Pág. 1 Mondragon’s Experience Mondragón Corporación Cooperativa An experience based in:  Participation  Democracy  Solidarity Known Worldwide for  Bussines Succes  High Social Commitment  Relevant Industrial Group  Restructuration’s Capacity

Pág. 2 Mondragon’s Experience Index  Introdution  History & Reality ·1st Stage ·2nd Stage ·3rd Stage ·MCC today  The Co-operatives  The Groups  Co-operative’s Principles  Corporative’s Values  Share Capital

Pág. 3 Mondragon’s Experience 1.- History & Reality 1ª Stage : CO-OPERATIVES’ BEGINING & FAST DEVELOPMENT  Education & Training is the seed of the Group  Phase of Creation: Sales 30% Working force 10% Profit 7.5% sales  Creation of coverage’s entities  Credit Co-operative Caja Laboral  Health Insurence & Welfare Lagun Aro  Promoting CapacityDivisión Empresarial  Research IKERLAN  Directive & Cooperative Training OTALORA

Pág. 4 Mondragon’s Experience 1st SATEGE: Evolution of MCC between Mill/Ptas Years NºCoopsSales Export. Workforce Invstmt % 12% 28%88%10% 15%  Associated Process  Members of Caja Laboral  Creation of the Grupo:Fagor y otros Eroski 1.- History & Reality

Pág. 5 Mondragon’s Experience 2nd STAGE: THE 80’s. EUROPEAN UNION  Crisis & decitions taken  Suport through the Groups  Self- financing  Coverage measures & employment administration  Constitution of the Congress and General Council 1.- History & Reality

Pág. 6 Mondragon’s Experience 3rd STAGE: The 90’s : GLOBALIZED MARKED  Strategical adjustment to:  Give answer to the European market  Sinergies Advantages  Create bigger units  Group the cooperatives  Creation of Mondragón Corporación Cooperativa  Unit for Stategical Direction  Divided by Sectors  Maximun business and social efficiency:  New organization  Creation of the Corporative Founds  Promoting the Values 1.- History & Reality

Pág. 7 Mondragon’s Experience Corporate Structure CONGRESS Research, Training and Education Centres FINANCIAL GROUP DISTRIBUTION GROUP INDUSTRIAL GROUP Automotive Components Construction Industrial Equipment Household Goods Engineering and Capital Goods Machine Tools GENERAL COUNCIL

Pág. 8 Mondragon’s Experience Operations 2001 (In millions of € ) Industrial Group Turnover 3,428 Net Bank Investment 5,163 Distribution Group Turnover 4,634 PROVISIONAL DATA

Pág. 9 Mondragon’s Experience MCC Personnel (at the end of 2001) TOTAL JOBS 59,827 Distribution Group 30,436 Jobs (%44) (%51) Corporate Activities 648 Jobs (%1) Financial Group 2,344 Jobs (%4) PROVISONAL DATA Industrial Group 26,399 Jobs

Pág. 10 Mondragon’s Experience Distribution of employment (at the end of 2001) PROVISIONAL DATA Basque Country 29,556 48% Other Spanish Communities 25,306 42% International 5,826 10%

Pág. 11 Mondragon’s Experience Central Departments PRESIDENCY GENERAL COUNCIL Social Department Financial Department Technical Secretariat International Operations Innovation and Develop. General Secretariat Management and development of Directives Socialworker Regime Training and Cooperative Divulgation Coordination Educational Area Economic Analysis Treasury Risk Management Strategic Planning Management of Corporate Resources Communication and Advertising Model of Management Development Technology Centers Coordination LatinAmerica Area Manager Asia Area Manager Corporative Delegations Comercial Promotion & Trading Comp. Business Promotion Innovation and Technology New Sectors ATEGI Purchasing Management Center Legal Advice Institutional Relationships

Pág. 12 Mondragon’s Experience MCC Worldwide

Pág. 13 Mondragon’s Experience Value added generated by MCC In millions of pesetas

Pág. 14 Mondragon’s Experience MCC in the Basque Country 1999 *Number of people **Of which 267,389 million pesetas are not purely industrial as they correspond to the Energy and Water sector ***Without exports of energy products In Millions of pesetas

Pág. 15 Mondragon’s Experience Basic Functions Business Policy and Strategic Control Strategic Management Operational Management Stratetic Planning Cooperative Congress - Standing Commitee Divisions Sectorial Subgroups Business Units/ Cooperatives General Council Corporate Centre

Pág. 16 Mondragon’s Experience Assets evolution Financial Group Millions of € 1, , ,402 1,204 7,891 2,425 PROVISIONAL DATA

Pág. 17 Mondragon’s Experience Industrial Group Sales evolution , M of € 71,2% 72,2%74,6%55,7%48,7% 28,8% 27,8% 25,4% 44,3% 51,3% PROVISIONAL DATA

Pág. 18 Mondragon’s Experience Industrial Group -Sales 2001 Automotive Industrial Equipment Components Construction Investigation Machine Tools Engineer. & Cap. Goods Household Goods 746 M € 386 M € 337 M € 469 M € 1,034 M € 316 M € 176 M € 11 M € TOTAL SALES 3,475 M of € %21,5 %11,1 %9,7 %13,5 %29,7 %9,1 %5,1 %0,3

Pág. 19 Mondragon’s Experience Distribution Group Sales evolution , , M de € PROVISIONAL DATA