SIMPLY CLEVER CORPORATE SOCIAL RESPONSIBILITY KODA AUTO RADEK

SIMPLY CLEVER CORPORATE SOCIAL RESPONSIBILITY ŠKODA AUTO RADEK ŠPICAR, M. Phil. Director of External Affairs February 23, 2010 Brussels 1

SIMPLY CLEVER ŠKODA AUTO: OVER A 100 -YEARS TRADITION

SIMPLY CLEVER Skoda Auto Introduction Ø Skoda Auto is the biggest privat company in the Czech Republic Ø over 26 153 employees (1 335 in foreign subsidiaries) Ø production more than 684 000 cars annually Ø represents 4% of the country GDP Ø cca 8% of total exports of the Czech Republic Ø production plants in 6 countries (Czech Republic India, China, Russia, Ukraine, Kazachstan) Ø leader on the field of research, inovation and company’s education in the Czech Republic, etc. Good economic health is necessary condition to widen our environmental and social activities

SIMPLY CLEVER 2009 ASSEMBLY PLANTS ABROAD Ukraine (Solomonovo) 09/2002 Russia (Kaluga) 10/2007 Kazakhstan (Ust-Kamenogorsk) 08/2005 China (Shanghai) 03/2007 India (Aurangabad) 10/2001 101 countries 684, 000 cars 91% share of export

SIMPLY CLEVER PILLARS OF SUSTAINABLE DEVELOPMENT Social Economic Environmental

SIMPLY CLEVER ECONOMIC PILLAR Corporate Governance Ø Transparent relations with shareholders Ø Internal relations among supervisory board, bord of directors and management Ø Independent audit Code of conduct Supliers and consumers relations Ø Long-term partnership Ø Respect to their demands Ø Encourages suppliers to fulfil the highest technical, ecological and social standards though e. i. ISO 14001, 9001 etc. (96% of them fulfil)

SIMPLY CLEVER . SOCIAL PILLAR Skoda Auto invests annually more than € 11 mil. into social projects. Ø Age related projects • Protected workplaces • Physiotherapy • Re-qualifications Ø Health related projects • Healthy food in canteens • No smoking areas • Conditional programmes • Vaccinations against flu

SIMPLY CLEVER SOCIAL PILLAR Ø Gender related projects • Grow of number of women in management • Support women on maternity leave (leaving car and computer for their needs) • Contribution on nursery cost up to 30% Ø Diversity management • • • 1700 foreign employees from 28 countries in the company Creation of good working condition for all groups of employees focusing on age, sex and nationality Language courses, intercultural training for managers, …

SIMPLY CLEVER . ENVIRONMENTAL PILLAR Total investments in ecology in last 15 years € 370 million.

SIMPLY CLEVER ENVIRONMENTAL PILLAR The company´s ecological policy is focused on: 1) Environmental production Ø Recycling and using environmentally friendly products - (reduction and sorting of waste, 96% of supliers fulfil the highest ecological standards, etc. ). Ø Reduction of negative impact on environment - (reduction of water, heat and energy consumption per car) Ø Natural sources protection - (biomass combustion in the Skoda Auto powerstation = reduction of 10 % emission of CO 2 ) Ø Combined traffic - (60% of production transported by trains). 2) Environmental products Ø E 85, LPG, Greenline

SIMPLY CLEVER TOTAL AIR EMMISIONS PER CAR PRODUCED 2008

SIMPLY CLEVER GENERATION OF WASTE (excluding metals) PER CAR PRODUCED 2008

SIMPLY CLEVER Business expectation EU should: Ø support the CSR initiatives of the companies Ø promote the best practices Ø regulate the CSR framework through multilateral trade agreements (WTO, the International Labour Organisation etc… ) Ø adopt voluntary approach Ø lead campaigns for social and environment friendly EU external trade EU should not: Ø create restrictive or strict CSR related legislation Ø increase price of trade related external social policies Ø make barriers against free trade flow…

SIMPLY CLEVER Thank you for your attention Radek Spicar, M. Phil. Director, External Affairs Skoda Auto a. s. V. Klementa 869 293 60 Mlada Boleslav Tel: + 420 326 811 717 Fax: + 420 326 811 938 E-mail: radek. spicar@skoda-auto. cz