Macadam CSR report 2011

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1 CSR report Letter of the CEO As of the year 2000 we have decided to consolidate our experience and focus on End of Lease Inspections in the automotive sector. Since 2004 we have been opening offices in other European countries. Today we employ 195 people in 6 European countries with revenues of 17 million Euros. This growth and the challenging market have not always made life easy to. Nevertheless we continued our path in investing in our organisation, our products and our quality. We create value for many of our stakeholders but we also want to pay attention to the challenges and opportunities in the emerging and rapidly changing world of today. CSR is besides our conduct towards our stakeholders, also about the economical, the social and the environmental responsibility and the well being of our community. I believe that behaving responsibly is key to the sustainability of our company. Our vision is to be a profitable key player in the automotive EOC process management across Europe through own means or by outsourcing in order to assure to Lease co s, OEM s, users and car buyers a consistent, standardized and qualitative approach of the EOC cycle and its remarketing who has a target to manage 1/3 of European EOC market (i.e inspections) by To achieve this: - We have to be conscious of the key role our services play in our partners organizations. It is very important that we all are totally dedicated to our role towards the customer. - Quality is the second driver of our company. We have invested in a large and unique Quality Control programme driving our performance to Excellence. - We need to be flexible. It is this flexibility that makes it possible to continuously adapt to the market and its environment. In our first report, we set out our approach and performance in the key areas of Corporate Social Responsibility. We can be proud of our first achievements but recognise there is always room and need for improvement. Yours Sincerely. Jean Thomas CEO - Founder

2 2. Organisation is specialised in Off Lease inspections for Lease Co s and OEM s in Europe. We have large activities in Belgium, Luxemburg, France, Germany, the Netherlands and Spain. Our headquarters are in Belgium. We employ over 195 people. In 2011 our total revenue is budgeted for 17 million Euros New structure In the past years we changed our structure by founding a Holding, called Europe. All branch offices are depending from this holding. This structure makes the organization synoptic for all stakeholders. It also simplifies control on performance by the Board. The Board of Directors of Europe has been extended with external and independent members. The role of these members is not only to advice and judge on the strategy but also on the Corporate Social Responsibility. Together with the Board a Corporate Governance has been developed concerning: - Stakeholders Engagement: Our main stakeholders have been defined and the strategy towards them has been developed. - Corporate Governance: Operating procedures and accountabilities throughout the organisation have been defined. - Our MACADAM VALUE PROGRAM which contains the code of conduct applicable to all our people and decisions we take Organisational structure Europe SA Holding 1.807K Mac Adam s Unlimited NV Belgium 200.K Nederland BV 90 K Deutschland Gmbh 30 K France Sarl 50 K Spain SL 30 K In constitution MACADAM Italia To be constituted MACADAM INTER - NATIONAL To be constituted All Partners and subcontractors in countries where we will not have a branch office will depend from the MACADAM INTERNATIONAL Company.

3 3. Operating Responsibility s marketplace is diverse and complex, presenting many challenges and opportunities. We are committed to achieving our financial goals in a responsible manner and sharing our successes with our stakeholders and communities Economic Contribution Although the financial crisis has also hit, we have always kept in mind our main target, goals and Corporate and Social Responsibilities. - has avoided dismissals and reorganisations for economical reason and we will try hard to continue to do so. If dismissals cannot be avoided will act according to the contracts made and will at maximum help the people involved back into the market. - has paid special attention to costs and waste due to inefficiency. - has not stopped investing in innovative, new ideas. Between 2010 and 2012 a total investment plan of 1.5 million Euros will be rolled out. These investments are not only hard- & software, but also consultancy to improve and empower our organisation, processes and Quality Quality Control Program Quality has always been one of the main drivers of our company. Therefore we make large investments in our Quality Control Program. This is a strategic choice. is very keen on deliver qualitative inspections. Quality has to become our trademark. That s why we have set up an Integrated Quality Program including a whole range of quality surveying tools, quality reports, manuals and guidelines, training and e-learning. In FTE s will be working on our Quality program.

4 But is convinced that Quality is about more than just delivering perfect inspections. By making Quality a Corporate culture we believe we create a nice environment for our employees, were they get all possibilities to develop their knowledge, competences and abilities. This should result in a positive attitude of our collaborators towards the daily job, all stakeholders. Our Quality Program consists of operational manuals and guidelines, Quality checks by the Quality officers, regular reports and training of our inspectors. In 2012 a E-learning tool will be developed to help our inspectors on their day-to-day job Subcontractors All long term subcontractors will be screened on their Corporate Social Responsibility. The Board of Directors will have to approve all contracts and long term collaboration with subcontractors. Management will prepare the standards to be met in In 2012 the latest this must be implemented Suppliers All long term suppliers will be screened on their Corporate Social Responsibility. The Board of Directors will have to approve all contracts and long term collaboration with suppliers. Management will prepare the standards to be met in In 2012 the latest this must be implemented.

5 4. Our people Each and every day, all employees Europe come to work. Every day they are motivated to delight our customer. s responsibility is to guide them and defend the values we stand for. Therefore we have developed an important program, supported by three major pillars. Our management team has developed values which support our Mission. These values are important in to guide our people, manage our resources, our behaviour with customers and execute our work. Our main values are: - Eagerness to delight our customer. - Respect not only for your colleague but for all stakeholders. - Reliability some one to rely on. - Passion for your job! - Energy to react agile. - Excellence our road to better quality Training Programs Euro Fleet Consult has been asked to develop an E-learning tool for our inspectors. Their model is based on planning mini-objectives for our inspectors which translates our Quality Standards into KPI s for the inspector. Based on the Quality Control Program reports inspectors will be trained individually with E-learning tools to get more accurate and consistent Quality The Talent Gallery The Talent Gallery is an consulting company specialised in Executive search. In their aim to get the right man at the right place they use a tool called The ProfilesXT Process. It provides us with online access to a simple survey form consisting of questions about the position. Following a data analysis, the job profile is generated that defines the traits of the ideal employee. After employees have complete the profile form, data analysis determines their personality profile.

6 The Profile Comparison Chart ProfilesXT compares the employee and job profiles to show how closely each person matches the ideal. A quick, accurate compatibility assessment is obtained for each employee. Every Management member and team leader has done this assessment to be sure we have not only the right skills but also the right personal skills at the right place. 5. Environment At, we recognise the importance of conducting our operations in an environmentally responsible manner. In 2007 was with the first companies to make E-invoices. This was the first step to a more paperless company. We have two major projects were we want to minimise our ecological footprint. First one is improving the digitization of the process of inspections. Second one is the control on CO2 emission of the fleet of our inspectors Inspections Already a few years ago made the first step in digitization by developing its Web Service, the Manager. In 2009 we introduced the Tablet PC, responsible for efficiency and paperless work Web Services Every customer or customer of our customer can use our on line tool the Manager. The Manager allows the customer and the customers customer to: - Receive all inspections online and not on paper. made inspections in This tool saves between and pages. - Use the link off the inspection to E-invoice the customer and the customers customer Tablet PC The Table PC allows the inspector to immediately digitize the file and put it online. This not only efficient in cost and time, but also saves a lot of paper.

7 5.2. CO2 - emission Major part of our inspectors is being on the road on its way to our customer. Inspectors, driving km/year were no exception. We have attacked this problem and reduced the CO2 pollution in a dramatic way and will keep on doing that Choice of cars All cars have been replaced by newer and ecologically better performing cars. Overview of type & CO2 emission per country Up to 2010 As of 2011 Categorie g/km Categorie g/km as of No Belgium VW Golf 146 VW Golf BlueMot. 104 jan/10 20 France Citroën C4 125 Ford Focus 1,6ECO 116 jan/10 30 Germany VW Golf 145 VW Golf BlueMot. 104 jan/11 20 Netherlands mix 134 VW Polo 1.2 BlueMo 89 okt/10 10 Average 136, % As of 2011 new function cars will not exceed 120 gr./km. will keep on pushing new cars with environmental friendly technologies. will keep on working on dropping its CO2 emissions by at least 10% each year! Planning Through better planning, more local inspectors and combining inspections at one place we have seriously dropped our total mileage driven. Also here we will keep on looking for better performance. Overview of type & CO2 emission per country Avg. Mileage/year Difference France ,77% Germany ,11% For 2010 we continue on working on our planning and aim to drop the average mileage for an other 10% per year.

8 Projects All inspectors will have Track &Trace systems in their vehicles starting This should enable us to plan more accurate; This will save time, but also mileage on the cars. Besides cars we will also investigate the possibility on alternative transport. In France we are testing scooters for city use. Besides the environmental impact, it is also very efficient and motivating for our inspectors. This project will be rolled to more European cities, starting in Brussels were we will test a number of Piaggo MP Conclusion The saving on CO2 emission can be estimated on 150 ton per year. (Based on the fleet figures of 2009) Due to the large international expansion of our company in the coming years it is of utmost importance to keep on working actively on our CO2 emission.

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