AN EYE FOR THE OVERALL PICTURE ONLY COMES WITH A LOVE OF DETAIL. Sustainability report Eissmann Group Automotive Sustainability 2016

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1 AN EYE FOR THE OVERALL PICTURE ONLY COMES WITH A LOVE OF DETAIL. Sustainability report Eissmann Group Automotive Sustainability

2 Company Profile Eissmann Automotive Deutschland GmbH, which is headquartered in Bad Urach, Germany (all key figures excluding China) Industry: Automotive supplier Total output in millions of EUR Number of locations Number of employees International Presence We have grown from a small, Swabian family business into a global company with modern management and process structures represented on three continents over the course of more than 50 years. If we were once known as a supplier of highquality leather interiors, today we are a competent development and value-adding partner in the automotive industry. As one of the world's leading manufacturers of high-quality control panels, cladding panels, and complete vehicle interiors, we work with almost all major automotive manufacturers. The basis for our success is the perfect synergy between traditional craftsmanship and "state-of-the-art" production processes. Five of them are located in Germany [Bad Urach, 2x Münsingen, Gera, Mittweida] Four are in Eastern Europe [2x Slovakia, Czech Republic, and Hungary] Three are in North America [Pell City, Port Huron, and Puebla] Three are in China [Changchun, Kunshan and Langfang]. Core Competencies We specialize in vehicle interiors, which we divide into five product segments: Control modules, carbon components, customization, trim components, and trim systems. As a system supplier, we assume full responsibility for products, from development to serial production. We have our own prototyping and systems engineering capacity, a separate development area full of innovative ideas, and an extensive laboratory with the latest equipment. Rev Page 2 of 7

3 Sustainability Profile Sustainable management and social responsibility form an integral part of our values. Both strengthen the culture of cooperation and at the same time contribute to the sustainable and value-based management of the company Sustainability Tools/Reporting Tools: Corporate Governance, Organizational Context, Leadership Guidance, Cultural Brochure, Code of Conduct, Scope of Application, Corporate Social Responsibility Guidelines, Information Security Policy, and Health, Safety and Environment Policy External certifications: ISO 9001, ISO 14001, DIN EN , IATF 16949, OHSAS 18001, ISO 27001, VDA prototype protection Review of the report scope and frequency of issuance: All Group-relevant environmental indicators, annually Sustainability Reporting vs. Business Success We regard sustainable business practices as one of the strategic objectives of our company development. It is crucial that our sustainability objectives and introduced measures create value. Only then are they accepted and considered as credible by the company. Therefore, our corporate strategy is to combine financial and nonfinancial performance indicators and to make a positive contribution for our employees, the environment, and society by adopting a holistic approach. A portion of the energy that is used to power our headquarters office is supplied by hydropower. Memberships/Voluntary Commitments We also actively cooperate with such local business organizations and associations as: trade associations, the German Association of the Automotive Industry (VDA), chambers of industry and commerce, the Bad Urach industry association, as well as various HSE networks. Rev Page 3 of 7

4 Environmental Responsibility Environmental protection is very important to us. Sustainability therefore forms a part of our corporate governance. We consistently work to further develop environmentally friendly resource use policies on the basis of existing environmental and occupational safety directives. We focus on efficient production processes and environmentally friendly technologies. The production of our products requires the use of valuable resources. We take our responsibility to conserve raw materials and protect the environment very seriously. Environmentally friendly solutions are both sensible and make economic sense, therefore providing surplus value for our customers. Our manufacturing processes have been certified to be sustainable. We rely on an integrated management system that has been deployed across the Group to help us manage and conserve resources. All production sites are therefore certified according to the environmental management standard. We regularly carry out extensive energy audits at our European plants. Environmental Protection At the core of our environmental policy is a systematic approach to reduce environmental impacts while improving economic and social conditions. Our responsibility to protect the environment is anchored in our company guidelines, and it represents the overarching goal of the QZ scorecards that are used at our plants. This has also been described in our Health, Safety, and Environmental Policy (HSE). These environmental protection principles help guide all of the environmentally relevant actions that we take as a company. KPI Scorecard Reporting CO2 reduction targets for products and production, energy, water, and waste Reduction of accidents and sickness Evaluation of relevant energy and environmental aspects Elimination/substitution of non-project-related working materials and hazardous substances Monthly environmental inspections Increasing revenues through use of reusable materials Reduction of VOC emissions Specific energy consumption (MWh) / (thousands of ) power Specific waste volume (t) / (thousands of ) power CO2 equivalent (t) of the total energy amount All Key Performance Indicators (KPI) are monitored worldwide using our QZ scorecard. Rev Page 4 of 7

5 Society We are a top employer, and as a family-owned business we assume a high degree of social responsibility. We are a leading international manufacturer in our segments that provides premium products. The trust of our customers and the high motivation of our employees provide the basis for our sustainable success. Employees We have highly motivated employees who carry out their responsibilities with passion and a willingness to help. We promote our employees on the basis of KPIs. They participate in decision-making processes, and they have room to devise and contribute their own ideas. Our executives are role models and sparring partners for our employees. They take an active part in recruiting their own employees. They are directly contactable and are easily approachable. They think strategically and create a framework for setting transparent goals and orienting the company towards achieving success through responsible and appreciative actions. Our company culture brochure, "Who we are and where we want to go," was created by our employees in a multidisciplinary environment. This provides an orientation for our employees about our culture. Success Factors Culture is a tool that people use to both adapt to their environment as well as to actively design it. It includes visible aspects such as rituals; communication with employees, customers, and suppliers; symbols; workplace design; as well as technology and guidelines. However, it also includes such invisible aspects as trust, honesty, kindness, attention to detail, and conservatism. Of course, today we have our own culture with its own expressions and characteristics that have developed over the course of decades. The success factors try to reflect these characteristics and features at the current level. KPI - Scorecard Reporting Personal turn over rate % 2,7 1,7 1,0 Sick leave % 2,8 2,8 2,2 Accidents per 1000 employees 1,2 1,3 0,9 Intern quota at headquarters stated as a % 4,9 3,2 3,8 Share of women who are top managers stated as % 40,0 33,3 33,3 Rev Page 5 of 7

6 Product Responsibility We are a leading developer, manufacturer, and supplier of high-quality control elements, panel parts, and complete modules in the vehicle interior and other business areas. As a traditional leather specialist, we are a leader in the demanding area of processing high-quality surface materials. We are continually working to reduce the pressures on our environment caused by our production sites. When working with raw materials, we ensure that natural resources are used carefully. These include such sustainable materials as, for example, natural fiber composites or pure vegetable tanned leather that is treated with olive leaf extract. Supply Chain We have a network of around 700 suppliers that help us produce materials worldwide. Our contract-bound suppliers are certified according to ISO (environmental management) and OHSAS (occupational health and safety) as part of our supplier evaluation process. We assess new suppliers by checking them against a detailed checklist before commissioning them. According to our Purchasing Conditions, all of our suppliers and service providers are obliged to comply with our Sustainability and Environmental Protection Regulations for Suppliers. Key Performance Indicators Share of our suppliers with ISO certification 42 % share of our suppliers with OHSAS certification 7 % Contact Person and Contact Information ML-DEBU-GSM@eissmann.com info@eissmann.com Rev Page 6 of 7

7 Closing Remarks by Management We contribute to sustainable development around the world by respecting individual rights and laws, using the available resources sparingly, and taking responsibility for employees and society at all our sites. Sustainability-oriented and responsible behavior increases our ability to innovate and be sustainable. This opens our company to change so that we can identify the risks and opportunities at an early stage. We regard sustainable business practices as a strategic objective of company development. We design all of our relevant company functions to take account of sustainability. Sustainable management and social responsibility form part of the value foundation of Eissmann Group Automotive. This strengthens our culture of coexistence and fosters sustainable corporate management practices. Bad Urach, October 17 th, 2017 Dr. Klaus Elmer Chair of the Board of Management Eissmann Automotive Deutschland GmbH Norman Willich Commercial Director Eissmann Automotive Deutschland GmbH Rev Page 7 of 7