Environmental & Social Information • Jul 1, 2020
Environmental & Social Information
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«Consolidate the technological and market leadership in the design, production and distribution of a wide range of components for household appliances through constant attention to innovation, safety and the enhancement of internal expertise.
Associate business growth with social and environmental sustainability, promoting an open dialogue with the legitimate expectations of stakeholders»
| STRATEGIC PILLARS |
|---|
| Innovation |
| Eco-efficiency |
| Safety |
| Partnerships with multinational groups |
| Widening the range of components through acquistions |
| Enhancement of intangible assets and intellectual capital |
Micro switches & Accessories
Ovens
Total Group employees at 31 March 2020:
Weight of top 10 customers on total Group sales is 47% (45% in 2018)
Each top 10 customer represents less than 8% of total Group sales
Long-term agreements and strong relationships with all the main players in the household appliances business, based on mutual trust, technical cooperation, co-engineering and tailor-made products
Product Innovation: about 90 active patents
Cost and quality leadership: highly automated plants and low incidence of direct labor, € 61 mn investments (8.8% of sales) in the past 5 years, to reinforce competitiveness and to ensure the highest quality standards
Strong operational leverage: great flexibility in production volumes growth, ready to satisfy customers requests
Intellectual capital: highly specialized and qualified staff (40+ R&D engineers)
PIONEER IN SUSTAINABILITY REPORTING
SINCE 2000 SOCIAL REPORTING
Socially responsible mangement for sustainable development
SINCE 2005 INTEGRATED REPORTING (Triple bottom line) 15TH EDITION (2019) INTEGRATED ANNUAL REPORT
| (thousand of Euro) |
2019 | 2018 | Change |
|---|---|---|---|
| ECONOMIC VALUE GENERATED BY THE GROUP | 160.095 | 160.054 | 41 |
| Revenue Other income |
155.923 3.556 |
150.642 3.298 |
5.281 258 |
| Financial income | 638 | 373 | 265 |
| Value adjustment | 1.859 | 1.600 | 259 |
| Bad debt provision | (509) | (421) | (88) |
| Exchange rate differences | (1.379) | 5.384 | (6.763) |
| Income/expenses from sale of PPE and intangible assets | 46 | 28 | 18 |
| Value adjustments to PPE and intangible assets | - | (850) | 850 |
| Profit/losses from equity investments | (39) | - | (39) |
| ECONOMIC VALUE DISTRIBUTED BY THE GROUP | 140.762 | 137.515 | 3.247 |
| Remuneration of suppliers | 96.626 | 90.219 | 6.407 |
| Remuneration of employees | 37.103 | 34.840 | 2.263 |
| Remuneration of lenders | 1.339 | 1.206 | 133 |
| Remuneration of shareholders | 6.060 | 6.071 | (11) |
17
*Estimation based on volumes manufactured by Sabaf
| Materials used (tons) | 2019 | 2018 | 2017 | |
|---|---|---|---|---|
| Brass | 481 | 789 | 540 | |
| Aluminium alloys | 6,476 | 7,831 | 8,070 | |
| Zamak | 11 | 33 | 91 | |
| Raw materials | Steel | 21,881 | 7,861 | 7,631 |
| Cast iron | 142 | 137 | 39 | |
| Enamel | 193 | 189 | 189 | |
| Bronze | 1 | - | - |
| Cardboard | 397 | 454 | 482 | |
|---|---|---|---|---|
| Packaging Materials | Plastic | 136 | 140 | 143 |
| Wood | 479 | 503 | 521 |
80% of brass and 50% of aluminium alloys are produced by scrap recycling
Increase in steel consumption is due to the inclusion in the scope of consolidation of C.M.I.
70% of cardboard and 100% of plastic come from recycling
| 2019 | 2018 | 2017 | |
|---|---|---|---|
| Electricity from non-renewable sources (MWh) | 28,526 | 30,225 | 30,841 |
| YoY change | $-6%$ | $-2%$ | |
| Electricity from renewable sources (MWh) | 50 | ||
| Natural gas (m3 x 1000) | 3,740 | 3,918 | 4,059 |
| YoY change | $-5%$ | $-3%$ | |
| Diesel oil $(1 \times 1000)$ | 51 | 21 | 5.5 |
| Petrol (1 x 1000) | 10 | ||
| LPG (1 x 1000) | 0.09 | ||
| TOTAL CONSUMPTION (GJ) | 238,887 | 249,866 | 272,329 |
| TOTAL CONSUMPTION (MWh) | 66,411 | 69,463 | 75,707 |
| YoY change | $-4%$ | $-8%$ |
| Energy Intensity | 2019 | 2018 | 2017 |
|---|---|---|---|
| KWh on € of turnover | 0.426 | 0.460 | 0.489 |
| YoY change | -7% | -6% |
| Water consumption (m3 ) |
2019 | 2018 | 2017 |
|---|---|---|---|
| from municipal water supply | 56,409 | 110,655 | 81,472 |
| of which freshwater | 56,409 | 110,655 | 81,472 |
| of which other water | - | - | - |
| from well | 35,516 | 29,185 | 31,329 |
| of which freshwater | 35,516 | 29,185 | 31,329 |
| of which other water | - | - | - |
| TOTAL | 91,925 | 139,840 | 112,801 |
| YoY change | -34% | +24% |
No industrial waste water
Water used in production processes at Ospitaletto is treated in concentration plants (also started up in Sabaf Brasil)
The improvement of the cooling system at Sabaf Turkey contributed to the reduction in water consumption
At Ospitaletto factory, there is a plant for the collection of rainwater for use in industrial activities
| CO Emissions (tons) 2 |
2019 | 2018 | 2017 | |
|---|---|---|---|---|
| Scope 1 Direct emissions from refrigerant gases | tCO eq 2 |
59 | - | - |
| Scope 1 Direct emissions from fuel consumption | tCO 2 |
7,734 | 8,022 | 8,508 |
| Total direct emissions | tCO eq 2 |
7,793 | 8,022 | 8,508 |
| Scope 2 Indirect emissions (location based) | tCO 2 |
9,979 | 10,498 | 11,570 |
| Scope 2 Indirect emissions (market based) | tCO 2 |
12,484 | 13,133 | n.a. |
| Total emissions (location based) | tCO eq 2 |
17,772 | 18,520 | 20,078 |
| YoY change | -4% | -8% |
Value and respect diversity
Adopt criteria of merit and competence
| 2019 | 2018 | 2017 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| $9$ $39$ | ් | $\frac{1}{2}$ $\frac{1}{2}$ $\frac{1}{2}$ | đΫ | ් | $\circ$ | ♂♀ | |||
| Total | 657 | $378$ 1,035 | 506 | 254 | 760 | 496 | 260 | 756 |
| 2019 | 2018 | 2017 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| đΫ | đΫ | ♂ዩ | |||||||
| Permanent | 621 | 369 | 990 | 487 | 247 | 734 | 473 | 249 | 722 |
| Temporary | 36 | 9 | 45 | 19 | 26 | 23 | 34 | ||
| Total | 657 | 378 | 1.035 | 506 | 254 | 760 | 496 | 260 | 756 |
| 2019 | 2018 | 2017 | |
|---|---|---|---|
| $<$ 30 years old | 17.2% | 13.9% | 16.0% |
| 31-40 years old | 35.1% | 39.9% | 40.5% |
| 41 - 50 years old | 31.8% | 31.8% | 30.7% |
| over 50 years old | 15.9% | 14.4% | 12.8% |
| Total | 100% | 100% | 100% |
| 2019 | 2018 | 2017 | |
|---|---|---|---|
| Degree | 14.9% | 14.1% | 12.3% |
| High school diploma | 44.2% | 45.5% | 45.0% |
| Middle school diploma | 39.7% | 40.1% | 41.5% |
| Elementary school diploma | $1.2\%$ | 0.3% | 1.2% |
| Total | 100% | 100% | 100% |
| 2019 | 2018 | 2017 | |
|---|---|---|---|
| $< 5$ years | 37.2% | 26.7% | 24.5% |
| $6 - 10$ years | 12.3% | 12.9% | 18.9% |
| $11 - 20$ years | 36.6% | 46.7% | 45.1% |
| over 20 years | 13.9% | 13.7% | 11.5% |
| Total | 100.0% | 100.0% | 100.0% |
| 2019 | 2018 | 2017 | |
|---|---|---|---|
| Total women | $7.14\%$ | $9.06\%$ | $10.38\%$ |
| Total men | 10.19% | 11.07% | 13.31% |
| Total | $9.08\%$ | $10.39\%$ | 12.30% |
| Company | Total 2019 purchases (€/000) |
% Local purchases |
|---|---|---|
| Sabaf S.p.A. | 56,466 | 79% |
| Faringosi-Hinges S.r.l. | 8,331 | 99% |
| ARC S.r.l. | 3,466 | 83% |
| CMI Group | 24,916 | 71% |
| Sabaf Turkey | 10,242 | 72% |
| Okida | 5,537 | 68% |
| Sabaf do Brasil | 7,491 | 95% |
| Sabaf China | 534 | 98% |
Socially responsible approach along the supply chain
Priority to suppliers with certified Quality and Environmental Systems
Sabaf Charter of values shared with suppliers
Very short payment terms (mainly 30 days) agreed for small suppliers
Strict separation between Shareholders and Management
High profile of Indipendent Directors
Full compliance with the Corporate Governance Code of Listed Companies
are responsibility of the BoD
Market cap: € 131 mn at 25 June 2020
% OF SHARE CAPITAL
| Total projects |
Main projects |
Estimated additional annual sales |
Period | Markets | ||
|---|---|---|---|---|---|---|
| Burners and valves |
31 | 6 | 15 - 18 mn € | 2019 - 2021 2022 |
North America, Europe, South America. Far East |
|
| Electronic components |
48 | 30 | 4 - 6 mn € | 2019 - 2021 2022 |
Europe and Middle East, South and Nord America (new markets) |
|
| Hinges | 19 | 9 | 3 - 4 mn € | 2019 - 2021 2022 |
Europe | |
| Total | 9 8 |
4 5 |
22 - 28 mn € |
COVID-19 All main projects are confirmed
Estimated delay of about 6 months
Basis for organic growth in the near future
| I Q 2020 | I Q 2019* | ∆ % 20 - 19 | |||||
|---|---|---|---|---|---|---|---|
| TURNOVER | 43,852 | 100% | 37,635 | 100% | +16.5% | ||
| EBITDA | 7,689 | 17.5% | 6,617 | 17.6% | +16.2% | ||
| EBIT | 3,360 | 7.7% | 3,350 | 8.9% | +0.3% | ||
| EBT | 2,192 | 5.0% | 2,721 | 7.2% | -19.4% | ||
| PROFIT FOR THE YEAR | 1,680 | 3.8% | 2,156 | 5.7% | -22.1% | ||
| PROFIT OF THE GROUP | 1,547 | 3.5% | 2,115 | 5.6% | -26.9% |
| I Q 2020 | I Q 2019* | FY 2019* | |
|---|---|---|---|
| FIXED ASSETS | 134,108 | 118,200 | 138,506 |
| NET WORKING CAPITAL | 55,726 | 57,090 | 49,693 |
| PROVISIONS | (11,751) | (6,402) | (11,966) |
| CAPITAL EMPLOYED | 178,083 | 168,888 | 176,233 |
| EQUITY | 117,545 | 120,395 | 121,105 |
| NET DEBT | 60,538 | 48,493 | 55,128 |
| SOURCES OF FINANCE | 178,083 | 168,888 | 176,233 |
| I Q 2020 | I Q 2019* | FY 2019* | |
|---|---|---|---|
| Liquidity and current financial assets | (14,189) | (12,538) | (19,954) |
| Current financial debt |
24 365 , |
17 578 , |
23 652 , |
| financial debt Non-current |
50 362 , |
43 453 , |
51 430 , |
| Financial debt | 74,727 | 61,031 | 75,082 |
| Net financial position | 60,538 | 48,493 | 55,128 |
| I Q 2020 | I Q2019 | FY 2019 | |
|---|---|---|---|
| Unsecured loans | 54,354 | 54,069 | 55,222 |
| Short-term bank liabilities | 4,138 | 2,453 | 3,689 |
| Leases out of IFRS 16 scope | 1,270 | 1,423 | 1,309 |
| Other financial debts | 1,293 | 180 | 1,293 |
| Put Options | 10,350 | 1,818 | 10,350 |
| IFRS 16 leases | 3,322 | 1,088 | 3,219 |
| Financial debt | 74,727 | 61,031 | 75,082 |
In many of the main markets, demand and production levels have been strongly impacted by restrictions imposed by local authorities leading to postponement or cancellation of orders by customers.
In April, sales fell by 18% (30% taking into consideration the same scope of consolidation), while a partial recovery is expected as early as May.
Based on the information currently available, the Group expects to close the first half of the year with sales of between € 78 and € 82 million (up 4% - 9% compared with the first half of 2019).
For the rest of the year, visibility is still extremely limited. In the absence of events that would have a further lasting impact on consumption in its main target markets, the Group expects a gradual recovery with sales in the second half of the year higher or, in the worst-case scenario, in line with those of the first half.
The Group believes that the strategy aimed at strengthening its international presence remains valid and has therefore not deemed it appropriate to revise the plan of organic investments for the current year, although some investments will be delayed due to current restrictions on mobility.
Certain information included in this document is forward looking and is subject to important risks and uncertainties that could cause actual results to differ materially.
The Company's business is in the domestic appliance industry, with special reference to the gas cooking sector, and its outlook is predominantly based on its interpretation of what it considers to be the key economic factors affecting this business. Forwardlooking statements with regard to the Group's business involve a number of important factors that are subject to change, including: the many interrelated factors that affect consumer confidence and worldwide demand for durable goods; general economic conditions in the Group's markets; actions of competitors; commodity prices; interest rates and currency exchange rates; political and civil unrest; and other risks and uncertainties.
Pursuant to Article 154/2, paragraph 2 of the Italian Consolidated Finance Act (Testo Unico della Finanza), the company's Financial Reporting Officer Gianluca Beschi declares that the financial disclosure contained in this financial presentation corresponds to the company's records, books and accounting entries.
Gianluca Beschi - +39.030.6843236 [email protected]
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