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HD&IT
Annual Report 2017
Human Development
and Information Technology

TABLE OF
CONTENTS
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LETTER FROM HD & IT LEADERSHIP TEAM
CONTEXT & HD STRATEGY 2017-2020
HD TEAM STRENGTHENED
STRENGTHEN HD TEAM
HDGO! HD TRANSFORMATION PROJECT
CLOSED CRITICAL POSITIONS
MANAGING CHANGE IN KEY PROJECTS
NEW OFFICES
PROJECTS AND CHANGE MANAGEMENT OFFICE
LEADERSHIP SCHOOL
NEW ORGANIZATION DESIGN
TALENT MANAGEMENT PROCESSES
LABOR AFFAIRS
TOTAL REWARDS
HD KPI’S
INFORMATION TECHNOLOGY ACHIEVEMENTS
ADJUSTED HD STRATEGY
MEET THE HD & IT LEADERSHIP TEAM

4
LETTER FROM
HD & IT LEADERSHIP
TEAM

Dear reader,
Whether you are a Metalsa Board or Metalsa Leadership Team member or a
Collaborator or Coordinator in Metalsa we are very glad to share with you our
achievements made during 2017, as well as the exciting journey that we have
been walking together, the challenges that are yet to come and the milestones
that we still need to complete in order to keep improving the value that we provide
to the business.
We want to recognize all and each one of the HD and IT Team
Members globally whose daily efforts have made this possible.
Last year was a breakthrough for our function. During 2016 we worked together
in designing the organization, the processes and the technology we needed to
transform HD globally and 2017 was the year we started to make it a reality.
We are building the infrastructure that will make us more strategic, that will empower
our people to take better talent decisions, to imagine their professional
future and to build the path to get to were they want and to take accountability
for their own development.
We still have a lot to do; but looking forward, our objective is very
clear: To enable the organization and people to achieve business results.
In order to accomplish this, we are rising the bar in everything we do in order to
deliver Metalsa what it needs to achieve its goals, maintaining its humanistic
culture, but at the same time becoming an innovative and high-performance
oriented company.
Metalsa is evolving and implementing the initiatives that will enable this evolution
is what we are exciting about. Thank you for your trust.
HD & IT Leadership Team
5

CONTEXT & HD
STRATEGY 2017-2020
Growth
Identify and capture opportunities
in adjacent markets where we can
apply our strengthen and create
new competitive advantages.
Innovation
Develop differentiated process,
product and material capabilities to
retain leadership in our markets.
Global Enablers
Support and enable the organization
through the digital transformation and
standardization of global processes.
Operational Excellence
Drive long term performance
improvement in our facilities to
deliver service, quality and cost
competitiveness.
One Metalsa
Continue with our humanistic approach and
introduce and deploy a culture of innovation
to strengthen the engagement of our
colleagues across the global organization.
6

HD STRATEGY
2017-2020
This was the driver to align
our function by developing
the HD Strategy in March
2017, which integrates the
following elements:
HD MISSION
HD VISION
2020
To enable metalsa organization and people to achieve business goals.
Be a respected business partner
CENTRAL
CHALLENGE
2017- 2018
STRATEGIC
PRIORITIES
ENABLE THE
ORGANIZATION TO
ACHIEVE BUSINESS
GOALS
BUILDING A HD TEAM STRONG IDENTITY
BUILD LEADERSHIP
BRAND “HIGHLY
HUMAN & HIGH
PERFORMANCE”
MEET TALENT
DEMAND
FOSTER A RELIABLE
HD IDENTITY
“INFLUENCE &
IMPACT”
INITIATIVES
2017 - 2018
· Adopt New Metalsa
Vision 2025
· Facilitate MOS Global
Deployment
· Develop Change
Management
Capability
· Strengthen Metalsa
Image
· Support M&A /
Divestitures / Restructures
· Launch Leadership
School
· Build-Execute MLT
Development Agenda
· Business Strategy-Plan
· Deployment Process:
Input for Performance
Management Process
· Launch Headcount
· Planning Process; linked to
budget
· Close key open positions
· Define-Imp. Global Talent
Recruiting & Selection Tools
· Implement Core Mfg
Processes Development
Solution
· (Re)Define Global Comp &
Benefits Policy & Implement.
Re/Ex-Pats Management
· Succession management
for MLT & Key Positions
· Deploy HDGO!
Successfully; including
HD Structure &
Governance
· Strengthen Talent in
HD Team
· Enable Business
Partner Role
PERFORMANCE
INDICATORS
· ESS results
· Business results
· Project scorecard
· Project scorecard
· Business results
· Training assistance and
360° evaluations
· Project scorecard
· Business results
· Training assistance and
360° evaluations
· Project scorecard
· HD Team 9 Box &
Development Ratings
7

URGENT AND IMPORTANT
HD TEAM STRENGTHENED!-
HUMAN DEVELOPMENT ORG STRUCTURE
(JANUARY 2017)
CENTERS OF EXPERTISE
Talent Planning & Succession Mgmt
TBD
Talent Acquisition
Talía Hernández
Human
Development
& IT Co.
Liliana Durán
HD Transformation Project
Juan Huerta
LV SBU
James Taigman
HD BUSINESS PARTNERS
CV SBU and Central Functions
Daniela Villarreal (acting)
Operations & Procurement
José Trujillo
Learning & Development
Alejandra Martínez
Total Rewards
John Carleton
Communication & Culture
Samantha Martínez
Projects & Change Management
TBD
8

Great things happen when the team is strong and complete. Reorganizing the structure
and covering the open positions with experienced and talented professionals was the first
step.
HUMAN DEVELOPMENT ORG STRUCTURE
(DECEMBER 2017)
CENTERS OF EXPERTISE
Talent Planning & Succession Mgmt
Óscar Fuentes
Talent Acquisition
Talía Hernández
Learning & Development
Alejandra Martínez
Human
Development
& IT Co.
Liliana Durán
HD Transformation Project
& Share Service Center
Juan Huerta
B&C SBU
James Taigman
Frames SBU
Angélica Pineda
Operations & Procurement
José Trujillo
HD BUSINESS PARTNERS
CV SBU
Angélica Pineda
Central Functions:
CD-F | I&T | HD
Beatriz Sotres
Total Rewards
John Carleton
Communication & Culture
Samantha Martínez
Projects & Change Management
Munira Hassanille
· Talent Diversity strengthened:
Centers of Expertise (CoEs) and HD Business Partners: International
experience in different industries and companies with mature HD
processes and global presence (FMCGs, consulting, Telecom).
· Organizational Structure: IT-HD split
· Changes in organizational structure:
- Less than 12 months in current position: 72%
- Internal moves: 36%
- New acquisitions: 36%
- Involuntary leaves: 18%
New HD
organizational
structure
OVERVIEW
9

URGENT AND IMPORTANT
HD TRANSFORMATION PROJECT
The significant growth that Metalsa has had in the last
years, triggered the implementation of this challenging
project with the objective of redesigning the way HD is
organized and provides service to the business and the
collaborators, increasing the efficiency of our processes
and empowering the people through digitalization.
IN 2017 WE HAD THE GO-LIVE
IN ALL MEXICO LOCATIONS,
AND THESE ARE THE RESULTS
WE HAVE HAD:
Kiosks efficiency translated in FTE’s:
Average time spent in kiosk: 2 minutes. Average time
spent before in HD offices: 40 minutes.
It is equivalent to 70 additional hourly workers, which
equals to $1.26 MUSD annually.
Talent Acquisition:
Lead time to close hourly positions improved 60%,
which equals 16 additional recruiters that are not being
hired , with an annuallized effect of $0.317 MUSD
Shared Services Center Efficiencies traslated to FTE’s:
Due to Data People Management we have 1 Labor Affairs
FTE available.
10

Other benefits:
All Latin America HD Business Partners are being
enabled through a special training program to develop
the skills they need in their new role.
We now have a Performance Management process in
place with 95% Mexico employees with objectives
defined and uploaded in system.
Mexico employees (6,720) had just one first-contact
option before (local HD Team), now everyone has
access to MyHD through 4 different channels:
Web portal, Mobile APP, 20 Kiosks and a Call
Center.
88% people satisfied with the service provided.
MyHD
Mobile
APP
WHAT’S NEXT IN 2018?
· Go live South America and USA
· Go live Digital Floor Shop project in Mexico (hourly workers
time and attendance
· Skills Matrix
· Business Intelligence and Big Data)
· Complete training for all new HD Business Partners about their
new role.
11

URGENT AND IMPORTANT
TALENT ACQUISITION EVOLUTION
We defined 2017 as the beginning
of Talent Acquisition’s evolution.
We started with over hundreds of
vacancies without visibility and
standardization.
In March 2017, with the CoE’s creation and the
Talent Acquisition team centralization, we
focused our energy in the process and tools
redesign that ensured Quality and Speed with
the following results:
CLOSED CRITICAL
POSITIONS
100%
of 2016 critical
positions closed
265
of 2017 critical
75% positions closed
CRITICAL POSITIONS CLOSED
WITH DIRECT IMPACT IN
BUSINESS STRATEGIES.
Lead time reduced in
60% for salary positions
read more
12

As part of our Talent Acquisition Intelligence,
we implemented a new strategy: Talent
Mapping.
Now, we identified key talents (names, structure
and salary ranges) within our main competitors
for the Technology areas.
ELECTRONIC CAREER PAGE
AND TESTIMONIAL VIDEOS
LAUNCHED IN MEXICO.
We designed the Image
and Branding Strategy:
“Your future is here”. Starting
as a pilot in Mexico,
USA and China.
Strategy Supported
Asia
México
South
America
USA
GRAND
TOTAL
Global Growth
60
2
22
87
Operative Excellence
4
50
13
65
133
read more
Global Enablers
6
23
6
10
45
Grand Total
10
133
21
97
265
13

URGENT AND IMPORTANT
MANAGING CHANGE IN KEY
PROJECTS
As the Change Management purpose is promote
a successful change adoption, the
change management team provide support
and tools to Metalsa's current key projects,
generating an integral solution with holistic
perspective (Organization, sponsorship,
communication and training) that minimizes
resistance to change in impacted audiences
and maximizes the benefits of transformation
by accelerating adoption for a long term sustainability.
PARTICIPATION IN FOUR
ONGOING PROJECTS
· HDGO! (April 2017)
· Vision el Talar (August
2017)
· Digital Shop Floor (October
2017)
· Organizational Design
(December 2017)
TRAINING &
ENABLEMENT
8
803
248
Train the trainers
sessions
Enable salary
collaborators
Training sessions
537 Training hours
79
Enablement support
materials developed
14

Welcoming the change implementation
with a sense of celebration.
Isidro Limon, a 73-years old collaborator, adopting
the new technology after 24 years being part
of Metalsa.
15

URGENT AND IMPORTANT
NEW
OFFICES
As Metalsa grew globally, more central positions
were created in order to support the planning,
commercial, technology and staff processes and
this led to the need of more work spaces and
infrastructure. Due to this situation, Metalsa took
the decision to undergo a greenfield, centralizing
its central offices in Pabellón M, located in Monterrey,
Mexico that will host 400 collaborators.
16

IMPACT
· A new know-how was generated. We learned and defined the guidelines for
designing workplaces to transmit our culture in every Metalsa facility.
· Increased employee engagement, creativity, productivity, teamwork and
cross department collaboration through this innovative work-space design.
17

IMPORTANT FOR THE FUTURE
PROJECTS AND CHANGE
MANAGEMENT OFFICE
Beyond attending urgent projects, the purpose of this Office is to develop a
centralized Projects and Change Management capability to drive increased
sponsorship, engagement, and involvement from the business; and develop
an organizational capacity to provide the right methodology, processes, and
people to help future programs effectively manage and absorb change. The
Projects and Change Management Office (PCMO) will support both Metalsa
as organization and Metalsa high impact projects.
PCMO Team Consolidation
100% complete.
Team credentials
· Average Experience: 15 years
· Experienced in following industries:
- Retail
- Financial Services
Technology
- Comm & Media
- Education services
- Cosumer goods
· 18 years in consulting and coaching
Change Management Methodology Definition 100%
Complete.
Project & Change Management Framework 100%
18

19

IMPORTANT FOR THE FUTUTRE
LEADERSHIP SCHOOL
The need of a common leadership framework to align efforts
and obtain business results through leaders triggered the
design and implementation of this initiative, which is our
institutional Leadership Development program for all collaborators
around the world and was launched in August 2017.
IMPACT
240 participants from USA, Mexico,
Brasil, Argentina, Germany, China,
Thailand and India
4.8 out of 5 in initial reaction
evaluation
96% attendance
8 Metalsa´s issues identified & 8
projects proposed
112 training hours
180 competency self-evaluation
applied
60 360° evaluations applied to
leaders
2 business simulators applied.
15 on-line programs on a new virtual
platform with a record of 85% of
participation.
20

2018
WHAT’S COMING IN 2018?
· Expansion of Leadership School
· Global Offer (online and face-to-face) Integration of Learning
Communities
· Virtual platform for Metalsa and employees to share knowledge
and practices and enrich the learning process.
MORE PHOTOS
AND VIDEO.
21

IMPORTANT FOR THE FUTURE
ALIGNING METALSA ORGANIZATION
WITH VISION 2025
P
BUSINESS NEED
Two primary forces drive the need for realignment of the Metalsa organization design:
a) The re-calibration of Proeza and Metalsa corporate roles
b) The implications of Vision 2025 at the SBU, Functional and enterprise level.
The strategic intent of Vision 2025 calls for autonomous SBUs that build competitive
advantage through market driven technologies. That intent and the need for
improvements in the passenger cars segment, underpinned three SBU operating
model comprised of Commercial Vehicles, Frames & Body and Chassis.
Central Finance and Technology organizations are key enablers of future SBU growth
or portfolio expansion. The Metalsa Operations & Systems team will improve and
ensure customer satisfaction increases in terms of delivery, quality, service and cost
competitiveness.
PROGRAM SCOPE
Every Function-Enabler, SBU and employee
will be touched by this Program. The
Scope is comprised of multiple work
streams at the enterprise (program) or
SBU and Function levels.
Enterprise (program) level work streams
are a result of macro process and structure
choices that will enable Metalsa’s
global strategy deployment and matrix
effectiveness. These include; metrics,
culture, key macro processes.
SBU and Functional workstreams
include more detailed micro design
choices including work process, structure,
roles, decision making, metrics and
support systems:
Technical &
Social Capabilities
Work
Progress
Support
System
Structure &
Governance
SYSTEM
DESIGN
CHOICES
Metrics
Roles
Decision
Authority
Linking
Mechanisms
view large
22

ogress
PROGRESS
During 2017 we worked with several Three key steps will take place in January
Metalsa and Proeza Senior Executives and February:
to explore, select and refine a new
macro structure for Metalsa. The new i) HDBPs and Change Management specialists
will receive methodology and
structure has been approved and communicated.
role training
ii) WS leaders and team members will be
Throughout the fourth quarter, the PMO recruited and aligned with the charters
and governance structure has been iii) current and future state exercises will
defined and all transition, communications
and leadership preparation has
be completed
been completed.
read more
EXPECTED BENEFITS
Expected benefits fall into three broad
categories: MLT and Strategy; SBU performance;
and Functional enablers.
1. Growth will be driven by more
effective strategic planning and execution
at the portfolio and SBU levels as
well as more effective M&A sourcing,
analysis, due diligence and integration.
2. SBU performance is expected
to exceed results versus their relative
performance metrics; protect CV leadership
and market share; sustain and grow
Frames; turnaround and aggressively grow
revenue in B&C through M&A
3. Functional capability should
increase significantly through the use of
global process excellence and alignment
with COE best practices. The most significant
capability improvements will come in
the areas of M&A; Strategic Planning, HD
Systems; Operational Standards; Technology
and Innovation; Digital Strategy and Insights;
and Procurement strategy.
23

BUSINESS AS USUAL
There are other initiatives running in HD, that were
part or our regular operations in 2017 but that stand
out from the rest and are important to mention:
TALENT MANAGEMENT
PROCESSES
a) Performance Management:
· We evolved from Focus Document to a more
integrated Talent Management process in
MyHD! and the inclusion of Competencies and
Values in the evaluation.
· Impact: Around 800 employees enabled and
500 hours of training. Above 845 Administrative
employees (95% of total) with aligned and
approved objectives. All through MyHD!.
Annual Performance Evaluation process: using
MyHD! for all administrative employees in
Mexico.
b) Workforce Planning:
· Headcount Planning 100% defined and
deployed and Strategic Workforce Planning
75% progress.
c) Career and Succession:
· Talent Review in Talent Talking Sessions (from
· March to June)
· 2nd & 3rd Level: 13 Sessions
· 4th Level: 12 Sessions
LEVEL
SESSIONS
COLLABORATORS
DISCUSSED
DEVELOPMENT
PLAN DEFINED (%)
FEEDBACK
SESSION (%)
2nd & 3rd
13
368
88
82
4th
12
249
94
90
24

LABOR AFFAIRS
a) Unions negotiations:
· Negotiated in 14 facilities in 6 different countries (Mexico, USA,
Argentina, Brazil, Germany and Thailand) saving 10.3% of approved
budget ($85.7 MUSD actual vs $95.6 MUSD budget)
b) Bergneustadt Transformation:
· Due to substantial financial loses and shrinking business over the
next 2-3 years the company set up a team to “right-size” this facility.
· Savings target for December 2018: € 3.2 Million Total
· Real Savings captured as of January 2018: € 3.5 Million (111% vs
target for 2018)
25

BUSINESS AS USUAL
TOTAL
REWARDS
a) Total Rewards Strategy: Developed holistic
approach to increase attraction of talent
required to implement and drive Metalsa´s
new strategic direction. This strategy continues
under review and is aligned to enable the
new high-performance culture and key talent
retention and attraction that the company
seeks. It will be further discussed with Proeza.
b) BMRA (Below Minimum Range
Adjustments): Improved competitive
positioning versus Q2 market salary
structure:
· All Employees: reduced population
below minimum (80%)
from more than half to one third
(52% to 30%)
· All EEs: increased population
(134 cases) @ midpoint+ (25% vs
13%).
· Key Talent: increased population
(105 cases) @ midpoint+
(66% vs 13%)
26

HD KPI’S
A very important outcome of the HDGO! Project
are the KPI’s that are becoming available in the
system for every Coordinator and HD member
to analyze and take better talent decisions.
As we continue to implement and consolidate
our HD operational model, the amount and
quality of the data will be increased having a
direct impact in all talent management processes.
6675
Headcount
32
Avg Age
Headcount
Female
531
Female
8%
Female
6144
Male
92%
Male
male
turnover
6.40%
Turnover
view more
27

INFORMATION
TECHNOLOGY
ACHIEVEMENTS
An important Project was to implement and develop
Metalsa Global Market Place (Purchasing system) in 8
Facilities USA, Mexico & South america during 2017.
Facts:
3642
users
requisitors
60
buyers working
with SPX
+1,500
Approvers
$ 521,898,518 USD
Purchase in Mexico 2017
425,355
OC México 2017
+1,425,355
Average Request per month
28

MODULES
IMPLEMENTED
read more
IT OPERATIONS PROJECTS
HDGO! Enabling technological platform
DT Project 2017 Digital Shop Floor Project
Next Generation Firewall to robust current information security platform
MAXIMO, MAINTENANCE MANAGEMENT SYSTEM IMPLEMENTATION
Email migration to Microsoft Cloud, overall 60% completed
MOS Global Collaboration Portal
29

30
CONTINUOUS
IMPROVEMENT

ADJUSTED HD STRATEGY
In alignment with the release of Metalsa Vision 2025, as well as the organizational
and cultural challenges that its enablement implies, last December the HD & IT
Leadership Team worked in adjusting the HD Strategy to this new reality.
HD MISSION
HD VISION
2020
To enable metalsa organization and people to achieve business goals.
Be a respected business partner
CENTRAL
CHALLENGE
2018- 2020
BUILDING A HD TEAM STRONG IDENTITY
STRATEGIC
PRIORITIES
ENABLE THE
ORGANIZATION TO
ACHIEVE BUSINESS
GOALS
RESHAPE CULTURE
“HUMANISTIC,
INNOVATIVE, HIGH
PERFORMANCE”
MEET TALENT
DEMAND
FOSTER A RELIABLE
HD IDENTITY
“INFLUENCE &
IMPACT”
INITIATIVES
2018 - 2020
· Organization Design
implementation
· Facilitate MOS Global
· Strengthen Metalsa
Image
· Support M&A /
Divestitures /
Restructures
· Business Process
Digitalization
· Cultural assessment
and reshaping
· Leadership assessment
· Revamp Leadership
School
· Reinforce Performance
Management
· Build-Execute MLT
development agenda
· Communication
Strategy to promote
cultural reshape
· Develop Change
Management Capability
· Workforce Planning
Process: identify talent
demand and action plan
accordingly.
· Strengthen Performance
Management: process &
strategic alignment.
· Talent Pipeline/Succession
Management process 2018:
MLT, and Key Positions
· Accelerate Talent Pipeline
Development (development
programs)
· (Re) Launch Core Mfg
processes development.
· (Re) Implement Global
Comp & Benefits Policy.
· Implement Talent
Acquisition Intelligence
· Define- Imp. Talent
Assessment Tools
· Define/deploy the
technology to support talent
demand process.
· Continue deployment
of HD Transformation
Project (HD Go!)
- Drive clarity for the
SDM
· Strengthen HD
Leadership Team
- HDLT: act by
example as a team
and as an individuals
· Reinforce HD Team
· Strengthen HD
Community
- Forums / Communication
- Define-Imp HD
Summit
· Enable the Business
Partner Role
- Role clarity
- Skills building
· Define-Imp Employer
Value Proposition
PERFORMANCE
INDICATORS
· Business results
· ESS results
· Externally image
measurement
· MOS maturity level
· Organizational
performance
disruption recovery
· ESS, 360°
· Cultural assessment
· Successors pipeline
· Performance and
Business Results (formal
KPI set to be defined)
· Project Scorecard
· Talent Mgmt: Talent
Demand GAP: Quantity &
Quality, Costs / Time &
Quality to fill
· Talent Process KPIs
view more
· Project scorecard
· HD Team 9 Box &
Development Ratings
· HD Team Engagement
31

We want to thank all of the HD & IT team
members globally, because all of this was
possible through their effort and contribution.
We are very proud of the progress we all
have made as a team and we invite you to
continue collaborating in the years to come
so together we can achieve amazing results
in support of Metalsa success.