2016 SUSTAINABILITY REPORT - Hirtenberger · 1.2 | REVENUE GROWTH IN 2016 Hirtenberger Automotive Safety looks back on a successful 2016. Since 2012 annual revenue has grown from

Hirtenberger. Ingenuity. Engineered.

2016 SUSTAINABILITY REPORT

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PYROTECHNICCOMPETENCEINDIVIDUAL & INNOVATIVE

CONTENTS1 Hirtenberger Automotive Safety at a glance .......................................................................... 4 1.1 Our locations .................................................................................................................. 5 1.2 Revenue development in 2016 ....................................................................................... 62 Foreword .............................................................................................................................. 7 Dr. Stefan Odenthal, CEO Hirtenberger Group ...................................................................... 7 Hirtenberger Automotive Safety Executive Management ....................................................... 8

3 About this report ................................................................................................................. 10

4 Dialogue with our stakeholders ........................................................................................... 11

5 Production and products .................................................................................................... 14 5.1 Purchasing and supply chain management ................................................................... 20 5.2 Sustainability in manufacturing ...................................................................................... 22 5.3 Management systems .................................................................................................. 28 5.4 Packaging ..................................................................................................................... 32

6 Our stakeholder groups ...................................................................................................... 34 6.1 Our customers ............................................................................................................. 34 6.2 Our suppliers ................................................................................................................ 35 6.3 Our employees ............................................................................................................. 36

7 Hirtenberger - Innovation for the future ............................................................................... 42

8 Compliance ........................................................................................................................ 45

9 Corporate information ......................................................................................................... 47

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1980 1985 1990 1995 2000 2005 20201865 20251870

1993Founding and first

series order as Tier-2 supplier

1860Company founded by Serafin Keller

2008Hirtenberger Automotive Safety

GmbH receives first order as Tier-1 supplier

2002Founding of Hirtenberger

Automotive Safety Hungary

2010Hirtenberger Automotive Safety GmbH reaches 50 million euro

revenue mark

2013Hirtenberger Automotive Safety GmbH andHirtenberger Automotive Safety Hungary

reach 500 headcount

2015Hirtenberger Automotive Safety GmbH andHirtenberger Automotive Safety Hungary

reach 700 headcount

2010 20151860

Since its founding in 1993, Hirtenberger Automotive Safety has become a technology leader in its industry, and continues to grow. Our location in Hirtenberg, Austria houses igniter production, development and testing, sales and administration, and we have an advanced production plant in Pápa, Hungary. Hirtenberger

At Hirtenberger Automotive Safety, we develop and manufacture pyrotechnical products for safety applications in the automotive and other industries. Making the best use of available resources and continually improving our capabilities, we develop, produce and deliver

Automotive Safety is an ideal partner for the development and mass production of pyrotechnical components and products for the automotive and other industries.

components designed for active pedestrian protection systems, active headrests, belt and buckle tensioner systems, steering columns and circuit breakers.

TECHNOLOGY FROM EUROPE FOR SAFETY AROUND THE WORLD

CUSTOM SOLUTIONS FOR PYROTECHNICAL PRODUCTS

1 HIRTENBERGER AUTOMOTIVE SAFETY AT A GLANCE

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1.1 | OUR LOCATIONS

Austria

ViennaHirtenberg

PápaBudapest

Hungary

Headquarters in Hirtenberg, AustriaProduction in Pápa, Hungary

OUR LOCATION IN HIRTENBERG, AUSTRIA (HAS) OUR LOCATION IN PÁPA, HUNGARY (HAH)

Founded: 1993Employees: 150Focuses: Igniter manufacture, development & test centre, sales and administrationArea: 7,750 m²

Founded: 2002Employees: 674 Focus: production

Area: 9,080 m²

Our capabilities in all areas of our company are concentrated in Hirtenberg. Using highly automated processes, at this facility we make the HPP and GTMS igniters that form the basis of series manufacture of our products at our advanced plant in Pápa, Hungary.

This plant houses our modern series production facilities including the necessary infrastructure. From wiring and soldering to plastic injection moulding to final assembly with fully and semi-automatic machinery, every year the over 700 employees here make millions of products for dozens of international customers.

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1.2 | REVENUE GROWTH IN 2016

Hirtenberger Automotive Safety looks back on a successful 2016. Since 2012 annual revenue has grown from 43.8 to about 67 million euros. The company pursues the goal of outperforming market growth, and hopes to stay on this course in the coming years as well.

In 2017 Hirtenberger Automotive Safety plans to open a sales office in the US, continuing its growth in volume as well as expanding its international footprint.

ANNUAL REVENUE AND EMPLOYEE COUNT FROM 2012 TO 2016

EMPLOYEE DISTRIBUTION AMONG LOCATIONS AS AT 31 DEC. 2016

80.0

70.0

60.0

50.0

40.0

30.0

20.0

10.0

0.0

1600

1400

1200

1000

800

600

400

200

0 2012 2013 2014 2015 2016

43.8

600

50.1

650

53.0

720

59.0

800

67.0

824

Revenues in EUR Employees

16% Austria

84% Hungary

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DEAR READER,

The Hirtenberger Group can look back on a successful 2016 in which we reached the goals we had set ourselves. But this represents only part of the journey that by 2020 will make us a group of innovation and technology leaders in our markets. The automotive business and and especially sustainability issues will play a major role in this.

Who are we? We are “hidden champions,” companies working in niche markets who can claim to be number one in their markets. We strive at all times to act with a long-term perspective, keep the customer at the focus of what we do, create innovations that benefit people, and seek out the best and most talented people to help us accomplish these goals. All of the things we do are driven by our motto, “We protect your future.”

And what is our attitude towards sustainability? As a technology company, we take our responsibility for the sustainable development of our economy, society and environment seriously. We want to create lasting value - for the company and its owners, for our employees and all other stakeholders, and also for the countries and regions in which we are active. This understanding of sustainability is shared by all of our nine lines of business, our companies and everyone who works at the Hirtenberger Group.

What do we do for sustainability? We want to show you in this report based on examples, facts and figures. To make all this information transparent, comprehensible and comparable, we follow the guidelines of the Global Reporting Initiative (GRI).

Dr. Stefan Odenthal CEO of the Hirtenberger Group

I would now like to invite you to get to know the automotive division of the Hirtenberger Group a little better, and hope you enjoy reading this report.

Sincerely,

Dr. Stefan OdenthalCEO of the Hirtenberger Group

2 FOREWORD

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Left to right: Stefan Eckhardt and Manfred Pock, Executive Management of Hirtenberger Austria with Johann Stifter and Gábor Király, Executive Management of Pápa in Hungary

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At Hirtenberger sustainability has always been important, as can be seen over the group’s more than 150 years of history.

Hirtenberger Automotive Safety, a medium-size company and part of the owner-operated Hirtenberger Group, meets its responsibilities to employees, the environment, customers, society and the regions in which we work.

As a company with international activities it is important to us that we meet the challenges of the market, and of the social and ecological environment. To us, taking care of employees and the environment is in no way at variance with economic viability. It is part of our daily activity and strengthens our position with customers and suppliers as a dependable long-term partner.

Flexibility and innovation are reflected in our pyrotechnical products and solutions for safety applications, and in active change with ambitious goals in all areas. Continuous improvement processes, appropriate internal and external training programmes, and best practice sharing between our locations help us use resources effectively, implement environment-friendly and energy-efficient processes, and enhance the qualifications of our people.

The recent past has shown that our society and our industrial context, the automotive industry, may soon face major changes and challenges. Hirtenberger Automotive Safety is continuously working on the development of products that will make future mobility safer and more sustainable. This is very important to us, both in our strategic work as well as in continuing to meet our responsibilities.

The focus on our stakeholders is something we see as a decisive factor for our past, present and future success. In the past a small group of stakeholders was involved in our sustainability efforts. As customer demand and interest in sustainable business have grown, we as a company have decided to publish a Sustainability Report. This lets us make our sustainability efforts and goals known to a wider circle of stakeholders.

We hope that this, our first Sustainability Report, will provide many interesting insights.

Best regards, Executive Management

DEAR READERS, CUSTOMERS, EMPLOYEES AND PARTNERS,

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3 ABOUT THIS REPORT

This the first Sustainability Report of Hirtenberger Automotive Safety. It shows what we’re doing in the area of sustainability, gives stakeholders a look at the business activities of Hirtenberger Automotive Safety, and presents in a transparent way where we are and what we’re working on.

The report contains information and data on the major activities of Hirtenberger Automotive Safety at its two locations, the headquarters in Hirtenberg, Austria and the manufacturing facility in Pápa, Hungary.

Performance numbers for this Sustainability Report are shown separately for each location where possible. Revenue figures are shown in aggregate for the Group, for reasons of confidentiality.

The reporting period for the figures and information given here is the fiscal year from 1 January to 31 December 2016.

The numbers in the Environment chapter are from the 14001 Environmental Management System and are differentiated per location. The figures in the Employees chapter are from the HR deparartment and are shown for both locations based on the employee count as at 31 Dec. 2016.

All topics and aspects addressed in this report with performance, goals and key indicators were deemed relevant and prepared by a team. The content and performance indicators were prepared in two workshops with the responsible areas of Sales, Research & Development, Product Development, Logistics, Quality and Environmental Management, Purchasing, Production and Human Resources, and finalized in consultation with Executive Management.

As this is the first Sustainability Report of Hirtenberger Automotive Safety, it was prepared in accord with the international Global Reporting Initiative (GRI) standard. We plan to publish updated reports every two years.

For the sake of legibility, where the third-person singular pronoun occurs this report will by default use “he/his” instead of “he or she / his or hers” or “he and she / his and hers” etc. However, in all cases the pronoun refers to both genders.

As a developer and series producer of highly sensitive products, we always need to recognize trends early on, adjust our company and sustainability strategies accordingly, and work rigorously to implement them. It is very important to us that we enter into dialogue with our stakeholders in order to identify important issues and challenges.

By taking concrete action we want to achieve quantifiable results and communicate them to our stakeholders. Our stakeholders are people and groups who have interests and claims directly or indirectly related to the company’s business activities.

WIDE-RANGING STAKEHOLDER RELATIONSHIPS

4 DIALOGUE WITH OUR STAKEHOLDERS

Labour market and potential employees

Science and research

Government and public

administration

Neighbours

Employees

Media

Suppliers and associated businesses

Customers and potential customers

Owners

Stakeholders

Supervisory Board

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Responsible company management can only take place in dialogue with the company stakeholders. Inclusion of these groups in company decision-making is an ongoing process. Hirtenberger Automotive Safety is in continuous dialogue with stakeholders and takes the insights thus gained into account in its actions.

Internationalization was one of our emphases in 2016. We are looking for opportunites for further international locations and with them cooperation partners to further expand our network.

We communicate our company activities transparently, and we address critical questions. The forms taken by this ongoing stakeholder dialogue vary among target groups, business areas and specific topics. They include:

Another focus will be on our entry into electromobility. With the rapid developments in this sector, we need to get a foothold and are proud that Hirtenberger Automotive Safety can offer a safety product for this category.

CONTINUOUS DIALOGUE

n Customer and sales discussions

n Research and development collaborations

n Employee events, annual employee / goals review

n Quarterly and annual reports

n Dialogues with interest groups and representatives from business and government

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5 PRODUCTION AND PRODUCTS

Pyrotechnical actuatorsMicro gas generatorsRollover protection systemsVarious other solutions such as pipe cutters, intelligent structures, battery disconnectors, and actuators for engine bonnet locks

Hirtenberger Automotive Safety is a partner to the international automotive and other industries for individual, innovative pyrotechnical solutions. Where actions need to be performed or triggered in milliseconds, pyrotechnics are the only way to

deploy enough energy in the time available. We make our expertise available to customers who manufacture their products with the help of our solutions.

PERSONAL SAFETY - WE SAVE LIVES!

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Pushing actuators for active hinges.

Fully equipped testing center for product and system tests. State-of-the-art simulation methods, e.g. � nite elements and multibody dynamics simulations.

Prototype department for the fast and effective realization of prototypes and test samples.

ISO TS 16949EN ISO 14001ISO 9001

Pintype micro gas generators for seatbelt pretensioners and buckle pretensioners.

Pushing actuators for active latches.

Leadwire micro gas generators for seatbelt pretensioners and buckle pretensioners.

Pushing and pulling actuators for active headrests and steering-collumn releases.

State-of-the-art series production.

PEDESTRIANPROTECTION

TEST CENTER & SIMULATION

PROTOTYPING

WE ARE CERTIFIED

OCCUPANT PROTECTION


OCCUPANT PROTECTION

OCCUPANT PROTECTION

SPECIAL PYROTECHNICSOLUTIONS FOR NON-AUTO-MOTIVE AND AUTOMOTIVE APPLICATIONS

OUR CUSTOMERS

Tier-1 customers

OEM customers

non-automotive customers

30 %

10 %

60 %

Roll-over protection, pipe cutters,active door locks, battery disconnectorsand much more …

OUR CUSTOMERSHirtenberger as a supplier and development partner to almost all renowned OEM and Tier-1 supplier.

Our customer base in the non-automotive sector is devi-ded into many industries like for example the medical and energy sector.

Since our establishment we produced hundreds of millions micro gas generators and pyrotechnic actuators for the automotive industry. We entered the automotive sector as a Tier-2 supplier and worked our way up to become a Tier-1 supplier.

OUR PRODUCTS OUR SERVICESDesigned to protect. One-Group bene� t | Development – Engineering – Simulation – Testing – Series Production

Hirtenberger is also a development partner and manufac-turer of pyrotechnic solutions for other applications within the automotive industry and beyond.

Hirtenberger specializes in the development and series production of pyrotechnic solutions designed to protect occupants and pedestrians.

Hirtenberger is the market leader for pyrotechnic actuators used in systems designed to protect pedestrians.

RESPONSIBILITY IS A COMMITMENT.Pyrotechnics are the right choice whenever applications need to be moved or triggered within milliseconds. Every project is realized by Hirtenberger’s highly trained team, which works with up-to-date methods and resources in very sophisticated environments. The products that we develop and produce represent key components in safety systems – which means that each day we help save lives.

Its excellent research-and-development know-how and wide-ranging experience in series production mean that Hirtenberger is the ideal partner when it comes to the implementation of all stages of work – from � rst concepts to preparing the ground for series production. It is able to create strategic advantages for your commercial success through the great cost ef� ciencies that it has achieved in production and the very high demands that it makes on the quality of its products.












PROTOTYPING

WE ARE CERTIFIED

OCCUPANT PROTECTION


OCCUPANT PROTECTION

OCCUPANT PROTECTION


OUR CUSTOMERS

Tier-1 customers

OEM customers


30 %

10 %

60 %











PRODUCT RANGE

PEDESTRIAN PROTECTION

PASSENGER PROTECTION

PEDESTRIAN PROTECTION



SPECIAL PYROTECHNICAL SOLUTIONS

Modern series production

Our core products are pyrotechnical actuators and micro gas generators for pedestrian and passenger protection, for example active engine bonnets and buckle and belt tensioners.

We also offer many other pyrotechnical solutions for vehicle safety. With our deep experience and innovative products, we help save lives every day.

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IGNITERS

The igniter is at the core of all of our products. Hirtenberger Automotive Safety makes two diifferent kinds of igniters. GTMS (glass-to-metal-seal) igniters are very sturdy and can stand up to extreme ambient conditions. They are used wherever these properties are in high demand. The second type of igniter we make is the HPP - the Hirtenberger Plastic Pill. The HPP is the first plastic igniter approved to automotive standard

AK-LV 16. With its compact design, this igniter is a cost-effective alternative to GTMS igniters, while still meeting exacting requirements. It is the first choice in interior applications such as gas generators for belt tighteners. Thus, we are in a position to offer customers the ideal igniter technology for any kind of vehicular use.

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IGNITION UNITS AND MICRO GAS GENERATORS

In coordination with customer requirements, Hirtenberger Automotive Safety develops and produces pin-type and lead wire micro gas generators for belt and buckle tighteners.

Since 1993 we have made hundreds of millions of gas generators used by numerous OEMs (Original Equipment Manufacturers) the world over.

PYROTECHNICAL ACTUATORS

With a market share exceeding 80 %, Hirtenberger Automotive Safety is the market leader in pyrotechnical actuators for active pedestrian protection systems. These are modular pushing

actuators with an activation time between 2 and 40 milliseconds and various force levels for different types of hinges and bonnet weights.












PROTOTYPING

WE ARE CERTIFIED

OCCUPANT PROTECTION


OCCUPANT PROTECTION

OCCUPANT PROTECTION


OUR CUSTOMERS

Tier-1 customers

OEM customers


30 %

10 %

60 %











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INTO THE FUTURE WITH E-MOBILITY

SPECIAL PYROTECHNICAL SOLUTIONS

Hirtenberger Automotive Safety is currently developing pyrotechnical safety components for electric and hybrid vehicles for various voltage and current levels.

For automotive and non-automotive applications, Hirtenberger Automotive Safety develops and manufactures special solutions like rollover

These will be used to pyrotechnically disconnect live wires within milliseconds in case of accident.

protection systems, loop isolators, active door locks, battery disconnectors and much more.

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TEST CENTRE

Our state of the art facilities with cutting edge test centre and highly efficient production systems enable us to cover the complete range of product manufacture, from the initial concept to development to cost-optimized series production.

With over 800 employees in the locations in Hirtenberg, Austria and Pápa, Hungary, and our consistent focus on future technologies and improved applications, Hirtenberger Automotive Safety is the ideal partner for a safe, successful future.

Generous, modern spaces for any scope of testing.

The latest test equipment for maximum precision.

Prototypes and tool making facilities for fast modification of test samples.

State of the art facilities for complex tests.

The highest possible safety in all test rooms.

High speed camera systems for full analysis options.

Protection and discretion for customer prototypes in separate storage modules.

Observation rooms for customers and suppliers.

Whether individual products, systems, modules or entire vehicles, our test centre is ready for any need.

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ENVIRONMENTAL MANAGEMENT BY SUPPLIERS

5.1 | PURCHASING AND SUPPLY CHAIN MANAGEMENT

Hirtenberger Automotive Safety feels a responsibility for protecting the environment. Therefore we ask our suppliers to use resources like water and energy efficiently, and minimize environmental effects like waste and wastewater, air and noise pollution. Supplier production processes and working conditions must be aligned with minimum global standards, as they are at Hirtenberger Automotive Safety. In addition, suppliers must ensure that their own

suppliers can guarantee that suitable measures are taken towards operational and product-related environmental protection and meeting of social standards.

Our purchase strategy is based on the economical and ecological requirements we identify. It goes without saying that with our partners we focus not only on long-term mutual economic benefit, but also on ecological sustainability.

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TRANSPARENCY IN THE SUPPLY CHAIN

EFFICIENT TRANSPORTATION REDUCES CO² AND COSTS

In the automotive industry there is a specific supplier system, which is often shown in the form of a pyramid. The automotive manufacturer, also known as the OEM, is at the top of the pyramid. OEM suppliers are divided among Tier 1, Tier 2 etc. depending on their distance to the OEM. Tier 1 suppliers provide systems directly to automotive manufacturers. Teir 1 suppliers are supplied in turn by Tier 2 suppliers, also known as module suppliers. The pyramid continues on down to component suppliers and parts suppliers.

Every automotive manufacturer and every supplier in the chain is responsible for all aspects of the products they make, starting with production and continuing through use to recycling or diposal of components.

Hirtenberger Automotive Safety handles in-house transportation between Austria and Hungary only by road, very flexibly and in an optimized manner. Trucks are ordered daily as needed. Truck capacities range from 5.5 to 18 tonnes. For return trips trucks are loaded with empties, avoiding empty parking places and unladen runs. We constantly work to optimize packaging quantities. On the supplier side, we choose material quantities that minimize the number of deliveries. In packaging, the focus is on recyclable and reusable packaging. On the customer side, we try to ship only full packaging units. This makes it possible to reduce packaging and transportation volumes.

All manufacturers in the supply chain are obliged to provide data on the material composition of the products they make, in order to enable hazard level assessment. Suppliers enter this information in the IMDS (International Material Data System). This is a global standard for the exchange and administration of materials data in the automotive industry. The objective is to meet all national and international legal standards and requirements, especially in terms of the environment. Among other things, this requires that Hirtenberger Automotive Safety suppliers provide the relevant information via IMDS for each sampling. This permits the unbroken traceability of the parts and components used, from raw material to finished car.

We secure loads in order to reduce transportation damage and prevent claims and product replacements.

Optimized transport oganization helps reduce CO2 and costs. Sample deliveries are bundled daily and assigned to only one courier service, and thus picked up just once daily. Deliveries to multiple customers are likewise done via a selected shipping company, and all deliveries on a given day are combined into a single shipment. All other shipments are organized and handled by customers.

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EFFICIENT USE OF RESOURCES

5.2 | SUSTAINABILITY IN MANUFACTURING

We pay attention to sustainability in manufacture from the beginning, when we configure a production process for a new item. The production facility is optimized for it. That means keeping assembly systems as compact as possible, so that no production space is wasted. The lowest possible energy consumption of our systems is especially important to us, as it has a direct

effect on operating costs and is a major factor in reducing the burden on the environment. In the manufacturing process itself we make sure that the use of hazardous and problematic materials is minimized or avoided entirely. Another of our principles is to make processes as robust and stable as possible, thus reducing the amount of wastage and reworking, in accord with our zero-fault strategy.

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OPTIMUM PRODUCTION FLOW

PROCESS FLOW

Our parts start from raw materials and go through multiple manufacturing steps until they are completed products. In layout planning, the entire production flow from raw material stock to

finished product storage is analyzed and laid out for maximum efficiency through all manufacturing steps.

1 Raw material

4 Plastic processing

3 Connections

6 Finished product

2 Cable assembly

5 Final assembly

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EFFICIENT USE OF ANCILLARY PRODUCTS

EFFICIENT AND SAFE SPARE PARTS SUPPLY

Production waste is collected separately at the source and sent for recycling. The resulting materials can be used to make new products. For example, sprue from plastic moulding is ground into granulate, from which packaging cups can be made.

As an automotive industry supplier, in addition to manufacturing safety technology components for our customers’ series production, we are also responsible for providing spare parts in the aftersales market.

Series production is characterized by high volumes, and our highly automated manufacturing processes are designed to fill large orders for reasons of efficiency. But automobile models eventually go out of production, and as model series progress individual components are replaced by newer ones; consequently, the production volume of almost every product declines at some point, until the only remaining demand is for the spare parts market.

During the winter we use the process heat from the plastic injection moulding machines to heat our storage areas via underfloor heating. By these means we try to keep our material usage as low as possible, continuously optimize resource consumption and save costs.

It is thus necessary to develop and implement efficient, sustainable strategies for spare parts supply.

This includes careful planning of logistics, in order to prevent unnecessarily high stocks of purchased materials and finished parts. Otherwise, unneeded materials have to be stored or even disposed of. Our manufacturing processes are also aligned with projected spare part demand, in order to ensure efficient, optimized production into the future.

In summary, spare parts management at Hirtenberger Automotive Safety is an important tool for ensuring resource-efficient series production followed by a sustainable and responsible supply of spare parts to customers.

Sprue Granulate Packaging cups

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USING ENERGY EFFICIENTLY

With our operation and energy-intensive production, an uninterrupted energy supply security is crucial. The continuous reduction of our energy consumption is also an important goal. Our energy efficiency measures include:

n Photovoltaic array in Hirtenberg for ecological electricity production

n Conversion to LED lighting with photosensor control in Hirtenberg

n In Pápa, residual heat from injection moulding machines is used to heat the warehousing area

n Efficient production process

n About 1/3 of the production and storage area in Pápa is heated and cooled with green technology (geothermal for heating)

n Energy efficiency is a major criterion when investing in new machines

n The Pápa facility is lit almost exclusively by LED lights

n Upcoming, standby consumption in production will be measured in order to further reduce energy waste

The Hirtenberg facility is heated and powered primary by natural gas and electricity.

In order to set an example in the field of renewable energey, in 2012 the company installed a photovoltaic system with 110 kwp capacity and an area of 800 m². Thus far this has saved a total of 114,566 kg of CO2.

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ENERGY CONSUMPTION

The total energy consumption for the Hirtenberg and Pápa locations reflects the main energy sources, electricity and natural gas.

Electricity consumption has risen over the previous year, due to higher production volumes.

ENERGY CONSUMPTION BY VOLUME OF PRODUCTS MADE (AUSTRIA)

ENERGY CONSUMPTION BY VOLUME OF PRODUCTS MADE (HUNGARY)

1,600,000

1,400,000

1,200,000

1,000,000

800,000

600,000

400,000

200,000

350,000

300,000

250,000

200,000

150,000

100,000

50,000

-

25,000,000

20,000,000

15,000,000

10,000,000

5,000,000

31,200,000

31,000,000

30,800,000

30,600,000

30,400,000

30,200,000

30,000,000

29,800,000

29,600,000

29,400,000

29,200,000

2014 2015 2016

2014 2015 2016

Gas consumption in kWh

Gas consumption in kWh

Electricity consumption in kWh

Electricity consumption in kWh

Production volume

Production volume

Ene

rgy

cons

umpt

ion

Ene

rgy

cons

umpt

ion

Pro

duct

vol

ume

Pro

duct

vol

ume

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MANAGING WASTE AND RESOURCES

WASTE TARGETS AND MEASURES

HAZARDOUS MATERIALS IN PRODUCTION

We work constantly to keep our material usage as low as possible and minimize our waste. At both of our locations, we try to prepare waste for recycling, reclamation or other use (e.g. as a source of energy).

Our goal is to sensitize our employees even more to the need for waste separation, to further reduce the amount of waste sent for landfilling.

No measurable hazardous materials are present in our Hirtenberg production facility. All volatile substances are exhausted into the outside air and are approved by the responsible authorities.Our production uses only approved raw materials,

n Metallic waste is sold for further usen One-way packaging is source-separate collected and sent on for recycling n Waste wood is used for heating by our own chip-fired system

Waste in 2016 (AT) Amount (kg)

Waste paper 881

Emulsion 1,190

Yellow bin 2,877

Glass (coloured and white) 5,581

Carton 24,000

Plastic and styrofoam, source-separated 800

Solvent mix 1,120

Scrap metal 1,000

Metal packaging 432

Residual waste 1,570

Waste in 2016 (HU) Amount (kg)

Old materials 238,757

Amount of recyclable waste 138,050

Amount of residual waste landfilled 481

Amount of residual waste used thermically 2,238

Hazardous waste 3,488

Residual waste 94,500

We will continuously do this through employee training, environmental articles in newsflashes, and internal audits.

thus meeting all legal requirements as well as REACH (Registration, Evaluation, Authorisation of Chemicals). We pay special attention to employee PSE (Personal Safety Equipment).

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5.3 | MANAGEMENT SYSTEMS

WE LIVE OUR ENVIRONMENTAL POLICY AND CONSTANTLY SET GOALS THAT REDEFINE IT

Exceeding customer expectations is our passion, and Hirtenberger stands for quality and reliability. We are proud of a culture in which it goes without saying that quality starts with the first customer contact and is part of all the processes in the Hirtenberger Group.

With our EN ISO 14001 and ISO TS16949 certification, it is not just a concern but also an obligation for us to follow a sustainable environmental policy and continuously improve it in relevant ways. We do this day by day, because in a globalized context of scarcer resources and rigorous legal requirements, an effective

environmental policy is an important element in securing the future of a company.

We strive for constant improvement of our performance, processes, productivity and precision, from service to service and product generation to product generation. We look at quality from the customer perspective, and so continually improve our design and production quality.

Our “Group Quality Landscape” profits from the programmes, tools and methods of our various divisions.

PLAN

CHECK

ACT DO

Support processes

Management processes

Core processes

Supply chain management

Market and customers

Sales and marketing

Research and development

Product development

Market and customers

Implementation

Procurement Quality management

Executive management Quality and environmental management

Remote support function

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The business lines of Hirtenberger Automotive Safety maintain a modern and continously improved quality system. The company uses a management system per ISO TS 16949 and ISO 14001.

All major processes at Hirtenberger Automotive Safety are standardized, so that we can immediately detect deviations.

We use visual management and key indicators to include employees in our business processes. Through product and process risk assessment, and validation and verification programmes, we can ensure our quality level and its improvement. “Quality Gates” provide fast feedback and enable immediate improvements.

Close, ongoing customer contact and attention to customer feedback reinforce and strengthen our continuous improvement effort. We also make sure that our employees are included in the continuous improvement process.

With the continuous improvement process implemented in 2012, employees can use their knowledge and experience to help us save resources and costs by means of improvement suggestions concerning energy, waste and safety, among other issues. We offer rewards for especially good ideas and improvements.

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FUTURE GOALS AND MEASURES IN THE AREA OF MANAGEMENT SYSTEMS FOR THE UPCOMING YEARS:

n Revision of ISO 14001:2015n Revision of IATF 16949 and ISO 9001n Certification to ISO 45001:2016 Occupational Health and Safety

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5.4 | PACKAGING

Sample packaging for steel containers, module packaging of cardboard and plastic KLT

EFFICIENT AND RESOURCE-SAVING

Reducing the environmental footprint of packaging to the greatest possible extent is an important goal of Hirtenberger Automotive Safety.

As a leading and innovative manufacturer of pyrotechnical safety components for the automotive industry, we follow the applicable hazardous material directives (such as ADR and IATA) in packaging planning. We pay special attention to the safety of packages, so that in the event of an accident our products remain in their respective package unit.

Our packaging is of corrugated cardboard, metal and plastics or a combination thereof. In development, from an early project phase we take into account multi-use packaging concepts, working with customers as well as suppliers.

Hazmat containers of steel with EPP inserts (mutli-use) and module packages of corrugated cardboard and steel mesh with carboard inserts (single-use) have proven viable. All of our packages are stackable three high, and some can be folded to make the best use of space in transportation instead of needlessly shipping boxes of air.

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* Kanban is a production process control method that aims at maximizing the cost effectiveness of value addition at each production step.

Our logistics and purchase departments are in close contact with suppliers to identify the ideal supplier packaging. Such packaging should be multi-use, like plastic KLTs (small load carriers) that can be transferred to production directly and without further handling. In specifiying the KLTs the container size is chosen such that the available volume is used as fully as possible and the fill volume meets the requirements of our production, including shelf space, kanban quantity, etc.

All packaging material used can be easily and sustainably recycled.

n Corrugated cardboard: can be recycled up to 7 timesn Steel: can be sold as scrap and melted for re-usen Plastic: by shredding used containers, the material can be sold and used as raw material for new packages

OBJECTIVES AND FUTURE ISSUES / MEASURES IN THE AREA OF PACKAGING:

n Optimizing supplied lot sizes and packaging amounts of raw materials - Reducing the number of repacking processes at production facilities - Increasing the usage of the respective containers

n Continuing the conversion to supply in plastic KLTs (“kanban boxes”) - Direct delivery to lines without repacking - Less waste through multi-use containers - Resource saving in warehousing operations through simple and fast KLT handling

n Use of environment-friendly packing materials - Recyclable or biodegradable filler and insert materials instead of petroleum-based materials

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6 OUR STAKEHOLDER GROUPS

6.1 | OUR CUSTOMERS

Hirtenberger Automotive Safety entered the automotive market in the 90s as a Tier 2 supplier. We took the step to a Tier 1 supplier in the mid-2000s with pyrotechnical actuators for active bonnet systems.

Today, Hirtenberger Automotive Safety develops and manufactures pyrotechnical products for safety applications for many OEMs and Tier 1 suppliers.

Our customers benefit from our comprehensive pyrotechnical expertise, from igniters to active pedestrian protection systems, active headrests, belt and buckle tightener systems.

Our products offer advantages of compactness, low weight, cost-effective design and the highest actuation reliability.

Hirtenberger Automotive Safety products are also used in other industries. Thanks to the outstanding reputation of the company and our qualitative and technically excellent products, we are able to sell into the medical technology and energy sectors, and include companies like Siemens, Crossject and ABB among our customers.

Automotible manufacturers (OEM) Suppliers (Tier 1) Non-automotive

DAIMLER ZF-TRW SIEMENS

BMW MAGNA CROSSJECT

AUDI THYSSEN KRUPP PRESTA TETHYS

VOLKSWAGEN PRESTA ABB

PORSCHE NEXTEER

BENTLEY KEY SAFETY SYSTEMS

METALSA

CHRIS CINTOS

AUTOLIV

GRAMMER

INDET SAFETY SYSTEMS

WITTE

KIRCHHOFF

HESSEL

COSMA

TAKATA

We thank all of the customers that we are able to mention in the list.

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OUR CUSTOMERS

Tier 1

OEM

Non-automotive

50%

5%

45%

6.2 | OUR SUPPLIERS

QUALITY AND COOPERATION

Quality is our most important goal, and so our suppliers must meet many specifications and requirements. Among other things, we expect them to adhere to ecological and ethical standards, and so we also pay attention to issues like supplier environmental protection, sustainability and occupational safety.

Before we enter into new business relationships with suppliers, they must submit to inspection of their compliance, financial standing, and quality and environmental management systems

(e.g. per ISO 9001, 14001 etc.). We examine whether the supplier is in a position to meet our sustainability requirements. We do business with them only after positive assessment of the inspection criteria. To meet our high standards, we continually work with our suppliers on further improving quality.

All of our 117 suppliers are certified to ISO 9001. In 2016 80 % were also certified to ISO 14001.

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6.3 | OUR EMPLOYEES

OUR SUCCESS IS DOWN TO OUR PEOPLE

We’re proud of our people. Without their commitment and capabilities, it would not have been possible to reach our goals. Their high degree of orientation towards results and customer satisfaction is a major factor in the success of Hirtenberger Automotive Safety. With our diverse, highly qualified team of engineers and specialists in all areas of the company, we work every day to provide excellence for our customers. We welcome criticism that helps us continuously improve our quality and processes.

We take responsibility not only for the products we develop and produce, but also, and especially, for our employees and the environment. For the 824 employees at our locations in Hirtenberg and Pápa, we see our responsibility and contribution in creating a setting that encourages work satisfaction and provides a good basis for meeting the day to day challenges of our business. At both locations, we are an important and secure employer offering many opportunities for personal growth.

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EMPLOYEES (BY NATIONALITY), AUSTRIA EMPLOYEES (BY NATIONALITY), HUNGARY

87% AUSTRIA 98.5% HUNGARY

4% HUNGARY 1.5% ROMANIA, NIGERIA, GERMANY,

3% SERBIA BULGARIA, BRAZIL

3% GERMANY

1% SPAIN

1% SLOVAKIA

1% ROMANIA

1% MEXICO

1% BOSNIA AND HERZEGOVINA

AGE AUSTRIA HUNGARY

18-19 0% 2%

20-30 26% 29%

31-40 36% 26%

41-50 25% 26%

51-60 13% 16%

61-65 0% 1%

As a guideline for our shared activity, we have developed a Code of Conduct based on our most important values, including integrity and respect, fair competition, safety, sustainability and environmental protection. Each employee is responsible for adhering to this Code. Managers set an example as they follow the Code in practice, and see to it that all employees do the same.

More on our Code of Conduct: http://www.hirtenberger.com/wp-con-tent/ulads/2016/10/HG_Code_of_conduct_d_Ansicht.pdf

MEN WOMAN

73% AUSTRIA 27% AUSTRIA

22% HUNGARY 78% HUNGARY

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HEALTH AND SAFETY

HEALTH-RELATED ABSENTEEISM IN 2016 WORK ACCIDENTS

The health of our employees is very important and we pay close attention to accident prevention. Awareness and training in safety issues are key levers we apply in occupational safety. Our safety officers regularly hold training sessions to protect employees and sensitize them to potential hazards. Through strict safety measures in all areas of the company, we meet our responsibilities for the health and safety of our employees.

At the Hirtenberg facility, salaried employees were off sick an average of 5.8 days, and blue-collar workers an average of 9 days.

In Hungary, it was 2.15 days on average for salaried employees and 8.28 days for workers.

Work accidents cannot be entirely eliminated, and in 2016 there were 9 accidents at the two facilities in total. To reduce the number of accidents going forward, we are working towards ISO 45001 occupational and health safety certification. In addition to this important step towards a safer future for our employees, we also continually analyze our individual processes to evaluate further measures towards reducing potential risks from the outset, so that employees go home each day as healthy as they came.

An annual Safety Day for all employees of the company group supplements this effort. In addition, a company doctor at both locations provides free vaccination, check-ups, advice and nutritional instruction for all employees. In 2016 each quarter saw a focus on a different health issue, giving employees opportunities to learn more about nutrition, excercise, skin and heart health.

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TRAINING AND FURTHER EDUCATION

Lifelong learning and personal development are very important in the fast-moving automotive industry. We motivate and help our employees to reach our shared goals and create future perspectives. This is the only way to make sure that we can develop the best overall solutions for our customers, and remain a strong, dependable long-term partner. We build employee skills with special continued education courses, individual training and coaching, and HP Group Training at the Hirtenberger Academy. We help employees with the accomplishment of the company’s strategic and operative goals, as well as with their own personal development.

An important part of personnel development is the annual review between employee and supervisor, where together they look back on the past year, set working and further education goals for the next year, and also evaluate performance. We offer employees at all levels high-quality training and further education opportunities. In 2016 over 2500 training activities were registered, internally and out of house. To further improve training and further education, we are setting up a system for recording our training activities at both locations.

Trainings 2017der Hirtenberger Gruppe

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OUR COMMITMENT TO THE NEXT GENERATION

Job training is a major focus at the Hirtenberger Group, because today’s trainees are our future. Girls’ Day is an important event where women and girls learn about technical careers, manual trades, and science professions. The Hirtenberger Group has supported the event now for several years, and in 2017 girls will again be invited to the Hirtenberg plant to learn first-hand about our wide variety of trainee positions and other technical careers.

Hirtenberger Automotive Safety is affiliated with the Hirtenberger AG Trainee Workshop, which offers young people the opportunity

for comprehensive job training and a great preparation for their future career. We also support apprenticeships with higher school certificates. In 2016 the Hirtenberger AG Trainee Workshop trained 27 people who went on to find jobs at the various local Hirtenberger companies.

We are also glad to assist students doing bachelor and master’s theses in all the areas we cover.

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EMPLOYEE COMMUNICATION

REGIONAL JOBS

Communication is a major factor in the successful performance of our daily business. We value honest, affirming and respectful communication at all levels. Therefore, an internal communication agreement was prepared not by executives, but by employees themselves in workshops. Active communication is a must for us, and so important information and topics are shared

Hirtenberger Automotive Safety is an important employer in its region. 45% of the employees

with all employees in the form of news flashes, quarterly reports, annual employee reviews, information from management, posters etc. We offer employees opportunities to take active part through annual surveys and the suggestion process.

in Hirtenberger and 90% of those in Pápa live within 20 km of their workplace.

Fruit baskets

Employee Welcome Day

Health (company doctor, blood drive, etc.)

Help during paternity leave

Company Christmas party

Running events

Employee awards

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7 HIRTENBERGER - INNOVATION FOR THE FUTURE

Test centre - Front flap test setup - Analysis with high-speed cameras

Finite element calculation of elastic/plastic behaviour of structural parts

RESEARCH FOR MORE SAFETY

Our Research and Development department delivers innovative concepts that form the basis of tomorrow’s products. This department plays

a major role in maintaining and expanding our market position as an innovative specialist for pyrotechnical applications.

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FUTURE R&D TOPICS

n Working from our product strategy, we regularly review the product portfolio in order to be able to offer customers attractive safety components.

n Introduction of improved technology for cost analysis and so early inclusion of suppliers. This makes it possible to take concepts into series production with the greatest possible resource conservation.

Research & Development takes up around 7% of the total revenue of Hirtenberger Automotive Safety.

About 65 people work in Research & Development, driving our projects and developments forward. Our diverse development team applies creativity and innovation to generating and implementing new ideas. Our student employees are also included in this effort.

We drive our core competences with ongoing basic research, in close contact with various research centres like the Fraunhofer Institute, the University of Karlsruhe, the Leoben University of Mining, and the University of Graz. We participate in national and international research projects with preliminary development topics.

As we move closer to simultaneous engineering we are doing more and more virtual development, using simulation tools very early in the development phase to design parts to meet requirements, and in accordance with the end-of-life vehicle directive and REACH.

Thermosimulation Injection moulding simulation Micro-CT + fibre orientation analysis

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8 COMPLIANCE

OUR VALUES GUIDE US

Our business environment changes rapidly and the intensity of the competition ratchets up unceasingly. Like every company in the Hirtenberger Group, we constantly strive to improve our performance. But we cannot lose sight of our values and principles - they are our compass, our roadmap for future success.

As a globally active, sustainability-minded, family-owned company, the Hirtenberger Group obeys national and international laws, including

those that seek to combat corruption, promote fair competition and protect human rights. In everything we do, we keep ethical, ecological and social interests in view.

There are no pending suits, legal actions or other claims or liability payments outstanding for Hirtenberger Automotive Safety within the scope of normal business activity in 2016.

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OWNERS AND PUBLISHER:

Hirtenberger Automotive Safety GmbH & Co KGLeobersdorfer Straße 31-332552 Hirtenberg / Austria

Commercial registry number: FN 247485 z, Regional Court Wr. NeustadtUID-Number: ATU 630 65 355

9 | CORPORATE INFORMATION

GENERAL BUSINESS CONTACTS:

Tel.: +43 2256 811 84-379Fax: +43 2256 815 18E-Mail: [email protected] has.hirtenberger.com

LAYOUT & GRAPHICS:Alexandra Gaugl, Hirtenberger AG

Printing: Medien Fabrik Graz

Hirtenberger. Ingenuity. Engineered.

has.hirtenberger.com

Documents

2016 SUSTAINABILITY REPORT - Hirtenberger · 1.2 | REVENUE GROWTH IN 2016 Hirtenberger Automotive Safety looks back on a successful 2016. Since 2012 annual revenue has grown from