2021 has not been the year of recovery that we had expected. The COVID-19 pandemic has continued to be present in our lives, and it has been joined by the problem of lack of semiconductors. Again, the involvement, performance and efficiency of our teams have allowed us to react and act in the best possible way in the face of the constant uncertainty.
The semiconductor crisis is having a significant impact on the sector, where approximately 10 million vehicles have ceased to be produced (according to HIS). However, at Gestamp we have obtained revenues of 8,093 million euros, 8,5% more (+11,2% at constant exchange rates), compared to 2020. This represents an improvement of 8,1 percentage points against the limited growth of the global car production market. Despite the lower sales, the Group has been able to improve profitability, obtaining an EBITDA of 12,3% on sales and generating in this difficult environment, a cash flow of 221 million.
At Gestamp, health and safety has always been a priority and although we have continued since 2017 without fatal accidents, we must continue to strengthen our Gestamp Health & Safety System. Also, we have continued to monitor all COVID-19 cases daily, and we have continued to maintain strict protocols, to prevent the contagion of our people and safeguard our client´s operations.
With the aim of being prepared for the future, Gestamp has launched in 2021 the ATENEA Transformation Plan to continue growing and improving, since we cannot miss the opportunity to build a more sustainable Gestamp and for this, it is necessary to continue evolving and innovating.
ATENEA Transformation program seeks to improve the efficiency and effectiveness of corporate functions and the administrative and operational layers in processes, systems, organisation, and culture to continue maintaining the Group's competitiveness in the future and to strengthen our position as an innovative and sustainable supplier.
We also must continue betting on competitiveness. This competitiveness must be based on the extensive use of all the advances of recent years in the field of industry 4.0, as well as in the training and development of profiles in digital skills and up-skilling and re-skilling capabilities.
ESG is a priority within our company´s culture. As a family business we have always been focused on the long term and see sustainability as an opportunity to provide greater added value to our clients. In this regard, in 2021, we have reinforced our commitment by incorporating into our Board of Directors, a Sustainability Committee composed of majority of independent members.
The automotive sector has been very focused on reducing emissions during the use of the vehicle, but now it is not only important to accompany our clients by providing them with lightweight solutions or manufacturing components for the electric vehicle, it is equally necessary to focus on reducing emissions throughout our supply chain. In this respect, we have made great progress in reducing our own emissions. In 2021, we have signed an agreement so that all the electricity supply of our Spanish plants, comes from renewable energy sources in 2022, being the first Group within the automotive sector in Spain, which operates fully with electricity generated in a renewable way. This complements the Group's existing strategy of using green energy through guarantees of renewable origin that was carried out during 2020. At the beginning of 2022, we have also signed an agreement to install solar panels in 22 of our plants in Spain and Portugal.
In relation to our emissions from our supply chain, the vast majority of these are the result of our main raw material, steel. In line with our commitment to reducing emissions signed with the SBTI initiative, we have been the first Tier 1 supplier in the automotive sector to offer our customers green steel certificates, which allow Gestamp and our clients to reduce Scope 3 emissions.
The process of electrification as well as the decarbonization of supply chains is unstoppable. Increasingly demanding programs such as FIT for 55 or The European Green Deal, show that our sector will be key to decarbonization, and we must continue supporting and accompanying our clients.
ESG will continue to gain more strength within the Group, and we will continue to put all the means at our disposal, reaffirming our commitment to the Ten Principles of the Global Compact and contributing to the achievement of the United Nations Sustainable Development Goals to achieve a better and more sustainable world.
Francisco J. Riberas Mera Executive Chairman of Gestamp
Present in over 20 countries, Gestamp is a multinational company specialising in the design, development and manufacture of highly engineered metal components for the automotive industry. At Gestamp, we have always been committed to design and innovation, manufacturing products to achieve safer and lighter vehicles so as to contribute to more sustainable mobility.
To be the automotive supplier that is most renowned for its ability to adapt business to creating value for the customer, while maintaining sustainable economic and social development
In the search for lighter, safer and more sustainable products for its customers, Gestamp is committed to innovation as a driving force to develop solutions that help in the transition towards cleaner mobility, better for people, and to help address the challenges of the sector.
Wide variety of technologies that meet the requirements of the industry to achieve an adequate balance between Safety, Performance, Weight and Cost.GESTAMP TECHNOLOGIES
At Gestamp, we have a wide range of products and many of them are essential for the structural integrity of vehicles.GESTAMP PRODUCTS
2021, with the COVID-19 pandemic still present and global supply problems, has not been the year of recovery that was expected. However, Gestamp has remained firm in its commitment to being an innovative, competitive and sustainable company, thanks to the involvement, performance and efficiency of its teams.
First executive meeting of the business council for sustainable development
Signing of the agreement with Naturgy
Presentation of annual results
Participation in EuroCarBody
Agreement with Arcelor Mittal
Excellence Award to GHSS from German Chamber of Commerce
GES-MULTISTEP®, awarded by Gasgoo in China
Ampere Event Electric Mobility Brazil
Hackathon, Comillas Pontifical University
Presidency of Sernauto
The 2021 financial year was marked by the recovery of the COVID-19 pandemic, partly offset by the disruptions in the supply chain due to semiconductors shortage in the automotive industry.
Revenues increased by +8.5% in 2021 reaching €8,092.8 million, implying a +11.2% increase at constant FX, outperforming the market by +8.1 percentage points (compared to market production volume growth in Gestamp’s production footprint – IHS data as per February 2022 of +3.1%).
Gestamp Revenue Growth at Constant FX1 vs.
Market Production Growth in Gestamp Markets
TOTAL IN FY 2021
The number of financial agents (regulators, investors, analysts, rating agencies, banks) that incorporate the so-called ESG (Environmental, Social and Governance) criteria in their decision-making is growing exponentially.
Furthermore, the automotive manufacturers, our clients, in their search to have the best suppliers and make their value chain more sustainable, have in turn started to take into account the ESG evaluations when awarding new projects, in which Gestamp is above the average in the sector.
Appearance in the Sustainability Year Book 2022 as the 8th company in the automotive components sector worldwide.*
* Gestamp is not eligible for DJSI World or DJSI Europe for not reaching the required market capitalization.
TOP 2% of the metal supplier industry.
8th position in the automotive sector (manufacturers and components).
Gestamp is one of the Spanish companies that belong to the FTSE4GOOD Index.
Gestamp has been recognized for its fight against climate change and in the management of water resources in the rankings:
With the aim of being prepared for the future and the changes demanded by today’s uncertain world and market, in 2021, Gestamp launched a Transformation Plan to continue growing and improving.
The transformation programme seeks to improve the efficiency and effectiveness of corporate functions and operational layers in processes, systems, organisation and culture.
This ambitious plan is part of Gestamp's strategy and will be key to achieving the challenge of the future, with the aim of consolidating operational excellence in our factories and the transition towards corporate functions with greater added value.
Driven by the organisation
Structured in “transformation waves”
Ruled with a clear governance model
Monitored with full transparency
VOICE OF THE CLIENTS
COMMON GESTAMP QUALITY STANDARDS
FOCUS ON QUALITY SUSTAINABILITY OVER THE TIME
At Gestamp we have a supplier management system that includes procedures and tools that allow us to control our value chain.
All Gestamp's critical suppliers are included in the risk monitoring system, including all direct material suppliers.
The combination of internal data and data obtained from external sources allows us to establish a supplier risk profile tailored to Gestamp's needs.
Here at Gestamp, we are actively working on a new operating model based on the Smart Factory. A connected, smart, virtualised, safe and scalable factory that can be flexibly, swiftly and efficiently adapted to the constantly changing needs of the industry.
In order to cope with the uncertainty in which the automotive sector finds itself, it is necessary to adapt. Here at Gestamp, we strive to make our operation as flexible as possible. We have taken a number of steps, including making our production lines generic so that they can be used for any type of product.
We have developed a new concept of flexible assembly which opens up a new range of possibilities, allowing us to produce different products on the same line. We are evolving from product-specific and linked systems to generic and individual systems where movements are carried out by AGVs (guided vehicles) instead of static robots.
TRANSPORT WITH ROBOTS / FORKLIFTS
TRANSPORT WITH AGV
LAB QUALITY PROCESS CONTROL
INTEGRATED IN THE PRODUCTION FLOW
MANUAL ADJUSTMENT AND MANAGEMENT
AUTOMATED ADJUSTMENT AND MANAGEMENT
TRADITIONAL ASSEMBLY CAPACITY SIZING
FLEXI ASSEMBLY CAPACITY SIZING
For Gestamp Research and Development is a priority. Innovation is a key factor for success through differentiating our products and services.
Reducing the weight of the vehicles increases their fuel efficiency and reduces their CO₂ emisions
By reducing the weighjt of an average vehicle by 100kg, a reduction of 9gr
Creating increasingly lighter products, as weight has a direct impact on vehicle energy efficiency and, therefore, CO₂ emissions. This is also key to support e-mobility launches, driven by reduced targets on carbon emissions, to support our customer’s needs and improve performance.
Identifying formulas that increase safety for vehicle occupants and pedestrians.
Enhancing the convenience, accessibility and automation of side and boot doors is now a requirement to be kept in mind when developing certain vehicle parts.
The drive to protect our planet is moving beyond the emissions of the vehicle. Controlling and minimising the environmental impact of Gestamp’s activity also contributes to reducing carbon emissions. The technology developed by the R&D department includes analysis of components carbon footprint and the impact within the vehicle’s life-cycle. Conducted in the development phase to understand and reduce the impact prior to hardware being installed.
We apply environmental criteria at every stage of production, from the selection of our suppliers and optimisation of raw materials to the way we manage the energy consumed in manufacturing components and management of waste and of greenhouse gas emissions in the product usage stage.
In order to control and minimise the environmental impact of its activity, the Group has established an Environmental Policy that requires the following from all of its production centres:
In line with the global commitment to limit the temperature increase adopted in the Paris Agreement, in 2020 Gestamp achieved official validation of its emissions reduction targets by the Science Based Target initiative, committing to a 30% reduction of its absolute emissions in scopes 1 and 2, and 22% in scope 3 by 2030 based on 2018.
|Direct Emissions: Scope 1||249,717||429,417||9.861,701|
|Indirect Emissions: Scope 2||223,155||389,911||8,581,475|
|Indirect Emissions: Scope 3||209,106||356,500||9,674,616|
In 2021, the Group continued to work towards achieving the SBTI targets.
Agreement with Naturgy for 100% renewable electricity consumption from 2022 for all the group's production and R&D centres in Spain.
Agreement with ArcelorMittal to use XCarb® green steel certificates for the production of automotive components. Thanks to this initiative, Gestamp has become the first Tier 1 supplier in the automotive sector to offer its customers products with a lower carbon footprint.
We control the energy consumption of our plants to meet our efficiency principles and our commitment to reducing CO2 emissions
PLANTS INVOLVEDReturn on investment period: around 2.5 years
IMPROVEMENT MEASURES IMPLEMENTED>30% have required no investment
REDUCTIONReduction of consumption: 27 GWh
|Electricity MWh||Gas MWh|
|Recurring 2016 – 2020||115,000 MWh||69,000 MWh|
|Achieved in 2021||20,500 MWh||6,500 MWh|
|TOTAL||135,500 MWh||75,500 MWh|
The manufacture of Gestamp parts requires the use of raw materials (steel, non-ferrous metals) and auxiliary materials (wire, welding gases, oils, etc.).
Our plants are constantly working on the characteristics of the procured materials, striving to gradually improve the way they are used, replacing oils and toxic or hazardous chemicals with other, less hazardous products or products that have a lower impact on the environment or human health.
|Other procured materials||1||1||1|
Water consumption at our production plants is predominantly for domestic use. At plants where surface treatment processes take place, such as painting or galvanising parts, or hydroforming processes, there is an industrial use of water.
Only 27% of the Group's centres have such a process.
GESTAMP Average of sector
At Gestamp we have implemented a circular economy model according to which we encourage responsible waste management practices aimed at separating, reusing, reclycling and recovering the vast majority of our waste.
In 2021, Gestamp obtained the AENOR Zero Waste certification, highlighting its Circular Economy model, capable of reintroducing the waste it generates back into the supply chain.
RECYCLING AND MATERIAL RECOVERY
|Heavy and hazardous metals||100%|
|Hazardous used oils||71%|
|No hazardous used oils||34%|
|Solvents / Thinners||70%|
|Adhesives / Mastics||43%|
|Other non hazarddous metals||36%|
To meet the transparency and business ethics commitments, the Company implements its rules of corporate governance through the following Governing Bodies, which distinctly undertake strategy and supervision, and administration and management duties.
General Shareholders’ MeetingThe General Shareholders’ Meeting is the shareholders’ main way of participating in Gestamp, and it is our highest decision-making body.
All our duly-convened shareholders gather to discuss and decide on, subject to the majority requirements applicable in each case, matters falling within its scope of authority.
Board of DirectorsFocuses on establishing, supervising and monitoring the policies, strategies, and general guidelines to be followed by the Company and the companies in its consolidated Group.
Board of Directors’ CommitteesThe Board of Directors receives support from specialist internal committees in the undertaking of its work. In this regard, the Board of Directors has formed an Audit Committee, a Nomination and Compensation Committee and a Sustainability Committee.
Management committeeIs responsible for the organisation and strategic coordination of the Group by disseminating, implementing and monitoring the business strategy and guidelines.
At Gestamp we have a Code of Conductsince 2011. This Code, which was last updated in 2018, is the common framework for ethical and respectful behavior for all the people who work for the company.
In order to respond to communications in relation to possible breaches of the Code of Conduct as well as in relation to suggestions, queries or doubts, the Group has a complaints channel with the following communication channels in which the confidentiality of the people denounced are guaranteed.
All the communications were in relation to non-compliances with the Gestamp Code of Conduct. Taking into account the communication channels used:
14 COMPLAINTS WERE RECEIVED THROUGH THE DELEGATES
25 DIRECTLY THROUGH THE COMPLIANCE OFFICE BY EMAIL
68 THROUGH THE SPEAK UP LINE
As a result of the investigations, appropriate measures have been taken in cases that have been deemed necessary, including:
6 SUSPENSION WITHOUT PAY
7 WRITTEN WARNINGS
Ethics and integrity are fundamental pillars of the Gestamp Business model. The Group and its employee’s decisions and actions contribute to building and maintaining its reputation and impact the confidence that stakeholders have in the Group.
We are committed to regulatory compliance through:
We have bodies that, among other functions, ensure compliance with internal regulations and legislation applicable to the Group and are involved in the supervision and control of our Code of Conduct and our Crime Prevention Model and the reporting channel: