Annual Report • May 6, 2016
Annual Report
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CREATIVE CONCEPT
With over 20 million burners and as many valves manufactured each year, the Sabaf Group was once again recognised as the global market leader in this sector in 2015. Our components for cooking appliances can be found in hobs and ovens throughout the world: a genuine touch of Made in Italy in the kitchen.
This idea led us to the creative design of our Annual Report this year: it provides a virtual tour of the world through the countries shown in the report, distinguished by the company's representative products in each region.
The photographic design marks a departure from previous Annual Reports, in which vector diagrams were the main graphic element. The materials and props used to design and create the sets result in bold yet complementary colours which dominate the scene: each country has its own reference colour, depicted in the image through the use of special Fedrigoni paper from the Sirio Colour series. Geometry and alignment are achieved using solid shapes with ad hoc designs in which iconographic elements and foods typical of the eight selected countries are carefully arranged, creating evocative settings which allow our minds to wander from Brazil to China and from Italy to Turkey.
It conveys a message of unity and collaboration, a tribute to the world and to the various cultures within it.
BUSINESS MODEL AND STRATEGIC APPROACH
INTERNATIONAL OPERATIONS AND CORE MARKETS
CORPORATE GOVERNANCE, RISK MANAGEMENT, COMPLIANCE AND GENERAL REMUNERATION POLICY
SOCIAL AND ENVIRONMENTAL SUSTAINABILITY
REPORT ON OPERATIONS
CONSOLIDATED FINANCIAL STATEMENTS AT 31 DECEMBER 2015
SEPARATE FINANCIAL STATEMENTS AT 31 DECEMBER 2015
REPORT ON REMUNERATION
"The future presents huge opportunities, but we must work hard to make our organisation stronger and more cohesive so that we can seize them."
2015 was a moderately pleasing year for us. After an outstanding start to the year, there was a series of ups and downs. The fourth quarter saw a slight decline, VRWKH \HDU HQGHG ZLWK D PDUJLQDO LQFUHDVH LQUHYHQXHV EXW D PRUH VLJQLƓFDQW LPSURYHPHQW LQ SURƓW 7KLV LQFUHDVH ZDV DLGHG E\ WKH DSSUHFLDWLRQ RI WKH dollar, but we have worked internally to ensure continuous improvement in our productivity and the quality of our products and related services. This important work will continue and even accelerate in 2016 – a year in which we have also SODQQHGVLJQLƓFDQWRUJDQLVDWLRQDOSURGXFWLRQDQGORJLVWLFDOFKDQJHVDVSDUWRID move towards lean manufacturing, alongside a clear focus on all the innovations that could come with the Internet of Things. To make a further leap in quality, we need everyone at Sabaf to pull in the same direction: individual interests must be set aside in favour of cooperation. The future presents huge opportunities, but we must work hard to make our organisation stronger and more cohesive so that we can seize them.
Our foreign factories are, and will remain, a cornerstone of the effort to improve our results. Both Brazil (despite the profound crisis in the country) and Turkey (notwithstanding the geopolitical risks in the region) have made a crucial FRQWULEXWLRQWRRXUSURƓWDQGORVVDFFRXQWDQG,ZDQWWRUHLWHUDWHWKDWZLWKRXWWKH move we made towards internationalisation, our group would be smaller and more exposed to the risks of weak demand in our industry.
As I informed you a year ago, we have continued our path of international expansion by opening a small production site in China. Production began in June, and we are pleased with how things are progressing in this distant outpost. Of course, the level of sales is not yet satisfactory, but China is the biggest market in the world for gas cookers, so it is one of our priorities. Even though there are some signs of a slowdown in the Chinese economy, Sabaf's potential remains intact and is actually probably improving due to the increased cost of labour, which RQRQHKDQGFDXVHVGLIƓFXOWLHVIRURXUORFDOFRPSHWLWRUVDQGRQWKHRWKHUUDLVHV the buying power of households and demand for higher quality products. Now we PXVWUHGRXEOHRXUVDOHVSXVKVRWKDWZHFDQDFKLHYHUHYHQXHVWKDWDUHEHƓWWLQJRI our strategic positioning.
In 2015, we also seriously considered a possible acquisition in the American market in order to accelerate our level of growth there as well. However, levels of quality among the local competition was frankly very far from our standards, so we decided not to make any acquisitions. Even so, our level of interest remains unchanged and we are looking at investing in a new production facility in Mexico or the United States. This facility would complete our international presence, meaning we could meet demand in every continent.
Even as we achieve a truly global reach, I think that the time has come for Sabaf WR WDNH D QHZ GLUHFWLRQ 2XU LQGXVWU\ EHFRPHV PRUH GLIƓFXOW HYHU\ GD\ WKH FRQFHQWUDWLRQRIRXUFXVWRPHUVVLJQLƓFDQWSULFHSUHVVXUHDQGDJOREDOVLWXDWLRQ in which the highest demand comes from areas of great instability means, to my mind, that we need to expand our range of products and services. Of course, the clear focus on our core business will remain, but inorganic growth is also an opportunity that we should explore. I am thinking especially of niches adjacent to our own, where we would exploit the technical expertise we have built up over decades and the business relationships developed with a great many contacts in every corner of the planet.
In contrast to 2015, the year 2016 has begun very slowly: demand is weak in all areas, with the exception of North America. Yet we will not stop investing, bringing down costs, launching new products, and winning new customers. All of this will bring fruit in due course, but by no means within a single quarter. For us, in any case, short-term results have always been secondary to results that will last and create sustainable growth.
:HKDYHDGGHGWRRXUQXPHURXVFHUWLƓFDWLRQV,62,626\$ LQ E\DFKLHYLQJ,62HQHUJ\FHUWLƓFDWLRQ7KHTXDOLW\RIRXUSURGXFWVWKH protection of the environment and the health and safety of our staff are now further improved by the best possible use of energy sources, in what is a virtuous and VHOISHUSHWXDWLQJF\FOH&HUWLƓFDWLRQVDUHQRWWURSKLHVWREHGLVSOD\HGEXWWRROVWR help us work better and with greater discipline. I would therefore like to thank my colleagues who worked so hard to achieve this important recognition.
Thank you. Alberto Bartoli
7KH SXEOLFDWLRQ RI 6DEDIōV \$QQXDO 5HSRUW LQ LWV HOHYHQWK HGLWLRQ WKLV \HDU FRQƓUPV the Group's commitment, undertaken in 2005, to providing integrated reporting of its economic, social and environmental performance.
&RQƓUPLQJ WKH LPSRUWDQFH RI LQWHJUDWHG UHSRUWLQJ DV WKH QHZ HPHUJLQJ FRUSRUDWH reporting model, work continued in this regard at an international level. In December 2013, the International Integrated Reporting Council (IIRC) presented the international framework on sustainability reporting, "The International
6DEDIZDVRQHRIWKHƓUVWFRPSDQLHVDWLQWHUQDWLRQDOOHYHOWRDGRSWLQWHJUDWHGUHSRUWLQJ and intends to continue along this path, guided by the International Framework, LQ WKH NQRZOHGJH WKDW LQWHJUDWHG FRPSOHWH DQG WUDQVSDUHQW GLVFORVXUH FDQ EHQHƓW both companies themselves - through a better understanding of the various strategic strands and greater internal cohesion - and the investor community, which can thereby gain a clearer understanding of the link between strategy, governance and company performance.
Sections 1 – Business model and strategic approach, 2 – International operations and core markets and 4 – Social and environmental sustainability comprise the \$QQXDO 5HSRUW DW 'HFHPEHU SUHSDUHG DFFRUGLQJ WR WKH * 6XVWDLQDELOLW\ 5HSRUWLQJ *XLGHOLQHV GHƓQHG E\ WKH *OREDO 5HSRUWLQJ ,QLWLDWLYH *5, LQ DQG include the indicators laid down for the option of "Core" reporting.
The Annual Report also refers to the AA 1000 (AccountAbility 1000) standards issued by AccountAbility, as regards the social reporting process and dialogue with stakeholders. \$V LQ SUHYLRXV \HDUV WKH SURFHVV RI GHƓQLQJ FRQWHQW DQG GHWHUPLQLQJ PDWHULDOLW\ is based on GRI principles (materiality, inclusivity of stakeholders, sustainability and completeness, comparability, accuracy, timeliness, reliability, clarity and balance).
The reporting scope of the annual report corresponds to that of the consolidated ƓQDQFLDOVWDWHPHQWV
Any exceptions are indicated as appropriate in the document.
For 2015, the reporting scope was extended to Sabaf Appliance Components (Kunshan) Co. Ltd. China.
Section 3 – Governance, risk management, compliance and remuneration reports important information regarding the corporate governance structure and the company risk management system.
Sections 5 – Report on operations, 6 – Consolidated Financial Statements and 7 – Financial Statements of Sabaf S.p.A. make up the Annual Financial Report at 31 December 2015.
Finally, the Report on Remuneration is provided, prepared pursuant to Article 123-ter of the Consolidated Law on Finance.
2QFHDJDLQWKLV\HDUWKHŏQRQƓQDQFLDOLQGLFDWRUVŐLQFOXGHWKHUHVXOWVRIRSHUDWLQJDQG LPSURYLQJ LQWDQJLEOH Ɠ[HG DVVHWVWKH SULQFLSDO GULYHUVWKDW DOORZPRQLWRULQJ RIWKH business strategy's ability to create value in the medium to long term.
To ensure that the information contained in the Annual Report is reliable, only directly PHDVXUDEOHƓJXUHVDUHLQFOXGHGDYRLGLQJWKHXVHRIHVWLPDWHVZKHUHYHUSRVVLEOH7KH calculations are based on the best information available or on sample-based surveys. Where they have been used, estimates are clearly indicated as such.
The Annual Report was approved by the Board of Directors on 22 March 2016 and SUHVHQWHGWRVKDUHKROGHUVDWWKH\$QQXDO*HQHUDO0HHWLQJKHOGRQ\$SULO
This year Sabaf launched survey to gather opinions from academia about the sustainability section in the Annual Report. Feedback was collected through telephone interviews with lecturers in business economics and corporate social responsibility at the universities of Brescia, Verona and Ca' Foscari. The result was very positive overall. The document was seen as clear and comprehensive both in terms of presentation and content, above all thanks to its "concise but to the SRLQWŐDSSURDFKZKLFKUHPDLQVDOLJQHGZLWKWKH*5,b*6XVWDLQDELOLW\ Reporting Guidelines and provides a good balance of qualitative and quantitative information.
It is an example of sustainability reporting used to teach students about best practices in the sector. The industry comparisons were much appreciated and made the sustainability report stand out from the others. In fact, the report's disclosures are more transparent than the average; they offer a comparison with industry indexes and previous \HDUVō UHVXOWV LQGLFDWRUV RQ LQWDQJLEOH Ɠ[HG DVVHWV FOHDU UHSRUWLQJ on indicators on the remuneration of men and women and parental OHDYH DQG DGHWDLOHGUHSUHVHQWDWLRQRILQIRUPDWLRQŴRZVZLWKLQWKH Governance unit.
Sabaf's efforts to comply with IIRC (International Integrated Reporting Council) standards were highlighted. The integrated representation of the business model and structure by capital – which were personalised and adapted to Sabaf's business – are hallmarks of the Group's move towards an Integrated Report.
The survey also highlighted a number of ways to improve for the future. For example, the importance of including a future outlook in reports – including both short- and medium-term objectives – was underlined. In addition, to complete the transition to an integrated report, it was suggested that we should examine and quantify how the different capital types interact in the value-creation process and transpose the results of this analysis into the report, increasing the connection between material aspects and the risks faced by 6DEDI DQG UHŴHFWLQJ WKLV LQ WKH VXVWDLQDELOLW\ GLVFORVXUHV WKHUHE\ providing a comprehensive overview of Sabaf's economic, social and environmental impacts.
7KH*5,*JXLGHOLQHVVWLSXODWHWKDWWKHFRQWHQWVRIWKH\$QQXDO5HSRUWPXVWEHGHƓQHG RQWKHEDVLVRIDPDWHULDOLW\DQDO\VLV,QDFFRUGDQFHZLWK*5,*UHTXLUHPHQWVLQ 6DEDI EHJDQ ZRUNLQJ ZLWK FRPSDQ\ PDQDJHPHQW WR LGHQWLI\ PDWHULDO VLJQLƓFDQW issues to include in the Annual Report. In other words, material issues are those:
RIVLJQLƓFDQWƓQDQFLDOHQYLURQPHQWDORUVRFLDOLPSDFWIRU6DEDIōVEXVLQHVV
WKDW FRXOG KDYH D VLJQLƓFDQW LQŴXHQFH RQ WKH HYDOXDWLRQV DQG GHFLVLRQV RI stakeholders.
From this perspective, materiality takes into account not only the point of view of the organisation but also that of the stakeholders.
The material issues remained unchanged for 2015.
,Q WKH LGHQWLƓFDWLRQ RI PDWHULDO LVVXHV WKH IROORZLQJ DVSHFWV DUH FRQVLGHUHG WR EH SUHFRQGLWLRQVIRURSHUDWLRQDQGDUHWKHUHIRUHDVVHVVHGDV ŏYHU\ VLJQLƓFDQWŐERWKIRU Sabaf and for the stakeholders:
a) the creation and diffusion of sustainable value over time;
b) a system of governance that is transparent and that supports the business effectively;
c) constant attention to respecting the law when Sabaf carries out its activities.
For further details on the methodology used for the material analysis, see page 7 of the \$QQXDO5HSRUW
| ID | MATERIAL ISSUE |
IMPORTANCE OF THE ISSUE TO SABAF |
LINK TO GRI-G4 ASPECTS |
INTERNAL IMPACT |
EXTERNAL IMPACT |
|---|---|---|---|---|---|
| 1 | Staff training | Training activities with the aim of ensuring the continued professional development of employees |
7UDLQLQJDQG(GXFDWLRQ*/\$ | Sabaf | |
| 2 | Labour relations | Relationship between Sabaf and internal trade union representatives, based on principles of transparency and mutual trust |
Freedom of Association and &ROOHFWLYH%DUJDLQLQJ*+5 |
Sabaf | Trade unions |
| 3 | Remuneration and incentive policies |
6HWWLQJWKHƓ[HGDQGYDULDEOHFRPSRQHQWVRIHPSOR\HHVōVDODULHV - Incentive system based on the attainment of pre-set objectives, with the aim of achieving company targets |
0DUNHW3UHVHQFH(& 7UDLQLQJDQG(GXFDWLRQ/\$ - Equal Remuneration for Men DQG:RPHQ*/\$ |
Sabaf | Trade unions |
| Atmospheric emissions, waste and management of environmental impact |
'HƓQLWLRQRIPRQLWRULQJDFWLYLWLHVDQG the reduction of the emission of polluting substances into the atmosphere and of waste generated by Sabaf's production processes |
0DWHULDOV(1(1 (QHUJ*(1(1 :DWHU(1(1(1 (PLVVLRQV(1(1(1(1 (IŴXHQWVDQG:DVWH(1(1(1 2YHUDOO(1 |
Sabaf | Environment, community |
|
| 5 | Product and process research and innovation, with regard also to safety and environmental performance |
,GHQWLƓFDWLRQRIQHZWHFKQRORJLFDODQGSURGXFWLRQVROXWLRQVZLWK VSHFLƓFIRFXVRQVDIHW\DQGHQYLURQPHQWDOSHUIRUPDQFH that allow the Company to reinforce its leadership in the industrial sector to which it belongs |
3URGXFWDQG6HUYLFHV*(1 &XVWRPHU+HDOWKDQG6DIHW*35 |
Sabaf | Customers, community, environment |
| 6 | Partnerships with multinational groups |
Openness of Sabaf to strategic partnerships with major players in the sector |
(*) - |
Sabaf | Customers |
| 7 | Establishment in international markets and personalisation of products for emerging markets |
The replication of Sabaf's business model in emerging countries, adapting to local cultures |
(*) - |
Sabaf | Customers, community |
| Distinctive image of the Group and reputation of the brand |
Operating while maintaining the distinctive image of the brand - synonymous with reliability, quality and innovation - that Sabaf has acquired in the market |
(*) - |
Sabaf | Customers, ƓQDQFLDOEDFNHUV |
|
| Customer satisfaction and support |
Ability to respond effectively to customer expectations at all stages of the relationship (from design to post-sales support) |
3URGXFWDQG6HUYLFH/DEHOLQJ*35 | Sabaf | Customers | |
| 10 | (FRHIƓFLHQF\DQG management of product and process quality |
Research of the best product or process performance or solutions in terms of environmental impact 'HVLJQRIQHZHFRHIƓFLHQWSURGXFWV |
6HHLWHPVDQG | Sabaf | Customers, environment, community |
| 11 | Management of relationships with suppliers, supplier assessment and business conditions |
The commitment by Sabaf to create a relationship with the supplier chain based on principles of business integrity, propriety and contractual IDLUQHVV7KHVKDULQJRI6DEDIYDOXHVZLWKVXSSOLHUV7KHGHƓQLWLRQ by Sabaf, of minimum criteria for the development of a longterm relationship with suppliers, based on principles of social responsibility |
6XSSOLHU\$VVHVVPHQWIRU/DERU3UDFWLFHV/\$ \$VVHVVPHQW+5 6XSSOLHU+XPDQ5LJKWV\$VVHVVPHQW*+5 |
Sabaf | Customers, environment, community |
| 12 | Health and safety of personnel and contractors |
Management, in compliance with regulations regarding health and safety at work, of matters relating to the health and safety of employees: training, prevention, monitoring, improvement objectives |
Occupational Health and Safety /\$/\$*/\$ |
Sabaf | Suppliers |
| 13 | Recruitment policies, with regard also to technical competencies |
Personnel recruitment policies aimed at ensuring equal opportunities for all candidates, avoiding any form of discrimination Assessment of candidates based on competencies, previous working experience and potential |
(PSOR\PHQW*/\$ | Sabaf | Society |
| Occupation | Focus on maintaining stable relationships, with an awareness of the importance of human capital to the implementation of company strategy |
(PSOR\PHQW/\$/\$ | Sabaf | ||
| 15 | Internal communication | Activities and projects aimed at developing a continuous dialogue between the company and its employees |
(*) - |
Sabaf | |
| 16 | Diversity and equal opportunities |
Commitment to ensuring equal opportunities for women or for minorities |
Diversity and equal opportunity */\$ |
Sabaf | |
| 17 | Safeguarding human rights and rights of workers |
Safeguarding human rights as prescribed by "The Universal Declaration of Human Rights" and the principles set out in the rules of the International Labour Organisation The socially responsible management of employment processes and working conditions in the VXSSO\FKDLQLQDFFRUGDQFHZLWKWKHUHTXLUHPHQWVRIQRUP6\$ |
1RQGLVFULPLQDWLRQ+5 &KLOG/DERU+5 )RUFHGRU&RPSXOVRU\/DERU+5 \$VVHVVPHQW+5 6XSSOLHU+XPDQ5LJKWV\$VVHVVPHQW*+5 |
Sabaf | Suppliers |
| Assessment of career performance and development |
- Internal development of favoured competencies instead of acquiring these externally - Development based on merit |
7UDLQLQJDQG(GXFDWLRQ*/\$ | Sabaf |
Sabaf has adopted the CECED Italia Code of Conduct. CECED Italia is an association that represents more than 100 companies in the household appliances industry.
The CECED Code of Conduct EQPƂTOU-VJG-EQOOKVOGPV-D[-VJG-'WTQRGCP-FQOGUVKE-CRRNKCPEG-KPFWUVT[-VQ-UWRRQTVbehaviour that is ethical and equitable. The Code aims to promote ethical and sustainable standards as regards working conditions and safeguarding the environment in order to support fair competition in global markets. The manufacturers that adhere to the code voluntarily commit to implementing decent working conditions that respect shared standards relating to minimum age, working hours, hygiene and safety conditions, freedom of association and collective bargaining, as well as environmental regulations. The signatory companies also commit to making their suppliers aware of the principles of the Code of Conduct, and to encourage them to adhere to these principles. The signatory companies ask, through the suppliers, that the principles are recommended to the whole supply chain.
In this context, the Sabaf Annual Report is the tool through which the Group reports each year on the practical KORNGOGPVCVKQP- QH- VJG-EQFGoU-RTKPEKRNGU- CPF- VJG-RTQITGUU- CEJKGXGF- CU- URGEKƂECNN[- TGSWKTGF- QH-RCTVKEKRCVKPIcompanies.
In April 2004 Sabaf formally subscribed to the Global Compact, the United Nations programme for companies that commit to supporting and promoting 10 universally accepted principles covering human rights, labour TKIJVU-GPXKTQPOGPVCN-RTQVGEVKQP-CPF-VJG-ƂIJV-CICKPUV-EQTTWRVKQP-\$[-RWDNKUJKPI-VJG--#PPWCN-4GRQTV-YGare renewing our commitment to making the Global Compact and its principles an integral part of our strategy, our culture and our daily operations, and we also undertake explicitly to declare this commitment to all our employees, partners, customers and public opinion in general.
The Annual Report contains details of the measures taken by the Sabaf Group in support of the 10 principles. The references are set out in the index of GRI indicators, according to the guidelines "Making the connection. The GRI Guidelines and the UNGC Communication on Progress".
Alberto Bartoli
BUSINESSES SHOULD SUPPORT AND RESPECT THE PROTECTION OF INTERNATIONALLY PROCLAIMED HUMAN RIGHTS IN THE AMBIT OF THEIR RESPECTIVE SPHERES OF INFLUENCE AND
MAKE SURE THAT THEY ARE NOT DIRECTLY NOR INDIRECTLY COMPLICIT IN HUMAN RIGHTS ABUSES.
BUSINESSES SHOULD UPHOLD THE FREEDOM OF ASSOCIATION AND THE EFFECTIVE RECOGNITION OF THE RIGHT TO COLLECTIVE BARGAINING.
PRINCIPLE IV
ELIMINATION OF ALL FORMS OF FORCED AND COMPULSORY LABOUR.
PRINCIPLE V
EFFECTIVE ABOLITION OF CHILD LABOUR.
ELIMINATION OF ALL FORMS OF DISCRIMINATION IN RESPECT OF EMPLOYMENT AND OCCUPATION.
BUSINESSES SHOULD SUPPORT A PRECAUTIONARY APPROACH TO ENVIRONMENTAL CHALLENGES AND
UNDERTAKE INITIATIVES TO PROMOTE GREATER ENVIRONMENTAL RESPONSIBILITY.
ENCOURAGE THE DEVELOPMENT AND DIFFUSION OF ENVIRONMENTALLY FRIENDLY TECHNOLOGIES.
BUSINESSES SHOULD WORK AGAINST CORRUPTION IN ALL ITS FORMS, INCLUDING EXTORTION AND BRIBERY.
| FINANCIAL CAPITAL | ||||
|---|---|---|---|---|
| 2015 | 2014 | 2013 | ||
| SALES REVENUES | €/000 | 138,003 | 136,337 | 130,967 |
| EBITDA | €/000 | 26,172 | 25,952 | 24,572 |
| OPERATING PROFIT (EBIT) | €/000 | 14,091 | 13,175 | 11,132 |
| PRE-TAX PROFIT | €/000 | 13,474 | 12,157 | 9,811 |
| NET PROFIT | €/000 | 8,998 | 8,338 | 8,104 |
| WORKING CAPITAL | €/000 | 48,163 | 45,844 | 41,241 |
| CAPITAL EMPLOYED | €/000 | 136,948 | 137,671 | 134,681 |
| SHAREHOLDERS' EQUITY | €/000 | 111,040 | 110,738 | 117,955 |
| NET FINANCIAL DEBT | €/000 | 25,908 | 26,933 | 16,726 |
| ROCE (RETURN ON CAPITAL EMPLOYED) |
% | 10.3% | 9.6% | 8.3% |
| DIVIDENDS PAID OUT | €/000 | 4,613 | 16,1461 | b |
1 On 12 November 2014, shareholders were paid an ordinary dividend of €1.00 per share (total dividends of €11,533,000).
INVESTMENT IN TRAINING/REVENUE
ACCIDENT FREQUENCY INDEX (no. of accidents - excluding accidents in transit - per 1 million hours worked)
13.73 11.08 12.99
FOR INTERNAL CAUSES
ACCIDENT SEVERITY INDEX (days of absence - excluding accidents in transit - per 1,000 hours worked)
11.9 11.3 18.9 20 4.7
% %
STAFF TURNOVER (employees who resign or are dismissed/total employees at 31/12)
34.9 34.8 % TOTAL EMPLOYEE HEADCOUNT 726 730 64.9 N° %
JOBS CREATED (lost)
33
N°
(4)
HOURS OF TRAINING PER EMPLOYEE (hours of training/average no. of employees) 14.4 18 HOURS
SICKNESS RATE (sick leave hours/total workable hours)
2.88 2.88 2.93 %
WASTE (t)
m3x000 NATURAL GAS CONSUMPTION 3,376 3,120 3,616 t 17,384 18,071 20,109 CO2EMISSIONS % ENVIRONMENTAL INVESTMENT/SALES AT 31/12 0.47 0.34 0.18
| 2015 | 2014 | 2013 | ||
|---|---|---|---|---|
| INVESTMENTS IN RESEARCH & DEVELOPMENT |
€/0 00 |
297 | 341 | 368 |
| HOURS SPENT ON NEW PRODUCT DEVELOPMENT/TOTAL HOURS WORKED |
% | 1.4 | 1.8 | 1.9 |
| HOURS SPENT ON PROCESS ENGINEERING/HOURS WORKED (hours spent on orders for construction of new machinery for new products or to increase production capacity/total hours worked) |
% | 3.0 | 2.0 | 2.0 |
| CAPITAL EXPENDITURE ON INTANGIBLE ASSETS/SALES |
% | 0.6 | 0.4 | |
| CURRENT EXPENSES FOR QUALITY/SALES | % | 0.19 | 0.11 | 0.14 |
| CAPITAL EXPENDITURE FOR QUALITY/SALES |
% | 0.08 | 0.07 | |
| VALUE OF REJECTS/SALES (production rejects/sales) |
% | 1.22 | 1.13 | |
| % QUALITY COSTS/SALES (production rejects + customer charge-backs and returns/sales) |
% | 1.803 | 1.31 | 1.18 |
| NUMBER OF SAMPLES PRODUCED FOR CUSTOMERS |
N° | 1,069 | 1,143 | 1,109 |
| NUMBER OF DIFFERENT PRODUCT SKUS (stock-keeping units) supplied to top 10 customers |
N° | 2,770 | 2,176 |
The following table shows the amounts and allocation of economic value among stakeholders, prepared in accordance with GRI guidelines. 7KHWDEOHZDVSUHSDUHGE\GHƓQLQJWKUHHOHYHOVRIHFRQRPLFYDOXHJHQHUDWHGYDOXHGLVWULEXWHGYDOXHDQGYDOXHUHWDLQHGE\WKH*URXS(FRQRPLFYDOXHUHSUHVHQWVWKHDJJUHJDWH wealth generated by Sabaf, which is then allocated amongst the various stakeholders: suppliers (operating costs), staff, investors, shareholders, the public administration and the community (external donations).
| IN THOUSANDS OF EURO | 2015 | 2014 | CHANGE |
|---|---|---|---|
| ECONOMIC VALUE GENERATED BY GROUP | 142,648 | 140,022 | 2,626 |
| Revenue | 138,003 | 136,337 | 1,666 |
| Other income | 3,689 | 3,722 | (33) |
| Financial income | 67 | 61 | 6 |
| Adjustments | 1,230 | 989 | 241 |
| Allowances for doubtful accounts | (241) | ||
| Foreign exchange loss (gain) | (89) | 119 | (208) |
| +PEQOGGZRGPUGU HTQO UCNG QH VCPIKDNG CPF KPVCPIKDNG ƂZGF CUUGVU |
104 | 63 | 41 |
| #FLWUVOGPVU VQ VCPIKDNG CPF KPVCPIKDNG ƂZGF CUUGVU |
0 | ||
| )CKPU NQUUGU HTQO GSWKV[ KPXGUVOGPVU |
0 | (606) | 606 |
| ECONOMIC VALUE DISTRIBUTED BY THE GROUP | 126,098 | 123,907 | 2,191 |
|---|---|---|---|
| Remuneration of suppliers | 83,844 | 82,663 | 1,181 |
| of which environmental costs | 559 | 547 | 12 |
| Employee compensation | 32,180 | 346 | |
| Remuneration of lenders | 4 | ||
| Shareholder earnings | 4,613 | 4,613 | 0 |
| Remuneration of public administration 4 | 3,819 | ||
| External donations | 44 | 40 | 4 |
| ECONOMIC VALUE RETAINED BY THE GROUP | 16,550 | 16,115 | 435 |
|---|---|---|---|
| Amortisation/depreciation | 12,292 | (107) | |
| Provisions | 49 | 124 | |
| Use of provisions | (69) | (26) | (43) |
| Reserves | 660 |
CHAPTER 1
ITALY
In keeping with its shared values and mission, the Company believes that there is a successful business and cultural model to be consolidated as a priority through organic growth. Innovation, safety, personal development and socio-environmental sustainability are the distinctive characteristics of the Sabaf model.
Strategic approach and value creation
Sabaf uses the individual as its core value – and therefore the fundamental criterion for all its decisions. This creates a central entrepreneurial vision that guarantees the individual's dignity and freedom within the framework of a shared code of conduct.
The centrality of the individual is a universal value, i.e. a "hyper-rule" applicable regardless of place or time. In accordance with this universal value, the Sabaf Group fosters cultural diversity through the criterion of spatial and temporal equality. This type of moral commitment implies the renouncement of all choices that do not respect the individual's physical, cultural and moral integrity, even if such decisions would be HIƓFLHQWHFRQRPLFDOO\EHQHƓFLDODQGOHJDOO\DFFHSWDEOH
5HVSHFWLQJ WKH YDOXH RI WKH LQGLYLGXDO PHDQV ƓUVW DQG IRUHPRVW PDNLQJ ŏEHLQJŐ a priority before "doing" and "having", and thus protecting and enhancing the "quintessential" manifestations that allow people to express themselves fully.
The Sabaf Charter of Values is a governance tool through which Sabaf's Board of Directors expresses the values, standards of conduct and ways in which relations between Sabaf and its stakeholders are managed. All Group companies are formally required to adopt it.
The Charter of Values is also a reference document in the ambit of the Organisation, Operation and Control Model pursuant to Legislative Decree 231/2001 and, as such, it has also EHHQPRGLƓHGWRVHWRXWDVHULHVRIJHQHUDOUXOHVRIFRQGXFWZLWKZKLFK*URXSHPSOR\HHVDQGLQGHSHQGHQWFRQWUDFWRUVPXVWFRPSO\
For Sabaf, innovation is one of the essential components of its business model and one of its main strategic drivers.
Through constant innovation, the Group has succeeded in achieving excellent results, LGHQWLI\LQJVRPHRIWKHPRVWDGYDQFHGDQGHIƓFLHQWWHFKQRORJLFDODQGPDQXIDFWXULQJ solutions currently available, and creating a virtuous circle of continuous process and SURGXFW LPSURYHPHQW ŊXOWLPDWHO\ DFTXLULQJWHFKQRORJLFDO VNLOOVWKDW DUHGLIƓFXOWIRU competitors to emulate. A key factor in the Group's success has been the know-how acquired over the years in the internal development and construction of machinery, tools and moulds, which integrates in synergy with know-how in the development and production of our products.
Investments in innovation have enabled the Company to become a global leader in an extremely specialised niche market and, over time, to achieve high standards RI WHFKQRORJLFDO DGYDQFHPHQW VSHFLDOLVDWLRQ DQG PDQXIDFWXULQJ ŴH[LELOLW\ 7KH manufacturing sites in Italy and abroad are designed to ensure that products are based on the highest technological standards available today. They are a cutting-edge model in terms of both environmental protection and worker safety.
One of the underlying priorities of Sabaf's product innovation strategy is the quest for superior performance in terms of environmental impact. Our attention to environmental issues materialises through innovative production processes with lower energy consumption in product manufacturing, and, above all, products that DUH GHVLJQHG WR EH HFRHIƓFLHQW GXULQJ HYHU\GD\ XVH 0RUH VSHFLƓFDOO\ LQQRYDWLRQ efforts are predominantly focused on the development of burners that reduce fuel consumption (natural or other gases) and emissions (particularly carbon dioxide and carbon monoxide) during use.
Safety has always been one of the indispensable features of Sabaf's business model. Safety for Sabaf is not mere compliance with existing standards, but a management philosophy striving for continuous improvement in performance in order to guarantee end users an increasingly safe product. Besides investing in new-product R&D, the Group has chosen to play an active role in fostering a safety culture, both by promoting the sale of products featuring thermoelectric safety devices, and via a communication policy aimed at promoting the use of products with thermoelectric safety devices. Sabaf has long been a worldwide promoter in the various institutional environments of the introduction of regulations making the adoption of products with thermoelectric safety devices obligatory. Safety has proved to be a key factor for success, partly because the Company has succeeded in anticipating demand for products with safety devices in the European market and in stimulating the spread of such products in developing countries. More recently, Sabaf has become a promoter, together with the Brazilian regulatory authority, of the ban on the use of zamak (a zinc and aluminium alloy) for the production of gas cooking valves due to its inherent risks. Today, however, the use of zamak is still permitted in Brazil, Mexico and in other South American countries, limiting business opportunities in the valves segment for Sabaf, which does not plan to consider the production of valves using zamak.
Sabaf is continuing to expand by becoming established in international markets, seeking to replicate its business model in emerging countries and adapting it to the local culture.
In keeping with its corporate values and mission, the Group is seeking to bring stateof-the-art know-how and technology to these countries, whilst fully respecting human and environmental rights and complying with the United Nations Code of Conduct for Transnational Corporations. This choice is based on our awareness that only by operating in a socially responsible manner is it possible to assure the long-term development of business initiatives in emerging markets.
Ongoing expansion of our range is intended to further increase our customers' loyalty via greater satisfaction of their needs. Its ability to offer a complete range of components further distinguishes Sabaf from its competitors.
This expansion is mainly pursued via in-house research, although possible strategic alliances with other leading players in the sector or acquisitions, even in related sectors, are not ruled out.
The Group intends to further consolidate its collaborative relationships with customers and to strengthen its positioning as sole supplier of a complete product range in the cooking components market, thanks to its ability to tailor its production processes to FXVWRPHUVōVSHFLƓFUHTXLUHPHQWV
Enhanced exploitation of intangible assets is essential to be able to compete effectively in the international market.
Sabaf carefully monitors and enhances the value of its true "intangible assets", i.e. the great technical and professional skill of the people working in the company, its image now synonymous with quality and reliability, and its reputation as a company attentive to social and environmental problems and to the needs of its counterparts. Advocating the idea of work and relations with stakeholders as "the passion for a project founded on common ethical values in which everyone recognises themselves" is not only a moral commitment, but also a real guarantee of enhanced exploitation of intangible assets. From this perspective the sharing of ethical values is the link between the promotion of a business culture oriented towards social responsibility and enhanced exploitation of the Company's intellectual capital.
In order to translate the values and principles of sustainable development into decisions regarding of action and operating activities, Sabaf applies a structured methodology, whose key factors are as follows:
Awareness of the social and environmental implications of Group activities, together with consideration both of the importance of a cooperative approach with stakeholders and the Group's own reputation, has led Sabaf to adopt a prudent approach to the management of the economic, social and environmental variables that it encounters RQDGDLO\EDVLV\$FFRUGLQJO\WKH*URXSKDVGHYHORSHGVSHFLƓFDQDO\VHVRIWKHPDLQULVNVIDFHGE\LWVEXVLQHVVHQWLWLHV Detailed information on the internal control and audit system and the risk management system are provided in Section 3 "Governance, Risk Management, Compliance and Remuneration".
Sabaf is committed to constantly strengthening the social value of its business activities through the careful management of its relations with stakeholders. The Company intends to establish an open and transparent dialogue, promoting opportunities for GLVFXVVLRQLQRUGHUWRƓQGRXWWKHLUOHJLWLPDWHH[SHFWDWLRQVLQFUHDVHWKHLUFRQƓGHQFHLQ the Company, manage risks and identify new opportunities.
7KH LGHQWLƓFDWLRQ RI VWDNHKROGHUV LV DQ HVVHQWLDO VWDUWLQJ SRLQW IRU WKH GHƓQLWLRQ of socio-environmental reporting processes. The "stakeholder map" shows Sabaf's PDLQ VWDNHKROGHUV LGHQWLƓHG DFFRUGLQJ WR WKHLU EXVLQHVV IHDWXUHV W\SLFDO PDUNHW characteristics and the intensity of Sabaf's relations with them.
The Annual Report is the key communication tool for the presentation of economic, social and environmental performance over the year.
Engagement initiatives relating to each category of stakeholder are shown below. These initiatives are undertaken periodically (generally every two or three years). The VLJQLƓFDQWLVVXHVHPHUJLQJIURPWKHVHDFWLYLWLHVDUHVKRZQLQWKHVHFWLRQŏ6RFLDODQG environmental sustainability".
CHINA
The Sabaf Group is one of the world's leading manufacturers of components for household gas cooking appliances, with a market share of around 50% in Europe and a global share of about 10%. Its core market consists of manufacturers of household appliances, particularly cookers, hobs, and ovens. The majority of Sabaf's sales consist of the supply of original equipment, whereas sales of spare parts are negligible.
A market share of around -KP-'WTQRG-CPF-C-INQDCNshare of about 10%
7KHVHFRPSRQHQWVUHJXODWHWKHŴRZRI gas to covered burners (in the oven or grill) or exposed burners; thermostats are characterised by the presence of a thermal regulator device to maintain a constant pre-set temperature.
These are the components that, via the mixing of gas with air and combustion of the gas used, produce one or more ULQJVRIŴDPH
These are the components that allow a smooth and balanced movement of oven, washing-machine or dishwasher doors when they are opened or closed.
The Group also produces and markets an extensive range of accessories, which supplement the offering of the main product lines.
138,003 136,337 130,967 130,733 148,583
ANALYSIS OF SCENARIO PERFORMANCE DATA
7KH FULVLV RI UHFHQW \HDUV KDV VLJQLƓFDQWO\ WUDQVIRUPHG the household appliances sector in Italy. Today, the major Italian manufacturers of cooking appliances focus on the high-end segment of the market or on special products. With a strong emphasis on exports, they continue to achieve excellent results. Sabaf offers its Italian customers extremely high quality and a differentiated range of components that allow customers to promote "Made in Italy" in international markets. The great majority (estimated to be DURXQG RI6DEDIōVVDOHVLQ,WDO\DUHLQIDFWGHVWLQHG for our customers' household appliances exports. Only a small proportion is destined for the Italian consumer market, which continues to be affected by the slump in the property market as well as negative demographic trends.
The production of household appliances has also been heavily cut in Western Europe in recent years: some manufacturers have closed down, others have re-located (in particular in Poland and Turkey).
Production for the high-end segment remains in Western Europe, where Sabaf's objective is to increase LWVPDUNHWVKDUHVLJQLƓFDQWO\
Turkey is today the European country that produces the greatest number of household appliances. In this regard, the opening of a production facility in Turkey and the development of new trade relations are key to supporting the growth strategy.
The Turkish domestic market is potentially of greater and
greater importance: the average age of the population, the number of new families and the increase in incomes are converging indicators that point towards growing demand for consumer goods.
The Group's strategy includes further development in activities in Turkey in the coming years.
Key 2015 2014 2013 2012 2011
ANALYSIS OF SCENARIO PERFORMANCE DATA
China produces around 26 million hobs per year, making it the biggest market in the world.
After many years of having just a commercial presence in China, in 2015 Sabaf began manufacturing a special EXUQHU WKDW JXDUDQWHHV HIƓFLHQF\ VDYLQJV RI IRU built-in hobs and ovens.
The Group knows that it is making high-quality products that are more competitive than local competitors' offerings and is aiming to seal long-term partnerships with the main Chinese manufacturers of hobs.
Another high-potential market is India, where Sabaf has developed a dedicated range of burners and is seeing consistently rising sales, albeit still at modest levels overall.
For its future development Sabaf can rely on its solid presence, including production facilities, (a plant in Brazil has been operational since 2001). Despite the GLIƓFXOWLHVLQWKH%UD]LOLDQPDUNHWRYHUWKHODVWWZR\HDUV the Sabaf Group believes that the potential for expansion in this area are still extremely attractive given the VLJQLƓFDQWPDUNHWVL]HDQGGHPRJUDSKLFJURZWKWUHQGV
Capitalising on the solid reputation of its brand, its geographical closeness and its long-term presence, Sabaf is increasing its presence in the region.
The urban growth plans in the Middle East and North Africa represent the key to possible market opportunities, GHVSLWH GLIƓFXOWLHV UHODWLQJ WR WKH FXUUHQW SROLWLFDO situation in some of the major countries.
The normalisation of commercial relations with Iran, following the lifting of sanctions from the start of 2016, opens the way to a strong sales recovery in a market where Sabaf has a historic presence and an excellent reputation.
,WV ZLGH UDQJH RI LQQRYDWLYH DQG HIƓFLHQW SURGXFWV together with relations with the main producers, and its good technical reputation, provide the Group with new opportunities.
Sabaf's market share is growing steadily in the premium segment. The Group is assessing the opportunity of a direct production presence to serve all segments of the market competitively.
For years now the sector has tended to outsource component design and production to highly specialised suppliers that, like Sabaf, are active in the world's main markets and DUHDEOHWRVXSSO\DUDQJHRISURGXFWVWDLORUHGWRWKHVSHFLƓFUHTXLUHPHQWVRILQGLYLGXDO markets.
In addition, the trend to internationalise production is becoming more accentuated, with production increasingly shifting to countries with low-cost labour and lower levels of saturation.
Moreover, the emergence of new players at the international level is causing oversupply. This in turn is leading to pressure from competition and is bringing about greater concentration in the sector. However, this trend is less pronounced for kitchen ranges than for other household appliances: in the cooking segment, design and aesthetics on the one hand and less intensive investment on the other hand also permit the success of small, highly innovative producers.
In Western Europe, which accounts for about half of the end-user market for Sabaf products, the level of saturation reached by cooking appliances (i.e. the number of households owning such appliances) is close to 100%. Purchases of new appliances are therefore mainly replacement purchases. Moving house or the purchase or refurbishment of a home are often occasions for the purchase of a new cooking DSSOLDQFH7KHPDUNHWWUHQGLVWKHUHIRUHGLUHFWO\LQŴXHQFHGE\WKHJHQHUDOHFRQRPLF WUHQGDQGLQSDUWLFXODUE\KRXVHKROGVōGLVSRVDEOHLQFRPHFRQVXPHUFRQƓGHQFHDQG housing market trends. In this context, the household appliances sector has, for many years, been experiencing a situation where demand is stagnant, most notably in the peripheral countries.
Conversely, in other markets the saturation level is often much lower. Faster economic growth rates and a more favourable demographic trend than in Western Europe are creating huge opportunities for groups such as Sabaf that are able to work both with multinational household appliance manufacturers and with local manufacturers.
Manufacturers of gas cooking appliances – Sabaf's core market – consist of:
CHAPTER 3
TURKEY
The corporate governance model adopted by Sabaf is based on the decision to strictly separate the interests and choices of the reference shareholder – the Saleri family – from those of the Company and the Group, and therefore assign corporate management to managers who are distinct from the reference shareholder.
Expansion of the shareholder base following listing on the stock exchange, admission to the STAR segment (with the voluntary acceptance of stricter transparency and disclosure rules), and the desire to comply consistently with best practice in relation to corporate governance, represent the subsequent steps taken by Sabaf towards compliance of its corporate governance system with a model whose benchmark is that directors act in the Company's interests and create value for shareholders and other stakeholders.
As a further step along this path, Sabaf's management believes that ethics aimed at creating value and founded on the centrality of the individual and respect for common values can JXLGHGHFLVLRQPDNLQJWKDWLVLQOLQHZLWKWKHFRUSRUDWHFXOWXUHDQGVLJQLƓFDQWO\FRQWULEXWH to assuring the Company's sustainable long-term growth. For this purpose, Sabaf has prepared and published a Charter of Values, in accordance with the existing national and international regulatory principles, guidelines and documents with regard to human rights, corporate social responsibility and corporate governance.
The document is the governance tool through which the Board of Directors clearly explains the Company's values, standards of conduct and commitments in respect of all stakeholders – shareholders, employees, customers, suppliers, investors, the public administration, the community and the environment.
7KH&KDUWHURI9DOXHVZDVDSSURYHGE\WKH%RDUGRI'LUHFWRUVRQ)HEUXDU\DQGLV available on the website www.sabaf.it under the section "Sustainability".
This section of the report highlights the decisions taken by Sabaf and the special features of its governance system, reviewed in the light of the new measures introduced by the Corporate Governance Code. Where possible, a comparison is also provided with other listed companies, using information taken from Assonime in its report "Corporate Governance in Italy", published LQ 1RYHPEHU DQG EDVHG RQ WKH &RUSRUDWH *RYHUQDQFH UHSRUWV DYDLODEOHRQ -XO\ RIOLVWHG,WDOLDQ FRPSDQLHVRIZKLFK (212 companies) have formally chosen to adhere to the Corporate Governance Code. The benchmark used below takes into account a panel of only "non-ƓQDQFLDOŐ FRPSDQLHV ZKHUH DYDLODEOH \$ IXUWKHU FRPSDULVRQ LV SURYLGHG of the composition and functioning of the Board of Directors, using data from the Italia Board Index Observatory 2015, published by Spencer Stuart, which analyses the characteristics and functioning of the Boards of Directors RI WKH WRS LQGXVWULDO DQG ƓQDQFLDO OLVWHG FRPSDQLHV LQ ,WDO\ LQ RUGHU of capitalisation as at 16 March 2015, as well as a comparison with major European and non-European countries.
The information below is a summary and does not replace the "Report on Corporate Governance and Ownership Structures", prepared by the Issuer pursuant to article 123-bis of the Consolidated Law on Finance (TUF) for 2015 and available in the Investors/Corporate Governance section of the website www.sabaf.it.
The Group operates through production and sales companies in Italy and abroad, all 100% owned by the Parent Company. 6SHFLƓFDOO\
b) The subsidiary Sabaf US is a sales branch.
Sabaf has adopted a traditional management and control model, consisting of:
This model is supplemented, pursuant to the provisions of the Corporate Governance Code to which the Company adheres, by:
Finally, the Group's administration and control model is completed by the presence of the Supervisory Committee, set up following the adoption by Sabaf in 2006 of the Organisation, Operation and Control Model pursuant to Legislative Decree 231/2001.
The Board of Directors currently has 11 members, -QH-YJQO-CTG-PQPGZGEWVKXG-CPF-KPFGRGPFGPVof whom one was chosen by the minority shareholders (consistent with 39% of the sample CPCN[UGF-D[-#UUQPKOG-KP-
The Board of Directors currently has 11 members, 5 of whom are non-executive and independent, of whom one was chosen by the minority shareholders (consistent with RIWKHVDPSOHDQDO\VHGE\$VVRQLPHLQ
The curricula vitae of individual directors are available on the Company website.
Average age of Directors
Average overall age: Sabaf 56 vs 57.5 Assonime
\$URXQGRIWKHVHUYLQJ%RDUGPHPEHUVDUHDJHGEHWZHHQDQGWKHDYHUDJHDJH is in line with the average of the sample analysed by Assonime (56 vs. 57.5 years). In the last three years the Board has met fewer times than the average of the sample DQDO\VHGE\$VVRQLPH 6DEDI%R'PHHWLQJV LQ DQG ZLWKPHPEHUVō DWWHQGDQFH DOZD\VKLJKHUWKDQZKLFKLVLQOLQHZLWKWKHRWKHUOLVWHGQRQƓQDQFLDOFRPSDQLHVLQ WKHVWXG\LQ
The meetings were attended by the Board of Statutory Auditors and – in turn – Sabaf H[HFXWLYHVLQYLWHGWRDWWHQGDQGGLVFXVVVSHFLƓFVXEMHFWVRQWKHDJHQGD
The comparison is made using data from the Italia Board Index Observatory 2015, published by Spencer Stuart, which analyses the characteristics and functioning of the %RDUGVRI'LUHFWRUVRIWKHWRSLQGXVWULDODQGƓQDQFLDO OLVWHG FRPSDQLHVLQ,WDO\ in order of capitalisation as at 16 March 2015, as well as a comparison with major European and non-European countries.
'XULQJ WKH ƓQDQFLDO \HDU WKH %RDUG RI 'LUHFWRUV FDUULHG RXW D UHYLHZ RI WKH VL]H membership (including professional competences, managerial skills and seniority) and activities of the Board of Directors and its Committees, opting for self-assessment by individual directors, coordinated by the Lead Independent Director.
The results of the evaluation were generally positive and were discussed in the Board of Directors' meeting of 15 December 2015.
Average age of directors
7KH%RDUGRI6WDWXWRU\$XGLWRUVDSSRLQWHGE\WKH6KDUHKROGHUVō0HHWLQJRQ0D\IRUWKHSHULRGKDVPHPEHUVZLWKDQDYHUDJHDJHRIDERYHWKH\$VVRQLPH average of 57), and 2 alternate auditors. The Chairman of the Board of Statutory Auditors was chosen by the minority shareholders.
The curricula vitae of individual auditors are available on the Company website.
In the last three years, Sabaf's Board of Statutory Auditors has had fewer meetings than the average of the sample analysed by Assonime, which was affected by companies, other WKDQ6DEDIH[SHULHQFLQJGLIƓFXOWLHVDQGRUƓQDQFLDOUHVWUXFWXULQJZKLFKWKHUHIRUHUHTXLUHG greater involvement from the Statutory Auditors (10 meetings on average in 2015).
0HPEHUVōDWWHQGDQFHDWWKHPHHWLQJVZDVRQDYHUDJHDURXQGLQWKHSHULRG
(100% in 2015), and in line with the other companies assessed in the study. In general, as well as conducting checks and attending the regular meetings pursuant to the laws in force, all members of the Sabaf Board of Statutory Auditors must attend the meetings of the Board of Directors and the Control and Risk Committee, the half-yearly collective meetings with the supervisory bodies and the individual meetings with the statutory DXGLWLQJƓUP
Average participation in meetings of the Board of Statutory Auditors
The serving Internal Control and Risk Committee, formed within the Board, is composed entirely of 3 non-executive and independent directors, in line with the Assonime average (3 members). The Committee has also been allocated the relevant functions of the Related Parties Committee.
7KH&RPPLWWHHPHWWLPHVLQ\$VVRQLPHDYHUDJHPHHWLQJV ,Q the last three years, the number of meetings was on average in line with the sample analysed by Assonime.
During the year the Committee updated the procedure on Related-Party Transactions, which was approved by the BoD at its meeting on 22 September 2015.
The Remuneration and Nomination Committee, set up within the Board, has 3 non-executive and independent members (Assonime average: 3 members), with knowledge and H[SHULHQFHRIDFFRXQWLQJƓQDQFHDQGUHPXQHUDWLRQSROLFLHVDVFRQƓUPHGE\WKH%RDUG
In the last three years the Committee has met more times than the Assonime DYHUDJHH[FHSWLQ
In particular, last year the Committee met 7 times, with the aim of updating the Remuneration Policy and drawing up the long-term incentive plan tied to the 2015- 2017 Industrial Plan.
On 5 May 2015, the Board of Directors, subject to the favourable opinion of the Control and Risk Committee and having heard the Board of Statutory Auditors, renewed the appointment of Protiviti S.r.l., an external company, to carry out the internal audit activity for the period 2015-2017, appointing Emma Marcandalli, Managing Director of the company, as the Manager in charge. The decision is based on the greater skills and HIƓFLHQF\WKDWDQH[WHUQDOFRQVXOWDQWVSHFLDOLVHGLQLQWHUQDOFRQWUROFDQJXDUDQWHHDOVR taking into account the size of the Sabaf Group.
The Internal Audit Manager is responsible for verifying that the internal control and risk management system is adequate and operates properly. He/she reports to the Board of 'LUHFWRUVLVQRWUHVSRQVLEOHIRUDQ\RSHUDWLQJDUHDDQGUHPDLQVLQRIƓFHIRUWKHHQWLUH term of the Board that appointed him/her.
7KH6XSHUYLVRU\&RPPLWWHHDSSRLQWHGRQ0D\E\WKH%RDUGRI'LUHFWRUV of Sabaf for the period 2012-2015), and subsequently renewed on 5 May 2015 for the period 2015-2017, comprises one non-executive and independent member and one external member.
6DEDIōV6XSHUYLVRU\&RPPLWWHHPHWWLPHVLQUHTXHVWLQJWKHDWWHQGDQFHRI the Company's Management at the meetings in order to perform an in-depth review RIVSHFLƓFWRSLFV
Sabaf's management and control model operates through a network of information ŴRZV, which are regular and systematic, between the various company bodies. (DFKERG\DFFRUGLQJWRWKHWLPHIUDPHVDQGSURFHGXUHVGHƓQHGE\WKH%\ODZVWKH
Governance Model and other internal documents, reports to the functionally superior body regarding the activities conducted during the time period in question and those planned for the subsequent period, noting any observations and suggested actions.
Information Flows Organisational Reports KEY
48
,QUHFHQW\HDUV6DEDIKDVSURJUHVVLYHO\H[SORUHGWKHFRQFHSWVRIULVNDVVHVVPHQWDQGULVNPDQDJHPHQWLQRUGHUWRGHYHORSDVWUXFWXUHGDQGUHJXODUSURFHVVRIULVNLGHQWLƓFDWLRQ DVVHVVPHQWDQGPDQDJHPHQWGHƓQHGDQGIRUPDOLVHGLQ*XLGHOLQHVFRQWDLQHGLQWKH&RPSDQ\ōV&RUSRUDWH*RYHUQDQFH0DQXDO
| Business Analysis | |||
|---|---|---|---|
| Analysis of Organisational structure | Operational Guideline: | Risk Map | Risk |
| Risk Catalogue | "Process of periodically identifying and measuring Sabaf Group risks" |
Management Framework |
|
| Assessment Scale for Risks |
7KH JXLGHOLQHV GHƓQH WKH UROHV DQG UHVSRQVLELOLWLHV IRU ULVN DVVHVVPHQW DQG ULVN management processes, indicating the parties to be involved, process frequency and assessment scales.
Each risk is subject to an assessmentZKLFKEUHDNVGRZQLQWRWKHIROORZLQJYDULDEOHVb
| ASSESSMENT SCALE | 1 | 2 | 3 | 4 | ||
|---|---|---|---|---|---|---|
| Financial impact | approx 1% Ebit | approx 1%-2.5% Ebit | approx 2.5% -10% Ebit | approx 10% Ebit | ||
| IMPACT | Damage to persons Limited impact on health |
General impact on health | Serious risks to health | Irreversible effects | ||
| Damage to image | Effects at local level | Effects at regional level | Effects at national level | Effects at international level | ||
| (TGSWGPE[ QH QEEWTTGPEG |
Once every 3 years or more | Once every 2 years | Once every year | More than once a year | ||
| PROBABILITY | Qualitative assessment | Very unlikely / Remote | Fairly unlikely | Likely | Very likely | |
| LEVEL OF RISK MANAGEMENT | Inadequate | To improve | Satisfactory (with limited room for improvement) |
Excellent |
,QWKHƓQDOTXDUWHURIWKH,QWHUQDO\$XGLW)XQFWLRQFRQGXFWHGWKHSHULRGLFULVNDVVHVVPHQWSURFHVVWRLGHQWLI\DQGDVVHVV*URXSULVNVFDOOLQJIRUWKHLQYROYHPHQWRIVRPH+HDGV of Function at the Parent Company, according to their area of expertise:
During the assessment process, which involves the control bodies, the risks take shape and are allocated on the map.
7KHUHVXOWVRI6DEDIōVULVNDVVHVVPHQWKLJKOLJKWDPRQJRWKHUWKLQJVWKHIROORZLQJPDLQULVNVVHOHFWHGIRUWKHLULPSRUWDQFHDQGFRQVLVWHQF\ZLWKWKHLVVXHVFRYHUHGLQWKLV document:
)RUPRUHLQIRUPDWLRQRQWKH*URXSōVƓQDQFLDOULVNVLQFOXGLQJWKRVHQRWPHQWLRQHG here owing to their lack of relevance, please see the Notes to the Consolidated Financial Statements.
3
RISKS RELATED TO THE PERFORMANCE OF THE INDUSTRY: CONTRACTION OF DEMAND IN MATURE COUNTRIES, CONCENTRATION OF DEMAND/SUPPLY
7KH EXVLQHVV DQG ƓQDQFLDO FLUFXPVWDQFHV RI WKH *URXS DUH LQŴXHQFHG E\ D variety of factors, such as gross domestic product, consumer and corporate FRQƓGHQFHLQWHUHVWUDWHWUHQGVWKHFRVWRIUDZPDWHULDOVWKHXQHPSOR\PHQW rate, and the ease of access to credit.
The continuation of the European crisis, which over the years has become systemic, has affected the transformation of the white goods industry – a sector in which the Sabaf Group operates. Indeed, the continued contraction of demand on mature markets has been accompanied by a further concentration of end markets, a progressive increase in sales volumes in emerging countries and, lastly, tougher competition, phenomena that require aggressive sales pricing policies.
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RISKS RELATED TO THE POTENTIAL RESISTANCE TO CHANGE OF PART OF THE ORGANISATION
Sabaf operates in a market scenario whose dynamic nature has repercussions for its organisation and processes. As such, Sabaf may be unable to seize market opportunities due to potential resistance to change within the organisation.
2
7RDGGUHVVWKLVULVNWKH*URXSKDVODXQFKHGLQLWLDWLYHVWRHGXFDWHDOOOHYHOVRIWKHRUJD-QLVDWLRQDERXWFULWLFDOVXFFHVVIDFWRUVDQGWRVKDUHWDUJHWVDQGSODQVIRULPSURYHPHQW RISKS RELATED TO THE DIFFICULTY OF MANAGING THE GROUP DUE TO INTERNATIONALISATION
The Sabaf Group is continuing with its policy of expansion abroad, and is undergoing a process of growing internationalisation, with the opening of new companies and production facilities in countries considered strategic for the future development of its business.
This process requires appropriate measures, which include the recruitment and training of management staff, the implementation of management and FRRUGLQDWLRQPHDVXUHVE\WKHSDUHQW FRPSDQ\WKHGHƓQLWLRQRIWKH DUHDVRI action and responsibilities of each function involved, and analysis of the legal context of the countries where the subsidiaries are based.
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,QSDUWLFXODUWKHQHFHVVDU\JRYHUQDQFHDFWLRQVKDYHEHHQWDNHQLQWHUPVRIFRPSDQ\ RUJDQLVDWLRQ V\VWHPV RI UHVSRQVLELOLWLHV FRQWURO DQG FRRUGLQDWLRQ DQG LPSURYHG PDUNHWFRPSHWLWLYHQHVV
Most Sabaf Group sales are generated in markets outside Europe. Furthermore, products sold in Italy can be exported by customers in international markets, making the percentage of sales earned directly and indirectly from emerging HFRQRPLHVPRUHVLJQLƓFDQW
The Group's main markets outside Europe include the Middle East, North Africa and South America.
Any embargoes or major political or economic stability, or changes in the regulatory and/or local law systems, or new tariffs or taxes imposed in the future FRXOGDIIHFWDSRUWLRQRI*URXSVDOHVDQGWKHUHODWHGSURƓWDELOLW\
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The trend in the price of the commodities used in the production process has been highly volatile in recent years due to the economic instability in the market. The sale prices of products are generally renegotiated semi-annually or annually; as a result, Group companies may not be able to immediately pass on to customers changes in the prices of commodities that occur during the year, ZKLFKKDVDQLPSDFWRQSURƓWDELOLW\
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RISKS RELATED TO THE FAILURE TO PROTECT PRODUCT EXCLUSIVITY IN THE MARKETS WHERE THE GROUP OPERATES
There is a risk that some Group products, although patented, will be copied by FRPSHWLWRUVWUDGLQJLQFRXQWULHVZKHUHLWLVPRUHGLIƓFXOWWRHQIRUFHLQWHOOHFWXDO property rights exposes the Company to greater risk in terms of protecting its products. Sabaf's business model therefore bases the protection of product exclusivity mainly on design capacity and the internal production of special machines used in manufacturing processes, which result from its unique know-KRZWKDWFRPSHWLWRUVZRXOGƓQGGLIƓFXOWWRUHSOLFDWH
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RISK RELATED TO THE MANAGEMENT OF TRADE RECEIVABLES
The high concentration of sales to a small number of customers generates a concentration of the respective trade receivables, with a resulting increase in WKHQHJDWLYHLPSDFWRQHFRQRPLFDQGƓQDQFLDOUHVXOWVLQWKHHYHQWRILQVROYHQF\ RI D FXVWRPHU,QSDUWLFXODUJLYHQWKH VWUXFWXUDOGLIƓFXOWLHVRIWKHKRXVHKROG DSSOLDQFHVHFWRULQPDWXUHPDUNHWVLWLVSRVVLEOHWKDWVLWXDWLRQVRIƓQDQFLDOGLI-ƓFXOW\DQGLQVROYHQF\DPRQJFXVWRPHUVFRXOGDULVH
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The Sabaf Group operates primarily in euro. There are, however, transactions in other currencies, such as the U.S. dollar, the Brazilian real, the Turkish lira and the Chinese renminbi.
Given the rising internationalisation of the Group, there has been a progressive increase of transactions in foreign currency as a percentage of total Group revenues. This situation exposes the Group to the risk of economic losses due to deteriorations in exchange rates.
6SHFLƓFDOO\VLQFHVDOHVLQ86GROODUVDFFRXQWHGIRUDURXQGRIFRQVROLGDWHG revenue, the gradual depreciation could lead to a loss in competitiveness on the markets where sales are made in that currency (mainly South and North America).
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'XULQJWKH*URXSHQWHUHGLQWRŶH[LEOHIRUZDUGFRQWUDFWVWRVHOOPLOOLRQLQ DQXPEHURIWUDQFKHV
Group results depend to a large extent on the work of executive directors and management. The loss of a key staff member for the Group without an adequate replacement and the inability to attract new resources could have negative effects RQWKHIXWXUHRIWKH*URXSDQGRQWKHTXDOLW\RIƓQDQFLDODQGHFRQRPLFUHVXOWV
7KH*URXSKDVKDGLQSODFHIRUVRPH\HDUVSROLFLHVWRVWUHQJWKHQWKHPRVWFULWLFDO LQWHUQDORUJDQLVDWLRQDOVWUXFWXUHVDQGOR\DOW\VFKHPHVLQFOXGLQJWKHVLJQLQJRIQRQ FRPSHWLWLRQDJUHHPHQWVZLWKNH\ŵJXUHV
For the purposes of meeting company objectives, the risk management activities conducted by Sabaf also take compliance requirements into account.
6SHFLƓFDOO\6DEDIKDVDQLQWHJUDWHGULVNEDVHG\$XGLW3ODQZKLFKLVVHWRXWDFFRUGLQJ WRVSHFLƓFFRQWUROREMHFWLYHVHJRSHUDWLRQDOULVNVFRPSOLDQFHZLWK/HJLVODWLYH'HFUHH DQG /HJLVODWLYH 'HFUHH WKH VHFXULW\ DQG SURƓOLQJ RI FRUSRUDWH information systems, etc.).
The implementation of measures is outsourced to a single structure, Internal Audit, which is in turn responsible for reporting the results of the activities conducted to the delegated supervisory bodies.
All this translates into a culture and set of tools based on integrated compliance
INTEGRATED AUDIT ACTIVITIES
Following adherence to the Borsa Italiana Corporate Governance Code and in order to integrate the good governance practices set out in this sponsored document into its own processes, Sabaf adopted a Corporate Governance Manual* which governs principles, regulations and operational procedures.
7KLV0DQXDODGRSWHGE\%RDUGUHVROXWLRQRIb'HFHPEHUKDVEHHQ XSGDWHG VHYHUDOWLPHV RYHUWKH \HDUV LQ RUGHUWRUHŴHFW FKDQJHV LQ ODZV and regulations regarding Corporate Governance, as well as best practices adopted by the Company.
The Manual contains certain operating guidelines, which were approved by the Board of Directors and updated most recently in September 2013. These guidelines were issued to ensure that the management and control bodies of Sabaf properly carry out their duties.
In 2006 Sabaf S.p.A. adopted the Organisational and Management Model pursuant to Legislative Decree 231/2001, designed to prevent the commission of criminal offences by employees and/or outside staff in the Company's interest.
changes in legislation that have occurred over time.
The Company tasks the Supervisory Committee with assessing the adequacy of the Model (i.e. its real ability to prevent offences), as well as with supervising the functioning and compliance of the protocols adopted.
Thereafter, the Company, through the supervision of the Supervisory Committee, has responded promptly to the need to adapt the Model and the control structure to
FEATURES OF THE ACCOUNTING CONTROL MODEL
In 2015 the accounting control model did not require any updating.
Sabaf considers the internal control and risk management system for ƓQDQFLDOLQIRUPDWLRQDQLQWHJUDOSDUWRILWVULVNPDQDJHPHQWV\VWHP ,QWKLVUHJDUG VLQFH6DEDIKDVLQWHJUDWHGDFWLYLWLHVUHODWLQJWRWKH PDQDJHPHQWRIWKHLQWHUQDOFRQWUROV\VWHPRQƓQDQFLDOUHSRUWLQJLQWRLWV Audit and Compliance process.
The Group has established an Accounting Control Model, approved by the %RDUGRI'LUHFWRUVIRUWKHƓUVWWLPHRQ)HEUXDU\DQGVXEVHTXHQWO\ revised and updated.
)LQDOO\ GXULQJ E\ RUGHU RI WKH )LQDQFLDO 5HSRUWLQJ 2IƓFHU WKH Accounting Control Model has been extended to the Turkish subsidiary; in particular, with the support of the Internal Audit Function, its applicability KDVEHHQYHULƓHGDQGUHTXLUHPHQWVIRUDGDSWDWLRQKDYHEHHQDVVHVVHG
In accordance with regulation on remuneration, the Board of Directors approved the "General Remuneration Policy" on 22 December 2011, and subsequently updated it on 0DUFKDQG\$XJXVW
This Policy, applied from the date of approval by the Board, was fully implemented from 2012 following the appointment of the new management bodies.
7KHSROLF\GHƓQHVWKHFULWHULDDQGJXLGHOLQHVWRƓ[WKHUHPXQHUDWLRQRIL PHPEHUVRI the Board of Directors, (ii) members of the Board of Statutory Auditors, (iii) executives with strategic responsibilities.
For more details on the above policy, see the complete text on the Company's website.
6HHDOVRWKH5HPXQHUDWLRQ5HSRUWIRUVSHFLƓFLQIRUPDWLRQRQUHPXQHUDWLRQHDUQHGDQG paid out in 2015.
On the proposal of the Board of Directors and having heard the opinion of the Remuneration and Nomination Committee, the Shareholders' Meeting determines a WRWDOPD[LPXPDPRXQWLQFOXGLQJDƓ[HGDPRXQWDQGDWWHQGDQFHIHHVIRU
• All members of the Board of Directors
On the proposal of the Remuneration and Nomination Committee and subject to the opinion of the Board of Statutory Auditors, the Board of Directors determines, within the amount indicated above, additional remuneration for:
• Directors vested with special powers
On the proposal of the Remuneration and Nomination Committee and in line with the EXGJHWWKH%RDUGRI'LUHFWRUVGHƓQHVDQ0%2SODQIRU
The short-term variable componentPD\QRWH[FHHGRIWKHƓ[HG DQQXDO gross salary; it may be only partially granted in the event that the objectives are not completely met.
75% is paid out in the April of the following year, and 25% in the January of the second subsequent year.
The annual variable component is linked to an MBO plan.
This plan sets a common objective (Group EBIT, which is considered to be the Group's PDLQLQGLFDWRURIƓQDQFLDOSHUIRUPDQFH DQGindividual objectivesTXDQWLƓDEOHDQG PHDVXUDEOHERWKHFRQRPLFƓQDQFLDODQGWHFKQLFDOSURGXFWLYHLQQDWXUH
The total long-term variable component for the three years may not exceed 50% RIWKHƓ[HGDQQXDOJURVVVDODU\LWPD\EHRQO\SDUWLDOO\JUDQWHGLQWKHHYHQWWKDWWKH objectives are not completely met.
,WLVSDLGLQIXOOIROORZLQJWKHDSSURYDORIWKHƓQDQFLDOVWDWHPHQWVRIWKHWKLUG\HDUWR which the incentive relates.
The variable component is linked to a three-year MBO.
On the proposal of the Remuneration and Nomination Committee, the Board of Directors DSSURYHVWKHORQJWHUPƓQDQFLDOLQFHQWLYHIRU
| COMPONENTS | CORPORATE ROLE | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| OF REMUNERATION | EXECUTIVE NON-EXECUTIVE DIRECTORS DIRECTORS |
EXECUTIVES WITH STRATEGIC RESPONSIBILITIES |
MEMBERS OF BOARD COMMITTEES |
STATUTORY AUDITORS |
||||||
| FIXED COMPONENTS | FIXED ANNUAL REMUNERATION | > Fixed remuneration for role of Director > Fixed remuneration for 'LUHFWRUZLWKVSHFLƓFUROH |
> Fixed remuneration for role of Director > Fixed remuneration for 'LUHFWRUZLWKVSHFLƓFUROH |
> CCNL (national collective bargaining agreement) for Industrial Managers |
> Fixed remuneration for Directors with positions on Board committees |
> Fixed emoluments | ||||
| POSITIONS IN SUBSIDIARIES | > Fixed remuneration for positions in subsidiaries |
N/A | > Fixed remuneration for positions in subsidiaries |
N/A | N/A | |||||
| ATTENDANCE FEE | N/A | > Board of Directors attendance fee |
N/A | > Board committee attendance fee |
N/A | |||||
| VARIABLE COMPONENTS | VARIABLE ANNUAL REMUNERATION |
> Annual variable remuneration relating to MBO * |
N/A | > Annual variable remuneration relating to MBO |
N/A | N/A | ||||
| LONG-TERM INCENTIVES | > Three-year MBO* | N/A | > Three-year MBO | N/A | N/A | |||||
| OTHER BENEFITS | BENEFICI NON MONETARI | > Third party civil liability insurance policy |
> Third party civil liability insurance policy |
> Third party civil liability insurance policy > Life insurance policy > Policy covering medical expenses (FASI) > Additional policy to cover medical expenses > Assignment of company car |
N/A | > Third party civil liability insurance policy |
| GROUP EBIT |
40% | AVERAGE SHARE VALUE |
25% | GROUP EBITDA |
50% |
|---|---|---|---|---|---|
| > EBIT threshold on budget for year | > share value at the end of the relevant industrial plan |
> consolidated group EBITDA understood as the sum for the relevant three years |
|||
| INDIVIDUAL OBJECTIVES DWUKPGUU ƂPCPEKCN > echnical manufacturing |
60% | FREE CASH FLOW |
25% | > consolidated group FCF (equal to sum of FCF for the relevant three years) |
of independent directors *
Average compensation of members of the Control and Risk Committee *
The comparison of remuneration is made using data from the Italia Board Index Observatory 2015, published by Spencer Stuart, which analyses the characteristics and functioning of the Boards of Directors of the top 100 LQGXVWULDODQGƓQDQFLDO OLVWHGFRPSDQLHVLQ,WDO\LQRUGHURIFDSLWDOLVDWLRQ as at 16 March 2015, as well as a comparison with major European and non-European countries.
Considering the size and characteristics of the issuer, Sabaf remuneration is within the average of the panel analysed.
| 62 | SABAF and its staff |
|---|---|
| 86 | SABAF and its shareholders |
| 88 | SABAF and its customers |
| 90 | SABAF and its suppliers |
| 92 | SABAF and its lenders |
| 92 | SABAF and its competitors |
| 94 | SABAF, Government and Society |
| 95 | Sabaf and the environment |
| 99 | Limited assurance report on the social report |
| 102 | Index GRI |
BRAZIL
Sabaf S.p.A.'s social accountability system complies with the requirements of the 6\$VWDQGDUGIRUZKLFKWKHFRPSDQ\REWDLQHGFHUWLƓFDWLRQLQDQGZKLFKZDV last renewed in March 2015 for a further three years. The decision to certify the system stemmed from the belief that the Company's human resources are an important asset. In particular, it seeks to raise awareness among management, suppliers, employees and independent contractors of full compliance with the social accountability principles enshrined in the standard.
,QLPSOHPHQWLQJ6\$6DEDI6S\$KDVDQDO\VHGDQGPRQLWRUHGWKHPDLQHWKLFDO and social risk factors in terms of child labour, forced labour, health and safety, freedom of association and the right to collective bargaining, discrimination, disciplinary procedures, working hours and compensation.
During the year dialogue was maintained between management representatives and ZRUNHUVōUHSUHVHQWDWLYHVFRQFHUQLQJWKHFRQFUHWHDSSOLFDWLRQRIWKH6\$VWDQGDUG
The social accountability management system was audited twice by IMQ / IQ NET in 2015. During the audit the auditors collected evidence of the company's commitment to supporting the Social Accountability System, and no evidence of non-compliance emerged.
\$VDW'HFHPEHUWKH6DEDI*URXSKDGHPSOR\HHVFRPSDUHGZLWKDW\HDUHQG
| 31/12/2015 | 31/12/2014 | 31/12/2013 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Sabaf S.p.A. (Ospitaletto, Brescia - Italy) | 367 | 370 | 186 | 372 | 191 | ||||
| Faringosi Hinges (Bareggio, Milan - Italy) | 20 | 23 | 43 | 22 | 24 | 46 | 23 | 26 | 49 |
| Sabaf do Brasil (Jundiaì, San Paolo - Brazil) | 14 | 47 | 17 | 64 | 63 | 26 | 89 | ||
| Sabaf Beyaz Esya Parcalari San Tic Ltd. Manisa – Turkey |
38 | 32 | 28 | 60 | 18 | 11 | 29 | ||
| Sabaf Appliance Components (Kunshan) Co., Ltd | 10 | - | - | - | - | - | - | ||
| TOTAL | 494 | 265 | 759 | 471 | 255 | 726 | 476 | 254 | 730 |
\$VUHJDUGVEDVLFW\SHVRIHPSOR\PHQWFRQWUDFWVHPSOR\HHV KDGSHUPDQHQWFRQWUDFWVDQG KDGWHPSRUDU\WUDLQLQJDQGDSSUHQWLFHVKLSFRQWUDFWV
| 31/12/2015 | 31/12/2014 | ||||||
|---|---|---|---|---|---|---|---|
| Permanent | 236 | 449 | 240 | 689 | |||
| Training or apprenticeship |
4 | 0 | 4 | 1 | 0 | 1 | |
| Temporary | 31 | 29 | 60 | 21 | 36 | ||
| TOTAL | 494 | 265 | 759 | 471 | 255 | 726 |
During 2015 Sabaf group companies hired 12 ex-temporary workers on a permanent EDVLVLQ
,Q6DEDIRIIHUHGZRUNSODFHPHQWVWRVWXGHQWVLQ
In this way, Sabaf offers, for a week, to some students from schools in the province of
%UHVFLDZLWKDELDVWRZDUGVLQGXVWU\WKHLUƓUVWGLUHFW FRQWDFWZLWKWKHZRUOGRIZRUN in which they are able to apply the technical knowledge they have acquired in the FODVVURRPLQWKHƓHOG
| 31/12/14 | NEW HIRES | DEPARTURES | CHANGE IN CATEGORY |
31/12/15 | |||
|---|---|---|---|---|---|---|---|
| Senior management |
8 | 0 | 0 | 0 | 0 | 1 | 9 |
| Clerical staff and middle management |
110 | 7 | 2 | 6 | 1 | 0 | 112 |
| Manual workers and similar |
438 | 6 | 0 | 10 | 2 | -1 | 431 |
| TOTAL | 556 | 13 | 2 | 16 | 3 | 0 | 552 |
| 31/12/14 | NEW HIRES | DEPARTURES | CHANGE IN CATEGORY |
31/12/15 | |||
|---|---|---|---|---|---|---|---|
| Senior management |
1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Clerical staff and middle management |
0 | 0 | 1 | 0 | 0 | 14 | |
| Manual workers and similar |
30 | 0 | 0 | 1 | 1 | 0 | 28 |
| TOTAL | 46 | 0 | 0 | 2 | 1 | 0 | 43 |
| 31/12/14 | NEW HIRES | DEPARTURES | CHANGE IN CATEGORY |
31/12/15 | |||
|---|---|---|---|---|---|---|---|
| Senior management |
0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Clerical staff and middle management |
8 | 1 | 1 | 1 | 0 | 0 | 9 |
| Manual workers and similar |
16 | 1 | 18 | 0 | |||
| TOTAL | 64 | 17 | 2 | 19 | 5 | 0 | 59 |
| 31/12/14 | NEW HIRES | DEPARTURES | CHANGE IN CATEGORY |
31/12/15 | |||
|---|---|---|---|---|---|---|---|
| Senior management |
2 | 0 | 0 | 0 | 0 | 1 | 3 |
| Clerical staff and middle management |
6 | 0 | 2 | -1 | 13 | ||
| Manual workers and similar |
108 | 48 | 88 | 41 | 0 | 79 | |
| TOTAL | 60 | 113 | 53 | 88 | 43 | 0 | 95 |
| 31/12/14 | NEW HIRES | DEPARTURES | CHANGE IN CATEGORY |
31/12/15 | |||
|---|---|---|---|---|---|---|---|
| Senior management |
1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Clerical staff and middle management |
4 | 3 | 0 | 1 | 0 | 0 | 6 |
| Manual workers and similar |
0 | 3 | 3 | 3 | 0 | 0 | 3 |
| TOTAL | 5 | 6 | 3 | 4 | 0 | 0 | 10 |
| DESCRIPTION | 2015 | 2014 | |||||
|---|---|---|---|---|---|---|---|
| < 20 years | 2 | 2 | 4 | 2 | 2 | 4 | |
| From 21 to 30 years |
88 | 32 | 120 | 37 | 29 | 66 | |
| From 31 to 40 years |
24 | 74 | 24 | 39 | |||
| From 41 to [GCTU |
6 | 1 | 7 | 1 | 2 | 3 | |
[GCTU |
3 | 1 | 4 | 0 | 0 | 0 | |
| TOTAL | 149 | 60 | 209 | 55 | 57 | 112 |
| 31/12/14 | NEW HIRES | DEPARTURES | CHANGE IN CATEGORY |
31/12/15 | |||
|---|---|---|---|---|---|---|---|
| Senior management |
12 | 0 | 0 | 0 | 0 | 2 | 14 |
| Clerical staff and middle management |
143 | 16 | 8 | 9 | 3 | -1 | |
| Manual workers and similar |
133 | 120 | 49 | -1 | |||
| TOTAL | 731 | 149 | 60 | 129 | 52 | 0 | 759 |
| DESCRIPTION | 2015 | 2014 | |||||
|---|---|---|---|---|---|---|---|
| < 20 years | 1 | 1 | 2 | 2 | 7 | ||
| From 21 to 30 years |
69 | 94 | 40 | 23 | 63 | ||
| From 31 to 40 years |
49 | 22 | 71 | 12 | 24 | 36 | |
| From 41 to [GCTU |
4 | 2 | 6 | 2 | 2 | 4 | |
[GCTU |
6 | 2 | 8 | 2 | 4 | 6 | |
| TOTAL | 129 | 52 | 181 | 61 | 55 | 116 |
| DESCRIPTION | CLERICAL STAFF AND MIDDLE MANAGEMENT |
MANUAL WORKERS |
TOTAL |
|---|---|---|---|
| Resignation | 9 | 93 | 102 |
| Retirement | 2 | 4 | 6 |
| Expiry of contract | 1 | 0 | 1 |
| Dismissal | 0 | 67 | 67 |
| Failure to pass trial period |
0 | 5 | |
| TOTAL | 12 | 169 | 181 |
7KH VLJQLƓFDQW LQFUHDVH LQ WXUQRYHU LQ LV DVVRFLDWHG ZLWK WKH GLIƓFXOWLHV LQ establishing stable working relationships at Sabaf Turkey. The Group operates in an area 0DQLVD WKDWLVXQGHUJRLQJ VLJQLƓFDQWLQGXVWULDOGHYHORSPHQWZLWKD FRQVWDQWŴRZRI new job opportunities. To address this situation the Group is creating retention policies WKDWLQFOXGHPRQHWDU\LQFHQWLYHVWKHRIIHURILQFUHDVHGEHQHƓWVDQGRWKHUOR\DOW\V\VWHPV
Italy (Sabaf and Faringosi)
| DESCRIPTION | 2015 | 2014 | |||||
|---|---|---|---|---|---|---|---|
| < 30 years | 0.78% | 0.00% | 0.50% | 0.00% | 0.33% | ||
| From 31 to 40 years |
1.81% | 0.00% | 1.18% | 0.26% | 1.43% | 0.66% | |
| From 41 to [GCTU |
0.96% | 0.67% | 0.48% | 0.50% | |||
[GCTU |
0.26% | 0.00% | 0.17% | 0.26% | 0.00% | 0.17% | |
| TOTAL | 3.36% | 0.96% | 2.52% | 1.53% | 1.90% | 1.66% |
Brazil
| DESCRIPTION | 2015 | 2014 | |||||
|---|---|---|---|---|---|---|---|
| < 30 years | 28.89% | 21.43% | 27.12% | 47.06% | 53.13% | ||
| From 31 to 40 years |
11.11% | 14.29% | 11.86% | 14.89% | 25.00% | ||
| From 41 to [GCTU |
2.22% | 0.00% | 1.69% | 0.00% | 1.56% | ||
[GCTU |
0.00% | 0.00% | 0.00% | 2.13% | 0.00% | 1.56% | |
| TOTAL | 42.22% 35.71% 40.68% 72.34% 105.88% 81.25% |
Turkey
| DESCRIPTION | 2015 | 2014 | |||||
|---|---|---|---|---|---|---|---|
| < 30 years | 87.72% | 76.84% | 60.71% | 51.67% | |||
| From 31 to 40 years |
64.91% | 60.00% | 42.86% | 23.33% | |||
| From 41 to [GCTU |
0.00% | 1.05% | 0.00% | 0.00% | 0.00% | ||
[GCTU |
0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | |
| TOTAL | 154.39% 113.16% 137.89% 50.00% 103.57% 75.00% |
Group
| DESCRIPTION | 2015 | 2014 | |||||
|---|---|---|---|---|---|---|---|
| < 30 years | 14.17% | 9.81% | 12.65% | 8.92% | 9.80% | 9.23% | |
| From 31 to 40 years |
9.92% | 8.30% | 9.35% | 2.12% | 9.41% | 4.68% | |
| From 41 to [GCTU |
0.81% | 0.79% | 0.42% | 0.78% | 0.55% | ||
[GCTU |
0.20% | 0.00% | 0.13% | 0.42% | 0.00% | 0.28% | |
| TOTAL | 25.10% 18.87% 22.92% 11.89% 20.00% 14.74% |
China
| DESCRIPTION | 2015 | 2014 | |||||
|---|---|---|---|---|---|---|---|
| < 30 years | 80.00% | 0.00% | 40.00% | - | - | ||
| From 31 to 40 years |
0.00% | 0.00% | 0.00% | - | - | ||
| From 41 to [GCTU |
0.00% | 0.00% | 0.00% | - | - | ||
[GCTU |
0.00% | 0.00% | 0.00% | - | - | ||
| TOTAL | 80.00% | 0.00% | 40.00% |
| 31.12.2015 | 31.12.2014 | |
|---|---|---|
| < 30 years | 21.9% | 22.4% |
| 31 – 40 years | 42.9% | |
s [GCTU |
29.0% | 27.0% |
[GCTU |
6.2% | 10.1% |
| TOTAL | 100% | 100% |
7KHDYHUDJHDJHRI*URXSHPSOR\HHV \HDUV UHŴHFWVWKH FRQWLQXRXVH[SDQVLRQ of the business and the desire to hire young workers, giving preference to in-house training and development rather than bringing in outside skills, particularly in view of WKHVSHFLƓFQDWXUHRI6DEDIōVEXVLQHVVPRGHO
7KHPLQLPXPDJHRI*URXSHPSOR\HHVLVLQ,WDO\7XUNH\DQG%UD]LODQGLQ&KLQD
Sabaf is well aware of the fundamental importance of having a stable and TXDOLƓHGZRUNIRUFHWKDWWRJHWKHUZLWKLQYHVWPHQWVLQWHFKQRORJ\LVDNH\IDFWRULQ maintaining the Group's competitive advantage.
| AREA | 2015 | 2014 | ||||
|---|---|---|---|---|---|---|
| Production | 304 | 176 | 480 | 294 | 172 | 466 |
| Quality | 42 | 33 | 75 | 41 | 32 | 73 |
| Research & development | 67 | 2 | 69 | 70 | 4 | 74 |
| Logistics | 20 | 1 | 21 | 21 | 0 | 21 |
| Administration | 9 | 23 | 32 | 8 | 21 | 29 |
| Sales | 10 | 14 | 24 | 6 | 12 | 18 |
| Services | 18 | 10 | 28 | 21 | 9 | 30 |
| Purchases | 6 | 4 | 10 | 4 | 9 | |
| Other | 18 | 2 | 20 | 1 | 6 | |
| TOTAL | 494 | 265 | 759 | 471 | 255 | 726 |
In order to attract the best resources, our hiring policy aims to ensure equal opportunities for all candidates, avoiding all forms of discrimination. The selection policy envisages, among other things:
Candidates are assessed based on their skills, training, previous experience, expectations DQGSRWHQWLDODFFRUGLQJWRWKHVSHFLƓFQHHGVRIWKHEXVLQHVV
\$W6DEDI6S\$DOOQHZKLUHVUHFHLYHWKH&KDUWHURI9DOXHVDQGWKH6\$VWDQGDUGDV well as a copy of the national collective bargaining agreement for the industry.
| EDUCATIONAL QUALIFICATION |
2015 | 2014 | ||||||
|---|---|---|---|---|---|---|---|---|
| University degree |
26 | 91 | 12.0% | 60 | 19 | 79 | 10.9% | |
| High school diploma |
231 | 101 | 332 | 43.7% | 220 | 96 | 316 | |
| Middle school diploma |
196 | 136 | 332 | 43.7% | 186 | 134 | 320 | 44.1% |
| Primary school EGTVKƂECVG |
2 | 2 | 4 | 6 | 11 | |||
| TOTAL | 494 | 265 | 759 | 100% | 471 | 255 | 726 | 100% |
At Sabaf Group, employee professional development is underpinned by a continuous training process. The Human Resources Department, in consultation with the managers FRQFHUQHGGHYLVHVDQDQQXDOWUDLQLQJSODQEDVHGRQZKLFKVSHFLƓFFRXUVHVWREHKHOGGXULQJWKH\HDUDUHVFKHGXOHG
| 2015 | ||||||
|---|---|---|---|---|---|---|
| Training for new recruits, apprenti ces, initial employment contracts |
727 | 1,720 | 238 | |||
| Information systems | 130 | 11 | 141 | 29 | 264 | |
| Technical training | 636 | 13 | 649 | 31 | 686 | |
| Safety, environment and social responsibility |
2,661 | 830 | 3,491 | 4,722 | 2,024 | 6,746 |
| Administration & organisation | 387 | 466 | 120 | 111 | 231 | |
| Foreign languages | 1,172 | 300 | 1,472 | 474 | 268 | 742 |
| Other | 60 | 0 | 60 | 0 | 0 | 0 |
| TOTAL HOURS OF TRAINING RECEIVED |
10,774 | 2,347 | 13,121 | 7,926 | 2,701 | 10,627 |
| of which: training hours provided by in-house trainers |
3,976 | 3,462 | 489 |
7KHWUDLQLQJKRXUVSURYLGHGE\LQKRXVHWUDLQHUVDOVRLQFOXGHWKHWUDLQLQJJLYHQWRHPSOR\PHQWDJHQF\VWDIIKRXUVLQ
| 2015 | 2014 | |||||
|---|---|---|---|---|---|---|
| Manual workers | 21.6 | 13.7 | 9.4 | 12.1 | ||
| Clerical staff and middle management |
21.1 | 21.4 | 21.2 | 28.0 | 23.8 | |
| Senior management | 37.9 | 82.8 | 41.1 | 28.6 | 30.3 | |
| TOTAL | 21.9 | 9.2 | 17.5 | 16.8 | 10.6 | 14.6 |
,QWKHWRWDOFRVWRIWUDLQLQJ*URXSHPSOR\HHVZDVDERXWŞŞLQ ,QDGGLWLRQWUDLQLQJFRVWVIRUWHPSRUDU\VWDIIWRWDOOHGDURXQGŞLQDERXWŞLQ
With a view to developing an ongoing dialogue between the business and its employees, Sabaf publishes a biannual magazine featuring key information about corporate life and addressing subjects of general interest.
7KH+XPDQ5HVRXUFHV'HSDUWPHQWRIƓFLDOO\KDVWZRSHULRGVHDFKZHHNGXULQJZKLFKLW is available to meet with employees to offer them help and advice, even with issues not strictly related to the employer-employee relationship, such as information on tax and social security laws.
During 2015, Sabaf S.p.A.'s Human Resources Department held 1,101 appointments with employees regarding employment relationships or personal matters.
Sabaf S.p.A. uses a software program called HR PORTAL which allows all employees to log in and consult information published by the company relating to their payslips, tax data and social security contributions. Collective communication and company agreements are also available.
Sabaf is permanently committed to assuring equal opportunities for female staff, who WRGD\DFFRXQWIRURIWKHZRUNIRUFHLQ
The Group – subject to organisational and production requirements – is mindful of staff family commitments. To date, the majority of requests to reduce working hours made by ZRUNHUVKDYHEHHQVDWLVƓHG,QWKH,WDOLDQFRPSDQLHVRIWKH*URXSJUDQWHGDWRWDO RISDUWWLPHFRQWUDFWVWZRWRIHPDOHFOHULFDOVWDIIWRIHPDOHPDQXDOZRUNHUVDQG WRPDOHPDQXDOZRUNHUV HTXLYDOHQWWRRIWKHWRWDODOVRFRQWUDFWVLQ
Twenty-four disabled people work in the Italian companies of the Group, of which 11 on a part-time basis. The Company recruits with the aim of favouring the integration of people with disabilities within the manufacturing process, and has an agreement with La Fiaccolata (a charity co-op based in Ospitaletto) regarding the hiring of people in protected categories.
| 2015 | 2014 | ||||
|---|---|---|---|---|---|
| NUMBER | % | NUMBER | % | ||
| 494 | 471 | 64.9 | |||
| 34.9 | |||||
| TOTAL | 759 | 100 | 726 | 100 |
TOTAL 759 726
1
1
At all Group sites, senior management is recruited from the local area, except the production manager at Sabaf China, who has however been resident in China for many years.
| 2015 | 2014 | BENCHMARK 3 | |
|---|---|---|---|
| Non-EU workers | 48 | - | |
| % of total employees |
8.1% | 8.8% | 3.70 |
\$W'HFHPEHUGLIIHUHQWQDWLRQDOLWLHVZHUHUHSUHVHQWHGRQWKHZRUNIRUFHRI the Group's Italian companies.
6DEDI6S\$ HPSOR\HHV DUH FODVVLƓHG DFFRUGLQJWRWKHQDWLRQDO FROOHFWLYHEDUJDLQLQJ agreement for the metalworking and mechanical engineering sector, as amended by second-level bargaining, which includes:
| a personal bonus by employee grade; |
|---|
| a productivity bonus by employee grade; |
| DƓ[HGSHUIRUPDQFHUHODWHGERQXVIRUDOOHPSOR\HHJUDGHV |
| a standard consolidated bonus for all employee grades; |
| a standard variable performance-related bonus for all employee grades. |
'HWDLOVRIVWDIIFRVWFRPSRQHQWVDUHVHWRXWLQWKHQRWHVWRWKHFRQVROLGDWHGƓQDQFLDO statements.
%HVLGHVƓQDQFLDOLQFHQWLYHVŊHJLQGLYLGXDOSD\ULVHVPRUWJDJHJXDUDQWHHVLVVXHGE\ the Company for employees, the sale or rental of apartments at cost price, and company discounts on goods and services – Sabaf's incentive system also includes the option of taking part in free training courses held on or off-site.
An incentive system is also in place linked to collective and individual objectives. This involved 35 employees of the Group in 2015.
7KHW\SHVRIZHOIDUHEHQHƓWVDYDLODEOHWR*URXSHPSOR\HHVDUHWKRVHHQYLVDJHGE\WKH statutory legislation in force in the various countries in which the Group operates.
2 Data refers only to the Italian companies of the Group.
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Ratio between the minimum monthly salary envisaged by national collective agreements and the minimum salary paid by Group companies
| 2014 | MINIMUM SALARY AS PER NATIONAL COLLECTIVE AGREEMENT |
MINIMUM SALARY PAID | % INCREASE OVER MINIMUM | |||
|---|---|---|---|---|---|---|
| IN EURO 4 | ||||||
| Sabaf S.p.A. | 2,043.98 | 2,069.03 | 31% | 33% | ||
| Faringosi-Hinges | 1,731.36 | 1,706.31 | 11% | 9% | ||
| Turkey | 310.73 | 310.73 | 9% | 9% | ||
| Brazil | 13% | 13% |
| 2015 | MINIMUM SALARY AS PER NATIONAL COLLECTIVE AGREEMENT |
MINIMUM SALARY PAID | % INCREASE OVER MINIMUM | |||
|---|---|---|---|---|---|---|
| IN EURO 4 | ||||||
| Sabaf S.p.A. | 1,811.84 | 2,116.79 | 14% | 33% | ||
| Faringosi-Hinges | 1,760.69 | 1,760.69 | 11% | 11% | ||
| Turkey | 286.61 | 286.61 | 314.81 | 314.81 | 10% | 10% |
| Brazil | 13% | 13% | ||||
| China | 46% | 46% |
| 2015 | 2014 | |
|---|---|---|
| Italy | 4.7 | 4.9 |
| Turkey | 11.9 | 13.7 |
| Brazil | 9.3 | 9.4 |
| China | - |
| 2015 | 2014 | |
|---|---|---|
| Clerical staff, middle management and senior management |
64% | 67% |
| Manual workers | 83% | 90% |
7KHVHƓJXUHVZHUHGHWHUPLQHGDVWKHUDWLREHWZHHQWKHDYHUDJHJURVVDQQXDOVDODU\RIIHPDOHHPSOR\HHVDQGWKDWRIPDOHHPSOR\HHVIRULQGLYLGXDO*URXSFRPSDQLHV The Group indicator was determined by weighing the indicators of the individual companies by the number of employees in each.
7KHRUGLQDU\ZRUNLQJZHHNLVKRXUVIRUWKH,WDOLDQFRPSDQLHVDQG6DEDI&KLQDDQGKRXUVIRU6DEDIGR%UDVLOVSUHDGRYHUƓYHZRUNLQJGD\VIURP0RQGD\WR)ULGD\$W6DEDI 7XUNH\WKHZRUNLQJZHHNFRQVLVWVRIKRXUVVSUHDGRYHUVL[ZRUNLQJGD\V
| Overtime | 2015 | 2014 | BENCHMARK 5 | |||
|---|---|---|---|---|---|---|
| Clerical staff | Manual workers | Clerical staff | Manual workers | Clerical staff | Manual workers | |
| Average number of workers per month who worked overtime |
76 | 264 | 72 | 274 | - | - |
| Number of hours of overtime | 13,094 | - | - | |||
| Annual per-capita overtime hours 6 | 81 | 60 | 94 | 63 |
| Total hours of absence | 2015 | BENCHMARK 7 | |||||
|---|---|---|---|---|---|---|---|
| Total annual hours of absence | 36,412 | 67,962 | 32,299 | 39,446 | |||
| Hours of absence as % of workable hours |
3.1% | 6.9% | 4.4% | 3.4% | 7.9% | ||
| Average hours of absence per capita | 63.7 | 136.8 | 89.2 | 98.4 |
| Hours of sick leave | 2015 | BENCHMARK 8 | |||||
|---|---|---|---|---|---|---|---|
| Total annual hours of sick leave | 27,833 | 17,823 | 17,143 | 41,702 | - | ||
| Hours of sick leave as % of workable hours |
2.7% | 3.4% | 2.9% | 2.6% | 3.4% | 2.9% | - |
| Per capita hours of sick leave | 67.0 | 66.6 |
| Hours of maternity/ | 2015 | 2014 | BENCHMARK 9 | ||||
|---|---|---|---|---|---|---|---|
| paternity leave | |||||||
| Total annual hours of maternity/ paternity leave |
481 | 17,403 | 17,884 | 103 | 20,418 | - | |
| Hours of maternity leave as % of workable hours |
0.0% | 3.3% | 1.1% | 0.0% | 4.1% | 1.4% | - |
| Per capita hours of maternity leave | 1.0 | 0.2 | 78.9 | 28.0 |
7KHKLJKQXPEHURIKRXUVRIPDWHUQLW\OHDYHFRPSDUHGZLWKWKHVHFWRUDYHUDJHUHŴHFWVRXUPXFKKLJKHUSHUFHQWDJHRIIHPDOHVWDII
| TYPE OF LEAVE | 2015 | 2014 | |||||
|---|---|---|---|---|---|---|---|
| % of workers in workforce after 12 months |
|||||||
| Statutory maternity leave | 0 | 10 | 10 | 0 | 9 | 9 | 100 |
| Early maternity leave | 0 | 8 | 8 | 0 | 9 | 9 | 100 |
| Maternity/Paternity optional | 1 | 17 | 18 | 1 | 17 | 18 | 94 |
| Child-rearing leave | 0 | 6 | 6 | 0 | 8 | 8 | 100 |
| Assistance to families of persons with disabilities (Law 104) |
27 | 10 | 37 | 17 | 11 | 28 | 97 |
| Blood donation | 6 | 0 | 6 | 0 | - | ||
|---|---|---|---|---|---|---|---|
| Leave of absence | 3 | 1 | 4 | 2 | 1 | 3 | 100 |
| Extraordinary parental leave | 2 | 1 | 3 | 1 | 1 | 2 | 100 |
| 2015 | 2014 | |
|---|---|---|
| Number of hours of statutory redundancy pay |
16,612 | 8,742 |
| Annual average number of hours per capita |
30.0 | 14.4 |
During the year the Italian companies of the Group made limited use of government VXEVLGLVHGWHPSRUDU\OD\RIIEHQHƓWVGXULQJSHULRGVZKHQSURGXFWLRQUHTXLUHPHQWV were low.
The Company is totally committed to protecting its employees' health and safety: the V\VWHP XVHG WR PDQDJH RFFXSDWLRQDO KHDOWK DQG VDIHW\ SUREOHPV LV 2+6\$6 compliant. Not only does it guarantee compliance with applicable laws and regulations, it is also designed for continuous improvement of working conditions.
Since February 2012, the occupational health and safety system of Faringosi-Hinges KDVEHHQFHUWLƓHGDFFRUGLQJWRWKH2+6\$6VWDQGDUG7KHV\VWHPXQGHUZHQWD UHFHUWLƓFDWLRQDXGLWE\WKH789125'FHUWLI\LQJDXWKRULW\LQ)HEUXDU\7KHUHVXOW of this was positive, with a few recommendations for improvement. The most recent DXGLWFDUULHGRXWE\WKH789125'FHUWLI\LQJDXWKRULW\LQ)HEUXDU\FHUWLƓHGWKDW WKHV\VWHPFRPSOLHVZLWKVWDQGDUGVƓQGLQJWKDWWKHUHFRPPHQGDWLRQVPDGHLQ had been addressed and almost all resolved. No issues of non-compliance were found, only a few areas for improvement.
11 Institution operating in accordance with Italian legislation, the data relates only to the Italian companies of the Group.
| 2015 | 2014 | BENCHMARK 12 | |||||
|---|---|---|---|---|---|---|---|
| - | |||||||
| On-site accidents | 12 | 17 | 13 | 2 | - | ||
| Off-site accidents | 2 | 0 | 2 | 4 | 1 | - | |
| Average absence due to on-site accidents (days) |
33.17 | 23 | 30.18 | 12.00 | 30.67 | - | |
| Average absence due to off-site accidents (days) |
0 | 2.00 | 84.40 | - | |||
| Total days of absence due to accidents |
2,840 | 844 | 3,684 | - | |||
| Per capita hours of absence due to accidents 13 |
3.17 | 4.84 | 11.91 | 7.91 | 11.9 |
| TOTAL | 4.84 | 7.91 |
|---|---|---|
Number of accidents (excluding off-site accidents) per 1 million hours worked
Number of accidents (excluding off-site accidents) per 1,000 hours worked
| 2015 | 2014 | |||||
|---|---|---|---|---|---|---|
| Index | 0.47 | 0.29 | 0.40 | 0.06 | 0.39 |
No serious accidents occurred in 2015. Training and instruction on the use of protective and safety equipment continued at all Group sites.
In compliance with current law, Group companies have prepared and implemented a health-monitoring programme for their employees, with medical check-ups IRFXVLQJRQWKHVSHFLƓFZRUNUHODWHGKD]DUGV
PHGLFDOFKHFNXSVZHUHSHUIRUPHGLQLQ
| IN THOUSANDS OF EURO | 2015 | 2014 |
|---|---|---|
| 2NCPV GSWKROGPV CPF OCVGTKCNU |
42 | |
| 2GTUQPCN RTQVGEVKXG GSWKROGPV 22' |
77 | 88 |
| External training | 27 | 49 |
| Advisory services | 134 | 68 |
| Analyses of workplace environment | 24 | 2 |
| Medical check-ups (including pre-hire check-ups) | 44 | 48 |
| Software and databases | 0 | |
| TOTAL | 348 | 345 |
| IN THOUSANDS OF EURO | 2015 | 2014 |
|---|---|---|
| 2NCPV GSWKROGPV CPF OCVGTKCNU |
62 | 169 |
| TOTAL | 62 | 169 |
Only WKRVH PDWHULDOV WKDW IXOO\ FRPSO\ ZLWK 'LUHFWLYH (& 5R+6 'LUHFWLYH are used in production. These materials are intended to limit the use of hazardous substances such as lead, mercury, cadmium and hexavalent chromium.
Three trade unions are represented internally at Sabaf S.p.A.: FIOM, FIM and UILM. \$VDW'HFHPEHU*URXSHPSOR\HHVZHUHFDUGFDUU\LQJPHPEHUVLH RIWRWDOHPSOR\HHVLQHPSOR\HHVZHUH FDUGFDUU\LQJPHPEHUVRI the total).
Relations between senior management and trade union representatives are based on mutual transparency and fairness. During the year, there were 15 meetings at Sabaf S.p.A. between management and trade union representatives. The main issues addressed were:
announcements regarding changes in permanent staff and employment agency contracts, monitoring temporary and training contracts and planning recruitment and training;
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The hours spent taking part in trade union activities in 2015 were equivalent to 0.31% of workable hours.
| 2015 | 2014 | BENCHMARK 14 | ||||||
|---|---|---|---|---|---|---|---|---|
| UNION MEETINGS | ||||||||
| Number of hours | 2,708 | 2,919 | - | |||||
| As % of workable hours | 0.17 | 0.20 | - | |||||
| Number of hours per capita | 3.6 | 4.0 | - | |||||
| UNION LEAVE OF ABSENCE | ||||||||
| Number of hours | 1,499 | 1,823 | - | |||||
| As % of workable hours | 0.09 | 0.13 | - | |||||
| Number of hours per capita | 2.0 | - | ||||||
| INDUSTRIAL ACTION | ||||||||
| Number of hours | 798 | 4,168 | - | |||||
| As % of workable hours | 0.29 | - | ||||||
| Number of hours per capita | 1.0 | - | ||||||
| TOTAL | ||||||||
| Number of hours | 5,005 | 8,910 | ||||||
| #U QH YQTMCDNG JQWTU |
0.31 | 0.62 | ||||||
| Number of hours per capita | 6.57 | 12.2 | 5.3 |
In 2015, a total of 5 hours of strike were called at Sabaf S.p.A. as a result of national claims. However, no strikes were called at Faringosi Hinges, Sabaf do Brasil or Sabaf Kunshan.
In 2015 the Group conducted research at its Italian sites (Sabaf S.p.A and Faringosi Hinges) into "organisational wellbeing", in the belief that the working environment affects the relationship between the individual and the business and can drive DFFHSWDQFHDQGDVHQVHRIEHORQJLQJRURQWKHFRQWUDU\JHQHUDWHFRQŴLFWKRVWLOLW\DQGD ODFNRIFRRSHUDWLRQ7KHDLPRIWKHSURMHFWZDVWRƓQGRXWDOOWKHLQYLVLEOHŌVRIWōYDULDEOHV that relate to informal aspects (e.g. emotional welfare, behaviour, values, identity, FXOWXUHUHODWLRQV WKDWGHƓQHWKHOHYHORIZHOOEHLQJRISHRSOHZLWKLQWKHRUJDQLVDWLRQ
The analysis was conducted on a sample of 310 people at Sabaf (56% of the workforce) DQGSHRSOH DW )DULQJRVL+LQJHVDOORIWKHZRUNIRUFH WKURXJK DTXHVWLRQQDLUHWR EHƓOOHGLQRQVLWHGXULQJGHGLFDWHGVHVVLRQV7KHZRUNHUVƓOOHGLQWKHTXHVWLRQQDLUHV anonymously, under the supervision of a specialist HR consultancy. The results were shared with all employees in a dedicated issue of Sabaf Magazine published in December 2015.
A previous survey had been conducted at Sabaf in 2012. The results of 2015 show a general picture of improvement and of good or moderate satisfaction with the overall situation, despite a few areas for improvement, which management has noted and will assess possible initiatives for improvement.
A summary of the survey results is provided below:
To what extent do you agree that QTICPKUCVKQPCN-TQNGU-CTG-YGNN-FGƂPGF!
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| Key | 2012 | 1 | NOT AT ALL | 3 | OFTEN |
|---|---|---|---|---|---|
| 2015 | 2 | SOMETIMES | 4 | VERY OFTEN |
3% NO RESPONSE
SCOPE FOR IMPROVEMENT
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| Key | 2012 | 1 NOT AT ALL |
3 VERY |
|---|---|---|---|
| 2015 | 2 SLIGHTLY |
4 MOSTLY |
|
Are there opportunities for training CPF-RTQHGUUKQPCN-ITQYVJ!
To what extent do you agree that pay rises are FKUVTKDWVGF-QP-VJG-DCUKU-QH-SWCNKV[-QH-RGTHQTOCPEG!
46% GOOD 14% VERY GOOD
POSITIVE
SCOPE FOR IMPROVEMENT 27% FAIR 8% POOR
To what extent do you agree that QTICPKUCVKQPCN-TQNGU-CTG-YGNN-FGƂPGF!
To what extent do you agree that pay rises are FKUVTKDWVGF-QP-VJG-DCUKU-QH-SWCNKV[-QH-RGTHQTOCPEG!
Are there opportunities for training and RTQHGUUKQPCN-ITQYVJ!
| Key | 2015 | 1 | COMPLETELY DISAGREE | 3 | MOSTLY AGREE |
|---|---|---|---|---|---|
| 2 | SLIGHTLY AGREE | 4 | COMPLETELY AGREE |
PART-TIME WORKING
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FREE MEDICAL CHECK-UP
Sabaf S.p.A. has signed an agreement with a bank for mortgages and consumer loans with particularly advantageous terms, acting as a guarantor for employees:63 HPSOR\HHVKDGEHQHƓWHGIURPWKHDJUHHPHQWDW
The Company leased a number of apartments to employees near the Ospitaletto site. \$UHVLGHQWLDOFRPSOH[ZDVEXLOWLQZLWKXQLWVZKLFKDUHDOORFDWHGRQDSULRULW\ EDVLVDWSUHIHUHQWLDOUDWHVWRHPSOR\HHVZKRERXJKWXQLWV
The Company has also signed various agreements with retailers to purchase products and services at special low prices.
'XULQJGLVFLSOLQDU\PHDVXUHVZHUHWDNHQDJDLQVW*URXSHPSOR\HHV7KHVHEUHDNGRZQDVIROORZV
| 22 verbal warnings | ƓQHV |
|---|---|
| UHPLQGHUVFRQFHUQLQJWKHXVHRISHUVRQDOSURWHFWLYHHTXLSPHQW | 13 suspensions |
| 35 written warnings | 3 dismissals |
The main reasons for disciplinary procedures include: unauthorised absence, failure to observe working hours and failure to comply with the rules concerning sick leave.
No disputes with staff were pending at 31 December 2015.
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Shareholders residing outside Italy hold 26% of the share capital. ,QVWLWXWLRQDOLQYHVWRUVDUHYHU\VWURQJO\SUHVHQWLQVKDUHFDSLWDODQGDUHHVWLPDWHGWRDFFRXQWIRUDSSUR[LPDWHO\RIWKHIUHHŴRDW
5LJKWIURPWKHWLPHZKHQLWZHQWSXEOLF WKH&RPSDQ\KDVFRQVLGHUHGƓQDQFLDO FRPPXQLFDWLRQWREHRIVWUDWHJLFLPSRUWDQFH6DEDIōVƓQDQFLDOFRPPXQLFDWLRQSROLF\ is based on the principles of integrity, transparency and continuity, in the belief that this approach enables investors to assess the Company properly. In this regard, Sabaf is ZLOOLQJWRHQJDJHLQGLDORJXHZLWKƓQDQFLDODQDO\VWVDQGLQVWLWXWLRQDOLQYHVWRUV
The brokers that prepare studies and research documents about Sabaf on an ongoing basis are: Equita and Banca Akros.
In 2015, the Company met with institutional investors at roadshows organised in Milan, Venice, Rimini, London and Paris. In addition, some investors held meetings with management at the company headquarters in Ospitaletto, taking the opportunity to visit the production facilities.
'XULQJ6DEDIVKDUHVUHDFKHGWKHLUKLJKHVWRIƓFLDOSULFHRQ\$SULOŞ DQGWKHLUORZHVWRQ-DQXDU\Ş \$YHUDJHGDLO\WUDGLQJYROXPHZDVVKDUHV HTXLYDOHQWWRDQDYHUDJHGDLO\WRWDOYDOXHRIŞŞLQ
The dividend policy adopted by Sabaf is designed to guarantee a fair return for shareholders. This is realised in part through the annual dividend, by maintaining a ratio in excess of EHWZHHQGLYLGHQGVDQGSURƓWV
Sabaf shares have also been the subject of frequent analysis by the analysts and fund managers of SRI funds, which have invested in Sabaf on many occasions.
No lawsuits are pending with shareholders.
| 2015 | 2014 | |
|---|---|---|
| Countries | ||
| Customers 15 | 288 | 264 |
For a detailed analysis of revenue by product family and geographical area, please see the Report on Operations.
In line with the Group's commercial policies, most of the active commercial relationships are well established and long-term.
7KLUW\IRXUFXVWRPHUVKDGDQQXDOVDOHVRIRYHUŞPLOOLRQLQ 7KHEUHDNGRZQ by sales amount is as follows:
| 2015 | 2014 | |
|---|---|---|
| < €1,000 | 43 | 30 |
| aa | 174 | 163 |
| aa | 26 | 23 |
| aa | 43 | 33 |
| aa | 11 | 13 |
| aa | 26 | |
a |
8 | 7 |
In addition to the headquarters at Ospitaletto, the commercial network is based on the subsidiaries located in Brazil, Turkey, the United States and China, as well as a UHSUHVHQWDWLYHRIƓFHLQ3RODQGDJHQF\UHODWLRQVKLSVDUHDFWLYHPDLQO\UHODWLQJWR the market outside Europe.
Our quality management system is integrated with our environmental management and workplace safety systems, and should enable us to achieve the following objectives:
URGPFKPI-
e. improve business performance.
%WTTGPV-
QP-
SWCNKV[
| TOTAL | 257 | 153 |
|---|---|---|
| Trials and tests by independent laboratories |
6 | 7 |
| Training | 0 | 0 |
| Technical regulations, software and publications |
2 | 2 |
| Calibration of measuring KPUVTWOGPVU CPF GSWKROGPV |
47 | 31 |
| Purchase of measuring KPUVTWOGPVU CPF GSWKROGPV |
84 | 33 |
| IN THOUSANDS OF EURO | 2015 | 2014 |
|---|---|---|
| Purchase of measuring KPUVTWOGPVU CPF GSWKROGPV |
74 | |
| TOTAL | 74 | 105 |
6LWHVWKDWKDYHDFKLHYHGTXDOLW\FHUWLƓFDWLRQLQDFFRUGDQFHZLWK,62
| 1993 | 2008 |
|---|---|
| Sabaf S.p.A | Sabaf do Brasil |
| 2001 | 2015 |
| Faringosi Hinges | Sabaf Turkey |
During 2015, Sabaf's quality system was constantly maintained and monitored to guarantee its correct implementation and compliance with the requirements of the VWDQGDUG 81, (1 ,62 7KH LQWHUQDO DXGLW SODQ WKDW ZDV GHƓQHG IRU ERWK the headquarters at Ospitaletto and the production facility in Brazil was executed. The results show no critical issues regarding the system which, therefore, fully complies with the standard.
As regards the audit conducted by third parties on the quality management system, CSQ ,04ōVFHUWLƓFDWLRQERG\ FRQGXFWHGLWVDQQXDODXGLWDWWKHKHDGTXDUWHUVDW2VSLWDOHWWR LQ0D\ DQG DWWKH%UD]LO VLWHLQ-XQH FRQƓUPLQJWKDWWKH V\VWHPLVHIIHFWLYHO\ applied.
In October 2015 the TUV NORD certifying authority conducted the periodic audit of WKH)DULQJRVL+LQJHV6UOTXDOLW\PDQDJHPHQWV\VWHP7KHDXGLWFRQƓUPHGWKDWWKH system is effectively applied. No instances of non-compliance were found.
/DWHVDZWKHVWDUWRIWKHFHUWLƓFDWLRQSURFHVVIRUWKHSURGXFWLRQIDFLOLW\LQ7XUNH\ The system has been implemented following the standard at the Italian site and was FHUWLƓHGDIWHUWKH&64DXGLWRQbb-XO\
During 2016 courses and training will be held to examine the new UNI EN ISO VWDQGDUGLQRUGHUWRSUHSDUHWKHSURFHVVRIXSGDWLQJWKHV\VWHPWRUHŴHFW the change in the standard.
The FXVWRPHUVDWLVIDFWLRQ survey, conducted every two years, is a part of the activities of VWDNHKROGHUHQJDJHPHQWthat Sabaf undertakes with the aim of constantly improving the quality of the services it provides and of responding to the needs of its customers.
The results of the survey, conducted by sending structured questionnaires to the *URXSōVNH\FXVWRPHUVFRQƓUPWKHSRVLWLYHRSLQLRQWKH\KDYHRI6DEDIDVDUHVXOWRIWKH prompt, professional and skilful sales support it provides. The results of the latest survey, FRQGXFWHGLQ)HEUXDU\DUHSURYLGHGLQWKH\$QQXDO5HSRUW
Sabaf is involved in several proceedings against manufacturers of counterfeit components, cookers and stove tops who market or sell appliances with components that infringe our patents and trademarks.
,Q6DEDI6S\$ZDVFHUWLƓHGDVFRPSOLDQWZLWKWKH6\$6RFLDO\$FFRXQWDELOLW\ VWDQGDUG7KH&RPSDQ\WKHUHIRUHUHTXLUHVLWVVXSSOLHUVWRUHVSHFWŊLQDOOWKHLU activities – the standard's principles as a basic prerequisite for building a lasting relationship based on the principles of social accountability. The supply contracts LQFOXGH DQ HWKLFV FODXVHEDVHG RQWKH 6\$ VWDQGDUGWKDW REOLJDWHV VXSSOLHUVWR DVVXUHUHVSHFW RI KXPDQ DQG VRFLDOULJKWV 0RUH VSHFLƓFDOO\ VXSSOLHUV XQGHUWDNH WR avoid using in their production processes persons below the legal minimum age set by law, to guarantee their workers a safe workplace, to protect trade-union freedom, to comply with legislation on working hours, and to ensure that workers are paid the legal minimum wage.
)DLOXUHWRFRPSO\ZLWKRUDFFHSWWKHSULQFLSOHVRIWKH6\$VWDQGDUGFRXOGOHDGWRWKH VXSSO\UHODWLRQVKLSEHLQJWHUPLQDWHG,QDXGLWVLQ ZHUHFDUULHGRXW at suppliers on quality, environmental and social-responsibility management, none of which revealed any critical instances of non-compliance. Suppliers were asked to take the appropriate measures to resolve any non-conformity of a non-critical nature.
The Sabaf Group aims to promote development in the areas in which it operates, and WKHUHIRUHJLYHVSUHIHUHQFHWRORFDOƓUPVZKHQFKRRVLQJVXSSOLHUV
3XUFKDVHVPDGHLQ/RPEDUG\E\WKH*URXSőV,WDOLDQFRPSDQLHVUHSUHVHQWRIWKH WRWDOSXUFKDVHVPDGHE\6DEDIGR%UD]LOIURP%UD]LOLDQVXSSOLHUVDFFRXQWIRURIWKH WRWDOSXUFKDVHVPDGHE\6DEDI%H\D]IURP7XUNLVKVXSSOLHUVUHSUHVHQWRIWKHWRWDO DQGSXUFKDVHVE\6DEDI.XQVKDQIURP&KLQHVHVXSSOLHUVUHSUHVHQWRIWKHWRWDO
Sales generated outside the European Union mainly come from suppliers in China. Chinese suppliers have signed a clause to comply with the principles set out in the 6\$VWDQGDUG
| 2015 | 2014 | |||
|---|---|---|---|---|
| IN THOUSANDS OF EURO | SALES | % | SALES | % |
| Province of Brescia | 40,449 | 41.7% | 41,648 | 43.9% |
| Italy | 26.4% | 28.0% | ||
| Rest of EU | 11,000 | 11.3% | 9,999 | |
| Brazil | 4,269 | 4.4% | 4,804 | |
| Turkey | 4,000 | 4.2% | ||
| China | 6,908 | 7.1% | 6.2% | |
| Non EU - Others | 3,437 | 1,929 | 2.0% | |
| TOTAL | 97,011 | 100% | 94,793 | 100% |
Sabaf do Brasil and Sabaf Turkey mainly purchase their production materials from local suppliers. The main machinery items used (transfer machining and assembly equipment and die-casting burner presses) have instead been imported from Italy to assure uniform group-wide manufacturing processes, particularly as regards quality and safety.
Our relations with suppliers aim at long-term partnerships and are based on business integrity, propriety and fairness, and on shared growth strategies.
In order to share the values underpinning its business model with suppliers, Sabaf has widely distributed its Charter of Values.
Sabaf guarantees total impartiality in supplier selection and undertakes to adhere strictly to the agreed payment terms.
Sabaf requires its suppliers to upgrade their technology so that they are constantly able to offer the best value for money. It gives preference to suppliers who have obtained or DUHLQWKHSURFHVVRIREWDLQLQJTXDOLW\DQGHQYLURQPHQWDOFHUWLƓFDWLRQ
,QVDOHVWR6DEDI*URXSE\VXSSOLHUVZLWKFHUWLƓHGTXDOLW\V\VWHPVDFFRXQWHGIRU RIWKHWRWDOYVLQ
| 2015 | 2014 | |||
|---|---|---|---|---|
| IN THOUSANDS OF EURO | SALES | % | SALES | % |
| Commodities | 26.9 | 26.3 | ||
| Members | 28,027 | 28.9 | 24,112 | |
| /CEJKPGT[ GSWKROGPV |
11.9 | 9,843 | 10.4 | |
| Services and other purchases | 31,347 | 32.3 | 37.9 | |
| TOTAL | 97,011 | 100 | 94,793 | 100 |
For small suppliers, we have agreed very short payment terms (mainly 30 days).
There are no disputes pending with suppliers.
Our commitment to lenders
The Group operates with a low debt ratio (net indebtedness/shareholders' equity of DW'HFHPEHUQHWLQGHEWHGQHVV(%,7'\$RI DQGKDVDPSOHXQXVHG short-term lines of credit.
\$W'HFHPEHUQHWƓQDQFLDOGHEWZDVŞPLOOLRQYHUVXVŞPLOOLRQDW 'HFHPEHU
The Group mainly deals with 11 Italian banks (Banco di Brescia, Banca Intesa, Unicredit, Monte dei Paschi di Siena, BNL, Banca Popolare di Vicenza, Banca Popolare dell'Emilia Romagna, Credito Lombardo Veneto, Banca Passadore, Cariparma, Banco Popoloare) DQGZLWKƓYHIRUHLJQEDQNV%DQFR,WDXLQ%UD]LO+DONEDQNDQG,VEDQNLQ7XUNH\%DQN of China and Industrial & Commercial Bank of China in China).
No lawsuits are pending with lenders.
In Italy and in Europe as a whole, Sabaf estimates that it has a market share of over 50% in each product segment. It is the only company offering the complete range of gas cooking components, as its competitors only manufacture part of this product range.
Sabaf's main competitors in the international market are Copreci, Burner System International and Defendi.
Copreci is a cooperative based in the Basque region of Spain. It is part of the Mondragon Cooperative Corporation and, with Sabaf, is Europe's leading valve and thermostat manufacturer.
Burner Systems International (BSI) is a US group that has acquired control of the French manufacturer Sourdillon, a long-standing competitor of Sabaf, and of Harper Wyman, the biggest manufacturer of gas cooking components for the North American market.
Defendi is an Italian company acquired in 2013 from the German group EGO. It is mainly active in the production of burners in Italy, Brazil and Mexico.
| VALVES | THERMOSTATS | BURNERS | HINGES | |
|---|---|---|---|---|
| SABAF | X | X | X | X |
| Burner Systems International (USA) | X | X | X | |
| CMI (Italy) | X | |||
| Copreci (Spain) | X | X | ||
| Defendi Italy (Italy) | X | X | ||
| Nuova Star (Italy) | X | |||
| Somipress (Italy) | X |
| 2014 | 2013 | |||||
|---|---|---|---|---|---|---|
| IN THOUSANDS OF EURO | SALES | OPERATING PROFIT |
NET INCOME | SALES | OPERATING PROFIT |
NET INCOME |
| CMI | 19,828 | 1,146 | 612 | 321 | ||
| DEFENDI ITALY | 2,930 | 2,742 | ||||
| NUOVA STAR | 27,793 | 449 | 271 | 40 | ||
| SOMIPRESS GROUP | 40,072 | 3,160 | 1,720 | 41,411 | 4,636 | |
| SABAF GROUP | 138,003 | 14,091 | 8,998 | 136,337 | 8,338 |
1RIXUWKHULQIRUPDWLRQLVDYDLODEOHDERXW6DEDIōVFRPSHWLWRUVGXHWRWKHGLIƓFXOW\LQREWDLQLQJGDWD
A lawsuit is pending, initiated against a competitor following an alleged patent infringement.
In line with its standard policies, Sabaf's dealings with the government and tax authorities are informed by the utmost transparency and honesty.
At local level, Sabaf has sought to establish an open dialogue with the various authorities to create harmonious industrial development. For this reason, Sabaf systematically provides Ospitaletto town council with copies of analyses relating to atmospheric emissions from its production plants.
In GRQDWLRQVWRWDOOHGDURXQGŞŞLQ DQGPDLQO\VXSSRUWHG local social and humanitarian initiatives.
Sabaf supports the Associazione Volontari per il Servizio Internazionale (AVSI), an Italian QRQSURƓW1*2ZRUNLQJRQLQWHUQDWLRQDOGHYHORSPHQWDLGSURMHFWV7KHGRQDWLRQVDUH earmarked for providing support to 20 children living in various countries in the world.
Sabaf systematically organises company visits for groups of students and showcases CSR best practice during major conferences in various Italian cities.
Sabaf is one of the founding members of CECED Italia, the association that develops and coordinates research in Italy, promoted at European level by CECED (European &RPPLWWHHRI'RPHVWLF(TXLSPHQW0DQXIDFWXUHUV ZLWKWKHDVVRFLDWHGVFLHQWLƓFOHJDO and institutional implications in the household appliance sector.
6LQFH6\$%\$)6S\$KDVEHHQDQDVVRFLDWHRIWKH%UHVFLD,QGXVWULDO\$VVRFLDWLRQ\$,% ZKLFKLVSDUWRIWKH&RQƓQGXVWULDIHGHUDWLRQ
TheUH DUH QR VLJQLƓFDQW ODZVXLWV SHQGLQJ ZLWK SXEOLF RUJDQLVDWLRQV RU RWKHU representatives of society.
ProtecWLQJZRUNHUVōKHDOWKDQGVDIHW\WKHHQYLURQPHQWDQGHQVXULQJWKHHIƓFLHQWDQG rational use of natural and energy resources are part of Sabaf's strategic commitments. In terms of the processes for the production of gas cooker components, for our organisation it is now an ongoing challenge to achieve labour standards that ensure the health and utmost safety of our staff and those who work on our behalf. An integral part of this challenge is reducing environmental impacts and minimising the use of natural resources and energy, starting from the product design stage and through the different stages of production, with a view to the entire operational life cycle of the product. For this reason, Sabaf has adopted and applies an Integrated System for the Management of Health, Safety, the Environment and Energy, which – in combination
with the other Management Systems at the company – provides an effective way to reduce risks, environmental impacts and energy use via the following means:
Sabaf is committed to pursuing the following objectives:
The environmental management system in place at the Ospitaletto plant (which DFFRXQWVIRUDURXQGRIWRWDO*URXSSURGXFWLRQ KDVEHHQ,62FHUWLƓHGVLQFH 2003.
During 2015, Sabaf's Environmental Management System was constantly maintained and monitored to guarantee its correct implementation and compliance with the requirements of the standard.
As regards the audit conducted by third parties on the system, CSQ conducted its UHQHZDODXGLWDWWKHKHDGTXDUWHUVDW2VSLWDOHWWR0D\ FRQƓUPLQJWKDWWKHV\VWHP is effectively applied.
,Q6DEDI6S\$REWDLQHGWKH,QWHJUDWHG(QYLURQPHQWDO\$XWKRULVDWLRQ,33& IURP WKH5HJLRQRI/RPEDUG\SXUVXDQWWR/HJLVODWLYH'HFUHHRI)HEUXDU\
,QWKH2VSLWDOHWWRVLWHZDVFHUWLƓHGFRPSOLDQWZLWK,62DVUHJDUGVUHGXFLQJ environmental impacts and restricting the use of natural and energy resources.
The Group has long promoted the dissemination of information about the lower environmental impact resulting from the use of gas in cooking instead of electricity. The use of gas to generate heat offers far higher yields than those that can be obtained with electric cooking appliances. In addition, there is worldwide demand for increased power and multiple cooking points (plates/burners) to cook food quickly. An increase in electric hobs would cause an increase in peak electricity consumption, typically around meal WLPHVIXUWKHULQFUHDVLQJHOHFWULFLW\GHPDQGZKLFKLVDOUHDG\GLIƓFXOWWRPHHW
The production process for valves requires the washing of metals in several phases. Traditionally, the metals were washed using systems which use chlorine-based solvents. In 2013 Sabaf began to assess alternatives which could guarantee an equal or superior washing quality, while at the same time minimising the environmental impact and PDQDJHPHQW FRVWV 7KH VROXWLRQ LGHQWLƓHG LQYROYHV LQVHUWLQJ PDFKLQHU\ LQWR WKH SURGXFWLRQSURFHVVWKLVPDFKLQHU\XVHVDZDVKLQJV\VWHPEDVHGRQDPRGLƓHGDOFRKRO a solvent which can be re-distilled (and hence recycled).
With an investment of around €1,000,000, the replacement process resulted in the complete substitution of all of the Company's washing machinery.
The environmental impact and management costs have essentially eliminated.
Standards in force require products to be marked with a series of distinctive characteristics. Until now the printing has always been done using an ink-jet system: this system makes it possible to print just three lines, with a pre-set number of characters for each line, and with an annual management cost of around €60,000 for LQNVROYHQWVDQGPDLQWHQDQFH6DEDIKDVGHFLGHGWRRSWIRUDƓEUHRSWLFODVHUPDUNLQJ system which makes it possible to print all the necessary characters on products, without any limitations. In the last three years, with an investment of €250,000, all the ink-jet V\VWHPVKDYHEHHQUHSODFHGZLWKƓEUHRSWLFODVHUPDUNLQJV\VWHPVWKHUHE\HOLPLQDWLQJ the management costs.
The production of aluminium alloy values offers several advantages over the production of brass valves: elimination of the hot moulding step required by brass, reduced lead content in the product, lower weight and consequently lower consumption for packaging and transport. The process to replace brass valves with light alloy valves continued in 2015. Light alloy valves now account for over 70% of the valves produced.
For many years Sabaf has been a pioneer in presenting to the market burners which offer much higher yields than standard burners. After the launch of the Series III, AE DQG\$(2IURP6DEDILQWURGXFHGDQHZIDPLO\RIKLJKHIƓFLHQF\EXUQHUVWKH+( EXUQHUVZKLFKDFKLHYH\LHOGVRIXSWR7KH+(EXUQHUVDUHDOVRDOPRVWFRPSOHWHO\ interchangeable with Series II burners. The DCC range of specialist burners was recently FRPSOHWHGWKHVHEXUQHUVKDYHHQHUJ\HIƓFLHQF\RIDERYHWKHKLJKHVWFXUUHQWO\ DYDLODEOHRQWKHPDUNHWIRUEXUQHUVZLWKPRUHWKDQRQHULQJRIŴDPH+LJKHIƓFLHQF\ burners already account for 13% of all burners produced.
Sabaf's main product lines – valves, thermostats and burners for domestic gas cooking appliances – feature high energy yields and optimal use of natural resources. The use of gas to generate heat offers far higher yields than those that can be obtained with electric cooking appliances.
Sabaf products are also easily recyclable, as they are made almost entirely of brass, aluminium alloys, copper and steel.
Sabaf has introduced in-house recycling of paper/cardboard, glass, cans and plastic. In UHF\FOLQJPDGHLWSRVVLEOHWRUHFRYHUNJRISDSHUFDUGERDUGDQGSODVWLF packaging.
| MATERIALS USED |
2015 CONSUMPTION (t) |
2014 CONSUMPTION (t) |
|---|---|---|
| Brass | 1,030 | |
| Aluminium alloys | 7,431 | |
| Zamak | 77 | 83 |
| Steel | 6,790 | 6,287 |
100% of the brass and around 65% of the aluminium alloys used are produced through scrap metal recycling; 35% of aluminium alloys and 100% of steel are produced from mineral sources.
The continued decrease in brass consumption was due to the gradual replacement of brass valves with light alloy valves.
6DEDI SURGXFWV IXOO\ PHHWWKHUHTXLUHPHQWV RIWKH (& GLUHFWLYH(the RoHS Directive), which aims to restrict the use of hazardous substances, such as lead, in the production of electrical and electronic equipment. This category includes all household appliances, including gas-cooking appliances (which are equipped with electronic ignition devices).
In addition, Sabaf products are fully compliant with Directive 2000/53/EC (End of Life Vehicles), i.e. their heavy-metal content (lead, mercury, cadmium, and chromium 6) is lower than the limits set by the directive.
Under the REACH Regulation 5HJXODWLRQ 1R RI 'HFHPEHU
Sabaf S.p.A. is classed as a downstream user of chemicals. The products supplied by Sabaf are classed as items that do not release substances during normal use, therefore the substances contained in them do not need to be registered. Sabaf has contacted its suppliers to ensure that they comply fully with the REACH Regulation and to obtain FRQƓUPDWLRQRIFRPSOLDQFHZLWKSUHUHJLVWUDWLRQDQGUHJLVWUDWLRQUHTXLUHPHQWVIRUWKH chemicals used by them. Sabaf also constantly monitors new legislation derived from the REACH Regulation, in order to identify and manage any new requirements in this area.
| ELECTRICITY | 2015 CONSUMPTION (Mwh) |
2014 CONSUMPTION (Mwh) |
|---|---|---|
| TOTAL | 29,384 | 29,773 |
| NATURAL GAS | 2015 CONSUMPTION (m3 X 1000) |
2014 CONSUMPTION (m3 X 1000) |
| TOTAL | 3,376 | 3,120 |
Sabaf S.p.A. and Sabaf do Brasil use natural gas as an energy source for the die-casting RIDOXPLQLXPDQGIRUƓULQJHQDPHOOHGFDSV)DULQJRVL+LQJHVGRHVQRWXVHQDWXUDOJDV as an energy source in its production.
| ENERGY INTENSITY |
2015 CONSUMPTION | 2014 CONSUMPTION |
|---|---|---|
| Kwh divided by revenue |
0.470 |
In 2015, SDEDI6S\$DQG)DULQJRVL+LQJHVVUOFDUULHGRXWDQHQHUJ\DXGLWWRJDLQLQGHSWKNQRZOHGJHRIWKHHQHUJ\SURƓOHRILWVDFWLYLWLHVDQGWRLGHQWLI\DQGTXDQWLI\RSSRUWXQLWLHV for energy savings.
Several key parts of the energy audit of Sabaf S.p.A. are reproduced below.
IMPROVEMENT OBJECTIVES
ƓQGLQJDQGUHSDLULQJOHDNVRIFRPSUHVVHGDLU 2. adjusting combustion parameters for hot air generators
objectives starting from 2016:
The main sources used are:
The Energ\ \$XGLW LGHQWLƓHG D VHULHV RI PHDVXUHV WKDW FDQ UHVXOW LQ ORZHU XVDJH RU reduced expenditure on energy supplies, which Sabaf has made one of its improvement
The production processes that have the greatest energy requirements are the foundry RIWKHSURFHVVWRWDO DQGHQDPHOOLQJRIWKHSURFHVVWRWDO
The energy required for auxiliary services is mainly attributable to the production of compressed air (70% of total auxiliary services) and the treatment plants for waste from the foundry and enamelling (20% of the total auxiliary services).
The energy required for general services is largely attributable to heating and lighting.
| WATER | CONSUMPTION 2015 (m3 ) |
CONSUMPTION 2014 (m3 ) |
|---|---|---|
| Mains water | 38,081 | |
| Groundwater | 38,894 | 27,798 |
| TOTAL | 89,081 | 65,879 |
All water used in Group companies' manufacturing processes is channelled to disposal and therefore there are no industrial water discharges. The water used in die-casting and enamelling processes in Italy, recovered via an rainwater collection system or WDNHQIURPJURXQGZDWHULVWUHDWHGLQFRQFHQWUDWLRQSODQWVWKDWVLJQLƓFDQWO\UHGXFHWKH quantities of water used and waste produced.
The increase in mains water usage is mainly attributable to higher production in Turkey. The increase in groundwater usage is a result of the lower rainfall in 2015 compared WRDQGWKHFRQVHTXHQWUHGXFWLRQLQWKHDPRXQWRIUDLQZDWHUWKDWFRXOGEHXVHG
TrimPLQJV DQG ZDVWH IURP WKH PDQXIDFWXULQJ SURFHVV DUH LGHQWLƓHG DQG FROOHFWHG separately for subsequent recycling or disposal. Sprue from aluminium die-casting is directly reused.
Waste for disposal and recycling is summarised below.
| WASTE (METRIC TONS) |
2015 | 2014 |
|---|---|---|
| /70+%+2#.6;2' WASTE |
166 | 200 |
| Non-hazardous (for disposal) |
1,286 | 1,368 |
| Non-hazardous (for recycling) |
4,287 | 4,010 |
| 616#. 010 HAZARDOUS WASTE |
5,573 | 5,378 |
| Hazardous (for disposal) |
1,478 | |
| Hazardous (for recycling) |
896 | |
| TOTAL HAZARDOUS WASTE |
2,396 | 2,374 |
No major spills occurred in 2015.
Most of the atmospheric emissions released by the Sabaf Group derive from activities GHƓQHGDVSURGXFLQJŏQHJOLJLEOHSROOXWLRQŐ
7KHHIƓFLHQF\RISXULƓFDWLRQV\VWHPVLVJXDUDQWHHGWKURXJKUHJXODUPDLQWHQDQFHDQG SHULRGLFPRQLWRULQJRIDOOHPLVVLRQV0RQLWRULQJFDUULHGRXWLQDQGVKRZHG that all emissions were within the legal limits.
| CO2 EMISSIONS (t) 17 |
2015 | 2014 |
|---|---|---|
| Use of natural gas | 6,600 | 6,102 |
| Use of electricity | 10,784 | 11,969 |
| TOTAL CO2 EMISSIONS |
17,384 | 18,071 |
The use of methane gas to power the smelting furnaces leads to the release of NOX (nitrogen oxides) and SOX (sulphur oxides) into the atmosphere, although in LQVLJQLƓFDQWTXDQWLWLHV7KHXVHRIDUHODWLYHO\FOHDQIXHOVXFKDVQDWXUDOJDVPHDQVWKDW Sabaf makes a negligible contribution to greenhouse gas emissions.
7KHUH DUH QR HPLVVLRQV RI WKH VRFDOOHG JUHHQKRXVH JDVHV &+ PHWKDQH 12 QLWURJHQ GLR[LGH +)&V K\GURŴXRURFDUERQV DQG 6) VXOSKXU KH[DŴXRULGH 1R substances that damage the ozone layer are currently used by Sabaf, with the exception RIWKHUHIULJHUDQWŴXLG5 ZKLFKLVXVHGLQDLUFRQGLWLRQLQJXQLWVLQFRPSOLDQFHZLWK applicable regulations.
| IN THOUSANDS OF EURO |
2015 | 2014 |
|---|---|---|
| Waste disposal | 449 | 492 |
| Advisory services | 27 | |
| Emissions analysis | 17 | 12 |
| Training | 6 | 0 |
| 2NCPV GSWKROGPV and materials |
12 | 16 |
| TOTAL | 559 | 547 |
| IN THOUSANDS OF EURO |
2015 | 2014 |
|---|---|---|
| 2NCPV GSWKROGPV and materials |
||
| TOTAL | 650 | 465 |
Environmental investments in 2015 refer to the installation of three new washing systems, as part of the plan described above to replace all the washing systems.
No lawsuits are currently pending with regard to environmental matters.
KPMG S.p.A. has carried out a "limited assurance engagement" on the Sabaf 2015 Social Report and provides its overall conclusions therein. As far as the scope of activities and SURFHGXUHVDUHFRQFHUQHGSOHDVHUHIHUWRWKH6WDWHPHQWUHOHDVHGE\WKHLQGHSHQGHQWDXGLWRURQSDJHV
| GENERAL STANDARD DISCLOSURE |
Indicator description | PAGE (o direct reference) |
Principle of Global Compact |
EXTERNAL ASSURANCE |
|---|---|---|---|---|
| STRATEGY AND ANALYSIS | ||||
| * | Statement from the CEO and Board President | 7 | ✓ | |
| * | Key impacts, risks and opportunities | ✓ | ||
| ORGANIZATIONAL PROFILE | ||||
| * | Name of the organization | Before the cover page | ✓ | |
| * | Primary brands, products and services | 32-33 | ✓ | |
| * | Location of the headquarter | 32, 151 | ✓ | |
| * | Countries where the organization operates | ✓ | ||
| * | Nature of ownership and legal form | ✓ | ||
| * | Markets served | ✓ | ||
| * | Scale of the organization | ✓ | ||
| * | Total number of employees by employment contract and gender, region and employment type |
62-63 | 6 | ✓ |
| * | Percentage of total employees covered by collective bargaining agreements |
3 | ✓ | |
| * | Description of the organization's supply chain | ✓ | ||
| * | 6LJQLƓFDQWFKDQJHV | ✓ | ||
| * | Precautionary approach or principle application modes |
✓ | ||
| * | Endorsement of externally developed economic, environmental and social charters and principles |
✓ | ||
| * | Memberships in industry associations | ✓ | ||
| IDENTIFIED MATERAIL ASEPCTS AND BOUNDARIES | ||||
| * | List of entities included in the organization's FRQVROLGDWHGƓQDQFLDOVWDWHPHQWVDQGWKRVH non included in the sustainability report |
✓ | ||
| * | 3URFHVVIRUGHƓQLQJWKHUHSRUWFRQWHQW | ✓ | ||
| * | 0DWHULDO\$VSHFWVLGHQWLƓHG | 10-11 | ✓ | |
| * | For each material Aspect, report the Aspect Boundary within the organization |
11 | ✓ | |
| * | For each material Aspect, report the Aspect Boundary outside the organization |
11 | ✓ | |
| * | Effect of any restatements of information provided in previous reports, and the reasons for such restatements. |
✓ | ||
| * | 6LJQLƓFDQWFKDQJHVIURPSUHYLRXV reporting periods |
✓ |
| GENERAL STANDARD DISCLOSURE |
Indicator description | PAGE (o direct reference) |
Principle of Global Compact |
EXTERNAL ASSURANCE |
|---|---|---|---|---|
| STAKEHOLDER ENGAGEMENT | ||||
| * | List of stakeholder groups engaged by the organization |
✓ | ||
| * | %DVLVIRULGHQWLƓFDWLRQDQGVHOHFWLRQRI stakeholders with whom to engage |
✓ | ||
| * | Approach to stakeholder engagement | ✓ | ||
| * | Key topics and concerns that have been raised through stakeholder engagement and the related responses |
✓ | ||
| REPORT PROFILE | ||||
| * | Reporting period | ✓ | ||
| * | Date of most recent previous report | ✓ | ||
| * | Reporting cycle | ✓ | ||
| * | Contact point for questions regarding the report or its contents |
135 | ✓ | |
| * | *5,FRQWHQWLQGH[DQGWKHŌLQDFFRUGDQFHō option the organization has chosen |
✓ | ||
| * | External Assurance | ✓ | ||
| GOVERNANCE | ||||
| * | Governance structure of the organization, including committees of the highest gover nance body |
✓ | ||
| * | Composition of the highest governance body | ✓ | ||
| * | Report whether the Chair of the highest JRYHUQDQFHERG\LVDOVRDQH[HFXWLYHRIƓFHU |
57 | ✓ | |
| ETHICS AND INTEGRITY | ||||
| * | Organization's values, principles, standards and norms of behaviour such as codes of conduct and codes of ethics. |
10 | ✓ |
| SPECIFIC STANDARD DISCLOSURES Material Aspects, DMA and Indicators |
Indicator Description | PAGE NUMBER (o direct reference) |
Principle of Global Compact |
EXTERNAL ASSURANCE |
||
|---|---|---|---|---|---|---|
| CATEGORY: ECONOMIC | ||||||
| Material aspect: Economic Performance | ||||||
| *'0\$ | ✓ | |||||
| *(& | Direct economic value created and distributed | ✓ | ||||
| Material aspect: Market Presence | ||||||
| *'0\$ | ✓ | |||||
| *(& | Ratios of standard entry level wage by gender compared to local minimum wage DWVLJQLƓFDQWORFDWLRQVRIRSHUDWLRQ |
66 | 6 | ✓ |
| SPECIFIC STANDARD DISCLOSURES Material Aspects, DMA and Indicators |
Indicator Description | PAGE NUMBER (o direct reference) |
Principle of Global Compact |
EXTERNAL ASSURANCE |
|---|---|---|---|---|
| CATEGORY: ENVIRONMENTAL | ||||
| Material aspect: Materials | ||||
| *'0\$ | ✓ | |||
| *(1 | Materials used | ✓ | ||
| *(1 | Recycled input materials | ✓ | ||
| Material aspect: Energy | ||||
| *'0\$ | ✓ | |||
| *(1 | Energy consumption within the organization | ✓ | ||
| *(1 | Energy intensity | ✓ | ||
| Material aspect: Water | ||||
| *'0\$ | ✓ | |||
| *(1 | Total water withdrawal by source | ✓ | ||
| *(1 | :DWHUVRXUFHVVLJQLƓFDQWO\DIIHFWHG by withdrawal of water |
Group business processes do not imply such ZDWHUZLWKGUDZDOVZKLFKFRXOGVLJQLƓFDQWO\ affect water sources balance |
✓ | |
| *(1 | Percentage and total volume of water recycled and reused |
✓ | ||
| Material aspect: Emissions | ||||
| *'0\$ | ✓ | |||
| *(1 | Direct greenhouse gas emissions | ✓ | ||
| *(1 | Indirect greenhouse gas emissions | ✓ | ||
| *(1 | Emissions of ozone-depleting substances | ✓ | ||
| *(1 | 12[62[DQGRWKHUVLJQLƓFDQWDLUHPLVVLRQV | ✓ | ||
| 0DWHULDODVSHFW(IŶXHQWVDQG:DVWH | ||||
| *'0\$ | ✓ | |||
| *(1 | Water discharge | ✓ | ||
| *(1 | Weight of waste and disposal method | ✓ | ||
| *(1 | 7RWDOQXPEHUDQGYROXPHRIVLJQLƓFDQWVSLOOV | ✓ | ||
| Material aspect: Products and Services | ||||
| *'0\$ | ✓ | |||
| *(1 | Initiatives aimed at mitigation of environmental impacts of products and services |
✓ | ||
| Material aspect: Overall | ||||
| *'0\$ | 10-11 | ✓ | ||
| *(1 | Environmental protection expenditures and investments |
✓ |
| SPECIFIC STANDARD DISCLOSURES Material Aspects, DMA and Indicators |
Indicator Description | PAGE NUMBER (o direct reference) |
Principle of Global Compact |
EXTERNAL ASSURANCE |
|
|---|---|---|---|---|---|
| CATEGORY: LABOR PRACTICES AND DECENT WORK | |||||
| Material aspect: Employment | |||||
| *'0\$ | 10-11, 62 | ✓ | |||
| */\$ | Total number and rates of new employee hires and employee turnover by age group, gender and region |
63-65 | 6 | ✓ | |
| */\$ | %HQHƓWVSURYLGHGWRIXOOWLPHHPSOR\HHV that are not provided to temporary or part-time employees |
✓ | |||
| */\$ | Return to work and retention rates after parental leave |
72 | 6 | ✓ | |
| Material aspect: Occupational Health and Safety | |||||
| *'0\$ | 10-11, 72-73 | ✓ | |||
| */\$ | Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities |
15, 72-73 | ✓ | ||
| */\$ | Workers with hight incidence or risk of diseases related to their occupation |
73 | ✓ | ||
| */\$ | Health and safety topics covered in formal agreements with trade unions |
✓ | |||
| Material aspect: Training and Education | |||||
| *'0\$ | 10-11, 67 | ✓ | |||
| */\$ | Empoloyees training | 67 | 6 | ✓ | |
| */\$ | Percentage of employees receiving regular performance and career development reviews, by gender |
6 | ✓ | ||
| Material aspect: Diversity and Equal Opportunity | |||||
| *'0\$ | ✓ | ||||
| */\$ | Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership and other indicators of diversity |
6 | ✓ | ||
| Material aspect: Equal Remuneration for Women and Men | |||||
| *'0\$ | 10-11, 70 | ✓ | |||
| */\$ | Ratio of basic salary and remuneration of women to men by employee category |
70 | 6 | ✓ | |
| Material aspect: Supplier Assessment for Labor Practices | |||||
| *'0\$ | ✓ | ||||
| */\$ | Percentage of new suppliers that were screened using labor practices criteria |
✓ |
| SPECIFIC STANDARD DISCLOSURES Material Aspects, DMA and Indicators |
Indicator Description | PAGE NUMBER (o direct reference) |
Principle of Global Compact |
EXTERNAL ASSURANCE |
|
|---|---|---|---|---|---|
| CATEGORY: HUMAN RIGHTS | |||||
| Material aspect: Non-discrimination | |||||
| *'0\$ | 10-11, 62, 67 | ✓ | |||
| *+5 | Number of incidents of discrimination and corrective actions taken |
No incidents of discrimination have been detected |
6 | ✓ | |
| Material aspect: Freedom of Association and Collective Bargaining | |||||
| *'0\$ | 10-11 | ✓ | |||
| *+5 | 2SHUDWLRQVDQGVXSSOLHUVLGHQWLƓHGLQZKLFK the right to exercise freedom of association and FROOHFWLYHEDUJDLQLQJPD\EHDWVLJQLƓFDQWULVN |
3 | ✓ | ||
| Material aspect: Child Labor | |||||
| *'0\$ | 10-11 | ✓ | |||
| *+5 | 2SHUDWLRQVDQGVXSSOLHUVLGHQWLƓHGDVKDYLQJ VLJQLƓFDQWULVNIRULQFLGHQWVRIFKLOGODERU |
5 | ✓ | ||
| Material aspect: Forced or Compulsory Labor | |||||
| *'0\$ | 10-11 | ✓ | |||
| *+5 | 2SHUDWLRQVDQGVXSSOLHUVLGHQWLƓHGDVKDYLQJ VLJQLƓFDQWULVNIRULQFLGHQWVRIIRUFHGRU compulsory labor |
✓ | |||
| Material aspect: Assessment | |||||
| *'0\$ | 10-11 | ✓ | |||
| *+5 | otal number and percentage of operations that have been subject to human rights reviews or impact assessments |
1 | ✓ | ||
| Material aspect: Supplier Human Rights Assessment | |||||
| *'0\$ | 10-11 | ✓ | |||
| *+5 | Percentage of new suppliers that were screened using human rights criteria |
2 | ✓ | ||
| CATEGORY: PRODUCT RESPONSIBILITY | |||||
| Material aspect: Customer Health and Safety | |||||
| *'0\$ | ✓ | ||||
| *35 | Health and safety impacts of products and services |
✓ | |||
| Material aspect: Product and Service Labeling | |||||
| *'0\$ | ✓ | ||||
| *35 | Results of surveys measuring customer satisfaction |
✓ |
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