3**

**4**

**5**

Image /page/266/Picture/6 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved shapes that do not fully connect, creating an incomplete circle. The text "CIE Automotive" is in a simple, sans-serif font.

Image /page/266/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large number "23" with a quotation mark above and to the left of the number.

{267}------------------------------------------------

#### **WASTE MANAGEMENT (II)** | INDICATORS 306-3 / 306-4 / 306-5

| Tonne                 | Definition                                                    | 2021              | 2022              | 2023              |
|-----------------------|---------------------------------------------------------------|-------------------|-------------------|-------------------|
| Brazil                | Industrial waste treated hazardous                            | 1,072.04          | 1,825.21          | 2,583.03          |
|                       | Hazardous waste to recycling                                  | 512.93            | 904.23            | 1,640.411         |
|                       | Hazardous waste to disposal                                   | 559.11            | 920.99            | 942.617           |
|                       | Hazardous waste to incineration (with energy recovery)        | 520.61            | 909.22            | 894.373           |
|                       | Hazardous waste to incineration (without energy recovery)     | -                 | -                 | 0                 |
|                       | Hazardous waste to landfilling                                | 35.02             | -                 | 0                 |
|                       | Hazardous waste to other disposal operation                   | 3.48              | 11.76             | 48.244            |
|                       | Industrial waste treated no-hazardous                         | 58,383.90         | 53,868.98         | 58,040.45         |
|                       | Non-hazardous waste to recycling                              | 29,719.02         | 29,685.54         | 51,433.57         |
|                       | Non-hazardous waste to disposal                               | 28,664.88         | 24,183.44         | 6,606.87          |
|                       | Non-hazardous waste to incineration (with energy recovery)    | 6,286.96          | 172.86            | 2,472             |
|                       | Non-hazardous waste to incineration (without energy recovery) | -                 | 14.53             | 15.43             |
|                       | Non-Hazardous waste to landfilling                            | 22,201.59         | 23,990.64         | 4,110.06          |
|                       | Non-hazardous waste to other disposal operation               | 176.33            | -                 | 9.38              |
|                       | <b>TOTAL</b>                                                  | <b>59,455.95</b>  | <b>55,694.19</b>  | <b>60,623.47</b>  |
| Asia<br>(India/China) | Industrial waste treated hazardous                            | 3,646.55          | 2,695.35          | 3,629.52          |
|                       | Hazardous waste to recycling                                  | 2,041.86          | 1,298.62          | 2,265.75          |
|                       | Hazardous waste to disposal                                   | 1,604.10          | 1,396.73          | 1,363.77          |
|                       | Hazardous waste to incineration (with energy recovery)        | 253.59            | 271.36            | 704.758           |
|                       | Hazardous waste to incineration (without energy recovery)     | 560.94            | 372.55            | 303.181           |
|                       | Hazardous waste to landfilling                                | 723.22            | 513.23            | 321.956           |
|                       | Hazardous waste to other disposal operation                   | 66.94             | 237.17            | 33.876            |
|                       | Industrial waste treated no-hazardous                         | 116,407.43        | 102,540.99        | 104,193.39        |
|                       | Non-hazardous waste to recycling                              | 86,295.44         | 74,278.61         | 74,807.44         |
|                       | Non-hazardous waste to disposal                               | 30,111.99         | 28,262.38         | 29,385.95         |
|                       | Non-hazardous waste to incineration (with energy recovery)    | 26.49             | 374.77            | 25,611.535        |
|                       | Non-hazardous waste to incineration (without energy recovery) | 231.65            | -                 | 0                 |
|                       | Non-Hazardous waste to landfilling                            | 28,049.32         | 26,279.68         | 21.84             |
|                       | Non-hazardous waste to other disposal operation               | 1,804.54          | 89.88             | 3,752.576         |
|                       | <b>TOTAL</b>                                                  | <b>120,053.98</b> | <b>105,236.34</b> | <b>107,822.91</b> |
| Tonne                 | Definition                                                    | 2021              | 2022              | 2023              |
|                       | Industrial waste treated hazardous                            | 17,457.88         | 17,462.06         | 21,441.65         |
|                       | Hazardous waste to recycling                                  | 9,533.03          | 8,734.47          | 11,137.69         |
|                       | Hazardous waste to disposal                                   | 7,924.23          | 8,727.59          | 10,303.97         |
|                       | Hazardous waste to incineration (with energy recovery)        | 2,971.05          | 4,056.08          | 3,538.27          |
|                       | Hazardous waste to incineration (without energy recovery)     | 717.74            | 372.87            | 869.057           |
|                       | Hazardous waste to landfilling                                | 2,536.45          | 2,786.74          | 1,727.27          |
|                       | Hazardous waste to other disposal operation                   | 1,699.60          | 1,509.49          | 4,109.37          |
| TOTAL                 | Industrial waste treated no-hazardous                         | 355,293.24        | 324,307.90        | 358,629.58        |
|                       | Non-hazardous waste to recycling                              | 293,652.79        | 270,327.79        | 320,849.61        |
|                       | Non-hazardous waste to disposal                               | 61,640.45         | 53,980.11         | 37,779.97         |
|                       | Non-hazardous waste to incineration (with energy recovery)    | 6,430.72          | 1,285.56          | 28,746.67         |
|                       | Non-hazardous waste to incineration (without energy recovery) | 231.65            | 14.53             | 15.43             |
|                       | Non-Hazardous waste to landfilling                            | 52,482.81         | 52,307.09         | 4,700.45          |
|                       | Non-hazardous waste to other disposal operation               | 2,495.27          | 372.94            | 4,317.416         |
| TOTAL                 |                                                               | 372,751.12        | 341,769.96        | 380,071.23        |

**1**

**2**

**3**

**4**

**5**

Image /page/267/Picture/5 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of two curved shapes, one above the other, that are black. The words "CIE Automotive" are in a sans-serif font and are also black.

Image /page/267/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large number "23" with a quotation mark above and to the left of the number.

{268}------------------------------------------------

#### **WASTE MANAGEMENT (III)** | INDICATORS 306-3 / 306-4 / 306-5

**challenge**

*About [this report](#page-229-0)*

Image /page/268/Picture/5 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left, followed by the words "CIE Automotive" in a sans-serif font. The letter C is black, while the words "CIE Automotive" are in a lighter shade of gray.

**Responsible 6** [management](#page-183-0)

*[Data tables](#page-261-0)*

**1**

**2**

**3**

**4**

Image /page/268/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large quotation mark, followed by the number 23.

{269}------------------------------------------------

#### **ENERGY CONSUMPTION AND SAVINGS**

| Gigajoules            | Indicator | Definition                                             | 2021         | 2022         | 2023         |
|-----------------------|-----------|--------------------------------------------------------|--------------|--------------|--------------|
| Europe*               | GRI 302-1 | Direct energy consumption                              | 727,697.13   | 684,542.06   | 639,149.65   |
|                       | GRI 302-1 | Indirect energy consumption                            | 1,288,375.69 | 1,317,155.20 | 1,200,898.5  |
|                       | GRI 302-1 | Indirect energy consumption from non-renewable sources | 317,015.31   | 292,781.58   | 360,702.34   |
|                       | GRI 302-1 | Indirect energy consumption from renewable sources     | 971,360.38   | 1,024,373.62 | 840,196.25   |
|                       | GRI 302-1 | TOTAL                                                  | 2,016,072.83 | 2,001,697.26 | 1,840,048.2  |
| North America         | GRI 302-1 | Direct energy consumption                              | 627,666.59   | 479,326.72   | 495,934.14   |
|                       | GRI 302-1 | Indirect energy consumption                            | 758,008.54   | 723,449.87   | 767,946.89   |
|                       | GRI 302-1 | Indirect energy consumption from non-renewable sources | 625,774.54   | 626,687.21   | 713,244.99   |
|                       | GRI 302-1 | Indirect energy consumption from renewable sources     | 132,234.00   | 96,762.66    | 54,701.90    |
|                       | GRI 302-1 | TOTAL                                                  | 1,385,675.13 | 1,202,776.59 | 1,263,881.0  |
| Brazil                | GRI 302-1 | Energía, consumo directo                               | 176,688.22   | 180,991.24   | 218,541.19   |
|                       | GRI 302-1 | Energía, consumo indirecto                             | 644,943.72   | 649,376.71   | 663,212.28   |
|                       | GRI 302-1 | Energía, consumo indirecto no renovable                | 22,877.65    | 13,189.34    | 944.71       |
|                       | GRI 302-1 | Energía, consumo indirecto de energía renovable        | 622,066.07   | 636,187.37   | 662,267.57   |
|                       | GRI 302-1 | TOTAL                                                  | 821,631.93   | 830,367.95   | 881,753.47   |
| Asia<br>(India/China) | GRI 302-1 | Energía, consumo directo                               | 390,601.12   | 350,200.72   | 407,059.78   |
|                       | GRI 302-1 | Energía, consumo indirecto                             | 1,193,745.79 | 1,242,225.10 | 1,564,800.1  |
|                       | GRI 302-1 | Energía, consumo indirecto no renovable                | 1,005,338.28 | 763,145.19   | 741,682.33   |
|                       | GRI 302-1 | Energía, consumo indirecto de energía renovable        | 188,407.51   | 479,079.91   | 823,117.83   |
|                       | GRI 302-1 | TOTAL                                                  | 1,584,346.91 | 1,592,425.82 | 1,971,859.9  |
| TOTAL                 | GRI 302-1 | Energía, consumo directo                               | 1,922,653.06 | 1,695,060.74 | 1,760,684.7  |
|                       | GRI 302-1 | Energía, consumo indirecto                             | 3,885,073.74 | 3,932,206.88 | 4,196,857.9  |
|                       | GRI 302-1 | Energía, consumo indirecto no renovable                | 1,971,005.79 | 1,695,803.31 | 1,816,574.38 |
|                       | GRI 302-1 | Energía, consumo indirecto de energía renovable        | 1,914,067.96 | 2,236,403.56 | 2,380,283.5  |
|                       | GRI 302-1 | TOTAL                                                  | 5,807,726.80 | 5,627,267.62 | 5,957,542.6  |

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0)**

**Record [earnings](#page-53-0)**

**Common responsibility, [shared benefits](#page-64-0)**

**Ready 2** [for change](#page-15-0)

> **Our response to [the environmental](#page-141-0)**

**challenge**

**Responsible [management](#page-183-0)**

*About [this report](#page-229-0)*

*[Data tables](#page-261-0)*

**1**

**3**

**4**

**5**

Image /page/269/Picture/6 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of two curved shapes that are open on the right side. The words "CIE Automotive" are in a sans-serif font, with "CIE" in bold.

| 2022         | 2023         |
|--------------|--------------|
| 4,542.06     | 639,149.65   |
| 17,155.20    | 1,200,898.59 |
| 92,781.58    | 360,702.34   |
| 24,373.62    | 840,196.25   |
| 101,697.26   | 1,840,048.23 |
| 49,326.72    | 495,934.14   |
| 73,449.87    | 767,946.89   |
| 26,687.21    | 713,244.99   |
| 6,762.66     | 54,701.90    |
| 292,776.59   | 1,263,881.03 |
| 50,991.24    | 218,541.19   |
| 49,376.71    | 663,212.28   |
| 8,189.34     | 944.71       |
| 36,187.37    | 662,267.57   |
| 140,367.95   | 881,753.47   |
| 40,200.72    | 407,059.78   |
| 142,225.10   | 1,564,800.17 |
| 63,145.19    | 741,682.33   |
| 79,079.91    | 823,117.83   |
| 432,425.82   | 1,971,859.94 |
| 95,060.74    | 1,760,684.76 |
| 132,206.88   | 4,196,857.92 |
| 195,803.31   | 1,816,574.38 |
| 136,403.56   | 2,380,283.54 |
| 1,227,267.62 | 5,957,542.68 |

Image /page/269/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large number "23" with a quotation mark above the number.

{270}------------------------------------------------

#### **EMISSIONS (SCOPE 1, 2 & 3)**

|                       | Indicator                          | Definition                         | Unit             | 2021              | 2022              | 2023              |
|-----------------------|------------------------------------|------------------------------------|------------------|-------------------|-------------------|-------------------|
| Europe*               | GRI 305-1                          | Direct emissions                   | T CO2e           | 43,281.83         | 40,682.69         | 38,484.85         |
|                       | GRI 305-1                          | Direct CH4 emissions               | T CH4            | 0.79              | 0.73              | 0.68              |
|                       | GRI 305-1                          | Direct N2O emissions               | T N2O            | 0.09              | 0.08              | 0.07              |
|                       | GRI 305-2                          | Indirect CO2e emissions            | T CO2e           | 34,671.25         | 30,631.95         | 34,242.42         |
|                       | <b>GRI 305</b>                     | <b>TOTAL</b>                       | <b>T CO2e</b>    | <b>77,953.09</b>  | <b>71,314.64</b>  | <b>72,727.26</b>  |
|                       | GRI 305-3                          | Other indirect emissions (Scope 3) | T CO2e           | 1,205,714.93      | 857,039.84        | 1,063,741.33      |
| North America         | GRI 305-1                          | Direct emissions                   | T CO2e           | 37,285.26         | 28,533.91         | 28,456.07         |
|                       | GRI 305-1                          | Direct CH4 emissions               | T CH4            | 0.72              | 0.57              | 0.59              |
|                       | GRI 305-1                          | Direct N2O emissions               | T N2O            | 0.09              | 0.07              | 0.07              |
|                       | GRI 305-2                          | Indirect CO2e emissions            | T CO2e           | 99,045.49         | 100,391.61        | 64,370.17         |
|                       | <b>GRI 305</b>                     | <b>TOTAL</b>                       | <b>T CO2e</b>    | <b>136,330.75</b> | <b>128,925.51</b> | <b>92,826.24</b>  |
|                       | GRI 305-3                          | Other indirect emissions (Scope 3) | T CO2e           | 949,779.07        | 860,801.02        | 1,315,438.12      |
| Brazil                | GRI 305-1                          | Direct emissions                   | T CO2e           | 10,568.18         | 10,826.19         | 11,976.38         |
|                       | GRI 305-1                          | Direct CH4 emissions               | T CH4            | 0.23              | 0.23              | 0.27              |
|                       | GRI 305-1                          | Direct N2O emissions               | T N2O            | 0.03              | 0.03              | 0.04              |
|                       | GRI 305-2                          | Indirect CO2e emissions            | T CO2e           | 265.61            | 153.13            | 33.98             |
| <b>GRI 305</b>        | <b>TOTAL</b>                       | <b>T CO2e</b>                      | <b>10,833.79</b> | <b>10,979.32</b>  | <b>12,010.37</b>  |                   |
| GRI 305-3             | Other indirect emissions (Scope 3) | T CO2e                             | 344,183.92       | 336,084.75        | 349,509.40        |                   |
| Asia<br>(India/China) | GRI 305-1                          | Direct emissions                   | T CO2e           | 23,625.35         | 21,110.23         | 20,155.50         |
|                       | GRI 305-1                          | Direct CH4 emissions               | T CH4            | 0.75              | 0.67              | 0.75              |
|                       | GRI 305-1                          | Direct N2O emissions               | T N2O            | 0.13              | 0.12              | 0.13              |
|                       | GRI 305-2                          | Indirect CO2e emissions            | T CO2e           | 255,494.97        | 192,985.78        | 140,218.35        |
|                       | <b>GRI 305</b>                     | <b>TOTAL</b>                       | <b>T CO2e</b>    | <b>279,120.32</b> | <b>214,096.01</b> | <b>160,373.85</b> |
|                       | GRI 305-3                          | Other indirect emissions (Scope 3) | T CO2e           | 1,139,204.53      | 1,837,279.39      | 1,622,282.13      |
| TOTAL                 | GRI 305-1                          | Direct emissions                   | T CO2e           | 114,760.62        | 101,153.03        | 99,072.80         |
|                       | GRI 305-1                          | Direct CH4 emissions               | T CH4            | 1.69              | 1.47              | 2.29              |
|                       | GRI 305-1                          | Direct N2O emissions               | T N2O            | 0.25              | 0.22              | 0.32              |
|                       | GRI 305-2                          | Indirect CO2e emissions            | T CO2e           | 389,477.33        | 324,162.47        | 238,864.91        |
|                       | <b>GRI 305</b>                     | <b>TOTAL</b>                       | <b>T CO2e</b>    | <b>504,237.95</b> | <b>425,315.48</b> | <b>337,937.72</b> |
|                       | GRI 305-3                          | Other indirect emissions (Scope 3) | T CO2e           | 3,638,882.44      | 3,891,205.00      | 4,350,970.98      |

|   | Chairman<br>and<br>CEO's<br>statement             |
|---|---------------------------------------------------|
| 1 | 2023<br>highlights                                |
| 2 | Ready<br>for change                               |
| 3 | Record<br>earnings                                |
| 4 | Common<br>responsibility,<br>shared benefits      |
| 5 | Our response to<br>the environmental<br>challenge |
| 6 | Responsible<br>management                         |
|   | About<br>this report                              |
|   | Data tables                                       |

Image /page/270/Picture/7 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is black, while the text is in a lighter shade of gray.

Image /page/270/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters, stacked on top of each other. To the right of the words is a large number "23" in black, with a gray quotation mark above it.

{271}------------------------------------------------

#### **EMISSIONS SAVINGS FROM THE PURCHASE OF ENERGY FROM RENEWABLE SOURCES**

| T CO₂e             | Indicator | Definition         | 2021       | 2022       | 2023       |
|--------------------|-----------|--------------------|------------|------------|------------|
| Europe*            | GRI 305-2 | Indirect emissions | 56,762.67  | 61,007.34  | 37,463.42  |
| North America      | GRI 305-2 | Indirect emissions | 24,040.29  | 17,365.75  | 4,558.49   |
| Brazil             | GRI 305-2 | Indirect emissions | 7,222.30   | 7,386.25   | 23,823.24  |
| Asia (India/China) | GRI 305-2 | Indirect emissions | 51,315.23  | 131,055.11 | 162,862.08 |
| TOTAL              | GRI 305-2 | Indirect emissions | 139,340.49 | 216,814.45 | 228,707.23 |

Image /page/271/Figure/2 description: The image shows a list of topics. The first topic is "Chairman and CEO's statement". The second topic is "2023 highlights" and is labeled with the number 1. The third topic is "Ready for change" and is labeled with the number 2. The fourth topic is "Record earnings" and is labeled with the number 3. The fifth topic is "Common responsibility, shared benefits" and is labeled with the number 4. The sixth topic is "Our response to the environmental challenge" and is labeled with the number 5. The seventh topic is "Responsible management" and is labeled with the number 6. The eighth topic is "About this report".

Image /page/271/Picture/8 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of two curved lines that do not quite meet, forming an incomplete circle. The words "CIE Automotive" are in a simple, sans-serif font.

Image /page/271/Figure/9 description: The image shows a blurred vertical bar on the left side of the image. There are also some horizontal lines on the left side of the image.

Image /page/271/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large number "23" with a quotation mark above the 2.

{272}------------------------------------------------

Image /page/272/Figure/2 description: The image shows the words "ENERGY INTENSITY" in bold, gray letters.

| Gigajoules/€K      | Indicator | Definition                                             | 2021        | 2022        | 2023        |
|--------------------|-----------|--------------------------------------------------------|-------------|-------------|-------------|
|                    | GRI 302-3 | Direct energy consumption                              | 0.58        | 0.45        | 0.42        |
|                    | GRI 302-3 | Indirect energy consumption                            | 1.02        | 0.86        | 0.79        |
| Europe*            | GRI 302-3 | Indirect energy consumption from non-renewable sources | 0.25        | 0.19        | 0.24        |
|                    | GRI 302-3 | Indirect energy consumption from renewable sources     | 0.77        | 0.67        | 0.56        |
|                    | GRI 302-3 | <b>TOTAL</b>                                           | <b>1.60</b> | <b>1.31</b> | <b>1.22</b> |
|                    | GRI 302-3 | Direct energy consumption                              | 0.70        | 0.41        | 0.43        |
|                    | GRI 302-3 | Indirect energy consumption                            | 0.84        | 0.61        | 0.67        |
| North America      | GRI 302-3 | Indirect energy consumption from non-renewable sources | 0.69        | 0.53        | 0.62        |
|                    | GRI 302-3 | Indirect energy consumption from renewable sources     | 0.15        | 0.08        | 0.05        |
|                    | GRI 302-3 | <b>TOTAL</b>                                           | <b>1.54</b> | <b>1.02</b> | <b>1.10</b> |
|                    | GRI 302-3 | Direct energy consumption                              | 0.82        | 0.58        | 0.59        |
|                    | GRI 302-3 | Indirect energy consumption                            | 2.99        | 2.09        | 1.80        |
| Brazil             | GRI 302-3 | Indirect energy consumption from non-renewable sources | 0.11        | 0.04        | 0.00        |
|                    | GRI 302-3 | Indirect energy consumption from renewable sources     | 2.88        | 2.04        | 1.80        |
|                    | GRI 302-3 | <b>TOTAL</b>                                           | <b>3.81</b> | <b>2.67</b> | <b>2.40</b> |
|                    | GRI 302-3 | Direct energy consumption                              | 0.44        | 0.33        | 0.38        |
|                    | GRI 302-3 | Indirect energy consumption                            | 1.34        | 1.18        | 1.46        |
| Asia (India/China) | GRI 302-3 | Indirect energy consumption from non-renewable sources | 1.13        | 0.73        | 0.69        |
|                    | GRI 302-3 | Indirect energy consumption from renewable sources     | 0.21        | 0.46        | 0.77        |
|                    | GRI 302-3 | <b>TOTAL</b>                                           | <b>1.78</b> | <b>1.59</b> | <b>1.84</b> |
|                    | GRI 302-3 | Direct energy consumption                              | 0.59        | 0.42        | 0.43        |
|                    | GRI 302-3 | Indirect energy consumption                            | 1.19        | 0.97        | 1.02        |
| TOTAL              | GRI 302-3 | Indirect energy consumption from non-renewable sources | 0.60        | 0.42        | 0.44        |
|                    | GRI 302-3 | Indirect energy consumption from renewable sources     | 0.59        | 0.55        | 0.58        |
|                    | GRI 302-3 | <b>TOTAL</b>                                           | <b>1.78</b> | <b>1.38</b> | <b>1.45</b> |

|   | Chairman<br>and<br>CEO's<br>statement             |
|---|---------------------------------------------------|
| 1 | 2023<br>highlights                                |
| 2 | Ready<br>for change                               |
| 3 | Record<br>earnings                                |
| 4 | Common<br>responsibility,<br>shared benefits      |
| 5 | Our response to<br>the environmental<br>challenge |
| 6 | Responsible<br>management                         |
|   | About<br>this report                              |

Image /page/272/Picture/8 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved black shapes that do not quite meet, creating a gap in the middle. The text "CIE Automotive" is in a simple, sans-serif font, with "CIE" in a slightly bolder font than "Automotive".

Image /page/272/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters, stacked on top of each other. To the right of the words is a large number "23" in black, with a gray quotation mark above it.

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#### **EMISSIONS INTENSITY**

| T CO₂e /€k            | Indicator | Definition         | 2021        | 2022        | 2023        |
|-----------------------|-----------|--------------------|-------------|-------------|-------------|
|                       | GRI 305-4 | Direct emissions   | 0.03        | 0.03        | 0.03        |
| Europe*               | GRI 305-4 | Indirect emissions | 0.03        | 0.02        | 0.02        |
|                       | GRI 305-4 | <b>TOTAL</b>       | <b>0.06</b> | <b>0.05</b> | <b>0.05</b> |
|                       | GRI 305-4 | Direct emissions   | 0.04        | 0.02        | 0.02        |
| North America         | GRI 305-4 | Indirect emissions | 0.11        | 0.09        | 0.06        |
|                       | GRI 305-4 | <b>TOTAL</b>       | <b>0.15</b> | <b>0.11</b> | <b>0.08</b> |
|                       | GRI 305-4 | Direct emissions   | 0.05        | 0.03        | 0.03        |
| Brazil                | GRI 305-4 | Indirect emissions | 0.00        | 0.00        | 0.00        |
|                       | GRI 305-4 | <b>TOTAL</b>       | <b>0.05</b> | <b>0.04</b> | <b>0.03</b> |
|                       | GRI 305-4 | Direct emissions   | 0.03        | 0.02        | 0.02        |
| Asia<br>(India/China) | GRI 305-4 | Indirect emissions | 0.29        | 0.18        | 0.13        |
|                       | GRI 305-4 | <b>TOTAL</b>       | <b>0.31</b> | <b>0.2</b>  | <b>0.15</b> |
|                       | GRI 305-4 | Direct emissions   | 0.04        | 0.02        | 0.02        |
| <b>TOTAL</b>          | GRI 305-4 | Indirect emissions | 0.12        | 0.08        | 0.06        |
|                       | GRI 305-4 | <b>TOTAL</b>       | <b>0.16</b> | <b>0.10</b> | <b>0.08</b> |

Image /page/273/Figure/2 description: The image shows a list of topics. The first topic is "Chairman and CEO's statement". The second topic is "2023 highlights" and is labeled with the number 1. The third topic is "Ready for change" and is labeled with the number 2. The fourth topic is "Record earnings" and is labeled with the number 3. The fifth topic is "Common responsibility, shared benefits" and is labeled with the number 4. The sixth topic is "Our response to the environmental challenge" and is labeled with the number 5. The seventh topic is "Responsible management" and is labeled with the number 6. The eighth topic is "About this report".

Image /page/273/Picture/8 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of two curved lines that do not quite meet, forming an incomplete circle. The words "CIE Automotive" are in a simple, sans-serif font.

Image /page/273/Figure/9 description: This image shows a table with two columns. The left column contains the year "2023" at the top, followed by a list of decimal numbers: 0.03, 0.02, 0.05, 0.02, 0.06, 0.08, 0.03, 0.00, 0.03, 0.02, 0.13, 0.15, 0.02, 0.06, and 0.08.

Image /page/273/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large number "23" with a quotation mark above the number.

{274}------------------------------------------------

# **Template Annex II Commission Delegated Regulation (EU) 2021/2178**

of 6 July 2021

Image /page/274/Figure/2 description: This image shows a table of contents. The first entry is "Chairman and CEO's statement", followed by "2023 highlights", "Ready for change", "Record earnings", "Common responsibility, shared benefits", "Our response to the environmental challenge", "Responsible management", "About this report", and "Data tables". The entries are numbered 1 through 6.

Image /page/274/Picture/6 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The "C" is formed by two curved black shapes that do not quite meet, creating an incomplete circle. The text "CIE Automotive" is in a simple, sans-serif font, with "CIE" in a bolder typeface than "Automotive". The entire logo is in black against a white background.

Image /page/274/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large number "23" with a quotation mark above the "2".

{275}------------------------------------------------

# TURNOVER

|  | Circular<br>economy | Biodiversity | Minimum<br>safeguards | Proportion of<br>Taxonomy-<br>aligned<br>turnover (A.1.)<br>or Taxonomy-<br>eligible<br>turnover (A.2)<br>2022 | Enabling<br>activity<br>category | Transitional<br>activity<br>category |
|--|---------------------|--------------|-----------------------|----------------------------------------------------------------------------------------------------------------|----------------------------------|--------------------------------------|
|  |                     |              |                       |                                                                                                                |                                  |                                      |
|  |                     |              |                       |                                                                                                                |                                  |                                      |
|  |                     |              |                       |                                                                                                                |                                  |                                      |
|  |                     |              |                       |                                                                                                                |                                  |                                      |
|  |                     |              |                       |                                                                                                                |                                  |                                      |
|  |                     |              |                       |                                                                                                                |                                  |                                      |
|  |                     |              |                       |                                                                                                                |                                  |                                      |
|  |                     |              |                       |                                                                                                                |                                  |                                      |
|  |                     |              |                       |                                                                                                                |                                  |                                      |
|  |                     |              |                       |                                                                                                                |                                  |                                      |
|  |                     |              |                       |                                                                                                                |                                  |                                      |
|  |                     |              |                       |                                                                                                                |                                  |                                      |

|   | Chairman<br>and<br>CEO's<br>statement             | Economic activities                                                                                                                      | Code     | Absolute<br>turnover<br>[€m] | Proportion of<br>turnover year<br>2023 | Substantial contribution criteria |                                 |       |           |                     |              | DNSH criteria ("Does Not Significantly Harm") |                                 |       |           |                     |  |  |
|---|---------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------|----------|------------------------------|----------------------------------------|-----------------------------------|---------------------------------|-------|-----------|---------------------|--------------|-----------------------------------------------|---------------------------------|-------|-----------|---------------------|--|--|
| 1 | 2023<br>highlights                                |                                                                                                                                          |          |                              |                                        | Climate<br>change<br>mitigation   | Climate<br>change<br>adaptation | Water | Pollution | Circular<br>economy | Biodiversity | Climate<br>change<br>mitigation               | Climate<br>change<br>adaptation | Water | Pollution | Circular<br>economy |  |  |
|   |                                                   | A. TAXONOMY-ELIGIBLE ACTIVITIES                                                                                                          |          |                              |                                        |                                   |                                 |       |           |                     |              |                                               |                                 |       |           |                     |  |  |
| 2 | Ready<br>for change                               | A.1. ENVIRONMENTALLY SUSTAINABLE ACTIVITIES (TAXONOMY-ALIGNED)                                                                           |          |                              |                                        |                                   |                                 |       |           |                     |              |                                               |                                 |       |           |                     |  |  |
| 3 | Record<br>earnings                                | Total turnover of<br>environmentally<br>sustainable activities<br>(Taxonomy-alligned) A.1.                                               |          | 0                            | 0%                                     | 0%                                | 0%                              | 0%    | 0%        | 0%                  | 0%           |                                               |                                 |       |           |                     |  |  |
|   |                                                   | Of which enabling                                                                                                                        |          | 0                            | 0%                                     | 0%                                | 0%                              | 0%    | 0%        | 0%                  | 0%           |                                               |                                 |       |           |                     |  |  |
|   |                                                   | Of which transitional                                                                                                                    |          | 0                            | 0%                                     | 0%                                |                                 |       |           |                     |              |                                               |                                 |       |           |                     |  |  |
| 4 | Common<br>responsibility,<br>shared benefits      | A.2. TAXONOMY-ELIGIBLE BUT NOT ENVIRONMENTALLY SUSTAINABLE ACTIVITIES (NOT TAXONOMY-ALIGNED ACTIVITIES)                                  |          |                              |                                        |                                   |                                 |       |           |                     |              |                                               |                                 |       |           |                     |  |  |
|   |                                                   | Manufacturing of<br>automotive and mobility<br>components                                                                                | CCM 3.18 | 531,588                      | 13.43%                                 | EL                                | N/EL                            | N/EL  | N/EL      | N/EL                | N/EL         |                                               |                                 |       |           |                     |  |  |
| 5 | Our response to<br>the environmental<br>challenge | Total turnover of<br>Taxonomy-eligible but<br>not environmentally<br>sustainable activities<br>(not Taxonomy-aligned<br>activities) A.2. |          | 531,588                      | 13.43%                                 | 13.43%                            | 0%                              | 0%    | 0%        | 0%                  | 0%           |                                               |                                 |       |           |                     |  |  |
| 6 | Responsible<br>management                         | Total A.1. + A.2.                                                                                                                        |          | 531,588                      | 13.43%                                 | 13.43%                            | 0%                              | 0%    | 0%        | 0%                  | 0%           |                                               |                                 |       |           |                     |  |  |
|   |                                                   | B. TAXONOMY-NON-ELIGIBLE ACTIVITIES                                                                                                      |          |                              |                                        |                                   |                                 |       |           |                     |              |                                               |                                 |       |           |                     |  |  |
|   | About<br>this report                              | Total turnover of<br>Taxonomy-non-eligible<br>activities B                                                                               |          | 3,427,892                    | 86.57%                                 |                                   |                                 |       |           |                     |              |                                               |                                 |       |           |                     |  |  |
|   | Data tables                                       | Total A + B                                                                                                                              |          | 3,959,479                    | 100.0%                                 |                                   |                                 |       |           |                     |              |                                               |                                 |       |           |                     |  |  |

|     | Taxonomy-aligned for the relevant objective | Taxonomy-eligible activity for the relevant objective |
|-----|---------------------------------------------|-------------------------------------------------------|
| CCM | 0%                                          | 13.43%                                                |
| CCA | 0%                                          | 0%                                                    |
| WTR | 0%                                          | 0%                                                    |
| CE  | 0%                                          | 0%                                                    |
| PPC | 0%                                          | 0%                                                    |
| BIO | 0%                                          | 0%                                                    |

### **Template Annex II Commission Delegated Regulation (EU) 2021/2178**

of 6 July 2021

Image /page/275/Picture/9 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is black, while the text is in a dark gray color. The logo is set against a white background.

Image /page/275/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large number "23" with a quotation mark above the number.

{276}------------------------------------------------

Image /page/276/Figure/7 description: The image shows the CIE Automotive logo at the top, followed by the word "CAPEX" in a large, thin font. Below the word "CAPEX" is a horizontal line with four vertical lines extending upwards from it.

|   | Chairman<br>and<br>CEO'S<br>statement             | Economic activities                                                                                                                   | Code    | Absolute<br>CapEx<br>[€ 000] | Proportion of<br>CapEx year<br>2023 | Climate<br>change<br>mitigation | Climate<br>change<br>adaptation | Water | Pollution | Circular<br>economy | Biodiversity | Climate<br>change<br>mitigation | Climate<br>change<br>adaptation | Water | Pollution | Circular<br>economy | Biodiversity | Minimum<br>safeguards | Proportion of<br>Taxonomy-<br>aligned<br>turnover (A.1.)<br>or Taxonomy-<br>eligible<br>turnover (A.2)<br>2022 | Enabling<br>activity<br>category | Transition<br>activity<br>category |
|---|---------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|---------|------------------------------|-------------------------------------|---------------------------------|---------------------------------|-------|-----------|---------------------|--------------|---------------------------------|---------------------------------|-------|-----------|---------------------|--------------|-----------------------|----------------------------------------------------------------------------------------------------------------|----------------------------------|------------------------------------|
| 1 | 2023<br>highlights                                | A. TAXONOMY-ELIGIBLE ACTIVITIES                                                                                                       |         |                              |                                     |                                 |                                 |       |           |                     |              |                                 |                                 |       |           |                     |              |                       |                                                                                                                |                                  |                                    |
| 2 | Ready<br>for change                               | A.1. ENVIRONMENTALLY SUSTAINABLE ACTIVITIES (TAXONOMY-ALIGNED)                                                                        |         |                              |                                     |                                 |                                 |       |           |                     |              |                                 |                                 |       |           |                     |              |                       |                                                                                                                |                                  |                                    |
|   |                                                   | Total CapEx of<br>environmentally<br>sustainable activities<br>(Taxonomy-alligned) A.1.                                               |         | 0                            | 0%                                  | 0%                              | 0%                              | 0%    | 0%        | 0%                  | 0%           |                                 |                                 |       |           |                     |              |                       |                                                                                                                |                                  |                                    |
| 3 | Record<br>earnings                                | Of which enabling                                                                                                                     |         | 0                            | 0%                                  | 0%                              | 0%                              | 0%    | 0%        | 0%                  | 0%           |                                 |                                 |       |           |                     |              |                       |                                                                                                                |                                  |                                    |
|   |                                                   | Of which transitional                                                                                                                 |         | 0                            | 0%                                  | 0%                              |                                 |       |           |                     |              |                                 |                                 |       |           |                     |              |                       |                                                                                                                |                                  |                                    |
| 4 | Common<br>responsibility,<br>shared benefits      | A.2. TAXONOMY-ELIGIBLE BUT NOT ENVIRONMENTALLY SUSTAINABLE ACTIVITIES (NOT TAXONOMY-ALIGNED ACTIVITIES)                               |         |                              |                                     |                                 |                                 |       |           |                     |              |                                 |                                 |       |           |                     |              |                       |                                                                                                                |                                  |                                    |
|   |                                                   | Installation, maintenance<br>and repair of energy<br>efficient equipment                                                              | CCM 7.3 | 273                          | 0.09%                               | EL                              | N/EL                            | N/EL  | N/EL      | N/EL                | N/EL         |                                 |                                 |       |           |                     |              |                       | 0.13%                                                                                                          |                                  |                                    |
| 5 | Our response to<br>the environmental<br>challenge | Installation, maintenance<br>and repair of renewable<br>energy technologies                                                           | CCM 7.6 | 50                           | 0.02%                               | EL                              | N/EL                            | N/EL  | N/EL      | N/EL                | N/EL         |                                 |                                 |       |           |                     |              |                       | 0.37%                                                                                                          |                                  |                                    |
| 6 | Responsible<br>management                         | Total CapEx of<br>Taxonomy-eligible but<br>not environmentally<br>sustainable activities<br>(not Taxonomy-aligned<br>activities) A.2. |         | 323                          | 0.10%                               | 0.10%                           | 0%                              | 0%    | 0%        | 0%                  | 0%           |                                 |                                 |       |           |                     |              |                       | 0.51%                                                                                                          |                                  |                                    |
|   |                                                   | Total A.1. + A.2.                                                                                                                     |         | 323                          | 0.10%                               | 0.10%                           | 0%                              | 0%    | 0%        | 0%                  | 0%           |                                 |                                 |       |           |                     |              |                       | 0.51%                                                                                                          |                                  |                                    |
|   | About<br>this report                              | B. TAXONOMY-NON-ELIGIBLE ACTIVITIES                                                                                                   |         |                              |                                     |                                 |                                 |       |           |                     |              |                                 |                                 |       |           |                     |              |                       |                                                                                                                |                                  |                                    |
|   |                                                   | Total CapEx of Taxonomy-<br>non-eligible activities B                                                                                 |         | 311,561                      | 99.90%                              |                                 |                                 |       |           |                     |              |                                 |                                 |       |           |                     |              |                       |                                                                                                                |                                  |                                    |
|   | Data tables                                       | Total A + B                                                                                                                           |         | 311,884                      | 100.0%                              |                                 |                                 |       |           |                     |              |                                 |                                 |       |           |                     |              |                       |                                                                                                                |                                  |                                    |

| PROPORTION OF TOTAL CAPEX |                                   |                                   |
|---------------------------|-----------------------------------|-----------------------------------|
|                           | Taxonomy-alligned by<br>objective | Taxonomy-eligible by<br>objective |
| CCM                       | 0%                                | 0.10%                             |
| CCA                       | 0%                                | 0%                                |
| WTR                       | 0%                                | 0%                                |
| CE                        | 0%                                | 0%                                |
| PPC                       | 0%                                | 0%                                |
| BIO                       | 0%                                | 0%                                |

**Template Annex II Commission Delegated Regulation (EU) 2021/2178**

of 6 July 2021

Image /page/276/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large quotation mark followed by the number 23.

{277}------------------------------------------------

Image /page/277/Figure/9 description: This image shows a table with the title "OPEX" at the top right. The first row contains the following column headers: Circular economy, Biodiversity, Minimum safeguards, Proportion of Taxonomy-aligned turnover (A.1.) or Taxonomy-eligible turnover (A.2) 2022, Enabling activity category, and Transitional activity category.

Image /page/277/Figure/12 description: The image is composed of alternating horizontal bands of gray and black. The top and bottom bands are gray, with a wider black band in the middle. The gray bands appear to be of similar width.

|   | Chairman<br>and<br>CEO's<br>statement | Economic activities                                            | Code                                                                                                    | Absolute<br>OpEx<br>[€ 000]                                                                                                          | Proportion<br>of OpEx year<br>2023 | Substantial contribution criteria |                                 |       |           |                     |              |                                 | DNSH criteria ("Does Not Significantly Harm") |       |           |                     |  |  |  |
|---|---------------------------------------|----------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------|------------------------------------|-----------------------------------|---------------------------------|-------|-----------|---------------------|--------------|---------------------------------|-----------------------------------------------|-------|-----------|---------------------|--|--|--|
| 1 | 2023<br>highlights                    |                                                                |                                                                                                         |                                                                                                                                      |                                    | Climate<br>change<br>mitigation   | Climate<br>change<br>adaptation | Water | Pollution | Circular<br>economy | Biodiversity | Climate<br>change<br>mitigation | Climate<br>change<br>adaptation               | Water | Pollution | Circular<br>economy |  |  |  |
|   |                                       | A. TAXONOMY-ELIGIBLE ACTIVITIES                                |                                                                                                         |                                                                                                                                      |                                    |                                   |                                 |       |           |                     |              |                                 |                                               |       |           |                     |  |  |  |
|   | 2                                     | A.1. ENVIRONMENTALLY SUSTAINABLE ACTIVITIES (TAXONOMY-ALIGNED) |                                                                                                         |                                                                                                                                      |                                    |                                   |                                 |       |           |                     |              |                                 |                                               |       |           |                     |  |  |  |
|   |                                       | Ready<br>for change                                            | Total OpEx of<br>environmentally<br>sustainable activities<br>(Taxonomy-alligned) A.1.                  |                                                                                                                                      | 0                                  | 0%                                | 0%                              | 0%    | 0%        | 0%                  | 0%           | 0%                              |                                               |       |           |                     |  |  |  |
|   | 3                                     | Record<br>earnings                                             | Of which enabling                                                                                       |                                                                                                                                      | 0                                  | 0%                                | 0%                              | 0%    | 0%        | 0%                  | 0%           | 0%                              |                                               |       |           |                     |  |  |  |
|   |                                       |                                                                | Of which transitional                                                                                   |                                                                                                                                      | 0                                  | 0%                                | 0%                              |       |           |                     |              |                                 |                                               |       |           |                     |  |  |  |
|   | 4                                     | Common<br>responsibility,<br>shared benefits                   | A.2. TAXONOMY-ELIGIBLE BUT NOT ENVIRONMENTALLY SUSTAINABLE ACTIVITIES (NOT TAXONOMY-ALIGNED ACTIVITIES) |                                                                                                                                      |                                    |                                   |                                 |       |           |                     |              |                                 |                                               |       |           |                     |  |  |  |
|   | 5                                     |                                                                | Our response to<br>the environmental<br>challenge                                                       | Total OpEx of<br>Taxonomy-eligible but<br>not environmentally<br>sustainable activities<br>(not Taxonomy-aligned<br>activities) A.2. |                                    | 0                                 | 0%                              | 0%    | 0%        | 0%                  | 0%           | 0%                              | 0%                                            |       |           |                     |  |  |  |
|   |                                       |                                                                | Total A.1. + A.2.                                                                                       |                                                                                                                                      | 0                                  | 0%                                | 0%                              | 0%    | 0%        | 0%                  | 0%           | 0%                              |                                               |       |           |                     |  |  |  |
|   |                                       |                                                                | B. TAXONOMY-NON-ELIGIBLE ACTIVITIES                                                                     |                                                                                                                                      |                                    |                                   |                                 |       |           |                     |              |                                 |                                               |       |           |                     |  |  |  |
|   | 6                                     | Responsible<br>management                                      | Total OpEx of Taxonomy<br>non-eligible activities B                                                     |                                                                                                                                      | 60,045                             | 100%                              |                                 |       |           |                     |              |                                 |                                               |       |           |                     |  |  |  |
|   |                                       |                                                                | Total A + B                                                                                             |                                                                                                                                      | 60,045                             | 100%                              |                                 |       |           |                     |              |                                 |                                               |       |           |                     |  |  |  |
|   |                                       | About<br>this report                                           |                                                                                                         |                                                                                                                                      |                                    |                                   |                                 |       |           |                     |              |                                 |                                               |       |           |                     |  |  |  |

| PROPORTION OF TOTAL OPEX |                                   |                                   |  |  |  |  |  |  |
|--------------------------|-----------------------------------|-----------------------------------|--|--|--|--|--|--|
|                          | Taxonomy-alligned by<br>objective | Taxonomy-eligible by<br>objective |  |  |  |  |  |  |
| CCM                      | 0%                                | 0.00%                             |  |  |  |  |  |  |
| CCA                      | 0%                                | 0%                                |  |  |  |  |  |  |
| WTR                      | 0%                                | 0%                                |  |  |  |  |  |  |
| CE                       | 0%                                | 0%                                |  |  |  |  |  |  |
| PPC                      | 0%                                | 0%                                |  |  |  |  |  |  |
| BIO                      | 0%                                | 0%                                |  |  |  |  |  |  |

### **Template Annex II Commission Delegated Regulation (EU) 2021/2178**

of 6 July 2021

Image /page/277/Picture/8 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of two curved shapes that do not quite meet, creating a gap in the middle. The words "CIE Automotive" are written in a simple, sans-serif font.

Image /page/277/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large number "23" with a quotation mark above it.

{278}------------------------------------------------

# *German forging companies data*

Image /page/278/Figure/2 description: This image shows a list of topics. The first topic is "Chairman and CEO's statement". The second topic is "2023 highlights" and is labeled with the number 1. The third topic is "Ready for change" and is labeled with the number 2. The fourth topic is "Record earnings" and is labeled with the number 3. The fifth topic is "Common responsibility, shared benefits" and is labeled with the number 4. The sixth topic is "Our response to the environmental challenge" and is labeled with the number 5. The seventh topic is "Responsible management" and is labeled with the number 6. The eighth topic is "About this report". The ninth topic is "Data tables".

Image /page/278/Picture/5 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter C on the left and the words "CIE Automotive" on the right. The letter C is made up of two curved lines that do not quite meet, creating a gap in the middle. The words "CIE Automotive" are written in a simple, sans-serif font.

Image /page/278/Picture/0 description: The image shows the text "ANNUAL REPORT" in bold, black font, stacked vertically. To the right of the text is a large number "23" with a gray quotation mark above the "2". The number "23" is in a bold, black font.

{279}------------------------------------------------

### *GERMAN FORGING COMPANIES*

| Employment<br>tables                                     |                      |                  | GENDER<br>PAY GAP<br>2023 |                     |         |            |                               |  |  |
|----------------------------------------------------------|----------------------|------------------|---------------------------|---------------------|---------|------------|-------------------------------|--|--|
|                                                          | AGGREGATE<br>pay gap | No. of<br>people | Total<br>earnings         | Average<br>earnings | % gap   |            |                               |  |  |
|                                                          | Men                  | 321              | 21,719,702                | 67,695              |         |            |                               |  |  |
|                                                          | Women                | 21               | 1,304,002                 | 62,447              | 93.6%   |            |                               |  |  |
| WORKPLACE ACCIDENTS AND<br>CASES OF ILL HEALTH BY GENDER |                      |                  |                           |                     |         |            | LOST HOURS<br>AND ABSENTEEISM |  |  |
|                                                          |                      |                  | 2023                      |                     |         |            | 2023                          |  |  |
| Injuries                                                 |                      |                  | 31<br>H: 30 M: 1          |                     |         |            | Lost hours 43,886             |  |  |
| Cases of work-<br>related ill health                     |                      |                  | 0<br>H: 0 M: 0            |                     |         |            | % absenteeism 6.9%            |  |  |
| INJURIES BY<br>GENRE AND SEVERITY                        |                      |                  |                           |                     |         |            |                               |  |  |
|                                                          |                      |                  | MEN                       |                     | WOMEN   |            | TOTAL                         |  |  |
|                                                          | Mild                 | Serious          | Fatalities                | Mild                | Serious | Fatalities |                               |  |  |
| German<br>forging                                        | 30                   | 0                | 0                         | 1                   | 0       | 0          | 31                            |  |  |

Image /page/279/Picture/4 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved lines that do not fully connect, creating a crescent shape. The text "CIE Automotive" is written in a simple, sans-serif font.

Image /page/279/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black font on the left side of the image. To the right of the words is a large number "23" in bold, black font, with a gray quotation mark above the number.

{280}------------------------------------------------

#### *TRAINING HOURS BY EMPLOYEE CATEGORY*

#### *TRAINING BY GENDER*

#### *TRAINING ON OHS GENDER*

### *GERMAN FORGING COMPANIES*

|                        | Hours | No. of<br>people |
|------------------------|-------|------------------|
| Executives             | 89    | 6                |
| Graduates              | 368   | 65               |
| Tradesmen<br>and women | 1,198 | 203              |
| TOTAL                  | 1,655 | 274              |

|                   | TOTAL TRAINING HOURS |       |              | TOTAL NO. OF PEOPLE TRAINED |       |            | HOURS PER EMPLOYEE TRAINED |       |            | HOURS PER EMPLOYEE |       |            |
|-------------------|----------------------|-------|--------------|-----------------------------|-------|------------|----------------------------|-------|------------|--------------------|-------|------------|
|                   | MEN                  | WOMEN | TOTAL        | MEN                         | WOMEN | TOTAL      | MEN                        | WOMEN | TOTAL      | MEN                | WOMEN | TOTAL      |
| German<br>forging | 1,545                | 110   | <b>1,655</b> | 257                         | 17    | <b>274</b> | 6.0                        | 6.5   | <b>6.0</b> | 4.8                | 5.3   | <b>0.3</b> |

|                   |       | TOTAL TRAINING HOURS |       |     | TOTAL NO. OF PEOPLE TRAINED |       |     | HOURS PER EMPLOYEE TRAINED |       |  |
|-------------------|-------|----------------------|-------|-----|-----------------------------|-------|-----|----------------------------|-------|--|
|                   | MEN   | WOMEN                | TOTAL | MEN | WOMEN                       | TOTAL | MEN | WOMEN                      | TOTAL |  |
| German<br>forging | 1,088 | 82                   | 1,170 | 234 | 15                          | 249   | 4.6 | 5.5                        | 4.7   |  |

|   | Chairman<br>and<br>CEO's<br>statement             |  |
|---|---------------------------------------------------|--|
| 1 | 2023<br>highlights                                |  |
| 2 | Ready<br>for change                               |  |
| 3 | Record<br>earnings                                |  |
| 4 | Common<br>responsibility,<br>shared benefits      |  |
| 5 | Our response to<br>the environmental<br>challenge |  |
| 6 | Responsible<br>management                         |  |
|   | About<br>this report                              |  |
|   | Data tables                                       |  |

Image /page/280/Picture/10 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The "C" is formed by two curved shapes, one above the other, with a gap in between. The text "CIE Automotive" is in a simple, sans-serif font.

Image /page/280/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large number "23" with a quotation mark above the number.

{281}------------------------------------------------

#### *HIRES, DISMISSALS AND DEPARTURES (VOLUNTARY AND OTHER)* **BY GENDER AND EMPLOYEE CATEGORY**

### *GERMAN FORGING COMPANIES*

|  |            |                     | Men |       |     |       | Women |       |     |       |       |
|--|------------|---------------------|-----|-------|-----|-------|-------|-------|-----|-------|-------|
|  |            |                     | <30 | 30-50 | >50 | Total | <30   | 30-50 | >50 | Total | TOTAL |
|  | HIRES      | Executives          | 0   | 0     | 1   | 1     | 0     | 0     | 0   | 0     | 1     |
|  |            | Graduates           | 0   | 0     | 0   | 0     | 0     | 1     | 0   | 1     | 1     |
|  |            | Tradesmen and women | 1   | 4     | 2   | 7     | 0     | 0     | 0   | 0     | 7     |
|  |            | Total               | 1   | 4     | 3   | 8     | 0     | 1     | 0   | 1     | 9     |
|  | DISMISSALS | Executives          | 0   | 0     | 0   | 0     | 0     | 0     | 0   | 0     | 0     |
|  |            | Graduates           | 0   | 0     | 4   | 4     | 1     | 0     | 2   | 3     | 7     |
|  |            | Tradesmen and women | 1   | 11    | 43  | 55    | 0     | 0     | 0   | 0     | 55    |
|  |            | Total               | 1   | 11    | 47  | 59    | 1     | 0     | 2   | 3     | 62    |
|  | DEPARTURES | Executives          | 0   | 0     | 1   | 1     | 0     | 0     | 0   | 0     | 1     |
|  |            | Graduates           | 0   | 0     | 1   | 1     | 1     | 0     | 0   | 1     | 2     |
|  |            | Tradesmen and women | 4   | 5     | 11  | 20    | 1     | 0     | 0   | 1     | 21    |
|  |            | Total               | 4   | 5     | 13  | 22    | 2     | 0     | 0   | 2     | 24    |

**3**

**4**

**5**

Image /page/281/Picture/6 description: The image shows the CIE Automotive logo. The logo consists of a stylized letter "C" on the left and the text "CIE Automotive" on the right. The "C" is made up of two curved black shapes that do not quite meet, forming an incomplete circle. The text "CIE Automotive" is in a simple, sans-serif font, with "CIE" in bold and "Automotive" in a lighter weight.

Image /page/281/Picture/0 description: The image shows the words "ANNUAL REPORT" stacked on top of each other on the left side of the image. To the right of the words is a large gray quotation mark followed by the number 23 in black.

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*WATER EXTRACTION & CONSUMPTION | INDICATORS 303-3 / 303-5*

#### *WATER DISCHARGE | INDICATOR 303-4*

#### *MATERIAL CONSUMPTION*

#### *WASTE MANAGEMENT | INDICATORS 306-3 / 306-4 / 306-5*

### *Environmental management tables*

### *GERMAN FORGING COMPANIES*

OR 303-4

| m³/year           |               |
|-------------------|---------------|
| German<br>forging | Surface water |
|                   | Groundwater   |
|                   | River water   |
|                   | Well water    |
|                   | Wastewater    |
|                   | Recycling     |

| m³/year           | Definition     | 2023       |
|-------------------|----------------|------------|
|                   | Superficial    | 13,518.00  |
|                   | Ground water   | 29,165.00  |
|                   | Rain water     | -          |
| German<br>forging | Water net      | 18,817.00  |
|                   | Water used     | 61,500.00  |
|                   | Recycled water | 489,904.00 |

| m³/year           | Definition       | 2023             |
|-------------------|------------------|------------------|
| German<br>forging | To sewer         | 41,228.00        |
|                   | To river         | -                |
|                   | To waste manager | -                |
|                   | <b>Total</b>     | <b>41,228.00</b> |

| Kg                | Indicator | Definition           | 2023          |
|-------------------|-----------|----------------------|---------------|
| German<br>forging | GRI 301-1 | Raw material used    | 44,302,944.00 |
|                   | GRI 301-2 | Raw material re-used | 19,398,000.00 |
|                   |           |                      | 43.78%        |

| Tonne             | Definition                                                    | 2023         |
|-------------------|---------------------------------------------------------------|--------------|
|                   | Industrial waste treated hazardous                            | 407,352.00   |
|                   | Hazardous waste to recycling                                  | 53,542.00    |
|                   | Hazardous waste to disposal                                   | 353,810.00   |
|                   | Hazardous waste to incineration (with energy recovery)        | 94,000.00    |
|                   | Hazardous waste to incineration (without energy recovery)     | -            |
|                   | Hazardous waste to landfilling                                | -            |
| German<br>forging | Hazardous waste to other disposal operation                   | 259,810.00   |
|                   | Industrial waste treated no-hazardous                         | 8,967,860.00 |
|                   | Non-hazardous waste to recycling                              | 8,918,674.00 |
|                   | Non-hazardous waste to disposal                               | 49,186.00    |
|                   | Non-hazardous waste to incineration (with energy recovery)    | 35,000.00    |
|                   | Non-hazardous waste to incineration (without energy recovery) | -            |
|                   | Non-Hazardous waste to landfilling                            | -            |
|                   | Non-hazardous waste to other disposal operation               | 14,186.00    |
|                   | TOTAL                                                         | 9,375,212.00 |

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0) 1**

**Ready 2 Ready for change**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> *About [this report](#page-229-0)*

**Responsible [management](#page-183-0) 6**

*[Data tables](#page-261-0)*

Image /page/282/Picture/20 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The letter "C" is formed by two curved lines that do not fully connect, creating a crescent shape. The text "CIE Automotive" is written in a simple, sans-serif font.

Image /page/282/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters on the left side of the image. To the right of the words is a large number "23" in bold, black letters. Above the number "2" is a gray quotation mark.

{283}------------------------------------------------

#### *EMISSIONS SAVINGS FROM THE PURCHASE OF ENERGY FROM RENEWABLE SOURCES*

#### *EMISSIONS (SCOPE 1, 2 & 3)*

#### *ENERGY CONSUMPTION AND SAVINGS*

#### *ELECTRICITY*

### *GERMAN FORGING COMPANIES*

| 2022 |
|------|
|------|

| T CO2e            | Indicator | Definition         | 2023 |
|-------------------|-----------|--------------------|------|
| German<br>forging | GRI 305-2 | Indirect emissions | 0.00 |

| Indicator      | Definition                         | Unit          | 2021             | 2022             | 2023             |
|----------------|------------------------------------|---------------|------------------|------------------|------------------|
| German forging |                                    |               |                  |                  |                  |
| GRI 305-1      | Direct emissions                   | T CO₂e        | 43,281.83        | 40,682.69        | 2,134.50         |
| GRI 305-1      | Direct CH₄ emissions               | T CH₄         | 0.79             | 0.73             | 0.04             |
| GRI 305-1      | Direct N₂O emissions               | T N₂O         | 0.09             | 0.08             | 0.005            |
| GRI 305-2      | Indirect CO₂e emissions            | T CO₂e        | 34,671.25        | 30,631.95        | 13,272.98        |
| <b>GRI 305</b> | <b>TOTAL</b>                       | <b>T CO₂e</b> | <b>77,953.09</b> | <b>71,314.64</b> | <b>15,407.48</b> |
| GRI 305-3      | Other indirect emissions (Scope 3) | T CO₂e        | 1,205,714.93     | 857,039.84       | 263,433.42       |

| Gigajoules        | Indicator | Definition                                             | 2023       |
|-------------------|-----------|--------------------------------------------------------|------------|
|                   | GRI 302-1 | Direct energy consumption                              | -          |
|                   | GRI 302-1 | Indirect energy consumption                            | 126,529.88 |
| German<br>forging | GRI 302-1 | Indirect energy consumption from non-renewable sources | 126,529.88 |
|                   | GRI 302-1 | Indirect energy consumption from renewable sources     | -          |
|                   | GRI 302-1 | TOTAL                                                  | 0          |
| FUELS             |           |                                                        |            |
| Gigajoules        | Indicator | Definition                                             | 2023       |
|                   | GRI 302-1 | Direct energy consumption                              | 34,419.62  |
| German<br>forging | GRI 302-1 | Indirect energy consumption                            | 126,529.88 |
|                   | GRI 302-1 | Indirect energy consumption from non-renewable sources | 126,529.88 |
|                   | GRI 302-1 | Indirect energy consumption from renewable sources     | 0          |

Chairman and CEO's [statement](#page-2-0)

**2023 [highlights](#page-5-0) Ready 2 Ready for change 1**

**Record [earnings](#page-53-0) 3**

**Common responsibility, [shared benefits](#page-64-0) 4**

**Our response to [the environmental](#page-141-0)  challenge 5**

> *About [this report](#page-229-0)*

**Responsible [management](#page-183-0) 6**

Image /page/283/Picture/17 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The "C" is formed by two curved black shapes, one above the other, creating a crescent-like form. The text "CIE Automotive" is in a simple, sans-serif font, with "CIE" in a slightly bolder weight than "Automotive".

Image /page/283/Picture/0 description: The image shows the words "ANNUAL REPORT" in bold, black letters on the left side of the image. To the right of the words is a large number "23" in black, with a gray quotation mark above the number.

{284}------------------------------------------------

CIE Automotive S.A.

Alameda Mazarredo 69, 8º 48009 Bilbao (Bizkaia), Spain

Tel.:+34 946 054 835 Fax: +34 946 054 837

**www.cieautomotive.com**

Image /page/284/Picture/7 description: The image shows a large, stylized number "2" in white, with a gradient fill that transitions from brown at the top to dark green at the bottom. The number is positioned against a white background.

Image /page/284/Picture/8 description: The image shows a car behind the number 3. The car is orange and the number 3 is white.

# Making a difference

Image /page/284/Picture/0 description: The image shows the logo for CIE Automotive. The logo consists of a stylized letter "C" on the left, followed by the text "CIE Automotive" on the right. The "C" is formed by two curved shapes that do not fully connect, creating a crescent-like form. The text "CIE Automotive" is in a sans-serif font, with "CIE" in a slightly larger and bolder font than "Automotive".

**2023 ANNUAL REPORT**