Annual Report 2016
PEOPLE, THE ENGINE OF MONDRAGON
A connection of minds, emotions, responsibilities, visions, words and projects.
A complicity that makes us stronger. a cooperative network that drives our progress.
A COMMITMENT SHARED WITH SOCIETY. AND A GUIDE TO THE FUTURE.
A message from the President
MONDRAGON: A new era
2016 has been a turning point for MONDRAGON. During the fiscal year, the foundations of a new stage have been laid. The Conference, held in July 2016, established the new roadmap for the group. This new path pivots around the presentations “The MONDRAGON of the future” and “Social and Corporate Policy 2017/2020”, both documents having been unanimously approved at the Conference. The former aims to give a new momentum to the experience of cooperative values, migrating towards a new, more competitive organisational model and to restructuring financial intercooperation funds and instruments, while the challenge of the social and corporate policy for the new strategic cycle focuses on getting businesses to develop from sustainable competitive positions, based on five strategies: cooperative commitment and identity, financing, innovation and business promotion, intercooperation, and global presence.
Thus, over the next few years, we will be adapting – in an experience of permanent adaptation – our Cooperative Experience to the agreements approved in the Conference.
Strictly in the corporate context, it should be noted that, in a global scenario marked by uncertainty, the Group as a whole has shown very positive figures. One highlight is the employment rate growth in the industrial area, with the generation of over 1,400 new jobs in 2016. This fact consolidates the evolution of the last triennium, in which more than 3000 new industrial positions have been created. The industrial area as a whole already employs a total of 34,329 people.
Another positive fact are the industrial investments made in 2016, reaching 326 million euro, with a significant increase of 56% over the previous year.
When taking into account the evolution of the main business variables, which we detail in this annual report, we must be optimistic for the future. The current world, a space in which our cooperatives operate, is a focus of uncertainty involving a certain amount of risk in our businesses, while representing an immense potential for new opportunities. Therefore, we must align our forces to optimise the synergistic effects of our activities and rely on our potential and experience to consolidate the positive evolution of recent years.
In summary, we have successfully overcome 2016 and are already immersed in a new fiscal year, and a new era for MONDRAGON, in which competitiveness, the ability to innovate in business, and intelligent intercooperation between our activities will be key elements for the development of projects that can generate profitability in a sustained way. This is based on the conviction that our cooperative model has to assume a competitive advantage that will translate into a greater generation of wealth in the environment.
1 Mutual Society
10 Support Entities
7 International Services
140 Production Plants
|Total sales (industry and distribution)||11.368||11.399||0,3|
|Intermediate Funds LABORAL Kutxa||18.753||19.619||4,6|
|Equity Fund LagunAro||5.798||6.325||9,1|
| ||2015||2016||% Variation|
|% of shareholders in Industrial Area cooperative workforce||81,0||77,8||-3,8|
|% of female shareholders in cooperative workforce||43,0||42,9||-0,2|
|Rate of Industrial Area incidents or accidents||38,4||35,3||-8,1|
|Working shareholders capital stock||1.670||1.681||0,7|
|Number of workers in governing bodies||810||810||0,0|
|Funds for activities with a social content||22,7||22,6||-0,4|
|No. of students in educational centres||11.368||10.358||-8,9|
|No. of ISO 14000 certifications in force||72||73||1,4|
|Number of eco-design certifications||4||4||0,0|
Investment in the future
|% funds allocated to R&D from the added value of the Industrial Area||8,6||8,0||-7,0|
|No. of Technology Centres and R&D units||15||15||0,0|
|Total no. of researchers||1.774||1.921||8,3|
Closed the year with a consolidated profit, after taxes, of 111.3 million euro. It has thus offset the pressure on the margins of the financial activity thanks to the control of operating expenses and the high credit quality of its assets.
The Insurance business, with results of 31.8 million euro, representing a new historical record for the Company, has also contributed significantly to the Company’s results. The profitability, solvency or liquidity ratios reached are outstanding, thus strengthening its balance despite the difficult situation.
2016 can be considered positive in terms of the management of the different areas of activity of the Entity.
The group of active contributors of LagunAro, EPSV amounted to 28,413 policy holders, 146 less than the previous year. The group of pensioners experienced a net increase of 491 people during the year, reaching a total of 13,050 people at the end of 2016.
The Equity Fund increased over the year by 527 million to reach a total of 6,325 million euro at the end of 2016.
111,3 M€ Profits
31,8 M€ Insurance business
6.325 M€ Equity Fund
28.413 Policy holders
5.132 M€ Sales
326 M€ Investments
254.7 M€ Profitability
3.573 M€ International sales
160 M€ Innovation
Retail and distribution
6.051 M€ Sales
87 M€ Investments
+63 % Profitability
260 M€ Consumer Savings
254,7 M€ Sales
9.643 M€ Workers
Action Framework 2016
01 Implementation and deployment of innovation models.
02 Diagnosis and advice regarding the potential implementation of technologies included under the concept of Manufacturing 4.0.
03 Collaborative networks with international universities.
04 Multi-sector ideas and joint projects based on raw materials.
Corporate Office in Brussels
Furthermore, the internationalisation of R&D has continued to be promoted through the Corporate Office in Brussels, from which it has continued to support cooperatives by monitoring and contributing to strategic documents, legislative deeds, and financing opportunities. In this line, more than 100 proposals have been submitted to various European programmes.
CS CENTRO STIRLING
461 Invention patent families
1.921 Full-time researchers
327 M€ In new products and services
President of the General Council
Juan Mª Palencia
CHP Automotive Division
Machine Tool Division
Financial Management Division
Social Management Division
José Antonio Alustiza
José María Azurmendi
Tools and Systems
Mikel Del Rio
Engineering and Services
José Luis Pérez