Letter from the chairman

Ernesto Antolin

When I think about 2020, probably the hardest year we have ever experienced, two words come to mind: responsibility and solidarity. These two terms perfectly sum up how the people who form part of the Grupo Antolin family have behaved in response to the coronavirus crisis and its serious consequences. Responsibility because they have acted with integrity, hard work and sacrifice when dealing with the situation, sometimes under difficult personal circumstances, and have allowed the business to continue while at the same time demonstrating a great team spirit. All, of course, while taking the necessary measures to protect the health of our employees and their families, This was, and still is, the company’s absolute priority.

Solidarity was reflected in the many initiatives launched by employees in different countries to provide help during the pandemic. Selflessly, and in an example of overcoming difficulties and innovating, we did our bit in the fight against COVID-19 by producing all kinds of medical supplies. Our Clean Interior program is also particularly relevant here since it involves researching different proposals aimed both at purifying the air in the interior of the car and at the sterilization and sanitization of interior surfaces. In this way, we want to contribute to creating a safer vehicle.

Our actions have allowed Antolin to grow as a company, reaffirming its values ​​and its unequivocal belief that people are at the heart of everything, of its business.

I believe that the response shown by the company and its employees has been exemplary. Our actions have allowed Antolin to grow as a company, reaffirming its values and its unequivocal belief that people are at the heart of everything, of its business: the employees, our main asset, but also the customers, suppliers, investors and, ultimately, society as a whole.

In a year as complex as 2020, the need for companies, institutions and organizations, both public and private, to step up and work together to achieve a safer, more advanced, fairer and more sustainable world has been demonstrated once again. This goal can only be achieved by working together and it once again highlights the importance of the United Nations Global Compact and its Ten Principles, as well as the 2030 Agenda for Sustainable Development with its 17 Goals, to which we once again give our full commitment.

In these difficult circumstances, Grupo Antolin has shown that it has a solid, resilient and flexible business. The action plan put in place by the management team to deal with the market shock allowed us to withstand the most intense part of the crisis and set off on the road to recovery at the end of the year, which we closed with sales of €3,975 million and a financing and cash position that allows us to firmly move forward in the future. Our Made in Antolin products are present in around 700 vehicle models on the market and in the five best-selling cars in the world.

The pandemic also failed to put a stop to the transformation that we have been undergoing in our business for some time, with the goal of being a fundamental player in the new mobility from inside the vehicle. The company continued to implement its strategy, which entails consolidating its position as a global supplier of technological solutions. Given all the technology that is reaching the vehicle, Antolin's philosophy is to be the developer of some of the systems that will completely change the physiognomy of the vehicle interior as we know it, making it a more intelligent, safer, more technological and more sustainable space. Our engineering teams continue to develop products that intelligently integrate lighting systems, electronics and decorative surfaces. The innovation team, for its part, is making progress in incorporating technological solutions that represent a distinctive value in our systems.

Another key milestone in our strategy was the creation of the Electronic Systems Business Unit, allowing us to take a very important step forward in improving our technical capabilities in advanced electronics. The team that has been brought together in this department, which is first rate, is working with the other Business Units to incorporate new solutions and functionalities into our traditional products. The new technological developments will transform parts of the interior into HMI (Human Machine Interface) systems that interact with the passenger by transmitting all kinds of information. This is a disruptive change that generates a future of enormous possibilities and that Grupo Antolin wants to lead.

To address these challenges, our internal organization has also been adapting because companies are living organisms that must evolve with the market. In 2020, we decided to centralize the management of industrial operations under the Corporate Industrial Department to be more efficient. The Instrument Panels and Doors Business Units were brought together into the same department, while the Lighting Business Unit added the HMI concept to its name to reflect the technological transformation we are experiencing. The Sustainability Department was also created with the goal of strengthening the work that the Corporate Social Responsibility and Environment departments have been performing. In this way, we will continue working to be a benchmark in sustainability in the industry.

To support the internal work being done, we are expanding our ecosystem of technology partners through new strategic partnerships. It is worth mentioning the one signed with the Israeli start-up CIPIA in driver monitoring systems, a key element in the safety of future vehicles; and the one with the advanced engineering company AE D Engineering.

In a year as complex as 2020, the need for companies, institutions and organizations, both public and private, to step up and work together to achieve a safer, more advanced, fairer and more sustainable world has been demonstrated once again.

In this passionate journey toward the future of the vehicle, we want to have the best professionals. Their talent and knowledge are the true differential value that turns great companies into true leaders. At Grupo Antolin, we permanently analyze how to both improve the training of our employees, adapting their knowledge to the technological changes taking place, and create new types of job in the organization. In 2020, we made even further progress with the launch of the Dual Training Program in Automotive Electronics, in partnership with the Instituto Tecnológico de Castilla y León (Technological Institute of Castille and León) and in which the first class of the company's young future electronic engineers participated. We firmly believe in the potential of dual training in an industry that demands the highest specialization and knowledge. That is why we have a wide range of international dual training programs, both in vocational training and in higher education.

As I mentioned at the start of my letter, in such a complicated year, the teams at Antolin have shown that they are not only able to overcome adversity, but also have a great capacity for improvement and adaptation. Thanks to their work, our company is in a very strong position in the automotive industry and is better prepared to respond to the mobility challenges that, for us, always involve creating value for our stakeholders. At Grupo Antolin, we are eager and excited to imagine what the future of the industry will be like and we want to help improve it through focusing on innovation and with the commitment and dedication of our employees.

Ernesto Antolin

Chairman of Grupo Antolin