Integrated
Annual
Report
2022
30 April 2022
For a sustainable,
responsible and
transparent digital
growth
We face the challenges of
digitisation and business
evolution of companies and
organisations every day
www.sesa.it
5
The Sesa Group has always
been committed to sustainable
value generation policies and
programmes for the benet
of its stakeholders and is
sensitive to the issue of
environmental responsibility
6
The Sesa Group
1
Strategy and risk
management
2
Performance as
of April 30, 2022
3
Consolidated
non-nancial statement
4
Consolidated nancial
statements as of April
30, 2022
5
Separate nancial
statements as of April
30, 2022
6
Letter to the
stakeholders
The nancial year just ended is
characterised by the acceleration
of our growth path, driven by the
demand for digitisation of companies
and organisations
7
Letter to Stakeholders
www.sesa.it
The nancial year ended 30 April 2022 closed with a signicant
growth in economic-nancial and ESG indicators, conrming
the Sesa Group’s sustainable economic model. With this in
mind, the rst Integrated Annual Report in Sesa’s history
are presented on 30 April 2022, with the intent to offer in a
single document a complete, measurable, and transparent
view of the value generated by the Group, linking nancial
performance with sustainability performance.
In a year still affected by the post-pandemic phase, the Sesa
Group achieved strong growth in consolidated revenues (Euro
2,389.8 million +17.3% Y/Y) and protability (Ebitda Euro
167.7 million +33.1% Y/Y, Adjusted EAT Euro 81.8 million
+41.5% Y/Y), with growth rates well above the historical track
record.
The Group’s economic results are favoured by the business
development in the main areas of technological and digital
innovation and by the acceleration of the growth path by
external lines with 15 business combination concluded in
2021 and 10 realised in the period from January to May 2022
alone, acquiring key competences in the digital evolution
of companies and organisations. Due also to the corporate
acquisition transactions as at 30 April 2022, the Group
reached the threshold of about 4,200 resources (+21% Y/Y),
with a growing foreign component (about 350 resources), thus
consolidating its role as a reference player in the sector of
technological innovation and digital transformation services
for the business segment. The nancial performance as at
30 April 2022 was very solid: the Net Financial Position was
positive (net liquidity) for Euro 245.3 million, an improvement
compared to Euro 197.4 million as at 30 April 2021, due to an
Operating Cash Flow of Euro 150 million, after investments for
Euro 120 million and dividends and buy backs for about Euro
20 million in the period under review.
The nancial year ended 30 April 2022 is also characterised
by a strong improvement in ESG performance, conrming
the Group’s growing commitment to generating value for
all stakeholders. As at 30 April 2022, the Group distributed
an economic value of about Euro 250 million (+20% Y/Y),
reinforcing sustainability initiatives and programmes in
particular to benet human capital and the environment. The
investment programmes launched in the last two nancial
years have led to a strong reduction in per-capita emissions
by 32% Y/Y, thanks, among other things, to the increase in
energy produced by photovoltaic systems (1.04 million kWh
+314% Y/Y) and the increase in the share of green electricity
Dear shareholders,
dear stakeholders
EUR 2,390Mn +17%
Vs 2021
Revenues 2022
EUR 167.7Mn +33%
Vs 2021
Operating Protability (Ebitda)
EUR 81.8Mn +42%
Vs 2021
Group adjusted net prot
EUR 120Mn +30%
Vs 2021
Investment programmes in the year
EUR 250Mn +20%
Vs 2021
Net economic value distributed
HR 4,163 +21%
Vs 2021
Human Resources
kWh 1.04Mn +314%
Vs 2021
Self-generated energy
8
The Sesa Group
1
Strategy and risk
management
2
Performance as
of April 30, 2022
3
Consolidated
non-nancial statement
4
Consolidated nancial
statements as of April
30, 2022
5
Separate nancial
statements as of April
30, 2022
6
purchased from third parties (more than 90% of the total)
as well as the decrease in per-capita waste production of
62% Y/Y. We also highlight the extension of the ISO 14001
certication to the main Group companies, the improvement
of the Ecovadis rating at Silver level and the conrmation of
the main sustainability awards (Integrated Governance Index
and Sustainability Leader 2022).
As at 30 April 2022, the number of Group human resources
reached the threshold of 4,200 units (Group employees and
trainees), an increase of over 700 resources (+21% Y/Y),
thus conrming the long-term growth and development trend
that has characterised Sesa since its establishment. Hiring
programmes were further implemented during the year
(607 hires, +51% Y/Y/), investments in skills development
(approximately 61,000 hours of training, +132% Y/Y) and
the expansion of the corporate welfare programme, which is
increasingly diversied with initiatives to support parenthood,
diversity, wellbeing, and work-life balance of workers. In
addition, we continued to support the communities in which
we operate thanks to the initiatives of Fondazione Sesa,
including the organisation of the Central Italy Vaccine hub with
over 400,000 vaccine doses since the start of the Covid-19
pandemic.
We intend to continue management by strengthening our role
as a key player in the eld of technological innovation and digital
services to support the digitisation demand of businesses and
organisations, promoting sustainable business models.
In light of the positive economic and nancial performance,
we propose to the Shareholders’ Meeting the distribution of a
dividend of Euro 90 cents per share, up from Euro 85 cents
in the previous year, thus reinvesting the majority of prots to
fuel future growth, in a sector that continues to offer prospects
for further development and aggregation of digital skills.
We would like to conclude by thanking all our human resources
and stakeholders for the great and virtuous collaboration
geared towards the generation of sustainable value and the
evolution of our business model towards continuous growth
performance and a balanced distribution of value for our
stakeholders.
Paolo Castellacci
Chairman of the BoD
Alessandro Fabbroni
Chief Executive Ofcer
9
www.sesa.it
We believe in a business model
oriented towards progressive and
sustainable growth, reecting our
sense of responsibility towards
shareholders, employees,
customers, and the communities
in which we operate
10
The Sesa Group
1
Strategy and risk
management
2
Performance as
of April 30, 2022
3
Consolidated
non-nancial statement
4
Consolidated nancial
statements as of April
30, 2022
5
Separate nancial
statements as of April
30, 2022
6
LETTER TO STAKEHOLDERS 5
HIGHLIGHTS 12
1. THE SESA GROUP
1.1. Values, Mission, Vision: sustainable growth 18
1.2. Business Model: activities and sectors 20
1.3. Governance and organisation 24
1.3.1. Governance Model 24
1.3.2. Shareholding 27
1.3.3. Locations and geographical coverage 28
1.4. Sustainability Governance 29
1.4.1. Group Certications 30
1.4.2. Business lines in support of sustainability 31
1.4.3. Group Financial Strategy 31
1.5. The Sesa Group and the Environment 32
1.5.1. Sesa’s Environmental Policy 32
1.5.2. Enhancement of natural capital and responsible use of resources 33
1.5.3. Low-carbon transition: urban innovation projects 34
1.6. Value and supply chain 35
2. STRATEGY AND RISK MANAGEMENT
2.1. Group Strategy and Sustainable Development Goals (SDGs) 40
2.1.1. The Sustainable Development Goals 40
2.2. Stakeholder engagement and materiality matrix 43
2.2.1. Creating value by involving stakeholders 44
2.2.2. Material issues related to business activities 46
2.2.3. Evolution of our sustainability prole 48
2.3. The creation of long-term sustainable value for all Stakeholders 49
2.3.1. Value distributed to Stakeholders 49
2.4. Responsible business management: ethics, compliance and risk and opportunity management 52
2.4.1. System of Internal Controls and Risk Management 52
2.4.2. Risk Management and Mitigation Matrix 54
2.4.3. Compliance and anti-corruption 56
2.4.4. Data Protection and Cyber Security 59
3. PERFORMANCE AS OF APRIL 30, 2022
3.1. Economic and Financial Results of the Sesa Group 64
3.1.1. Alternative Performance Indicators 64
3.1.2. Economic Highlights of the Sesa Group 66
3.1.3. Highlights of the Group’s Balance Sheet 68
11
www.sesa.it
Non-nancial statement
3.2. Economic and Financial Results of Group Sectors 70
3.2.1. Results of the VAD sector 70
3.2.2. Results of the SSI sector 72
3.2.3. Results of the Business Services Sector 75
3.2.4. Results of the Corporate Sector 78
3.3. Economic and nancial results of the parent company Sesa SpA 80
3.4. Key sustainability performance 83
3.4.1. Environment 84
3.4.2. People 88
3.4.3. Community 95
3.5. ESG indicators, objectives, and targets 97
3.6. European taxonomy for environmentally sustainable activities 99
3.7. Signicant events occurring after the end of the nancial year 101
3.8. Business outlook 101
4. CONSOLIDATED NON-FINANCIAL STATEMENT
4.1. Reporting principles and criteria 104
4.2. Correlation Table pursuant to Legislative Decree 254/2016 107
Table explaining the contents of the Non-nancial Statement with reference to the adoption of the GRI
Sustainability Reporting Standards and the requirements of Legislative Decree 254/16.
107
4.3. Global Compact Reconciliation Table 108
Independent Auditor’s report on the Consolidated Non-Financial Statement as of April 30, 2022 109
5. CONSOLIDATED FINANCIAL STATEMENTS AS OF APRIL 30, 2022
Notes to the Consolidated Financial Statements 120
Certication of the Consolidated Financial Statements 168
Independent Auditor’s Report on the Consolidated Financial Statements 169
Annex 1 175
6. SEPARATE FINANCIAL STATEMENTS AS OF APRIL 30, 2022
Notes to the Separate Financial Statements 190
Certication of the Separate Financial Statements 220
Independent Auditor’s Report on the Separate Financial Statements of Sesa SpA 221
Report of the Management Control Committee 226
12
The Sesa Group
1
Strategy and risk
management
2
Performance as
of April 30, 2022
3
Consolidated
non-nancial statement
4
Consolidated nancial
statements as of April
30, 2022
5
Separate nancial
statements as of April
30, 2022
6
HIGHLIGHTS
Economic Data
(in thousands of Euros) 30/04/2022 30/04/2021 30/04/2020 30/04/2019 30/04/2018 30/04/2017
Revenues 2,362,603 2,022,454 1,762,641 1,539,854 1,350,900 1,260,275
Total revenues and other income 2,389,823 2,037,223 1,776,025 1,550,605 1,363,035 1,271,469
EBITDA 167,697 126,005 94,490 74,346 63,121 57,885
Adjusted operating prot (EBIT) (1) 125,865 91,821 68,465 55,697 48,728 46,343
EBIT (Operating Income) 114,195 84,002 63,897 52,718 46,290 44,786
Prot (loss) before tax 109,083 80,826 60,191 48,318 43,031 40,337
Net prot for the year 78,619 56,786 42,188 33,362 30,183 27,098
Net prot for the year attributable to the Group 73,519 52,272 37,914 29,284 26,861 25,043
Adjusted Earnings After Tax (EAT) attributable to the
Group (1)
81,847 57,838 41,166 31,404 28,596 26,097
Financial Data
Total Net Invested Capital 243,197 202,674 199,159 190,868 161,339 147,078
Total Shareholders’ Equity 335,159 297,355 253,859 232,622 216,001 199,028
- attributable to the shareholders of the Parent Company 315,441 278,593 236,392 219,285 204,955 191,285
- attributable to non-controlling interests 19,718 18,762 17,467 13,337 11,046 7,743
Net Financial Position reported (Net Liquidity) (91,962) (94,681) (54,700) (41,754) (54,662) (51,950)
Net Financial Position (Net Liquidity) (2) (245,292) (197,357) (110,318) (67,272) (77,266) (73,612)
EBITDA / Total revenue and other income 7.02% 6.19% 5.32% 4.79% 4.63% 4.55%
EBIT / Total revenue and other income (ROS) 4.78% 4.12% 3.60% 3.40% 3.40% 3.52%
EAT attributable to the Group/Total revenue and other
income
3.08% 2.57% 2.13% 1.90% 1.97% 1.97%
Market Data
Listing market Euronext – Star Euronext – Star Euronext – Star Euronext – Star Euronext – Star Euronext – Star
Quotation (Eu as at 30/04 each year) 138.7 115.4 48.6 27.8 26.3 23.6
Dividend per share (Eu) (4) 0.90 0.85 (Nota 3) 0.63 0.60 0.56
Overall Dividend (Eu mn) (5) 13.9 13.2 (Nota 3) 9.8 9.3 8.7
Pay Out Ratio (6) 19.0% 25.2% 0.0% 33.3% 34.6% 34.6%
Shares Issued (in millions) 15.49 15.49 15.49 15.49 15.49 15.49
Capitalisation (Eu mn) as at 30/04 2,149.1 1,788.1 752.3 430.0 407.5 365.7
Market to Book Value (7) 6.4 6.0 3.0 1.8 1.9 1.8
Dividend Yield (on 30/04 quotation) (8) 0.6% 0.7% (Nota 3) 2.3% 2.3% 2.4%
Earnings per share (basic) (9) 4.76 3.39 2.46 1.90 1.74 1.62
Earnings per share (diluted) (10) 4.74 3.37 2.45 1.89 1.73 1.62
(1) Adjusted operating prot before amortisation of client lists and know-how recognised as a result of the Purchase Price Allocation (PPA) process. Adjusted net prot attributable to the Group
before amortisation of client lists and know-how recognised as a result of the PPA process, net of related tax effect. (2) Net Financial Position not including non-interest-bearing payables and
commitments for deferred payments of corporate acquisitions (Earn Out, Put Option, deferred prices) and liabilities recognised in application of IFRS 16 (3) The Shareholders’ Meeting of Sesa
SpA of 28 August 2020 resolved not to distribute dividends considering the pandemic emergency. (4) Dividends paid in the following year from the prot for the year as at 30 April of each year.
(5) Dividends gross of the portion relating to treasury shares. (6) Dividends before the share relating to treasury shares / Consolidated Net Prot attributable to shareholders. (7) Capitalisation
based on share price as at 30 April each year / Consolidated Shareholders’ Equity. (8) Dividend per share / Market value per share as at 30 April each year. (9) Net prot attributable to the Group
/ average number of ordinary shares net of treasury shares held. (10) Net prot attributable to the Group / average number of ordinary shares net of treasury shares in portfolio and including the
impact of stock grants (up to the limit of treasury shares in portfolio).
13
Highlights
www.sesa.it
Sustainability Indicators
Environmental Performance Indicators
1
30/04/2022 30/04/2021 30/04/2020 30/04/2019
Energy Consumption (GJ) 39,265 35,500 32,514 29,168
- Electricity purchased (GJ) 33,011 28,443 25,948 23,353
- Natural gas (GJ) 6,254 7,057 6,566 5,853
Scope 1 + Scope 2 GHG emissions (tCO
2
) 5,165 5,963 6,656 5,640
Emissions per capita (tCO
2
) 1.36 1.99 2.99 3.18
Total Energy consumed (kWh) 10,207,630 7,900,912 7,207,807 6,487,090
o/w energy purchased from low-impact renewable sources (kWh) 7,921,934
o/w self-produced energy from renewable sources (kWh) 1,037,902 250,773 273,187 242,208
Natural Gas (tCO
2
) 352 397 367 327
- smc 177,266 200,011 185,982 166,042
Diesel for generators (tCO
2
) 8 9 8 9
- litres 2,890 3,280 2,800 3,200
- GJ 105 119 102 117
Water withdrawals (Megalitres
2
) 26.37 30.73 32.38 23.65
- of which from water-stressed areas 18.28 22.09 23.31 17.03
Fuel consumption (tCO
2
) 4,038 2,987 3,694 2,872
Fuel consumption (GJ) 54,711 40,617 50,224 39,180
Total waste (t) 157 326 364 310
Total waste per capita (t) 0.04 0.11 0.16 0.18
Economic Value Generated 314,898 250,180 181,126 150,488
Net economic value retained 64,674 42,138 42,188 22,547
Net economic value distributed 250,255 208,042 138,938 127,941
o/w remuneration of employees 197,163 162,972 114,763 96,318
o/w remuneration of the Public Administration 31,750 26,378 18,771 17,461
o/w remuneration of shareholders (*) 13,946 13,171 0 9,762
(*) determined on the basis of the proposed allocation of the 2022 annual result submitted to the Shareholders’ Meeting on 25 August 2022 (26 August on second call).
1. Compared to the previous year, the group’s HR perimeter as at 30 April 2022 increased by 21.0% and revenue increased by 17.3%
2. 1 megalitre and equals 1,000 cubic metres
14
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
HR Indicators
30/04/2022 30/04/2021 30/04/2020 30/04/2019
Total Human Resources 4,163 3,441 2,547 1,900
- Men 2,821 2,374 1,725 1,308
- Women 1,342 1,067 822 592
Total recruitment 607 402 322 245
Total terminations 361 218 113 104
Incoming turnover 14.9% 11.7% 12.6% 12.9%
Health and Safety
Absenteeism
- Absenteeism rate 2.72% 2.30% 2,60% 2.40%
Accidents 17 8 4 5
- Frequency Index 2.71 1.38 1.24 1.90
- Severity Index 0.01 0.03 0.04 0.01
Training
Total number of training hours 60,907 26,302 20,017 18,089
Other Indicators
Average workforce 3,802 2,994 2,224 1,771
Personnel costs 197,673 162,972 114,763 96,318
Average cost per employee 52.0 54.5 51.6 54.4
Percentage of permanent employees 99% 99% 99% 98%
Moreno Gaini, Alessandro Fabbroni, Giovanni Moriani, Paolo Castellacci
15
Highlights
www.sesa.it
17
The Sesa Group
www.sesa.it
4,163
+715
Employees
Y/Y employees
Locations and ofces in Italy, Europe
and the Rest of the World
Average seniority
Over 150
9 years
Aware of its social role, Sesa has embarked on a path intended to orient
the organisation and its business activities in the direction dened by the 17
SDGs (Global Compact Goals)
18
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
1.1. Values, Mission,
Vision: sustainable
growth
The management of the Group’s business activities is based
on principles of impartiality, integrity, fairness, professionalism,
transparency, business continuity, attention to people,
responsibility towards the community and environmental
protection. These guiding values constitute the shared
heritage of the Group’s culture and its Code of Ethics.
Being at the side of people, companies, and communities,
sharing with them the opportunities for growth, is an aspiration
that has guided the Group since its establishment and that
guides its future choices. In no case may the pursuit of the
Group’s interest or the conviction of acting to the advantage or
in the interest of the Group justify conduct in conict with the
current legislation or the Code of Ethics.
VISION: The Sesa Group operates with the objective of
offering technological solutions, IT services and business
applications to support the digitisation of companies and
organisations, establishing a relationship based on attention,
transparency, and the generation of lasting value towards
all stakeholders (suppliers, customers, human resources,
communities in which the Group operates).
MISSION: Sesa also invests and believes in sustainability as
a strategic approach to business and a way of interacting with
its stakeholders, as reected in its mission statement: “Guiding
the technological and digital innovation for the sustainable
growth of businesses and organisations”.
The Sesa Group develops advanced technology solutions
and digital services in partnership with leading international
vendors in the sector, targeting the main Italian economic and
European manufacturing clusters, supporting customers in
their path to innovation and business development.
Sesa believes in the need to reconcile economic growth with a
balanced generation of value to the benet of all stakeholders
and to protect the environment and social communities in
which the Group operates, combining the three fundamental
dimensions of sustainable development:
We stand by people,
businesses, and
communities,
sharing with them
opportunities for
growth
Technological and
digital innovation
for the sustainable
growth of companies
and organisations
19
The Sesa Group
www.sesa.it
• Environmental sustainability: the ability to protect the
environment as a “distinctive element” of the territory by
preserving the natural resources.
• Economic sustainability: the ability to generate lasting
and progressive growth, developing income and employ-
ment for the benet of stakeholders.
• Social sustainability: ability to contribute to the well-
being of the social communities (safety, health, educa-
tion) in which Group companies operate.
Focus on sustainable
growth and ecological
transition
Sesa’s Sustainability and Diversity Team
20
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
1.2. Business Model:
activities and sectors
Sesa SpA, headquartered in Empoli (FI), active throughout
Italy and present in a number of foreign countries including
Germany, Switzerland, Austria, France, Spain, Romania,
China and Mexico, is at the head of a Group that represents
the reference operator in Italy in the sector of technological
innovation and digital services for the business segment, with
consolidated revenues of approximately Euro 2,390 million
and approximately 4,200 resources as at 30 April 2022.
The Sesa Group’s mission is to offer technology solutions,
digital services and business applications to enterprises and
organisations by supporting them in their innovation journey.
Due to the skills and specialisation of its human resources,
the Sesa Group operates in the value-added segments of
Information Technology, with an organisational model in
vertical business sectors and business lines.
The Business Sectors (VAD, SSI, Business Services) have a
strong focus on the target market with dedicated marketing
and sales structures.
Within each of the Sectors, vertical business lines are
developed with specialised technical and commercial
structures for market segments and areas of expertise.
Matrix and inclusive
organisation
model, focused on
the development
of vertical digital
competences
Sesa
Computer Gross
Var Group
Base Digitale Group
100%
100%
100%
81%
Corporate
VAD
SSI
BUSINESS SERVICES
21
The Sesa Group
www.sesa.it
CORPORATE SECTOR
The Corporate Sector deals with the strategic governance
and operational, nancial, and human capital management
of the Group. In particular, the parent company Sesa SpA,
in addition to acting as the Group’s operational holding and
management company, is responsible for the administrative
and nancial management, organisation, planning and control,
human resources management, general affairs, corporate
information systems, legal and the Group’’ extraordinary
nance operations, with a total of about 140 resources.
VALUE ADDED DISTRIBUTION (VAD) SECTOR
The Value-Added Distribution Sector is active in the value-
added distribution of technological innovation solutions for
the business segment, focusing on the Enterprise Software
Solutions, Data Centre, Device and Digital Workspace,
Networking and Collaboration, and Digital Green segments.
Computer Gross SpA, which consolidates the Sector, is a
leader in Italy in the offer of Technological Innovation solutions
with a customer set of about 20,000 active business partners
in Italy and in the DACH Region. The Sector benets from
strategic partnerships with leading international Vendors and
from the specialisation of its business units, equipped with
teams with technical and digital skills.
Cloud & Security Software Solutions
The enterprise software offer includes solutions for storage,
data management and data analysis, also in as-a-service
mode and through cloud platforms, as well as solutions for
data security and protection from cyber-attacks, which have
been growing strongly in recent years.
Data Centre Solutions
The Data Centre offer includes on premise and cloud server
and storage solutions for data processing, through a dedicated
team and established expertise with leading international
vendors in the industry.
Devices and Digital Workspace
Business Unit dedicated to digital workspace solutions and
more generally to Unied Communication, Collaboration
and digitisation of workstations, optimising audio and video
functions in the most common contexts of use at professional
and enterprise level.
Networking and Collaboration
Connectivity is one of the main technological pillars of any
organisation, necessary to meet the growing need for
interaction between people and objects. By partnering with
leading international vendors, the networking and collaboration
offering facilitates communication and collaboration within
businesses and organisations, as well as ecosystems and
communities.
Digital Green
A recently developed Business Unit dedicated to solutions
for the production of energy from renewable sources and
energy efciency, which reduce the ecological footprint of
organisations. The Business Unit, which achieved a strong
acceleration in the nancial year, was created following the
acquisition of P.M. Service Srl, which entered the consolidation
scope on 1 May 2022. P.M. Service Srl specialises in
the engineering of renewable energy production plants
(photovoltaic panels, inverters, storage systems, monitoring
and IoT systems, wind power plants), with a customer set
of around 2,000 business partners. This Business Unit also
integrates the company Service Technology Srl, which offers
reverse logistic services, management and reconditioning of
IT products, regeneration and refurbishment of technology
parks, with about 35,000 personal computers reconditioned
in the year.
SOFTWARE AND SYSTEM INTEGRATION (SSI) SECTOR
The Software and System Integration Sector is active in
offering Technological Innovation solutions, digital services
and business applications for the SME and Enterprise
segments. Var Group SpA, which consolidates the sector, is a
reference operator in the digitalisation offer for the SME and
Enterprise segments with a customer base of approximately
The Group is organised
into four operating
segments: Corporate,
Value-Added Distribution
(VAD), Software and
System Integration (SSI),
Business Services (BS)
22
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
12,500 companies and an integrated offering in the following
areas: Cloud Technology Services and Security Solutions,
ERP and Industry Solutions, Digital Engineering, Customer
and Business Experience, Data Science.
Cloud Technology Services and Security Solutions
Business Unit offering integrated cloud infrastructure
and security solutions to support the digital evolution of
enterprises and organisations, with a complete range of
solutions, technologies, and consulting. The organisation is
distinguished by the expertise and specialisation in the Cyber
Security sector of Yarix Srl, a Group company and leader in
the Italian market, as well as the digital cloud solutions offered
in private, public and hybrid modes.
ERP and Industry Solutions
Business Unit with a complete range of international ERPs,
and national proprietary ERPs and Vertical Applications
specialised for the Made in Italy districts (Sirio, Panthera,
Essenzia, Sigla++, as well as applications for the retail and
mass distribution sector through the companies Di.Tech SpA
and Sailing Srl). The ERP and Industry Solutions Business Unit
is the sector’s main operational area in terms of employment,
with about 1,300 resources.
Data Science
Data analysis, articial intelligence (AI) and predictive
services aimed at the SME and Enterprise segments, with
specialisation in the Retail and Manufacturing sectors, are
becoming increasingly important in order to optimise business
processes. The Business Unit operates through a team of
about 50 human resources.
Customer and Business Experience
The Customer and Business Experience Business Unit, with
about 300 human resources, is focused on the segment
of strategic communication services, digital marketing,
and e-commerce. Through integrated skills in technology,
marketing, creativity, it develops solutions to support the
growth path of digital business both in Italy and abroad, in
particular and not only, in the Chinese digital markets through
a team of 50 resources based in Shanghai.
Digital Engineering
The Business Unit is specialised in offering vertical solutions
for mechanical and electronic production engineering, with
additional competencies in Industry 4.0 and IoT. Thanks also to
the recent acquisition of Cadlog Group Srl, it has consolidated
a Pan-European player with around 150 resources covering
the main European manufacturing countries (Italy, France,
Spain, and Germany).
BUSINESS SERVICES SECTOR (BS)
The Business Services Sector, consolidated by the Base
Digitale Group, is organised into 3 main vertical business
lines and active in offering Security, Digital Platform and BPO
solutions and Vertical Banking Applications for the Financial
Services segment.
Security Solutions
Business Unit is dedicated to physical and IT security
solutions for the banking and retail market. Due to the recent
merger of the Citel Srl and A Plus Srl companies, the Business
Unit offers integrated security management services through
digital platforms and the design of access control, attendance
detection and building automation systems. The Business
Unit has about 150 human resources operating in the country.
Digital Platform
The Business Unit Digital Platform brings together the digital
skills and platforms supporting the operational processes of
organisations and operators in the Financial Services sector.
In particular, the Business Unit offers platforms for customer
service, automation and digitisation of document and
operational processes, with a total of around 250 resources.
Vertical Application
The Business Unit is dedicated to IT consultancy and the
development of vertical ERP solutions for the banking sector,
with a staff of about 150 and a research and development
centre based in Parma.
23
The Sesa Group
www.sesa.it
24
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
1.3. Governance and
organisation
1.3.1. Governance Model
Sesa adopts a governance model aimed at fostering the cre-
ation of sustainable long-term value and a virtuous collabora-
tion between company and stakeholders. The Group’s objecti-
ve is to pursue sustainable success through the creation of
long-term value for the benet of all stakeholders, as also
formalised in the company’s Articles of Association. Further-
more, Sesa acts within the reference framework of the United
Nations Universal Declaration of Human Rights, the funda-
mental Conventions of the ILO and on the basis of its Code
of Ethics, which is also an integral part of the Organisational
Model pursuant to Legislative Decree no. 231/2001. Speci-
cally, Sesa adopts, as of August 2021, a one-tier system of
administration and control, which provides for the appoint-
ment by the Shareholders’ Meeting of a Board of Directors,
which is responsible for the management of the company, and
which appoints from among its members a management con-
trol committee that exercises control over the proper exercise
of administration. The Board of Directors guides the company
by pursuing its sustainable success also by dening the stra-
tegies of the Group company.
In this regard, it should be noted that on 12 July 2022, ba-
sed also on the work carried out during the last nancial year
by the Corporate Sustainability Operations Committee,
the Board of Directors established an internal Sustainability
Committee with advisory and proposal-making functions to
support the Board and the CEO in the eld of sustainability.
• The Shareholders’ Meeting is the body in which the
company’s will is formed and expressed, then implemen-
ted by the Board of Directors. It is composed of the sha-
reholders who meet from time to time to pass resolutions
in the manner and on matters dened by the provisions
of the law and the Articles of Association of the Company.
Among the most important tasks of the Shareholders’
Meeting are the selection of the members of the Board
of Directors and the Management Control Committee, as
well as the approval of the annual nancial statements;
• The Board of Directors carries out the strategic super-
vision of the Group and veries its implementation. It is
chaired by Paolo Castellacci and it consists of 10 mem-
bers (the number of which is determined by the Sha-
reholders’ Meeting on the basis of the Articles of Associa-
tion): 4 directors are executive and 6 are non-executive,
of which 5 are independent. The Board of Directors is
also responsible for the denition of the Code of Ethics,
values and the preparation of this Annual Integrated Re-
port, which outlines policies, risks and performance on
nancial, environmental, people-related, social, human
rights and anti-corruption issues. The composition of the
Board of Directors complies with the pro tempore regula-
tions on gender balance (out of a total of ten members,
the number of women is four, all independent), and the
average age of the Board members is 55. As per best
practice, the role of Chairman of the Board of Directors is
separate from the role of Chief Executive Ofcer;
• The Chief Executive Ofcer, in the person of Mr. Ales-
sandro Fabbroni, is in charge of the corporate, operatio-
nal and nancial management as well as the implemen-
tation of strategic guidelines;
• The Management Control Committee monitors the
compliance with legal, regulatory and statutory pro-
visions, the compliance with the principles of proper
administration, the adequacy of organisational and ac-
counting structures, and the functionality of the overall
internal control system. The Committee, which is part of
the Board of Directors, is composed of three directors
who meet the requirements of honourableness and pro-
fessionalism laid down in the Articles of Association and
the requirements of independence laid down in Article
2409 septiesdecies;
• The Auditing Company, an external body in charge of
auditing the accounts, is chosen by the Shareholders’
Meeting. For the nine-year period 2014-2022, this role
was entrusted to the auditing rm PricewaterhouseCo-
opers SpA and, in line with international best practices,
the process of appointing the new auditing rm for the
nine-year period 2023-2031 was brought forward by one
year in order to ensure a better management of the pro-
cess of rotation between auditing bodies. By resolution of
the Shareholders’ Meeting of 26 August 2021, the legal
audit of the Sesa Group was entrusted to Kpmg SpA.
Within the board, Sesa has also established three internal
board committees: Remuneration, Control and Risk, and Su-
stainability. The three internal board committees are set up in
accordance with the recommendations of the Corporate Go-
vernance Code.
25
The Sesa Group
www.sesa.it
The Remuneration Committee is an advisory and consulting
body with the main task of making proposals to the Board of
Directors for the denition of the remuneration policy for direc-
tors and executives with strategic responsibilities. In addition
to the provisions of the Remuneration Policy, the Remune-
ration Committee is entrusted with the tasks set forth in the
principles of the Corporate Governance Code.
The Control and Risk Committee is a body with advisory
and consulting functions that has the task of supporting, with
an adequate preliminary activity, the evaluations and deci-
sions of the Board of Directors relating to the internal control
and risk management system, as well as those relating to the
preparation of periodic nancial reports.
The role of the Sustainability Committee is to assist the
Board of Directors with investigative functions, of a propositional
and consultative nature, in evaluations and decisions relating
to sustainability issues, also understood as Environmental,
Social and Governance, connected to the exercise of the
company’s activity and its dynamics of interaction with
all stakeholders, to corporate social responsibility, to the
examination of scenarios for the preparation of the strategic
plan also based on the analysis of relevant issues for the
generation of long-term value.
The composition of the management and control bodies in
Sesa SpA complies with the applicable legal provisions, with
specic reference to the appropriate gender distribution.
For information and in-depth analysis on the structure and
functioning of the corporate bodies, governance practices,
and the activities of the internal body Committees, please
refer to the “Report on Corporate Governance and Ownership
Structures” published pursuant to Article 123-bis of the
Consolidated Law on Finance on the website www.sesa.it,
Section “Corporate Governance”.
Board of Directors
Gender Birth Year Role Deadline
Paolo Castellacci
♂♂ 30/03/1947 Chairman approval of nancial statements 30 April 2024
Giovanni Moriani
♂♂ 19/11/1957 Executive Vice Chairman approval of nancial statements 30 April 2024
Moreno Gaini
♂♂ 14/09/1962 Executive Vice Chairman approval of nancial statements 30 April 2024
Alessandro Fabbroni
♂♂ 03/03/1972 Chief Executive Ofcer approval of nancial statements 30 April 2024
Claudio Berretti
♂♂ 23/08/1972 Non-Executive Director approval of nancial statements 30 April 2024
Giuseppe Cerati
♂♂ 15/05/1962 Independent Director approval of nancial statements 30 April 2024
Angela Oggionni
♀♀ 08/06/1982 Independent Director approval of nancial statements 30 April 2024
Chiara Pieragnoli
♀♀ 11/11/1972 Independent Director approval of nancial statements 30 April 2024
Giovanna Zanotti
♀♀ 18/03/1972 Independent Director approval of nancial statements 30 April 2024
Angelica Pelizzari
♀♀ 18/10/1971 Independent Director approval of nancial statements 30 April 2024
Directors’ competencies BoD in numbers
35%
Economic-nancial
100%
5
55
40%
Average attendance per session
Independent directors
Average age
Women
15%
Legal
35%
Industrial
15%
Sustainability
26
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
Corporate Governance Bodies
Deadline
Control and Risks and Related Parties Committee
Giuseppe Cerati (Chairman), Giovanna Zanotti, Chiara Pieragnoli approval of nancial statements 30 April 2024
Director in charge of Internal Control: Alessandro Fabbroni approval of nancial statements 30 April 2024
Remuneration Committee
Angela Oggionni (Chairman), Giovanna Zanotti, Claudio Berretti approval of nancial statements 30 April 2024
Sustainability Committee
Giuseppe Cerati (Chairman), Giovanna Zanotti, Chiara Pieragnoli, Alessandro Fabbroni approval of nancial statements 30 April 2024
Management Control Committee
Role Deadline
Giuseppe Cerati Chairman approval of nancial statements 30 April 2024
Chiara Pieragnoli Committee Member approval of nancial statements 30 April 2024
Giovanna Zanotti Committee Member approval of nancial statements 30 April 2024
Supervisory Board pursuant to Law 231/2011
Role Deadline
Giuseppe Cerati Chairman approval of nancial statements 30 April 2024
Chiara Pieragnoli Committee Member approval of nancial statements 30 April 2024
Giovanna Zanotti Committee Member approval of nancial statements 30 April 2024
Auditing Company
Deadline
Company entrusted with the statutory audit PricewaterhouseCoopers approval of nancial statements 30 April 2022
Sesa Corporate Ofcer
Role
Samantha Alderighi Chief Human Resources Ofcer
Elisa Gironi Chief M&A and Corporate Integration Ofcer
Francesco Billi Chief Finance, Planning & Control Ofcer
Jacopo Laschetti Sustainability Ofcer
Alessandro Di Stefano Welfare Programme Ofcer
Eriberto Santoro Chief Tax & Administration Ofcer
Angela Pennacchi Diversity Ofcer
Conxi Palmero Investor Relations Ofcer
27
The Sesa Group
www.sesa.it
1.3.2. Shareholding
Sesa shares are listed on the Euronext STAR Milan market and are part of the Euronext Tech Leaders index. The company has a
capitalisation of Euro 2.149 billion (reference Euro 138.7 per share) as of 30 April 2022.
Share Capital: The share capital of Sesa SpA amounts to Euro 37,126,927.50 and is divided into 15,494,590 Ordinary Shares, all
with no indication of par value. Sesa SpA is controlled by ITH SpA with 52.814% of the share capital.
Listing Market
Euronext Market, Milan STAR segment
Share Capital (in Euro) 37,126,927.50
Number of ordinary shares issued 15,494,590
Share of capital held by controlling shareholder ITH SpA 52.81%
Specialist Operator Intermonte Sim SpA
Treasury shares: as of 30 April 2022, Sesa SpA held 40,862 treasury shares equal to 0.263% of the share capital, purchased at
an average price of €152.0 under the treasury share purchase plan approved by the Shareholders’ Meeting of 26 August 2021. In
accordance with international accounting standards, these instruments are deducted from the company’s equity.
Stock performance in euro as at 30/04 each year
2017
23.6
26.3
27.8
48.6
115.4
138.7
2018 2019 2020 2021 2022
28
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
1.3.3. Locations and geographical
coverage
The Sesa Group operates throughout Italy and in some foreign
countries. The Group’s headquarters is in Empoli (Florence)
where a technological hub has been developed that covers
an area of over 25,000 square metres and includes ofce
space and training areas of about 10,000 square metres,
the datacenter for cloud computing services of 1,300 square
metres and the logistics centre and warehouse of about
14,000 square metres, as well as buildings housing the
company nursery, canteen, auditorium, and experience lab
available to the Group’s customers. About 1,000 employees
work at the Empoli site.
The Group also has a strong presence in Milan, with about
700 resources, which has been growing steadily in recent
years, and ofces covering over 4,000 square metres. Other
ofces are located throughout the country.
Thanks to the recent acquisitions, the number of foreign
locations was further expanded during the nancial year.
As at 30 April 2022, the locations in Germany (Aichach,
Filderstadt, Moers, Eching, Grossheirath and Giessen),
France (Tremblay en France), Spain (Madrid and Barcelona),
Austria (Klagenfurt), Switzerland (Camorino), Romania (Iasi),
Mexico (Guadalajara)
3
and China (Shanghai) are operational.
3. The operating ofce in Mexico is not included in the scope of consolidation of this Integrated Annual Report.
29
The Sesa Group
www.sesa.it
1.4. Sustainability
Governance
Sesa intends to pursue an effective ESG strategy, in line with
the model of sustainable value creation for stakeholders.
A choice that is translated into programmes and actions,
through a transparent governance model, capable of
managing risks in an integrated manner and monitoring
projects and new investments.
Sesa’s corporate governance structure is aligned with
national and international best practices and complies with
the principles set forth in the Corporate Governance Code
(formerly the Self-Regulatory Code) of listed companies.
Through an integrated
management system, we
ensure that our business is
managed in accordance with
the corporate governance
best practices
30
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
1.4.1. Group Certications
Sesa operates in accordance with the following international
reference standards:
• UNI EN ISO 9001:2015 for quality;
• UNI EN ISO 14001:2015 for the environment;
• ISO 27001:2017 for the security of information;
• ISO 45001:2018 for occupational health and safety (for-
merly OHSAS 18001:2007);
• SA8000:2014 for social responsibility.
ENVIRONMENTAL CERTIFICATION:
ISO 14001
ISO 14001 species the requirements
for a correct and effective environmental
management system. It guarantees
the company’s commitment to comply with environmental
legislation, reducing environmental impact and improving
environmental performance. Certied Group companies:
Sesa SpA, Computer Gross SpA, Var Group SpA, Base
Digitale Group Srl, Elmas Srl.
SOCIAL RESPONSIBILITY: SA8000
SA 8000 is a management model that
aims to empower and protect employees
working in the organisation that adopts it.
The standard aims to:
improve staff conditions; promote ethical and fair treatment
of staff; incorporate international human rights conventions. It
denes voluntary requirements that employers must comply
with in the workplace, including employees’ rights, workplace
conditions and management systems. Certied companies:
Sesa SpA, which manages human resources, welfare, hiring
and training programmes for all major Group companies, was
granted the certication as of the year 2015.
QUALITY CERTIFICATION: ISO 9001
ISO 9001 is the internationally
recognised reference standard for quality
management. The primary objective is
the continuous improvement of Company
performance, guaranteeing the quality of goods and services
to customers. Certied Group companies: Computer Gross
SpA, Var Group SpA, Base Digitale SpA, ABS Technology
SpA, Elmas Srl, Apra SpA, East Services Srl, MF Services
Srl, Var Bms SpA, Var Engineering Srl, WSS Italia Srl, Yarix
Srl, Adiacent Srl, Adacto Srl, Icos SpA, Digital Storm Srl, Citel
Srl, IFM Infomaster SpA, P.M. Service Srl, A Plus Srl, NGS Srl.
INFORMATION SECURITY
CERTIFICATION: ISO 27001
ISO 27001 is the international standard
that describes the best practices for
an Information Security Management
System. The standard’s main objective is to guarantee
the protection of data and information from threats of all
kinds, in order to ensure their integrity, condentiality and
availability, and to provide the requirements for implementing
an Information Security Management System suitable for the
proper management of the business-critical data. Certied
Group companies: Computer Gross SpA, Var Group SpA,
ABS Technology SpA, Elmas Srl, Kleis Srl, WSS Italia Srl,
Yarix Srl, Digital Storm Srl, IFM Infomaster SpA, NGS Srl,
Tecnike Srl.
CUPATIONAL HEALTH AND SAFETY
CERTIFICATION: ISO 45001 (FORMER
OHSAS 18001)
ISO 45001 (which replaces OHSAS
18001) establishes a framework for
improving safety, reducing occupational
risks and boosting employee health and wellbeing, thus
enabling the health and safety performance of companies and
organisations to be implemented. Certied Group companies:
ICT Logistica Srl, ABS Technology SpA, Elmas Srl.
ADHESION TO THE UNITED NATIONS
GLOBAL COMPACT
Adhesion to the UN Global Compact
offers the opportunity to adopt a
globally recognised framework for the
development, implementation, and adoption of environmental,
social and governance policies and practices. Adherent Group
member companies: Sesa SpA, Var Group SpA, Computer
Gross SpA (in the process of adhering by year-end 2022).
ECOVADIS CERTIFICATION
Sesa and the main Group companies
were awarded the Silver Ecovadis medal,
an important recognition that underlines
our commitment to integrate ESG criteria
into the company’s business.
31
The Sesa Group
www.sesa.it
Corporate Responsibility Awards:
INTEGRATED GOVERNANCE INDEX (IGI)
The Integrated Governance Index
4
is a
quantitative index developed by Eticnews
that concisely expresses the positioning of
companies in relation to key sustainability
aspects. Sesa is ranked among the top
100 companies listed on the stock market to have acquired
this recognition.
SUSTAINABILITY LEADERS 2022
The increasing focus on a more efcient
use of resources and the energy transition
towards less polluting sources has
prompted Il Sole 24 Ore and Statista,
the international market leader in data and trend analysis,
to launch the Sustainability Leaders 2022
5
initiative. The
survey examined more than 1,500 large companies based in
Italy on the basis of their published sustainability reports and
nancial statements and focuses on the analysis of Corporate
Social Responsibility in its three dimensions Economic,
Environmental and Social. As a result of the survey, Sesa was
selected among the 200 Italian companies considered most
sustainable.
1.4.2. Business lines in support of
sustainability
In 2021, the Sesa Group launched a business line dedicated to
offering technologies and services supporting environmental
sustainability, which as at 30 April 2022 developed revenues
of approximately Euro 175 million and a customer set of
2,000 business partners. Sesa intends to further expand the
scope of its activities in sectors where digital technologies
converge with those of energy efciency and environmental
sustainability. Below are details of some of the main
Group companies operating in the eld of technologies for
environmental sustainability and energy efciency, thus
proactively contributing to environmental protection.
• The P.M. Service Srl Group company that belongs to the
VAD sector, is a reference operator in Italy in the offer of
technological solutions for energy saving, e-mobility and
environmental sustainability through partnerships with
leading international vendors in the sector. Among other
things, the company has its own photovoltaic plants with
a total capacity of about 1 MW, which produced 600,000
kWh of electricity from renewable sources during the
year;
• The Service Technology Srl Group company that be-
longs to the VAD sector offers solutions for the manage-
ment and reconditioning of IT products and technology
parks. In the nancial year ended 30 April 2022, it rema-
nufactured about 35,000 personal computers for about
60 tonnes of hardware, with a saving of about 3 tonnes
of CO
2
equivalent to about 100 tall trees;
• During the nancial year, the Group’s SSI sector further
strengthened its offer of digitisation and monitoring servi-
ces for the consumption of natural resources, promoting
the optimisation of production processes with a view to
environmental sustainability.
1.4.3. Group Financial
Strategy
Sesa adopts the observance of the principles of legality, in
application of the legislation in force both in Italy and in the
foreign countries in which it operates as an essential value of
its activities. Furthermore, the Organisational, Management,
and Audit Model incorporates details of tax offences, subject
to the control of the Supervisory Board.
The updated risk assessment did not reveal any relevant is-
sues in this area. Conrming the overall effectiveness of the
integrity and compliance measures adopted by the Group, as
at 30 April 2022, there have been no episodes of corruption,
conduct in breach of the law on competition or other ap-
plicable socio-economic and environmental regulations,
nor had the Supervisory Board of Sesa received any re-
ports of alleged unlawful conduct or conduct contrary to
the provisions of the Code of Ethics.
4. https://www.esgbusiness.it/.
5. https://lab24.ilsole24ore.com/leader-sostenibilita-2022.
32
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
Sesa’s goal evolves in two directions:
(i) payment of all taxes due as well as the prompt and complete
fullment of all obligations required by tax regulations.
(ii) compliance with international double taxation treaties
as well as application of any benecial tax provisions in full
compliance with all regulations in the jurisdictions involved.
In view of the objectives described above, the Group’s tax
strategy is based on the following principles:
• Compliance: observance of tax laws, regulations and cir-
culars issued by the Tax Authorities;
• Legality: compliance by all Group companies with tax
obligations and payment of taxes;
• Sustainability: efcient, effective, and sustainable ma-
nagement of the tax variable in order to support Sesa’s
business;
• Fairness: diligent exercise of professional judgement in
order to ensure that decisions made in tax matters are
in line with national and international best practices, pro-
perly analysed and adequately documented;
• Transparency: a transparent approach to develop and
sustain fair and honest relations.
TAX REPORTING:
As of 30 April 2022, Sesa recognised taxes in the amount of
Euro 30,464 thousand. 99.7% of the recognised taxes are
related to the EMEA (Europe, the Middle East and Africa) area
and, in particular: Euro 29,829 thousand in Italy (97.92%),
Euro 423 thousand in Germany (1.39%), Euro 30 thousand
in France (0.10%), Euro 7 thousand in Spain (0.02%), Euro
38 thousand in Switzerland (0.12%) and Euro 53 thousand
in Romania (0.17%). The remainder, amounting to Euro 82
thousand (0.27%), are located in China.
1.5. The Sesa Group
and the Environment
Aware of the climate changes that are affecting our planet,
the Group is sensitive to the issue of environmental protection
as a resource for the wellbeing of mankind and is committed
to operating in accordance with the principles of sustainable
development. The environmental impacts of the Sesa Group
are mainly due to:
• Energy Consumption of Group Company Ofces. The
electrical system installed in the companies’ premises is
connected to the public medium voltage energy distribu-
tion network;
• Consumption of natural gas by the Group companies for
heating and hot water production;
• Fuel consumption for the eet of cars and generator sets
at the main sites;
• Waste generated at Group company sites.
1.5.1. Sesa’s Environmental
Policy
Sesa conducts its business with the objective of environmental
protection and sustainable management of natural resources.
The operational management of the Group refers to criteria
of environmental protection and energy efciency pursuing
the continuous improvement of health and safety conditions
at work and environmental protection. In order to realize and
implement this commitment, Sesa has drawn up a Group
Environmental Policy and was granted the environmental
certication for its activities, introducing an Environmental
Management System in accordance with the UNI ISO
14001:2015 standard.
In order to exploit all possible synergies, the denition of the
Environmental Policy and its implementation are managed in
a unied manner and are consistent with the Group’s strategic
goals. This management:
• denes environmental and sustainable industrial deve-
lopment policies;
• draws up guidelines for the implementation of the Group’s
environmental policy;
33
The Sesa Group
www.sesa.it
• identies indicators and guarantees the monitoring and
control of the trend of corporate actions in terms of envi-
ronmental impact;
• follows the evolution of national and EU environmental
legislation and prepares application guidelines for the
subsidiaries;
• handles relations with organisations, institutes, and
agencies in the environmental eld.
ENVIRONMENTAL RISKS AND OPPORTUNITIES
Climate change is a risk factor of increasing impact. In light
of the climate change and the energy crisis resulting from,
among other things, the emergence of the Ukrainian war,
companies and organisations are being called upon to
proactively address.
The Sesa Group is involved in supporting the digital
transformation and energy transition process of its
stakeholders and intends to play a leading role in Italy and in
the markets where it operates.
To this end, a new business line was developed with about
Euro 175 million in revenues in the nancial year and about
100 specialised resources, with the aim of developing new
technologies, products, and services for the production of
energy from renewable sources and the efcient consumption
of natural resources. Investments also continued in the
Group’s main owned buildings: in particular, during the year,
internal production of energy from renewable sources tripled
(more than 1 million Kwh), and the main indicators relating to
emissions and consumption improved.
1.5.2. Enhancement of natural
capital and responsible use of
resources
Thanks to the principles of protection and safeguard mentioned
above, Sesa undertakes a series of initiatives aimed at
reducing and preventing possible negative impacts on the
environment deriving from the exercise of its activity. These
include the choice of energy supply from renewable energy
sources. Sesa constantly monitors its energy consumption
and related emissions, promoting efciency improvement
programmes including those indicated below:
• Monitoring and streamlining of waste production and
development of recovery activities (separate waste col-
lection). Improvement actions: Extension of the ISO
14001 environmental certication to all major Group
companies and dissemination of the Environmental Po-
licy;
• Hybrid working and digital collaboration modes adopted
by the Group, maintaining a predominantly physical work
organisation model for all human resources and Group
locations;
• Improving the awareness levels of personnel working in
or for the Group by implementing information and trai-
ning programmes. Improvement actions: HR training;
• Sensitisation of its suppliers and contractors on environ-
mental management principles. Improvement actions:
Awareness-raising activities towards employees and
suppliers;
• Commitment to actions to maximise energy savings in
their ofces or premises, in vehicle eet management,
favouring more efcient and less polluting technologies.
Improvement actions: Efcient lighting (LED), control-
led processes and energy-efcient materials, Green buil-
ding projects and certications (Leed);
• Reduction in the use of energy resources per unit of gas
fed into the grid. Improvement actions: plant mainte-
nance and improvement;
• Optimisation of the use of automotive fuels. Improve-
ment actions: renewal of the vehicle eet and innovati-
ve mobility management systems.
34
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
1.5.3. Low-carbon transition:
urban innovation projects
TRANSITION TO CARBON NEUTRALITY
The Group continues with determination on the path of
integrating ESG criteria into its business, implementing an
environmental sustainability strategy focused on achieving
carbon neutrality, in line with the UN 2030 Agenda. There
are several areas of intervention that will lead the Group to
neutralise its carbon footprint by 2030, through a plan that
envisages three lines of action: monitoring and quantication
of emissions; continuous processes of efciency and impact
reduction; and offsetting residual and non-reducible emissions.
To this end, an articulated and far-reaching project is related
to the implementation of environmental impact reduction
programmes for the Empoli technology hub. The project, in
addition to allowing the expansion of the activities present in
support of the business, will allow the area to be reorganised
in terms of road functionality, public parking, public green
spaces, and services for employees and citizens. The project
will also reduce emissions pollutants caused by trafc, through
sustainable mobility measures: free public parking spaces
in connection with a bike-sharing station, public transport
connections and the creation of cycle paths.
The project is divided into three distinct stages of progress
and envisages the construction of infrastructures and
buildings using eco-sustainable and energy-saving materials,
techniques, and technologies (green building and related
certications). The aim of the project is to enhance the
Technological hub, through the regeneration of community
relations, the protection of the wellbeing and health of citizens,
the improvement of the quality of the environment and mobility,
and the enhancement of social and cultural activities.
SELF-PRODUCTION OF ENERGY FROM RENEWABLE
SOURCES
The Sesa Group directly produces a signicant part of
the electricity used through its own photovoltaic plants.
Specically, 1.04 million kWh were produced in the nancial
year ended 30 April 2022, an increase of 314% compared to
the previous year. Since the nancial year 2022, the Group’s
total electricity needs have in any case been covered,
according to the company policy, by certied green energy for
more than 90%.
Photovoltaic installations at the Empoli technology centre
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ENERGY EFFICIENCY
Every year, the Group promotes investments for the
modernisation of its plants, steering its choices towards
technologies that optimise yields and reduce energy
consumption. Sesa uses LED lighting, with controlled
processes and energy-efcient material, in compliance with
the EC “Ecodesign” Directive 2009/125/EC for energy saving.
In addition, all air-conditioning systems have been replaced
with more energy-efcient systems, using refrigerant gases
with a low environmental impact and lower noise impact.
1.6. Value and supply
chain
RELATIONS WITH SUPPLIERS AND
CUSTOMERS
The Sesa Group intends to establish a relationship of trust with
its customers and suppliers, based on principles of fairness
and transparency. The creation of sustainable value by the
Sesa Group is expressed in the relationships with customers
and suppliers, based on continuous processes of collaborative
dialogue. Supply chain risks are carefully monitored and
mitigated through preliminary analyses and documentary
requests that enable the thorough assessment of customers
and suppliers in observance of the rules of compliance.
80% of environmental impacts are generated within corporate
supply chains, and part of the advancement goals on human
and labour rights, health and safety, and anti-corruption are
closely linked to the supply chain management, starting with
the selection of suppliers, through their involvement, and
ending with the measurement of supply chain sustainability
performance.
Sesa is committed to the ethical and reputational assessment
and verication of the company’s main counterparties by
means of an assessment of the most signicant third parties,
carried out by the Compliance department and aimed at
identifying initiated investigations, judgments or orders issued
against the companies or their directors. The ascertained
violation of the principles contained in these documents leads
to the cancellation of ongoing evaluation and award processes
and any existing contracts.
THE SUPPLY CHAIN AND THE SELECTION
OF NEW SUPPLIERS
In its relationship with its suppliers, the Sesa Group applies
the principles of fairness and transparency, adopting selection
procedures carried out without bias and according to rules
that include the verication of quality, technical-professional
suitability, ethical-behavioural aspects, compliance with
applicable regulatory standards and cost-effectiveness of
the supply of goods, services and works. The contractual
standards in force in the Group’s strategic supplies require
suppliers to comply with the rules set out in Decree 231/01
and the Group’s ethical principles. The Group’s Code of
Ethics includes a specic section dedicated to relations with
Suppliers, which must be managed according to principles of
maximum collaboration, willingness, professionalism, as well
as respect for the principles of transparency, equality, fairness,
and competition. Each supplier’s compliance respect of the
principles set forth in the Group’s Code of Ethics is decisive
for the establishment of the contractual relationship.
The selection of new Suppliers must be based on criteria
of transparency and fairness and aimed at identifying
counterparties capable of reconciling the company’s needs in
the best way possible, from a cost/performance point of view,
limiting, as far as possible, the company’s potential exposure
to any risks. As part of the process of selecting reference
Suppliers, the companies of the Sesa Group appropriately
assess, on the basis of business relations, the characteristics,
also by means of specic self-certication, of economic-
nancial soundness and reliability of the counterparty, through
the interrogation of public and/or system databases or the use
of special certied information services.
Supplier selection activities must also mandatorily take
into account the supplier’s commitment to comply with
the Organisational Model pursuant to Legislative Decree
231/2001 adopted by the Group or, that it has its own Code of
Ethics with principles consistent with those of the Sesa Group.
Health, safety, environment and ESG issues in general are
binding for the award of contracts at our sites, regardless of
the amount.
Here, we analyse existing processes and procedures and
the existence of management systems, or the holding of
certications, that guarantee adherence to the highest
international standards. We acquire and evaluate, also in
line with SA 8000, information and data on the protection of
human rights, use of child labour, and equal treatment.
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43
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5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
Suppliers with inadequate performance are subject to
corrective measures, but may also be suspended or
blacklisted in the event of negative performance and/
or information, or following signicant events, including:
unethical behaviour; serious environmental or occupational
safety incidents; serious non-conformities detected during
audits or eld inspections; failure to maintain the necessary
documentation for the purposes of legal obligations in the eld
of occupational safety; documented irregular position towards
legal obligations.
The audits carried out revealed an increasing attention to ESG
aspects by the suppliers of the Sesa Group. As a result of the
analysis conducted, the system is rated as “Favourable” with
adequate risk management and a good control environment
level.
CUSTOMER RELATIONS
The changing competitive environment, which IT companies
have to face in order to support digital transformation and the
resulting changes in customer behaviour and expectations, is
of increasing strategic importance.
The creation of sustainable value by the Sesa Group nds
its rst and immediate expression in the pursuit of maximum
customer/user satisfaction, also formalised in the policy of
quality management systems. It remains a primary objective
of the Group to constantly improve quality standards, through
periodic monitoring of the quality of the service provided
combined with appropriate and timely communication of
information regarding any changes and variations in service
provision. Sesa encourages interaction with customers
through the management and rapid resolution of any claims
through appropriate communication systems, preferring
dialogue based on the utmost professionalism and respect for
its key values.
The achievement of ISO 9001 certication for the main Group
companies has allowed the adoption of a management
system focusing on customer satisfaction, through dedicated
surveys. At 30 April 2022, there were no signicant customer
complaints.
% strategic suppliers subject to verication 65%
% strategic suppliers at high sustainability risk subject to
verication 55%
% total suppliers subject to verication 75%
Summary of supply chain verication activities as at 30 April 2022
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43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
2.1. Group Strategy and
Sustainable Development
Goals (SDGs)
SUSTAINABILITY AS A VALUE AND STRATEGIC DRIVER
Sustainability is both a value and a strategic driver for
Sesa. A value, rst of all, because, based on the principles
of corporate social responsibility, the company intends to
contribute to environmental protection and social progress.
A strategic choice because innovating business models,
improving efciency in the use of resources, and reducing
environmental impacts are crucial from the point of view of
economic competitiveness and productivity.
Sesa has progressively focused energy and commitment
on improving its sustainability prole. Through a process
of continuous and proactive involvement of management,
employees, the Sustainability Team, as well as analysts and
institutional stakeholders, Sesa has analysed the ESG issues
in depth and identied priorities for the coming years.
In order to make them an important strategic and operational
lever, Sesa has decided to link part of the management’s
variable remuneration to their achievement. Sesa, in line with
the amendments to the Articles of Association of 27 January
2021, aimed at orienting the Directors’ commitment to
pursuing sustainable success, has embarked on a process of
enhancing and focusing on sustainability issues, with the aim
of including the key ESG drivers in the variable components
of the monetary remuneration of top management, with an
incidence of non-nancial parameters of around 50%.
Consistent with this path of generating shared value, in
2022 Sesa renewed its participation in the United Nations
Global Compact, as a Participant, conrming its formal and
substantial commitment to promoting a healthy, inclusive, and
sustainable global economy, respectful of human and labour
rights, capable of safeguarding the environment and being
actively involved in the integrity of business, in all its aspects.
2.1.1. The Sustainable
Development Goals
Sustainability is an essential reference value in Sesa’s
strategy. For this reason, in this Annual Integrated Report,
the Group’s activities are reported with reference also to the
sustainability goals set out in the UN “2030 Agenda”. This
section describes the Group’s key issues. In determining its
sustainability strategy, Sesa considers the targets identied
with respect to the achievement of the 17 SDGs (Sustainable
Development Goals) of the UN Agenda 2030, to dene the
company’s strategic priorities, on which to develop policies,
objectives, and actions to create value.
THE UNITED NATIONS 2030 AGENDA
In 2015, the United Nations approved the Global Agenda for
Sustainable Development, containing 17 goals (Sustainable
Development Goals - SDGs) to be achieved by 2030.
Aware of its social role, Sesa has embarked
on a path to orient the organisation and its
business activities in the direction dened
by the 17 SDGs. In support of its adhesion
to the UN Global Compact, it has been
prepared a specic in-depth study on
the interrelation between material aspects and Sustainable
Development Goals (SDGs).
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ACHIEVING GENDER EQUALITY AND
EMPOWERING ALL WOMEN AND GIRLS
This is the Goal of operational and social efciency through
equal opportunities, women’s empowerment, inclusiveness,
and equity for social and economic development. What
Sesa intends to do: strengthen its Group procedures and
structures in order to contribute to an organisational climate
in which women and men have equal opportunities to realise
themselves and can, in equal measure, contribute to Sesa’s
economic and social growth. The main objectives are to
prevent any form of gender-based violence, to close the
gender gap in the labour market, to achieve full equality in
participation in the different business sectors, to address and
mitigate the pay gap where it exists, to close the gap and to
achieve gender balance in decision-making.
STIMULATE LASTING, INCLUSIVE AND
SUSTAINABLE ECONOMIC GROWTH, FULL AND
PRODUCTIVE EMPLOYMENT AND DECENT WORK
FOR ALL
This is the Goal that sums up the meaning of sustainable
business. Economic productivity through innovation,
inclusion, and diversity management. Human and labour
rights, decent, safe, and secure working environments,
social and professional growth. What Sesa intends to do:
support economic growth through the creation of jobs with
fair remuneration that allow the employees of the Sesa Group
to live satisfactorily and in accordance with work-life balance
criteria. Improving the well-being of people, businesses and
organisations through technological innovation and digital
transformation. Promoting development-oriented policies that
support productive activities. Protect the right to work and
promote a healthy working environment with maximum safety
for all workers.
PROMOTE INCLUSIVE AND SUSTAINABLE
INDUSTRIALISATION AND SUPPORT
INNOVATION
This is the Goal related to investments in sustainable
infrastructure and technological innovation, aimed at fostering
economic growth, creating sustainable jobs, and promoting
the well-being of human resources. Goal 9 aims at building
a resilient infrastructure, promoting inclusive development
and supporting innovation by deploying resources effectively
and efciently and at promoting environmentally sustainable
technologies and production processes. What Sesa intends
to do: develop quality, reliable, sustainable and resilient
infrastructure to support economic development and the
well-being of individuals; promote inclusive and sustainable
economic development by sustainably increasing employment.
REDUCE INEQUALITIES WITHIN AND BETWEEN
COUNTRIES
This is the goal focused on reducing inequalities within and
between states. By 2030, equal opportunities must be ensured
by eliminating discriminatory laws, policies, and practices.
What Sesa intends to do: Strengthen and promote the social
and economic inclusion of all, regardless of age, gender,
disability, race, ethnicity, origin, religion, economic or other
status. Ensure equal opportunities and reduce inequalities
in outcomes, also by removing discriminatory policies and
practices of any kind.
The Group’s sustainable strategy mainly targets the following
seven SDGs.
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43
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5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
TAKE URGENT MEASURES TO COMBAT
CLIMATE CHANGE AND ITS CONSEQUENCES
This is the Goal of combating climate change, the primary
global emergency. Monitoring, mitigation, and adaptation for
resilient value chains. What Sesa intends to do: integrate
climate change measures into policies, strategies, and
planning. Raise stakeholder awareness of climate change
issues. Promote technologies to increase the effective
planning and management capacity for climate change and
environmental management, promoting the saving of natural
resources and the use of green energy sources.
PROMOTE PEACEFUL AND MORE INCLUSIVE
SOCIETIES FOR SUSTAINABLE DEVELOPMENT;
PROVIDE ACCESS TO JUSTICE FOR ALL AND
CREATE EFFECTIVE, ACCOUNTABLE, AND
INCLUSIVE BODIES AT ALL LEVELS
This is the Goal of business integrity and sustainable
governance. The promotion and observance of laws,
standards and governance principles, external and internal by
adopting virtuous behaviour in internal relations and with all
stakeholders, business or non-business. What Sesa intends
to do: Support initiatives to combat abuse and exploitation,
ensure public access to information, in accordance with
national legislation and international agreements, promote
and enforce non-discriminatory laws.
STRENGTHEN THE MEANS OF IMPLEMENTATION
AND RENEW THE GLOBAL PARTNERSHIP FOR
SUSTAINABLE DEVELOPMENT
This is the Goal of sharing efforts towards sustainability through
partnerships and investments aimed at creating shared value.
What Sesa intends to do: dene and strengthen partnerships
and alliances for sustainable development with companies,
trade associations, universities, and organisations, including
non-prot organisations.
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2.2. Stakeholder
engagement and
materiality matrix
The Sesa Group has conducted a “Materiality Analysis”
process in order to identify the non-nancial issues that are
most relevant both from the point of view of the Group’s
internal and external stakeholders; to this end, a process has
been launched to identify the most important issues on which
to focus attention, in line with the GRI Sustainability Reporting
Standards (GRI Standards). This activity made it possible
to dene the Materiality Matrix, which identies the relevant
issues understood as those aspects that can generate
signicant economic, social, and environmental impacts on
the Group’s activities and that, by inuencing stakeholders’
expectations, decisions, and actions, are perceived as
relevant by them.
Attention to human
resources is a core
value of the Sesa
Group
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Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
2.2.1. Creating value by involving
stakeholders
In Sesa, the systematic involvement of key stakeholders
on material issues (i.e., the relevant elements for both the
organisation and the stakeholders themselves) represents
the main lever for monitoring and managing the quality of
relations and is fundamental in the formulation of the Group’s
organisational policies and strategies. It is also crucial
to understand in depth the emerging trends (criticalities
and opportunities) in the reference context in which the
organisation lives and operates, and to identify the issues on
which to invest as a priority, in response to the expectations
of key stakeholders. In particular, the quality of relations
(so-called capital relationship) established with the different
stakeholders and the (present and past) experience as they
perceive it, inuences the alignment between promises (value
proposition), expectations, actions and perceptions.
For the Group, value creation is a long-term issue, that
benets all stakeholders, among which human resources, the
communities in which the Group operates, customers and the
environment (key elements for the “creation of shared value”).
To this end, the Group considers all subjects that are
stakeholders - implicit or explicit - insofar as they are affected
by its activities. Below we have identied the main categories
of stakeholders, internal and external to the Group, considering
their degree of proximity, representativeness, and authority.
The identication of stakeholders with respect to non-nancial
issues is an activity conducted by the Group’s management
and is part of the more general path of sustainability
undertaken by the Sesa Group.
In the table below, there is a list of the identied stakeholders
and of the main listening and discussion channels set up
by the Group. In the sustainability journey undertaken, the
stakeholder engagement and discussion activities developed
in this fourth year of reporting did not lead to the identication
of any particular critical issues.
Stakeholder overview
People Customers Community
Collaborators
Family units
Community
Business Partners
Companies
Organisations
Institutes
Media
Local Communities
Non-prot organisations
Financial Community Contractual Partners Environment
Shareholders
Investors
Analysts
Proxy advisor
Vendor
Suppliers
Strategic Partners
Ecosystem
Working Environment
Territory
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Stakeholder
Method of dialogue
Employees
Group welfare programmes HR
Support and communication platforms
Work-life balance programmes
Engagement initiatives on issues of ethics and organisational culture
Skills development and career development programmes
Organisational climate enhancement and improvement programmes
Financial Community
Regular and transparent nancial reporting
Investor Relations platform dedicated to investor relations
Best practices in drafting and publishing reports
Shareholders’ Meetings
Regular meetings with analysts and investors
Dedicated bilingual section on the website
Contractual Partners
Roadshows with sales networks and operators
National and local meetings and conventions
Workshop
Dedicated communication channels (web, mailing, social networks)
Qualication and assessment process
Customers
Monitoring the level of satisfaction
Communication channels dedicated to customers (web, mailing)
Social network
Newsletter
Community
Participation in multi-stakeholder tables
Meetings with representatives of institutions and associations
Corporate contact points dedicated to media and institutional relations
(Head of institutional relations)
Organisation of events
Partnerships with local authorities for the organisation of sports and philanthropic events
Environment
Meetings with Human Resources
Dedicated communication channels (web, mailing)
Workshop
Engagement initiatives on environmental issues
Meetings with stakeholders
Sustainability Team
ESG Rating Agencies
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43
Performance as
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5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
2.2.2. Material issues related to business activities
By analysing materiality, we have identied a number of relevant issues in relation to which we undertake to develop tangible
actions and coherent initiatives. The main international sustainability guidelines (ISO 26000, GRI- Standards, Global Compact, UN
Sustainable Development Goals and ESG rating agencies) were taken into consideration, and a sector and benchmark analysis
was carried out, analysing the material issues identied by large groups operating in the IT sector and companies from other sectors
with relevant experience in IT consulting. On the one hand, this analysis took into account the Group’s strategy, mission, and values
(which we will highlight in the following Chapters) and, on the other hand, the perception of the importance of the same issues by
stakeholders.
Signicant issues for the Group were identied and validated by key gures in corporate management (corporate gures with
policy-making and operational responsibilities regarding sustainability issues), who were asked to assess the degree of importance
of each topic from the point of view of internal and external stakeholders. The result of the analysis process is reected in the
positioning of the issues, further information on which will be provided in the rest of the document.
Below is the list of material issues identied for the Sesa Group and the related materiality matrix:
Material issues
Scope of Legislative Decree 254/2016 Material issue KPI
Environmental
Energy consumption Yearly consumption in GJ and kWh
Emissions Annual CO
2
Water consumption Yearly consumption in litres
Waste management and circular economy Detail by type and weight (Kg)
Social
Responsible supply chain % suppliers assessed on ESG issues
Customer relations Number of complaints
Creating value for the community
Economic value generated
and distributed to stakeholders
Environmental sustainability of local community Specics comunications and initiatives
Employees’ Management and Human Rights
Corporate welfare and employment HR, growth rerate, hires
Skills development and HR training Number and type of training hours
Equal opportunities and diversity Gender representation and diversity
Staff health and safety Number and type of accidents
Protection of human rights Nr. sanctions and whistleblowing
Combating active and passive corruption
Anti-corruption
Number of sanctions and whistleblowing reports,
number of sessions/hours specic training
Ethics and compliance
Data and privacy protection
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In particular, the following results should be noted:
• Among the most relevant topics for both stakeholders and the company are “Corporate Welfare and Employment” and “Staff
Health and Safety”, consistent with the sector in which Sesa operates and the importance of know-how and human capital for
the business;
• “Ethics & Compliance” and “Data e Privacy Protection” are among the most relevant topics for Sesa, especially by virtue of the
business it conducts and the importance of these topics for its long-term success;
• Issues related to “Energy consumption”, “Waste management and circular economy” and “Diversity and equal opportunities”
are relevant to stakeholders and reect the growing awareness of these issues globally.
Materiality matrix
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Performance as
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5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
2.2.3. Evolution of our
sustainability prole
In the nancial year ended 30 April 2021, Sesa established an
Operational Corporate Sustainability Committee reporting
to the Chief Executive Ofcer and consisting of the heads of
the main corporate functions of Sesa with the identication
of a dedicated Sustainability Ofcer. The Committee, which
meets periodically during the year, takes care of sustainabi-
lity aspects by monitoring actions and programmes for the
reduction of environmental and social impacts related to the
Group’s activities.
Among the main actions carried out by the Operational Com-
mittee, the following can be identied:
• monitoring and implementation of the environmental ma-
nagement system from a risk assessment and manage-
ment perspective, identifying the main KPIs relevant to
the stakeholders;
• amendment to the Articles of Association by incorpora-
ting the target of sustainable success among the tasks
of the directors (resolution of the Extraordinary General
Meeting of January 2021);
• monitoring governance and transparency in supply chain
management;
• communication to ESG rating companies;
• communication and initial ESG-related training activities
within the organization;
• implementation of the sustainability report, improving
content and focus.
The Operational Corporate Sustainability Committee was also
involved in measuring the Group’s environmental and social
impacts through the B Impact Assessment (BIA).
The internationally recognised tool for measuring the value
produced by a company, considering not only economic but
also environmental and social aspects, showed an overall
score well above the average of companies that have tested
it internationally.
The Operational Committee also measured the environmental
and social impact and initiated a programme of actions to
be carried out in the short, medium, and long term to
further improve the sustainability prole of the Sesa
Group, identifying a virtuous path for the benet of all
stakeholders.
Among the main objectives of the sustainability programme,
the following can be identied:
• use of 100% renewable, low-impact energy (effectively
achieved in the nancial year ended 30 April 2022);
• increased energy production from renewable sources;
• extension of ISO 14001 certication to major Group com-
panies;
• inclusion of sustainability programmes in the training of
key personnel and the majority of employees;
• establishment of the Internal Sustainability Committee
(formalised at the July 2022 Board of Directors meeting);
• strengthening gender inclusion and diversity manage-
ment programmes at the human resources level (inclu-
ding the appointment of the Diversity Manager);
• reinforcement of Group-wide programmes to reduce the
consumption of natural resources, including a sustai-
nable mobility programme;
• strengthening ESG monitoring programmes of the sup-
ply chain.
It should be noted that all the main objectives were achieved
during the year and that the decision was taken to prepare
for the rst time an Annual Integrated Report incorporating
the analysis of ESG performance with nancial performance,
demonstrating the increased sensitivity of stakeholders to this
performance.
To this end, training and implementation of the nancial
control structure with tools and reporting methodologies with
ESG logic was also initiated.
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2.3. The creation of
long-term sustainable
value for all
Stakeholders
Sesa’s business model is based on sustainable growth,
transparency, valorisation of talent and diversity, protecting
the environment and generating value for stakeholders. The
industrial development plan and ESG objectives coexist and
are interconnected in order to bring a concrete contribution
to the achievement of the Sustainable Development Goals
dened by the United Nations.
Sesa’s business model aims at creating sustainable and shared
value for all stakeholders over time. Underlying the business
model are the six capitals pillars (nancial, infrastructural,
organisational, human, relational, social, and environmental)
on which the organisation depends to guarantee the quality of
the services provided.
In line with this evolution, Sesa is implementing an integrated
value creation approach by developing a virtuous circle
between corporate mission and value generation for
stakeholders.
In particular, the commitment to articulate an innovative and
distinctive offer led Sesa to the development of an integrated
model of shared value creation, achieved by valorising:
• the human capital by enabling people to constantly im-
prove their skills and understanding within the Group’s
strategy;
• the social and environmental capital by monitoring
and minimising the impact of its activities on environ-
mental resources and on the communities in which the
Group operates;
• the relational capital by sharing behavioural and rela-
tional values with partners, suppliers and stakeholders;
• the organisational and nancial capital by enhancing
the development of its services through research and in-
novation processes along the entire chain.
Sesa’s business model is based on this strategic orientation,
which aims at the creation and distribution of sustainable value
in the short, medium and long term in all areas related to the
International <IR> Framework and in response to the global
challenges dened by the 17 UN Sustainable Development
Goals to which the company concretely contributes. The SDGs
identied by the Group have been traced back to the material
issues for Sesa and the innovative and socio-environmental
projects implemented by the Group.
2.3.1. Value distributed to
Stakeholders
The Sesa Group pursues the sustainable generation of value
for its stakeholders, with whom it intends to develop long-term
and transparent relationships.
As shown in the table below, as of 30 April 2022, out of a
generated net added value of Euro 314.9 million, the
distributed net economic value was Euro 250.2 million (79.5%
of the total), an increase of 20.3% compared to the previous
year. The net economic value retained to support investments
and future growth increased from Euro 42.1 million at 30 April
2021 to Euro 64.7 million at 30 April 2022.
Value distributed to Stakeholders
(in thousands of Euros) 30/04/2022 30/04/2021 30/04/2020
Net added value 314,898 250,180 181,126
Distributed net economic value 250,225 208,042 138,938
Retained net economic value 64,674 42,138 42,188
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The following economic value statement is a reclassication
of the consolidated income statement representing the wealth
produced and distributed by the Group to its stakeholders
in the nancial year ended 30 April 2022. In particular, this
reclassication indicates the organisation’s “quantitative
capacity to create value for its stakeholders”.
The Sesa Group’s net added value as at 30 April 2022
amounted to Euro 314.9 million, distributed as follows:
• • employees’ remuneration amounted to Euro 197.7 mil-
lion (+21.3% Y/Y), as a result of the increase in the or-
ganisation, due to company acquisitions and the Group’s
plan to bring in new resources;
• remuneration of the public administration amounted to
Euro 31.7 million (+20.4% compared to the previous
year) and related mainly to current taxes, which increa-
sed due to the growth in protability;
• the remuneration of shareholders, through the distribu-
tion of dividends for the nancial year ending 30 April
2022, is dened in the amount of approximately Euro
13.9 million (Euro 0.90 per share compared to Euro 0.85
in the previous year).
With regard to the distribution percentage of Net Added Value,
it is noted that Human Resources is the Stakeholder that
continues to benet most from the wealth creation achieved
by the Group, accounting for 62.8% of the total.
Economic value generated and distributed
(in thousands of Euros) 30/04/2022 % 30/04/2021 % Variation 22/21
Net revenue 2,362,603 98.8% 2,022,454 99.2% 16.8%
Other Income 27,220 1.1% 14,769 0.7% 84.3%
Prot of companies valued at equity 1,744 0.1% 2,345 0.1% -25.6%
Economic value generated 2,391,567 100.0% 2,039,568 100.0% 17.3%
Reclassied operating costs (purchases, services, etc.) (2,023,167) -84.6% (1,747,385) -85.7% 15.8%
Amortisation, depreciation, write-downs and other
non-monetary costs
(53,502) -2.2% (42,003) -2.1% 27.4%
Net added value 314,898 13.2% 250,180 12.3% 25.9%
Remuneration of human resources 197,673 62.8% 162,972 65.1% 21.3%
Remuneration of lenders* 6,856 2.2% 5,521 2.2% 24.2%
Remuneration of shareholders** 13,946 4.4% 13,171 5.3% 5.9%
Remuneration of Public Administration 31,750 10.1% 26,378 10.5% 20.4%
Distributed net economic value 250,225 79.5% 208,042 83.2% 20.3%
Self-nancing 64,674 20.5% 42,138 16.8% 53.5%
Retained economic value 64,674 20.5% 42,138 16.8% 53.5%
*Equal to the balance of net nancial income and expenses gross of prots and losses of companies valued at equity
**Determined on the basis of the proposal of the Board of Directors of 12 July 2022 (gure as at 30 April 2022) and the Shareholders’ Meeting of 26 August 2021 (gure as at 30 April 2021)
The retained economic value amounted to Euro 64.7 million, up 53.5% compared to 30 April 2021, supporting the Group’s
investments for long-term growth.
The retained economic value amounted to Euro 64.7 million, up 53.5% compared to 30 April 2021, supporting the Group’s
investments for long-term growth. Below, a graphical breakdown of the Sesa Group’s 2022 Added Value of approximately Euro
314.9 million, of which Euro 64.7 million is retained economic value (self-nancing) and Euro 250.2 million is distributed economic
value.
52
The Sesa Group
1
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management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
2.4. Responsible
business management:
ethics, compliance and
risk and opportunity
management
2.4.1. System of Internal Controls
and Risk Management
The development of the Sesa Group has made it necessary to
progressively strengthen and further integrate the components
of the internal control system.
The risk governance model was developed in line with the
best practice and in compliance with the Corporate Governance
Code for Listed Companies and the Group’s Model 231.
It is structured on three levels, identies distinct roles and
responsibilities for the various organisational structures and
provides for an adequate exchange of information ows to
ensure its effectiveness. In order to cope with the risks to
which it is exposed, the Group has equipped itself with suitable
corporate governance devices and adequate management
and control mechanisms. Specically, the Company’s System
of Internal Controls and Risk Management (“SCIGR”)
consists of the set of rules, procedures and organisational
structures aimed at an effective and efcient identication,
measurement, management, and monitoring of the main
corporate risks in order to contribute to the Company’s
sustainable success.
The Enterprise Risk Management processes, integrated into
business processes, are continuously improved to innovate
and disseminate an effective organisational culture of
management and mitigation.
Specically, the organisational structure aimed at managing
corporate risks is structured as follows:
• the Audit and Risk Committee, whose task is to sup-
port the assessments and decisions of the Board of Di-
rectors concerning the internal control and risk manage-
ment system;
Distribution of the net value generated
13.95 Mn
64.67 Mn
31.75 Mn
Remuneration of Shareholders
Self-nancing
Remuneration of PA
6.86 Mn
197.67 Mn
Remuneration of Lenders
Remuneration of human resources
4.4%
20.5%
2.2%62.8%
10.1%
53
Strategy and risk management
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• the Board of Directors, which, as a whole, plays a role
in guiding and assessing the adequacy of the SCIGR. In
particular, in relation to the non-nancial issues covered
in this Annual Integrated Report, it should be noted that
the Board of Directors is rst and foremost responsible
for dening the SCIGR’s guidelines, in line with the stra-
tegic objectives and risk prole of the SCIGR, with a view
to its sustainability in the medium-long term;
• the Compliance Ofcer, as a second-level control body,
carries out periodic checks on the companies’ complian-
ce with regulations, by verifying, in accordance with in-
dustry best practices, the compliance of the activities
carried out with the statutory provisions, the provisions
of the Supervisory Authorities, the self-regulatory rules
and regulations, as well as the contractual commitments
undertaken with customers;
• the Internal Audit, which systematically veries the
effectiveness and efciency of the Internal Control and
Risk Management System as a whole (third-level control
body), reporting the results of its activities to top mana-
gement and coordinating with the other corporate control
bodies;
• the Management Control Committee: which, by virtue
of its control activities on the adequacy of the organisa-
tional, administrative and accounting structure adopted
by the company, monitors the effectiveness of the SCI-
GR as the “apex” of the company’s supervisory system;
• the Supervisory Board pursuant to Legislative De-
cree No. 231/2001, which checks the adequacy of the
231 Model, paying particular attention to its effectiveness
in preventing unlawful conduct and carries out constant
supervision of the application of and compliance with the
231 Model.
Risk governance model
54
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1
Strategy and risk
management
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Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
2.4.2. Risk Management and
Mitigation Matrix
The Sesa Group adopts specic procedures to manage risk
factors that may affect its economic, asset and nancial
situation.
These procedures are the result of a company management
guided by the values of the Group’s Code of Ethics (integrity,
fairness and transparency, professionalism, sustainability and
business continuity, attention to people and stakeholders)
focused on pursuing sustainable growth objectives for
stakeholders.
MAIN RISKS AND UNCERTAINTIES:
• EXTERNAL RISKS
Risks associated with the macroeconomic environment and
the IT market. Unfavourable trends in the economy and the
IT sector are possible. An unfavourable economic trend at a
national and/or international level could negatively affect the
growth in demand for IT, with consequent repercussions on
the Group’s business and nancial situation. The IT market is
also characterised by a high degree of competition where, in
addition to national operators, the Group faces multinational
competitors.
To face these risks, the Group pursues a strategy of
expanding its value-added offer through the provision of
competitive, efcient, and innovative services. Finally, the IT
market is subject to a high level of technological evolution
with a constant transformation of professionalism and the
skills required. Operating with a competitive advantage in the
IT market requires continuous development of skills, product
offerings and the strategic management of relationships with
international vendors. The Group carries out a continuous and
important analysis of market trends and opportunities in order
to anticipate future evolutions of its customers’ needs through
the development of internal skills, the aggregation of external
specialisations and investments in research and development
activities.
• INTERNAL RISKS
Risks related to dependence on key personnel:
the future development of Sesa signicantly depends
on certain key management employees. The possible
loss of these employees, should it not be possible to
replace them in an adequate and timely manner with
people of equal experience and competence, could lead
to a reduction in the Group’s competitive ability. The
inability to attract and retain new and qualied resources
could also negatively impact the Group’s economic and
nancial prospects and results. To deal with this risk, the
Group has put in place retention strategies and long-
term incentive plans that are also based on medium-term
equity-based remuneration plans. The management
believes, in any case, that Sesa SpA and the Group
are equipped with an operational structure capable of
ensuring continuity in the management of corporate
affairs.
Risks associated with the non-fullment of
contractual and compliance commitments.
The Group offers IT solutions and services with a high
technological content and enters into contracts that may
impose penalties for non-compliance with the agreed
time, performance (SLA) and quality standards. These
penalties could adversely affect the Group’s economic
and nancial situation. To mitigate this risk, the Group has
adopted procedures intended to manage and monitor the
services provided and has taken out adequate insurance
policies. In relation to compliance risks, the Group has
adopted policies and procedures, including the adoption
of Model 231/2001 for the parent company and main
subsidiaries, aimed at minimising compliance risks
(particularly tax and legal).
Reporting risk. It is related to the reliability of periodic
nancial reporting. It represents the possibility that an
individual area of the nancial statements or a set of
transactions may contain material errors, regardless of
the internal controls established by the company.
To deal with this risk, the Company has identied and
formalised, in a special database, the internal controls
functional to the prevention of reporting risk.
The database is kept constantly updated and controls
are tested for effectiveness on a six-monthly basis and
on a sample basis.
• MARKET AND FINANCIAL RISKS
Credit risk. It deals with the potential losses that may
arise from customers’ failure to meet their obligations.
This risk is constantly monitored and mitigated through
the use of information, customer assessment procedures
and credit risk hedging instruments (insurance and
non-recourse factoring transactions). The Group also
allocates and periodically monitors a specic provision
for bad debts.
55
Strategy and risk management
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Liquidity risk. The core business of the Sesa Group
companies generates a working capital requirement
and consequent nancial exposure. The liquidity
risk is covered through the periodic planning of cash
requirements and the relative nancing through loans
and credit lines mainly centralised at the three main
operating and holding companies of the Group, namely
Computer Gross SpA, Var Group SpA and Base Digitale
Group Srl. The Group closed the consolidated nancial
statements as of 30 April 2022 with a Net Financial
Position (net liquidity) of Euro 245,292 thousand.
Interest rate risk: Group companies carry out a
business activity characterised by a negative working
capital cycle (calculated as the difference between
short-term operating liabilities and short-term operating
assets). At certain times of the year, the companies have
a nancial exposure to the banking system, generated by
the need to nance their working capital requirements.
This requirement is covered by variable-rate loans and
credit lines, the cost of which is exposed to changes in
interest rates. As of 30 April 2022, the Group had no
derivative instruments relating to interest rates. In light of
the moderate level of average annual debt, the Group’s
risk management policy does not provide for the use of
derivative contracts to hedge interest rate risk. In relation
to the Group’s low level of indebtedness, the sensitivity
analyses performed did not reveal signicant results.
Exchange rate risk: Group companies do not operate
on foreign markets to any signicant extent and
essentially use the Euro as the currency for managing
commercial and nancial transactions. There are also
transactions for the purchase of goods and IT products
in foreign currencies, mainly with the Computer Gross
SpA company and relating exclusively to the US dollar.
There are no transactions in derivative instruments in
foreign currencies, but only forward currency purchase
transactions to hedge exchange rate risks. In relation to
the limited foreign exchange transactions of the Group
and to the hedging of the risk itself (forward transactions),
the Group reported insignicant results in the sensitivity
analyses aimed at assessing a hypothetical appreciation
or depreciation of the euro.
Price risk: the Group held no nancial instruments or
equities listed on securities markets as of 30 April 2022,
with the exception of treasury shares deducted from
shareholders’ equity and capitalisation policies issued
by major nancial institutions. With regard to the risk of
inventory obsolescence, the Group companies active in
the marketing of IT products monitor this management
prole through periodic surveys and analyses in relation
to the possible existence of a risk of obsolescence of
goods.
• ESG RISKS
Environmental risk. This is related to the use of
energy resources, greenhouse gas emissions, waste
production and its disposal. The absence of an
emissions management programme and the lack of
energy efciency measures could expose the Group to
potential environmental and reputational risk. Due to
climate change, companies face a number of signicant
challenges: increased operating costs, reduced asset
value (so-called asset impairment) and reduced demand
for goods and services. Sesa can gain a competitive
advantage by looking at the development of new
technologies and the development of energy-efcient
products and services.
Personnel risk. This is related to the management of
employees and assimilated persons, including actions
taken to protect health and safety in the workplace, to
ensure gender equality and proactive dialogue with
social partners.
Risk in the ght against active and passive
corruption: relating to the possible occurrence of events
and/or circumstances related to the ght against active
and passive corruption.
The Group is committed to systematically updating
its social and environmental policies and periodically
monitors risks. As of 30 April 2022 (as in the
previous year), no sanctions have been imposed for
environmental, human rights or discriminatory acts.
56
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
MITIGATION MATRIX
The following table shows the risks described above and how they are managed (mitigation tools).
2.4.3. Compliance and anti-corruption
Compliance and risk monitoring
Areas Risks Mitigation actions
External risks
Risks related to the macroeconomic
environment and IT market
Monitoring macroeconomic trends and scenarios
Investments in new technologies and skills
HR selection, training and retention policies
Risks associated with unfair competition Procedures for sharing and accepting the Sesa Code of Ethics
Internal Risks
Risks related to dependence on
key personnel
Retention and loyalty plans for key personnel of the Group
Risks associated with breach
of contract and compliance
Policies and procedures for managing and monitoring the services provided
Adoption of a Model 231 and a Code of Ethics
Insurance cover
Reporting risk
Administrative-accounting procedures
Testing the effectiveness of controls
Risk related to Privacy and GDPR Policies and procedures to ensure privacy and security
Market and nancial risks
Credit risk
Credit monitoring
Customer assessment procedures
Insurance and non-recourse assignment instruments
Creation of specic cover funds
Liquidity risk
Cash ow planning
Cash pooling tools
Recourse to external nancing sources
Interest rate risk Recourse to variable-rate nancing
Exchange rate risk Currency forward transactions
Price risk
Monitoring price dynamics
Monitoring obsolescence of goods in stock
ESG risks
Environmental risk
(consumption, emissions, waste)
ESG policies and waste management procedures
Green procurement policies
Monitoring of environmental regulations and ESG ratings
ISO 14001 Certied Management System
Appointment Mobility Manager
Risk related to personnel and the working
environment
Worker health and safety policies and procedures
SA 8000 Certied Management System
Risk in the ght against active and passive
corruption
6
Code of Ethics
Model 231
Approval and verication policies and procedures
6. As regards relations with the Public Administration, examples of activities at risk are the submission of untruthful declarations to national or local public institutions in order to obtain public
grants or the awarding of contracts, or the use of public funds for purposes other than those for which they were granted. With respect to relations with the Public Administration, specically,
the risk of occurrence of episodes of corruption is also linked to participation in tenders for the allocation of funding, direct or indirect, for Research and Development activities. To date, these
loans are of an insignicant amount compared to the Group’s business volume.
57
Strategy and risk management
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Sesa pays particular attention to the issue of compliance and
the ght against corruption, developing numerous activities to
verify compliance with the regulatory context, both external
and internal, aimed at preventing the risks of non- conformity,
whose non-compliance could lead to sanctions, economic
losses, harmful administrative measures, and reputational
consequences. The ght against corruption is also the
subject of the Company’s Internal Control System, the main
instrument of which is the 231 Organisational Model.
INTERNAL COMPLIANCE
THE 231 MODEL
The Organisational and Management Model pursuant to
Legislative Decree 231/2001 regulates the administrative
liability of collective entities, i.e., the principle that companies
can be held liable, and consequently nancially penalised, in
relation to certain offences committed or attempted, in their
interest or to their advantage, by their directors or employees.
Sesa’s 231 Model ts into the broader context of the
company’s internal control system, constituting one of its
characteristic components. The adoption of the Model, in
addition to representing a deterrent to the realisation of
any unlawful activities, intends to support a culture oriented
towards correctness and transparency of behaviour in the
conduct of business.
The Model represents the connecting tool between the various
areas of the Internal Control and Risk Management System
(SCIGR) adopted by the main Group companies. The SCIGR
is dened as the set of rules, procedures and organisational
mechanisms put in place by top management to identify,
measure, manage and monitor the main corporate risks.
SUPERVISORY BODY
Pursuant to the provisions of Legislative Decree 231/2001
and in line with the provisions of the Articles of Association,
the Board of Directors appointed a Supervisory Board
(“SB”), which is entrusted with the task of supervising the
operation of and compliance with the 231 Model and ensuring
that it is updated. The Supervisory Board supervises the
operation of and compliance with the 231 Model and monitors
and evaluates the state of implementation of prevention
measures, reporting periodically to the Board of Directors
and the Management Control Committee. Consistent with
the principles of Legislative Decree 231/2001, the 231 Model
of the Group provides for a channel for reporting violations,
also in anonymous form (so-called Whistleblowing), with
protection of the authors of reports and total condentiality of
their identity.
CODE OF ETHICS
In 2012, Sesa adopted its own Code of Ethics for the rst time.
To date, this Code has been extended and implemented by all
major Group companies.
The Group’s Code of Ethics describes a set of values and
principles of conduct to which the Directors, Management and
human resources of Sesa and its subsidiaries, as well as all
those who work for it, are inspired by and comply with in the
pursuit of the company’s objectives.
For further details, please refer to the document published
on the company website in the Governance section (https://
www.sesa.it/governance/modello-231-e-codice-etico/).
CODE OF CONDUCT
The Group has also adopted its own Code of Conduct
containing guidelines on legal and professional obligations,
customer and other business relations, organisational and
administrative provisions as well as on personal conduct.
It is based on values and principles of professional and
personal behaviour, generally required by our organisation.
The Code of Conduct adopted by the Group denes, together
with and in support of the Code of Ethics, the fundamental
principles underlying the Group’s reputation and the values
that inspire its daily operations, describing also the standard of
conduct required of all employees and collaborators of Sesa.
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of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
FIGHT AGAINST CORRUPTION
The Group is active in the ght against active (offer) and
passive (acceptance) corruption. The issue is managed by an
extensive body of internal regulations: the Code of Ethics, the
231 Model, whistleblowing, internal policies and procedures,
careful management of Human Resources. With reference
to Whistleblowing, it should be noted that during the year to
30 April 2022, no reports were received through ordinary
communication channels (mail, e-mail). On a half-yearly
basis, the Board of Directors and the Management Control
Committee receive information on the whistleblowing reports
received, as part of the activities carried out by the Supervisory
Board. The Group has adopted a “Gifts and Gratuities
Policy”, valid for all Group companies, where the guidelines
to be complied with in order to avoid conduct not in line with
legal provisions and internal rules of conduct are dened.
During the nancial year to 30 April 2022, all operations were
monitored with respect to corruption risk.
As in the previous year, no cases of corruption, unfair
competition, monopolistic practices, or antitrust
involvement were reported. At 30 April 2022 (as was also
the case in the previous year), no sanctions were imposed
for non-compliance with social and economic laws and
regulations.
REGULATORY COMPLIANCE
The Group is committed to constantly ensuring maximum compliance with all regulations to which it is subject through the activation
and monitoring of specic control measures. Below are the main reference regulations and active control measures:
Compliance and risk monitoring
Scope Reference legislation Integrated control structures
Safety at work
Legislative Decree 81/2008 Consolidated
Act on safety in the workplace
Activation of legal safeguards
Regular information ow from RSPP
Data Security
Legislative Decree 196/2003 on pro-
tection of personal data (GDPR)
Alignment of existing controls with the European Regulation GDPR
Regular DPO information ow
Adoption of a certied management system according to the ISO 27001 standard
Financial disclosure
Law 262\2005 concerning the
regulation for the protection of savings
and nancial markets
Adoption of specic controls on administrative procedures of the annual and
consolidated nancial statements and other nancial communications
Regular exchange of information between corporate bodies
and control functions and the auditing rm
Social Responsibility
Law 300/1970 Workers’ Charter
Law on employment
Adoption of an SA 8000 Certied Management System
Periodic ow of information from the Health and Safety at Work
Committee to company control bodies and departments
Adoption of Group policies
Administrative Responsibility
Legislative Decree 231/2001 - Admini-
strative Criminal Liability of Legal Entities
Adoption of Group Code of Ethics and the 231 Model
Exchange of information between corporate control bodies and departments
Quality Management System Standard ISO 9001
Adoption of management procedures
Adoption of an ISO 9001 Certied Management System
Environmental Responsibility Standard ISO 14001
Adoption of management procedures
Adoption of an ISO 14001 Certied Environmental Management System
59
Strategy and risk management
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2.4.4. Data Protection and Cyber
Security
Creating value for stakeholders also means protecting the
information of all stakeholders and providing operational
arrangements that preserve and enhance the value of
information assets. In a rapidly evolving world where
information has an increasingly signicant value and there
is a growing connection between networks, systems, and
applications, it is becoming more and more complex to manage
and protect information assets while ensuring regulatory
compliance. This increased complexity - combined with the
growth and evolution of cyber threats - exposes companies
to new types of risks, the damaging effects of which can
have serious economic, legal, reputational, compliance
or competitive advantage repercussions through loss of
information, intellectual property, or business interruption.
That said, the Sesa Group has identied the protection of
personal data and the security of information as a primary
area of its interest both as business development and as a
condition for proper internal management.
The Group also operates on the basis of established data
security management procedures, based on industry best
practices and in line with the international ISO 27001
standard on information security.
Sesa has adopted and maintains a specic procedure for
the proper and adequate management of incidents, data
breaches, and in general has established and developed
its own operational strategy to restore business continuity
in the event of disruptive events affecting both IT systems
and business activities as a whole. The implementation of
specic Business Continuity and Disaster Recovery plans
guarantees secure and effective data management even in
the event of incidents or other extraordinary events that may
directly affect data and information security, in full compliance
with the requirements prescribed by the General Data
Protection Regulation no. 2016/619 (the so-called GDPR)
and by the Italian Data Protection Authority, as well as with
the commitments made to Data Controllers and in general in
respect of stakeholders’ rights.
The Group also devotes particular attention to staff training on
the processing of personal data, delivered through e-learning.
As at 30 April 2022, approximately 2,000 hours of specic
training on the topics in question (Privacy, GDPR and
Cyber Security) had been provided.
In order to comply with regulatory provisions on privacy and
the security of sensitive data, the Group has dened its own
data protection model. Through it, the Group aims to ensure
respect for the rights of those affected by processing, full
obligations, prevent possible violations by monitoring and
controlling all compliance and implementing appropriate
security measures. As at 30 April 2022, the Group’s
companies have not received any complaints and/or
reports regarding breaches of customer privacy, nor have
they suffered any loss or leakage of data.
Group Security Operation Centre (SOC)
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43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
Performance
as of April 30,
2022
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
61
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www.sesa.it
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43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
GENERAL ECONOMIC PERFORMANCE
The gradual exit from the health crisis and the economic and
monetary stimulus measures of governments and central
banks have favoured the strong acceleration of global GDP
in 2021 (+6.1% Y/Y) compared to 2020 (-3.1% Y/Y) and the
return to expected growth in the 2022-2023 period (+3.6%
Y/Y) at a pre-pandemic level. In view of this improvement in
growth prospects, supported by the progressive orientation of
the most developed economies towards digitisation, elements
of uncertainty emerge related to the shortage of the factors of
production and the increase in energy prices, with the related
inationary pressures, also as a consequence of the current
conict in Ukraine.
Rising commodity prices and price pressures push up ination
projections in 2022 to a level of about 6 per cent in advanced
economies (source IMF - WEO, April 2022).
In Italy, after a GDP reduction of 8.9% in 2020, there was
a strong recovery in 2021 (+6.6% Y/Y) thanks to economic
stimulus policies and the gradual containment of the pandemic
emergency.
Projections for the development of the Italian economy in
2022 and 2023 show growth of around 2 per cent, higher than
pre-pandemic averages, thanks also to government stimulus
measures and the Next Generation EU programmes, aimed
at promoting technological innovation, competitiveness, and
digitisation 4.0 (source IMF - WEO, April 2022).
The table below represents the nal results for 2017- 2021
and the forecasts of GDP developments for the year 2022 and
2023 (source IMF - WEO, April 2022).
DEVELOPMENT OF DEMAND AND
TRENDS IN THE SECTOR
The Italian Information Technology (“IT”) market continues
its acceleration trend with average annual growth rates well
above those of the pre-pandemic period. In 2021, IT demand
closed with strong growth (+8.0%), with positive dynamics
in all business segments, as a result of the increasingly
strategic role of technological innovation in the management
of businesses and organisations. The main technology drivers
of the recovery continue to be Digital Enablers such as cloud,
security, analytics, cognitive-A.I. (Source: Sirmi, May 2022).
The growth expectations for the IT market in the three-year
period 2022-2024 are also very positive; after the year 2022
with an expected IT demand growth of +6.0%, in 2023 and
2024 a further acceleration is expected (+8.3% in 2023
and +9.5% in 2024), supported among other things by the
programmes of the National Recovery and Resilience Plan
(“NRRP”).
Demand will be supported in particular by the Management
Services segment (with annual growth of more than 10%),
which includes digital transformation services and solutions
and reects the evolution of how technology is used as well
as the progressive penetration of Cloud Computing solutions
(Source: Sirmi, May 2022).
Final results
Percentage values
Variation
GDP 2017
Variation
GDP 2018
Variation
GDP 2019
Variation
GDP 2020
Variation
GDP 2021
Variation
GDP 2022 (E)
Variation
GDP 2023 (E)
World +3.8% +3.6% +2.8% -3.1% +6.1% +3.6% +3.6%
Advanced Economies +2.3% +2.3% +1.6% -4.5% +5.2% +3.3% +2.4%
Emerging Market +4.8% +4.5% +3.6% -2.1% +6.8% +3.8% +4.4%
USA +2.3% +2.9% +2.2% -3.4% +5.7% +3.7% +2.3%
Japan +1.7% +0.3% +0.7% -4.6% +1.6% +2.4% +2.3%
China +6.9% +6.6% +6.0% +2.3% +8.1% +4.4% +5.1%
Great Britain +1.8% +1.3% +1.4% -9.8% +7.4% +3.7% +1.2%
Euro Area +2.3% +1.9% +1.3% -6.3% +5.3% +2.8% +2.3%
Italy +1.5% +0.8% +0.3% -8.9% +6.6% +2.3% +1.7%
63
Performance as of April 30, 2022
www.sesa.it
The following table shows the development of the Italian IT market in the period 2017-2021 and forecasts for the years 2022, 2023
and 2024 (Source: Sirmi, May 2022).
For the IT distribution segment, growth is expected to continue in the coming years due to the acceleration in demand required to
meet the changing needs of work organisation, security, big data, and infrastructure evolution. Expectations for the IT distribution
segment remain positive for 2022 with demand growth in line with the historical average of the last two years (Source: Sirmi, May
2022).
The System Integration segment, after experiencing a growth contraction in 2020 (+1.3%) due to the pandemic crisis, closed 2021
with a strong acceleration (+8%), thanks to the contribution of the most innovative areas such as cloud, security, cognitive-A.I. and
digital transformation. Expectations for the segment remain positive with average growth in the period 2022- 2024 of between 5%
and 7%. (Source: Sirmi, May 2022).
Italian IT market trend
IT Market Italian
(Mn EUR)
2018 2019 2020 2021 2022 E 2023 E 2024 E
Var.
18/17
Var.
19/18
Var.
20/19
Var.
21/20
Var.
22/21
Var.
23/22
Var.
24/23
Hardware 6,025 6,172 6,266 6,770 7,044 7,405 7,853 -0.3% 2.4% 1.5% 8.1% 4.0% 5.1% 6.1%
Software 3,845 3,861 3,792 3,922 3,999 4,149 4,347 0.3% 0.4% -1.8% 3.4% 2.0% 3.8% 4.8%
Project Services 3,500 3,588 3,640 3,854 4,003 4,310 4,681 1.9% 2.5% 1.5% 5.9% 3.9% 7.7% 8.6%
Management
Services
5,900 6,350 6,797 7,597 8,435 9,568 10,979 7.2% 7.6% 7.0% 11.8% 11.0% 13.4% 14.8%
Total IT Market 19,270 19,971 20,496 22,143 23,480 25,431 27,860 2.4% 3.6% 2.6% 8.0% 6.0% 8.3% 9.5%
Cloud Computing 2,296 2,830 3,409 4,240 5,237 6,473 7,985 23.6% 23.0% 20.4% 24.4% 23.5% 23.6% 23.4%
Cloud
(SaaS, PaaS, IaaS)
Adoption%
23.3% 28.2% 33.9% 39.7% 47.4% 56.0% 65.5%
64
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
3.1. Economic and
Financial Results of the
Sesa Group
The nancial year ended 30 April 2022 conrms an
acceleration of the Sesa Group’s growth path with
performance signicantly above the long-term track record
(CAGR revenue 2011-22 +11.2%, CAGR Ebitda 2011-22
+15.5%). Group Revenue and Other Income increased by
17.3% Y/Y, with operating protability (Ebitda) growing by
33.0% Y/Y and an Ebitda margin of 7.0% compared to 6.2%
as at 30 April 2021 (+83 bps Y/Y). The adjusted net prot
attributable to the Group amounted to Euro 81.8 million, up
41.5% Y/Y. There was also a signicant improvement in the
Group’s Net Financial Position from a surplus of Euro 197.4
million as at 30 April 2021 to a surplus of Euro 245.3 million
as at 30 April 2022, boosted by the improvement in operating
cash ow and increasing efciency in the management of net
working capital, against investments in corporate acquisitions
and technological infrastructure, amounting to approximately
Euro 120 million.
The positive dynamics in consolidated revenues and
protability were supported by the increasing focus on
business segments that enable technological innovation
(security, business applications, digital green, cloud, digital
platforms) and that polarise the demand for digitalisation,
which is characterised by a progressive acceleration with a
growth in the Information Technology market in 2021 of 8.0%
(source: Sirmi, May 2022). Industrial business combinations
contribute to the favourable performance of the Sesa Group’s
results. In 2021, 15 M&A deals were carried out, 10 from the
beginning of 2022.
3.1.1. Alternative Performance
Indicators
In order to better assess the performance and nancial position
of the Group and its business segments, the management of
Sesa SpA uses certain alternative performance indicators
that are not identied as accounting measures under IFRS.
These indicators facilitate the identication of operating trends
and support business decisions; however, the determination
criteria applied by the Group may not be homogeneous and
therefore comparable with that adopted by other operators.
The alternative performance indicators are made up
exclusively of historical data of the Group and determined in
accordance with the Guidelines on Alternative Performance
Indicators issued by ESMA/2015/1415 and adopted by
Consob with communication no. 92543 of 3 December 2015.
They refer only to the performance of the accounting period in
question and of the periods compared and not to the expected
performance and must not be considered as a substitute
for the indicators provided for by the reference accounting
standards (IFRS). Finally, they are prepared by maintaining
continuity and homogeneity of denition and representation
for all periods for which nancial information is included in this
document.
In line with the above-mentioned communications, the criteria
used to construct these indicators are provided below.
• Ebitda (Gross Operating Margin) is dened as the
prot for the year before depreciation and amortisation,
provisions for bad debts, provisions for risks, notional
costs relating to stock grant plans, nancial income and
expenses, prot (loss) of companies accounted for using
the equity method, and taxes;
• Adjusted Operating Result (Ebit) dened as Ebitda net
of amortisation and depreciation of tangible and intangi-
ble xed assets (excluding amortisation and depreciation
of client lists and know-how recorded in the Purchase
Price Allocation of the companies acquired and included
in the scope of consolidation), provisions for bad debts,
provisions for risks, notional costs relating to stock grant
plans;
• Operating Result (Ebit) dened as Ebitda net of depre-
ciation and amortisation, provisions for bad debts, provi-
sions for risks, notional costs related to stock grant plans;
• Adjusted result before taxes dened as earnings be-
fore tax before amortisation of client lists and know-how
recorded in the Purchase Price Allocation of the compa-
nies acquired and included in the scope of consolidation;
• Adjusted net result dened as net prot before amorti-
sation of client lists and know-how recorded in the Pur-
chase Price Allocation of the companies acquired and
included in the scope of consolidation, net of the related
tax effect;
• Group’s adjusted net result dened as the Group’s net
prot before amortisation of client lists and know-how re-
corded in the Purchase Price Allocation of the companies
65
Performance as of April 30, 2022
www.sesa.it
acquired and included in the scope of consolidation, net
of the related tax effect;
• Net working capital is the algebraic sum of inventories,
trade receivables, other current assets, trade payables
and other current liabilities;
• Net invested capital is the algebraic sum of non-current
assets, net working capital and net non-current liabilities;
• Net Financial Position (NFP) is the sum of cash and
cash equivalents, other current nancial assets, and cur-
rent and non-current loans;
• Total Net Financial Position Reported is the alge-
braic sum of cash and cash equivalents, other current
nancial assets, current and non-current loans, current
and non-current nancial liabilities for rights of use, and
payables and commitments for the purchase of equity
investments from minority shareholders. It complies with
the denition of Net Financial Debt as set forth in Consob
Communication No. 6064293 of 28 July 2006 and in ac-
cordance with ESMA Recommendation/2013/319.
Track record in Euro thousands
EBITDA
EBITDA margin
Total revenue and other income
EAT Adjusted
EAT Adjusted margin
at 30/04 of each year
2.1%
2.1%
2.0%
2.3%
2.8%
3.4%
+7.2% Y/Y
+13.8% Y/Y
+14.5% Y/Y
+14.7% Y/Y
+17.3% Y/Y
4.6%
4.6%
4.8%
5.3%
6.2%
7.0%
66
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
7. Adjusted Operating Result and Adjusted Result Before Tax are dened before amortisation of intangible assets (client lists and know-how) recognised as a result of the Purchase Price
Allocation (PPA) process. Adjusted Net Result and Adjusted Group Net Result are dened before amortisation of intangible assets (client lists and know-how) recognised as a result of the
PPA process, net of the related tax effect.
3.1.2. Economic Highlights of the Sesa Group
The reclassied income statement, balance sheet and nancial position of the Group and the parent company Sesa SpA shown
below have been prepared on the basis of the consolidated nancial statements and statutory nancial statements as of 30 April
2022, in compliance with the International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standard
Board (“IASB”) and endorsed by the European Union, as well as the measures issued in implementation of Article 9 of Legislative
Decree No. 38/2005.
In the Report on Operations, in addition to the nancial measures provided for by IFRS, some alternative performance indicators
derived from the latter are illustrated (Non-GAAP Measures). These measures are presented in order to allow for a better
assessment of the Group’s performance and are not to be considered as alternatives to those provided for by IFRS. The reclassied
consolidated income statement (gures in Euro thousands) for the year ended 30 April 2022 compared to the previous year ended
30 April 2021 is provided below.
Reclassied prot and loss account
(in thousands of Euros) 30/04/2022 % 30/04/2021 % Variation 22/21
Revenues 2,362,603 2,022,454 16.8%
Other Income 27,220 14,769 84.3%
Total Revenues and Other Income 2,389,823 100.0% 2,037,223 100.0% 17.3%
Costs for purchasing products (1,818,391) 76.1% (1,590,272) 78.1% 14.3%
Costs for services and for rent, leasing, and similar costs (199,493) 8.3% (153,774) 7.5% 29.7%
Personnel Costs (197,673) 8.3% (162,972) 8.0% 21.3%
Other operating charges (6,569) 0.3% (4,200) 0.2% 56.4%
Total Costs for purchasing products and Operating Cost 2,222,126 93.0% 1,911,218 93.8% 16.3%
Gross Operating Margin (Ebitda) 167,697 7.0% 126,005 6.2% 33.1%
Depreciation/Amortisation of tangible and intangible assets (software) (30,006) (24,664) 21.7%
Provisions and other non-monetary costs (11,796) (9,520) 23.9%
Adjusted Operating Result (Ebit)
7
125,895 5.3% 91,821 4.5% 37.1%
Amortisation of client lists and know-how (PPA) (11,700) (7,819) 49.6%
Operating Result (EBIT) 114,195 4.8% 84,002 4.1% 35.9%
Net nancial income and expenses (5,112) (3,176) 61.0%
Result before tax (EBT) 109,083 4.6% 80,826 4.0% 35.0%
Income Taxes (30,464) (24,040) 26.7%
Net Result 78,619 3.3% 56,786 2.8% 38.4%
Net Result attributable to the Group 73,519 3.1% 52,272 2.6% 40.6%
Net Result attributable to non-controlling interests 5,100 4,514 13.0%
Adjusted Results before tax
7
120,783 5.1% 88,645 4.4% 36.3%
Adjusted Net Result
7
86,947 3.6% 62,352 3.1% 39.4%
Adjusted Net Result attributable to the Group
7
81,847 3.4% 57,838 2.8% 41.5%
67
Performance as of April 30, 2022
www.sesa.it
Consolidated revenues and other income as at 30 April 2022
amounted to Euro 2,389.8 million (+17.3% Y/Y), thanks to the
contribution of all Group segments:
• VAD segment, which achieved Revenues and Other
Income of Euro 1,857.3 million (+16.0% Y/Y), boosted
by the development of the Digital Green, Security and
Enterprise Software business units;
• SSI segment achieving Revenues and Other Income of
Euro 572.2 million (+18.7% Y/Y) due to the development
of the main operating Business Units;
• Business Services segment, which posted Revenues
and Other Income of Euro 58.9 million (+24.6% Y/Y),
supported by the contribution of the recently established
Digital Platform and Vertical Applications Business Units,
also through M&A bolt-ons during the year;
Consolidated Ebitda increased by +33.1% Y/Y, reaching a
total of Euro 167.7 million as at 30 April 2022, with the Ebitda
margin increasing to 7.0% (vs. 6.2% as at 30 April 2021),
thanks to the contribution of all Group segments:
• VAD sector achieving an Ebitda of Euro 90.6 million, up
41.0% Y/Y (Ebitda margin 4.9% vs. 4.0% Y/Y);
• SSI sector achieving an Ebitda of Euro 67.9 million, up
+22.3% Y/Y (Ebitda margin 11.9% vs. 11.5% Y/Y) aided
by the development of all operating business units;
• Business Services segment achieving an Ebitda of
Euro 5.7 million, up 94.4% Y/Y (Ebitda margin 9.7%,
compared to 6.2% Y/Y).
Adjusted Consolidated Operating Result (Ebit) amounted
to Euro 125.9 million, up 37.1% Y/Y, after depreciation and
amortisation totalling Euro 30.0 million (+21.7% Y/Y) and
provisions and other non-cash expenses of Euro 11.8 million
(+23.9% Y/Y).
The Consolidated Operating Result (Ebit) amounted to Euro
114.2 million, up 35.9% Y/Y, after amortisation of intangible
assets Client lists and Know-how of Euro 11.7 million (+49.6%
Y/Y due to the acceleration of investments in corporate
acquisitions).
Adjusted Consolidated Result Before Tax increased by
36.3% Y/Y to a total of Euro 120.8 million as at 30 April
2022. Consolidated Result Before Tax as of 30 April 2022
amounted to Euro 109.1 million, up 35.0% Y/Y, after net
nancial expenses of Euro 5.1 million compared to Euro 3.2
million increase mainly due to higher notional nancial costs
related to IFRS payables and unfavourable foreign exchange
performance.
Adjusted Net Result (excluding amortisation of client list and
know-how net of the related tax effect) increased by +39.4%
Y/Y, reaching Euro 86.9 million at 30 April 2022. Adjusted Net
Result attributable to the Group at 30 April 2022 was Euro
81.8 million, up 41.5% Y/Y compared to Euro 57.8 million at
30 April 2021.
(in thousands of Euros) 30/04/2022 30/04/2021
Total nancial item (A) (6,715) (6,475)
Foreign exchange items (B) (141) 954
Share of prots of companies accounted for using the equity method (C) 1,774 2,345
Net nancial income/(expenses) (A+B+C) (5,112) (3,176)
68
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
3.1.3. Highlights of the Group’s Balance Sheet
Below is the reclassied balance sheet (gures in Euro thousands) as at 30 April 2022 compared to the previous year as at 30 April
2021.
Reclassied Balance Sheet
(in thousands of Euros) 30/04/2022 30/04/2021 Variation 22/21
Intangible xed assets 228,280 142,826 85,454
Tangible xed assets (including rights of use) 111,943 99,942 12,001
Investments carried at equity 14,593 13,850 743
Other non-current assets and deferred tax assets 32,855 27,921 4,934
Total non-current assets 387,671 284,539 103,132
Inventories 144,034 86,920 57,114
Trade receivables 434,579 355,781 78,798
Other current assets 90,775 63,395 27,380
Current assets for the year 669,388 506,096 163,292
Trade payables 525,879 366,101 159,778
Other current payables 176,031 142,690 33,341
Short-term liabilities for the year 701,910 508,791 193,119
Net working capital (32,522) (2,695) (29,827)
Provisions and other non-current tax liabilities 67,573 38,273 29,300
Employee benets 44,379 40,897 3,482
Net non-current liabilities 111,952 79,170 32,782
Net Invested Capital 243,197 202,674 40,523
Shareholders’ Equity 335,159 297,355 37,804
Liquidity and other nancial assets (498,905) (426,905) (72,000)
Current and non-current nancial debt 253,613 229,548 24,065
Net Financial Position (245,292) (197,357) (47,935)
Financial liabilities rights of use IFRS 16 44,933 43,871 1,062
Liabilities to minority shareholders for equity investments
8
108,397 58,805 49,592
Total Net Financial Position Reported (91,962) (94,681) 2,719
The balance sheet shows an increase in net invested capital from Euro 202.7 million as of 30 April 2021 to Euro 243.2 million as
of 30 April 2022, mainly as a result of:
• increase in non-current assets from Euro 284.5 million as of 30 April 2021 to Euro 387.7 million as of 30 April 2022, mainly
generated by investments in corporate acquisitions;
8. Deferred payables and commitments to minority shareholders for corporate acquisitions (Earn Out, Put Option, deferred prices) not bearing contractual interest and conditional on the achie-
vement of long-term value generation targets.
69
Performance as of April 30, 2022
www.sesa.it
• Further reduction in net working capital of Euro 32.5 mil-
lion as of 30 April 2022 compared to Euro 2.7 million as
of 30 April 2021, due to the increasing efciency in the
management of working capital generated by the evolu-
tion of the business model and the gradual adoption of
as-a-service and cloud supply models.
On the side of sources of nancing, we note:
• a signicant improvement in the Net Financial Position,
which amounted to a surplus (net liquidity) of Euro 245.3
million as of 30 April 2022, compared to a net liquidity of
Euro 197.4 million as of 30 April 2021, due to the cash
ow from operations net of investments for the period.
The Reported Net Financial Position, net of (i) payables
and commitments to minority shareholders for the pur-
chase of equity investments in the amount of Euro 108.4
million as of 30 April 2022, up signicantly compared to
Euro 58.8 million as of 30 April 2021, following the acce-
leration of corporate acquisitions, and (ii) nancial liabili-
ties for IFRS 16 rights of use (Euro 44.9 million as of 30
April 2022 compared to Euro 43.9 million as of 30 April
2021), substantially balanced in the amount of Euro 92.0
million as of 30 April 2022 compared to Euro 94.7 million
as of 30 April 2021;
• the increase in consolidated shareholders’ equity of Euro
335.2 million as of 30 April 2022 compared to Euro 297.4
million as of 30 April 2021, due to prots generated in the
period net of dividends of Euro 13.2 million (Euro 0.85
per share) distributed in September 2021.
Net Financial Position
(in thousands of Euros) 30/04/2022 30/04/2021 Variation 22/21
Liquidity (496,311) (426,665) (69,646)
Current nancial receivables and short-term securities (2,594) (240) (2,354)
Current Financial debt 130,054 100,994 29,060
Current Net Financial Position (368,851) (325,911) (42,940)
Non-current Financial debt 123,559 128,554 (4,995)
Non-current Net Financial Position 123,559 128,554 (4,995)
Net Financial Position (245,292) (197,357) (47,935)
Financial liabilities rights of use IFRS 16 44,933 43,871 1,062
Liabilities to minority shareholders for equity investments 108,397 58,805 49,592
Total Net Financial Position Reported (91,962) (94,681) 2,719
The Net Financial Position as of 30 April 2022 shows a cash balance (net liquidity) in the amount of Euro 245.3 million, an
improvement compared to Euro 197.4 million as of 30 April 2021, due to the operating cash ow of the nancial year of about Euro
150 million and after investments in corporate acquisitions and technology infrastructure in the amount of about Euro 120 million in
the nancial year. The Group’s Reported Net Financial Position as of 30 April 2022 was positive (net liquidity) in the amount of Euro
92.0 million, calculated net of IFRS payables in the amount of Euro 153.3 million, mainly related to deferred payments of corporate
acquisitions and payables for share purchase options to minority shareholders.
70
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
3.2. Economic and
Financial Results of Group
Sectors
3.2.1. Results of the VAD sector
The Value-Added Distribution (VAD) sector, active in the offer
of value-added technology solutions in the nancial year,
achieved a growth in Revenues and Other Income of 16.0%,
Ebitda of 41.0% (Ebitda margin of 4.9% compared to 4.0% Y/Y)
and Net Prot after Tax of 40.5%. Thanks to the development of
demand for digital transformation and the strategy of focusing
on the market’s value-added business areas (Security, Cloud
and Digital Green), the Sector consolidated its market share
in Italy (48% of the total in the Data Centre, Networking, and
Enterprise software categories, source: Sirmi, May 2022). The
results benet from the acquisition, from 1 May 2021, of the
corporate control of P.M. Service (reference operator in the
Digital green sector) and, from September 2021, of the majority
of the capital of Kolme Srl, a company active in the offer of
ICT solutions with a customer set of 2,500 business partners
in the country. Investments in technology and expertise in
the cloud and enterprise software segments continued, with
the implementation of the proprietary marketplace platform.
The reclassied income statement of the VAD Sector (gures
in Euro thousands) as at 30 April 2022 is provided below,
compared to the previous year ended 30 April 2021:
VAD sector
(Euro thousands)
30/04/2022 % 30/04/2021 % Variation 22/21
Third-party revenues 1,750,678 1,507,639 16.1%
Inter-sector revenues 90,086 86,104 4.6%
Total Revenues 1,840,764 1,593,743 15.5%
Other income 16,515 7,543 118.9%
Total revenues and other income 1,857,279 100.0% 1,601,286 100.0% 16.0%
Cost for purchasing products (1,697,189) -91.4% (1,481,941) -92.5% 14.5%
Gross commercial margin 160,090 8.6% 119,345 7.5% 34.1%
Costs for services and for rent, leasing, and similar costs (43,164) -2.3% (33,689) -2.1% 28.1%
Personnel costs (23,774) -1.3% (19,376) -1.2% 22.7%
Other charges (2,571) -0.1% (2,032) -0.1% 26.5%
Ebitda 90,581 4.9% 64,248 4.0% 41.0%
Depreciation/Amortisation of tangible and intangible assets (software) (4,509) -0.2% (4,164) -0.3% 8.3%
Provisions and other non-monetary costs (4,051) -0.2% (2,860) -0.2% 41.6%
Adjusted operating result (Adjusted Ebit) 82,021 4.4% 57,224 3.6% 43.3%
Amortisation of client lists and know-how (PPA) (1,332) -0.1% (533) -0.0% 149.9%
Operating result (Ebit) 80,689 4.3% 56,691 3.5% 42.3%
Net nancial income and expenses (3,779) (934) 304.6%
Prot before taxes 76,910 4.1% 55,757 3.5% 37.9%
Income Taxes (20,355) (15,504) 31.3%
Net Result 56,555 3.0% 40,253 2.5% 40.5%
Net Result attributable to non-controlling interests 841 548 53.5%
Net Result attributable to the Group 55,714 3.0% 39,705 2.5% 40.3%
Adjusted Net Result 57,503 3.1% 40,632 2.5% 41.5%
Adjusted Net Result attributable to the Group 56,662 3.1% 40,084 2.5% 41.4%
71
Performance as of April 30, 2022
www.sesa.it
Total revenues and other income amounted to Euro 1,857.3
million as at 30 April 2022, an increase of 16.0% compared
to 30 April 2021. Revenue growth benets from the strategy
of focusing on value-added business areas in the market
and the expansion of the solutions offered to customers.
Gross sales margin grew by 34.1% from Euro 119.3 million
(7.5% of revenue and other income) as of 30 April 2021 to
Euro 160.1 million (8.6% of revenue and other income) as
of 30 April 2022, due to the development of sales revenue
and a more favourable sales mix reecting, among other
things, the contribution of the companies belonging to the
new Digital Green business unit. Ebitda for the period under
review amounted to Euro 90.6 million (Ebitda margin 4.9%),
a signicant increase (+41.0%) compared to Euro 64.2
million (Ebitda margin 4.0%) as at 30 April 2021, achieved
thanks to the development of the Gross Margin and the lower
incidence of operating costs. P.M. Service Srl and Kolme Srl,
companies recently included in the scope of consolidation, the
former since May 2021 and the latter since September 2021,
contributed approximately 66% to the growth in turnover and
operating protability in the nancial year. Net prot for the
period amounted to Euro 56.6 million, an increase of 40.5%
compared to Euro 40.2 million as at 30 April 2021, due to the
favourable development in operating protability and a lower
incidence of depreciation, amortisation and provisions. Before
amortisation of intangible assets (client lists and know-how)
recognised as a result of the PPA process, Adjusted Net
Result attributable to the Group amounted to Euro 56.7 million
(+41.4%) compared to Euro 40.1 million as at 30 April 2021.
Reclassied Balance Sheet
(Euros thousands)
30/04/2022 30/04/2021 Variation 22/21
Intangible xed assets 26,380 7,800 18,580
Tangible xed assets (right of use) 48,625 43,122 5,503
Investments carried at equity 10,953 10,981 (28)
Other non-current receivables and assets and deferred tax assets 9,322 9,784 (462)
Total non-current assets 95,280 71,687 23,593
Inventories 119,601 69,345 50,256
Trade receivables 289,826 243,969 45,857
Other current assets 34,449 18,691 15,758
Current assets for the year 443,876 332,005 111,871
Trade payables 420,799 280,653 140,146
Other current payables 33,554 30,916 2,638
Short-term liabilities for the year 454,353 311,569 142,784
Net working capital (10,477) 20,436 (30,913)
Provisions and other non-current tax liabilities 11,432 4,894 6,538
Employee benets 3,141 2,689 452
Net non-current liabilities 14,573 7,583 6,990
Net Invested Capital 70,230 84,540 (14,310)
Shareholders’ Equity 273,625 233,419 40,206
Liquidity and other nancial assets (337,282) (264,020) (73,262)
Current and non-current nancial debt 99,019 92,966 6,053
Net Financial Position (238,263) (171,054) (67,209)
Financial liabilities rights of use IFRS 16 21,335 19,074 2,261
Liabilities to minority shareholders for equity investments 12,519 3,101 9,418
Net Financial Position Reported (204,409) (148,879) (55,530)
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30, 2022
6
Separate nancial
statements as of April
30, 2022
The main balance sheet indicators improved. Net working
capital shows a decrease of Euro 30.9 million from a positive
balance of Euro 20.4 million as at 30 April 2021 to a negative
balance of Euro 10.5 million as at 30 April 2022, due to the
increasing efciency in the management of working capital.
Thanks to the reduction in Net Working Capital and current
cash generation, the Net Financial Position improved from a
positive balance of Euro 171.1 million as of 30 April 2021 to
a positive balance of Euro 238.3 million as of 30 April 2022.
Shareholders’ Equity further strengthened during the period
under review, reaching a total of Euro 273.6 million as at 30
April 2022, compared to Euro 233.4 million to 30 April 2021.
3.2.2. Results of the SSI sector
The Software and System Integration (SSI) Sector, which is
active in the provision of software solutions and technological
innovation for the SME and Enterprise segments, achieved
a growth of 18.7% in Revenues and Other Income, 22.3% in
Ebitda (Ebitda margin of 11.9% compared to 11.5% Y/Y) and
20.2% in Net Prot in the period under review. In the nancial
year the growth was mainly organic, although the development
strategy continued with bolt-on M&A transactions such as:
• Fen Wo Shanghai Ltd (“Fireworks”), based in Shan- ghai
and active in digital marketing in the Chinese market (12
months of consolidation);
• Cadlog Group Srl and Cimtec Gmbh, expanding the Eu-
ropean digital engineering services platform (12 months
of consolidation);
• Datef SpA, headquartered in Bolzano, specialising in
digital services, cloud and IT security, active in Ger-
man-speaking areas where the expansion of the custo-
mer set is continuing (6 months of consolidation);
• Adacto Srl, a company specialising in Digital Mar- keting,
further strengthens its competences in Customer & Busi-
ness Experience, with a total of 50 additional specialised
resources (1 month consolidation);
• NGS Srl, a company specialising in IT and network and
edge security, for the protection of leading national and
international enterprise customers, operating in the ma-
nufacturing and maritime sectors (1 month consolida-
tion).
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The following is the reclassied income statement of the SSI Sector (gures in Euro thousands) as at 30 April 2022, compared with
the previous year ended 30 April 2021.
SSI sector
(Euros thousands) 30/04/2022 % 30/04/2021 % Variation 22/21
Third-party revenues 555,481 469,171 18.4%
Inter-sector revenues 4,713 3,771 25.0%
Total Revenues 560,194 472,942 18.4%
Other income 11,974 8,910 34.4%
Total revenues and other income 572,168 100.0% 481,852 100.0% 18.7%
Costs for purchasing products (200,870) -35.1% (181,850) -37.7% 10.5%
Costs for services and for rent, leasing, and similar costs (154,912) -27.1% (122,162) -25.4% 26.8%
Personnel costs (144,886) -25.3% (120,521) -25.0% 20.2%
Other operating charges (3,645) -0.6% (1,829) -0.4% 99.3%
Ebitda 67,855 11.9% 55,490 11.5% 22.3%
Depreciation/Amortisation of tangible and intangible assets (software) (22,227) -3.9% (18,120) -3.8% 22.7%
Provisions and other non-monetary costs (3,091) -0.5% (3,200) -0.7% -3.4%
Adjusted operating result (Adjusted Ebit) 42,537 7.4% 34,170 7.1% 24.5%
Amortisation of client lists and know-how (PPA) (8,376) -1.5% (6,825) -1.4% 22.7%
Operating result (EBIT) 34,161 6.0% 27,345 5.7% 24.9%
Net nancial income and expenses (1,439) (95) 1,414.7%
Result gross of taxes 32,722 5.7% 27,250 5.7% 20.1%
Income Taxes (9,864) (8,229) 19.9%
Net Result for the year 22,858 4.0% 19,021 3.9% 20.2%
Net Result attributable to non-controlling interests 4,403 3,890 13.2%
Net Result attributable to the Group 18,455 3.2% 15,131 3.1% 22.0%
Adjusted Net Result 28,820 5.0% 23,879 5.0% 20.7%
Adjusted Net Result attributable to the Group 24,417 4.3% 19,989 4.1% 22.2%
Total Revenues and Other Income as at 30 April 2022 amounted to Euro 572.2 million with a growth of 18.7% Y/Y, while Ebitda
reached a total of Euro 67.9 million, an increase of 22.3% Y/Y.
The increase in operating protability was driven by the development of all major business units, thanks to predominantly organic
growth in the year under review. The use of external leverage contributed about 30% to the growth in revenue and operating
protability. The changes in the scope of consolidation resulting from corporate acquisitions affected the following Business Units
in particular:
• Customer & Business Experience: Fen Wo Ltd (China) and Superresolution Srl from 1 May 2021, Adacto Srl from 1 April 2022;
• Cloud Technology Services and Security: Datef SpA from 1 November 2021, NGS Srl from 1 April 2022;
• Digital Engineering: Cadlog Group Srl from 1 May 2021;
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30, 2022
• ERP and Vertical Applications: Polymatic Srl from 1 May 2021, Pegaso Srl from 1 August 2021, Pal IFM Srl from 1 November
2021 and Z3 engineering Srl from 1 January 2022.
Net Prot for the Sector as of 30 April 2022 amounted to Euro 22.9 million, an improvement of 20.2% compared to Euro 19.0 million
as of 30 April 2021, thanks to the favourable trend in revenues and operating protability. Before amortisation of intangible assets
(Client Lists and Know-how) recognised as a result of the PPA process in the amount of Euro 8.4 million, net of the related tax effect,
the Adjusted Net Result attributable to the Group amounted to Euro 24.4 million, up 22.2% compared to Euro 20.0 million as of 30
April 2021.
Below is the reclassied balance sheet of the SSI Sector (gures in Euro thousands) as at 30 April 2022, compared with the
previous year ended 30 April 2021.
Reclassied Balance Sheet
30/04/2022 30/04/2021 Variation 22/21
Intangible xed assets 156,158 114,329 41,829
Tangible xed assets (right of use) 54,466 47,699 6,767
Investments carried at equity 3,691 3,050 641
Other non-current receivables and assets and deferred tax assets 13,322 10,807 2,515
Total non-current assets 227,637 175,885 51,752
Inventories 22,259 16,105 6,154
Trade receivables 159,176 137,081 22,095
Other current assets 53,596 42,465 11,131
Current Assets for the year 235,031 195,651 39,380
Trade payables 131,758 115,920 15,838
Other current payables 121,979 97,655 24,324
Short-term liabilities for the year 253,737 213,575 40,162
Net working capital (18,706) (17,924) (782)
Provisions and other non-current tax liabilities 43,224 27,994 15,230
Employee benets 34,293 33,329 964
Net non-current liabilities 77,517 61,323 16,194
Net Invested Capital 131,414 96,638 34,776
Shareholders’ Equity 35,611 36,988 (1,377)
Liquidity and other nancial assets (141,999) (136,160) (5,839)
Current and non-current nancial debt 141,555 125,098 16,457
Net Financial Position (444) (11,062) 10,618
Financial liabilities rights of use IFRS 16 18,548 17,752 796
Liabilities to minority shareholders for equity investments 77,699 52,960 24,739
Net Financial Position Reported 95,803 59,650 36,153
The Net Financial Position as of 30 April 2022 was positive in the amount of Euro 444 thousand, down from a positive balance of
Euro 11.1 million as of 30 April 2021, and mainly reects the investments in corporate acquisitions and technological infrastructures
realised in the last 12 months for over Euro 70 million, net of the positive Operating Cash Flow in the year of about Euro 60 million.
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Performance as of April 30, 2022
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The Reported Net Financial Position (calculated net of
future commitments for the purchase of equity investments
in the amount of Euro 77.7 million and IFRS 16 liabilities
in the amount of Euro 18.5 million) as of 30 April 2022 was
negative in the amount of Euro 95.8 million compared to
Euro 59.7 million and reects the increase in payables and
commitments for the purchase of equity investments from
shareholders in the amount of Euro 24.7 million, following the
investments in corporate acquisitions made during the year
that include medium- and long-term involvement components
of key people. The consolidated shareholders’ equity of the
SSI segment as at 30 April 2022 amounted to Euro 35.6
million and reected the prot for the period net of changes in
consolidation reserves.
3.2.3. Results of the Business
Services Sector
The Business Services Sector, active in the provision of
security solutions, digital platform, and vertical banking
application services for the Financial Services segment,
accelerates its growth path, contributing to consolidated
results with higher margins than the Group average. As at
30 April 2022, the Sector achieved revenue of Euro 58.9
million, up 24.6%, an Ebitda increase of 94.4% (Ebitda
margin of at 9.7% compared to 6.2% Y/Y), thanks to the
organic development of the business and the contribution of
the recent acquisitions in the Digital Platform Business Unit
(companies IFM Infomaster SpA and Digital Storm Srl), in
the Security Business Unit and in the recently established
Applications BU. The year ended 30 April 2022 was marked,
in fact, by the completion of acquisitions of control of Citel Srl,
a company specialising in integrated security management
through digital platforms in the nance and utilities sectors, of
A Plus Srl, a company active in the design of access control
systems, attendance detection and building automation, and
of Omigrade Srl, a company specialising in IT consulting and
development of software platforms for the nancial services
market, were completed. The operations to develop expertise
in the Digital Platform Business Unit continued after the year-
end with the purchase of 72% of Digital Voice Recording
Italia Srl (“DVR”), 51% of Emmedi Srl and 52% of Ever Green
Mobility Rent Srl, all companies dedicated to the development
of digital platforms and process automation for the Financial
Services segment.
The reclassied income statementof the Business Services
sector (gures in Euro thousands) for the year ended 30 April
2022, compared with the previous year ended 30 April 2021,
is provided below.
Business Services Sector
(Euros thousands) 2022 % 2021 % Variation 22/21
Third-party revenues 55,696 44,253 25.9%
Inter-sector revenues 2,116 2,479 -14.6%
Total Revenues 57,812 46,732 23.7%
Other income 1,090 528 106.4%
Total revenue and other income 58,902 100.0% 47,260 100.0% 24.6%
Costs for purchasing products (5,711) -9.7% (8,362) -17.7% -31.7%
Costs for services and for rent, leasing, and similar costs (25,077) -42.6% (21,793) -46.1% 15.1%
Personnel costs (22,121) -37.6% (13,992) -29.6% 58.1%
Other operating charges (276) -0.5% (172) -0.4% 60.5%
Ebitda 5,717 9.7% 2,941 6.2% 94.4%
Depreciation/Amortisation of tangible and intangible assets (software) (2,858) -4.9% (1,930) -4.1% 48.1%
Provisions and other non-monetary costs (343) -0.6% (197) -0.4% 74.1%
Adjusted operating result (Adjusted Ebit) 2,516 4.3% 814 1.7% 209.1%
Amortisation of acquired client lists and technological know-how (1,991) -3.4% (353) -0.8% 464.0%
Operating result (EBIT) 525 0.9% 461 1.0% 13.9%
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6
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Business Services Sector
(Euros thousands) 2022 % 2021 % Variation 22/21
Net nancial income and expenses (445) (340) 30.9%
Result gross of taxes 80 0.1% 121 0.3% -33.9%
Income Taxes (170) (96) 77.1%
Net Result (90) -0.2% 25 0.1% -460.0%
Net Result attributable to non-controlling interests 140 72 94.4%
Net Result attributable to the Group (230) -0.4% (47) -0.1% 389.4%
Adjusted net result 1,327 2.3% 276 0.6% 380.4%
Adjusted Net Result attributable to the Group 1,187 2.0% 204 0.4% 481.2%
Revenues and other income of the Business Services sector amounted to Euro 58.9 million as at 30 April 2022, up 24.6% Y/Y, with
an Ebitda result of Euro 5.7 million (+94.4% Y/Y). The Ebitda margin increased from 6.2% as at 30 April 2021 to 9.7% as at 30 April
2022, thanks to the contribution of the companies that entered the scope in the year under review, in particular those of the Digital
Platform Business Unit.
The Sector posted a loss at 30 April 2022 for Euro 90 thousand; the result was signicantly inuenced by amortisation and
depreciation of Euro 5.2 million, of which Euro 1.9 million was attributable to the amortisation of client lists and know-how recognised
following the acquisitions of equity investments made during the year. Before amortisation and depreciation of intangible assets
(client lists and know-how) recognised following the PPA process, the Group’s Adjusted Net Result was a positive Euro 1.2 million
(+481.2%), compared to Euro 204 thousand at 30 April 2022.
Below is the reclassied balance sheet of the Sector (gures in Euro thousands) as at 30 April 2022, compared with the previous
year ended 30 April 2021.
Reclassied balance sheet
(Euros thousands) 30/04/2022 30/04/2021 Variation 22/21
Intangible xed assets 43,941 18,894 25,047
Tangible xed assets (including rights of use) 8,183 7,991 192
Investments carried at equity 130 130
Other non-current receivables and assets and deferred tax assets 3,830 2,145 1,685
Total non-current assets 56,084 29,030 27,054
Inventories 2,413 1,767 646
Trade receivables 22,457 14,593 7,864
Other current assets 4,277 3,125 1,152
Current Assets for the year 29,147 19,485 9,662
Trade payables 14,541 15,018 (477)
Other current payables 17,035 10,222 6,813
Short-term liabilities for the year 31,576 25,240 6,336
Net working capital (2,429) (5,755) 3,326
Provisions and other non-current tax liabilities 12,537 5,028 7,509
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Performance as of April 30, 2022
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Reclassied balance sheet
(Euros thousands) 30/04/2022 30/04/2021 Variation 22/21
Employee benets 5,024 2,623 2,401
Net non-current liabilities 17,561 7,651 9,910
Net Invested Capital 36,094 15,624 20,470
Shareholders’ Equity 16,250 14,140 2,110
Current and non-current nancial debt 12,997 11,440 1,557
Net Financial Position (3,072) (7,719) 4,647
Financial liabilities rights of use IFRS 16 4,782 6,720 (1,938)
Liabilities to minority shareholders for equity investments 18,134 2,483 15,651
Net Financial Position Reported 19,844 1,484 18,360
The Net Financial Position as of 30 April 2022 was positive for Euro 3.1 million, compared to a positive balance of Euro 7.7 million
as of 30 April 2021, mainly as a result of the investments in equity investments carried out during the year for over Euro 7 million,
net of a positive cash ow of about Euro 3 million. The Reported Net Financial Position (calculated net of future commitments for
the purchase of equity investments in the amount of Euro 18.1 million and IFRS 16 liabilities in the amount of Euro 4.8 million) as
of 30 April 2022 was negative in the amount of Euro 19.8 million compared to Euro 1.5 million and mainly reects the increase in
payables and commitments for the purchase of equity investments from shareholders in the amount of Euro 15.7 million, as a result
of the investments in company acquisitions made during the year.
The Sector Shareholders’ Equity was further strengthened, reaching a total of Euro 16.3 million as at 30 April 2022, compared to
Euro 14.1 million as at 30 April 2021.
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Consolidated nancial
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6
Separate nancial
statements as of April
30, 2022
3.2.4. Results of the Corporate Sector
The Corporate Sector is active in strategic governance and the provision of administration, nance, control, human resources
management, information systems and operating platforms for Group companies. During the year under review, the Sector
expanded its range of services and its staff to support the expansion of the consolidation area and the integration process following
the acceleration of corporate acquisitions.
Below is the reclassied income statement of the Corporate Sector (gures in Euro thousands) as at 30 April 2022, compared to
the previous year ended 30 April 2021.
Corporate Sector
(Euro thousands) 2022 % 2021 % Variation 22/21
Third-party revenues 748 1,391 -46.2%
Inter-sector revenues 12,037 17,953 -33.0%
Total Revenues 12,785 19,344 -33.9%
Other income 3,084 3,412 -9.6%
Total revenues and other income 15,869 100.0% 22,756 100.0% -30.3%
Costs for purchasing products (61) -0.4% (233) -1.0% -73.8%
Costs for services, and for rent, leasing, and similar costs (5,129) -32.3% (9,419) -41.4% -45.5%
Personnel costs (6,999) -44.1% (9,083) -39.9% -22.9%
Other operating charges (193) -1.2% (315) -1.4% -38.7%
Ebitda 3,487 22.0% 3,706 16.3% -5.9%
Depreciation/Amortisation of tangible and intangible assets (software) (413) -2.6% (477) -2.1% -13.4%
Provisions and other non-monetary costs (4,312) -27.2% (3,262) -14.3% 32.2%
Adjusted operating result (Ebit Adjusted) (1,238) -7.8% (33) -0.1% 3,651.5%
Amortisation of client lists and technological know-how (PPA) (108) -100.0%
Operating result (EBIT) (1,238) -7.8% (141) -0.6% 778.0%
Net nancial income and expenses 551 (27) -2,140.7%
Result gross of taxes (687) -4.3% (168) -0.7% 308.9%
Income Taxes (58) (211) -72.5%
Net Result (745) -4.7% (379) -1.7% 96.6%
Net Result attributable to non-controlling interests
Net Result attributable to the Group (745) -4.7% (379) -1.7% 96.6%
Adjusted Net Result (745) -4.7% (302) -1.3% 146.6%
Adjusted Net Result attributable to the Group (745) -4.7% (302) -1.3% 146.6%
Total revenues and other income of the Sector, equal to Euro 15.9 million, showed a decrease compared to the previous year
(-30.7% Y/Y) due mainly to the reallocation during the year of the logistics activities to the VAD Sector, a consequence of the almost
complete concentration of services in favour of Computer Gross SpA. Neutralising the effect of the change in the perimeter of the
Corporate Sector, the volume of business as at 30 April 2022 of the Corporate Sector would have grown by 6.7% thanks to the
development of organisation, administrative and nancial management, planning and control, human resources management and
IT consultancy services provided by Sesa SpA in favour of Group companies, which during the year saw a further enlargement of
the number of user companies.
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Gross margins (EBITDA) as at 30 April 2022 amounted to Euro 3.4 million, substantially in line with Euro 3.7 million (-5.9%) as at
30 April 2021.
Depreciation, amortisation, provisions and other non-monetary costs mainly include the notional cost of Euro 4.3 million related
to the accrued annual portion of stock grants as of 30 April 2022 and a component of the three-year portion of stock grants to be
assigned in the next nancial year to the parent company’s executive directors. As of 30 April 2021, the notional cost of the stock
grant plan amounted to Euro 3.3 million.
After depreciation, amortisation and provisions totalling Euro 4.7 million, net nancial income of Euro 551 thousand and taxes of
Euro 58 thousand, the result for the year was a loss of Euro 745 thousand as of 30 April 2022, compared to a loss of Euro 379
thousand as of 30 April 2021.
Reclassied Balance Sheet
(Euro thousands) 30/04/2022 30/04/2021 Variation 22/21
Intangible xed assets 2,159 2,161 (2)
Tangible xed assets (including rights of use) 678 1,139 (461)
Investments carried at equity 768 768
Other non-current receivables and assets and deferred tax assets 94,081 88,898 5,183
Total non-current assets 97,686 92,966 4,720
Inventories
Trade receivables 6,796 9,533 (2,737)
Other current assets 709 868 (159)
Current Assets for the year 7,505 10,401 (2,896)
Trade payables 3,158 3,803 (645)
Other current payables 4,561 5,915 (1,354)
Short-term liabilities for the year 7,719 9,718 (1,999)
Net working capital (214) 683 (897)
Provisions and other non-current tax liabilities 620 597 23
Employee benets 1,921 2,256 (335)
Net non-current liabilities 2,541 2,853 (312)
Net Invested Capital 94,931 90,796 4,135
Shareholders’ Equity 98,131 97,732 399
Liquidity and other nancial assets (3,555) (7,566) 4,011
Current and non-current nancial debt 42 44 (2)
Net Financial Position (3,513) (7,522) 4,009
Financial liabilities rights of use IFRS 16 268 325 (57)
Liabilities to minority shareholders for equity investments 45 261 (216)
Net Financial Position Reported (3,200) (6,936) 3,736
From a balance sheet and nancial point of view, the main indicators were aligned with the previous year.
The Corporate Sector ended the year with Shareholders’ Equity equal to Euro 98.1 million, compared to Euro 97.7 million as at 30
April 2021, mainly due to the result for the year net of the dividend distribution of Euro 13.2 million made in September 2021. The
Net Financial Position as at 30 April 2022 was positive (net liquidity) in the amount of Euro 3.5 million, down from a cash balance of
Euro 7.5 million as at 30 April 2021, mainly as a result of the dividend distribution of Euro 13.2 million (Euro 0.85 per share) made
in September 2021 and the investments made in the year under review.
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Performance as
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5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
3.3. Economic and nancial results of the parent company
Sesa SpA
Below is, the reclassied income statement (gures in Euro thousands) as at 30 April 2022, compared to the previous year ended
30 April 2021.
Reclassied income statement
30/04/2022 % 30/04/2021 % Variation 22/21
Net revenues 12,273 11,242 9.2%
Other Income 3,074 2,695 14.1%
Total Revenues and Other Income 15,347 100.0% 13,937 100.0% 10.1%
Purchase of goods (57) 0.4% (32) 0.2% 78.1%
Costs of purchasing products (4,824) 31.4% (4,202) 30.1% 14.8%
Personnel costs (6,858) 44.7% (6,057) 43.5% 13.2%
Other operating charges (204) 1.3% (147) 1.1% 38.8%
Total Operating Costs (11,943) 77.8% (10,438) 74.9% 14.4%
Gross Operating Margin (Ebitda) 3,404 22.2% 3,499 25.1% -2.7%
Amortisation and Depreciation (413) (399) 3.5%
Provisions and other non-monetary costs (4,312) (3,257) 32.4%
Operating Result (EBIT) (1,321) -8.6% (157) -1.1% 741.4%
Financial income and expenses 18,552 11,992 54.7%
Result before tax (EBT) 17,231 112.3% 11,835 84.9% 45.6%
Income Taxes (35) (208) -83.2%
Net Result 17,196 112.0% 11,627 83.4% 47.9%
Total revenues and other income amounted to Euro 15,347 thousand as of 30 April 2022, up by Euro 1,410 thousand (+10.1% Y/Y)
compared to the previous year, as a result of the development of administrative and nancial management, organisation, planning
and control, information systems management, human resources, general, corporate and legal affairs, compliance and services
provided to Group companies.
Total operating costs as of 30 April 2022 amounted to Euro 11,943 thousand, an increase of Euro 1,505 thousand (+14.4%)
compared to Euro 10,438 thousand as of 30 April 2021, as a result of the greater need for resources related to the increase in the
scope of the companies subject to services. The most signicant changes refer to higher costs for services (+14.8% Y/Y), related to
the provision of professional services to client companies, and to labour costs (+13.2% Y/Y) as a result of the reinforcement of the
workforce required to cope with the increase in the scope of activities performed. The workforce increased from 114 resources to
132 resources as at 30 April 2022. EBITDA amounted to Euro 3,404 thousand as of 30 April 2022 and was in line with the previous
year. The workforce of Sesa SpA increased from 114 resources as of 30 April 2021 to 132 resources as of 30 April 2022. The gross
operating margin (Ebitda), amounting to Euro 3,404 thousand as of 30 April 2022 (Ebitda margin 22.2%) remained substantially
stable compared to the previous year.
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Performance as of April 30, 2022
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Provisions and other non-monetary costs included the notional cost of Euro 4,312 thousand related to the annual stock grant
portion, to be assigned in September 2022, and a portion of the three-year 2021-2023 stock grant portion, to be assigned in
September 2023. In the nancial year as at 30 April 2021, non-monetary costs of Euro 3,257 thousand refer only to the portion of
the annual stock grant allocated in September 2021.
Financial items and investments increased from Euro 11,992 thousand at 30 April 2021 to Euro 18,552 thousand at 30 April 2022
due to higher dividends distributed by subsidiaries.
Net result after tax was Euro 17,196 thousand as of 30 April 2022, an increase of 47.9% compared to the net prot of Euro 11,627
thousand as of 30 April 2021.
Below is, the reclassied balance sheet (gures in Euro thousands) for the nancial year ending 30 April 2022 compared to the
previous year ended 30 April 2021.
Reclassied Balance Sheet
(Euro thousands) 30/04/2022 30/04/2021 Variation 22/21
Intangible xed assets 197 197
Tangible xed assets (including rights of use) 671 889 (218)
Investments and Other non-current receivables 96,519 91,307 5,212
Total non-current assets 97,387 92,393 4,994
Inventories
Trade receivables 1,659 1,895 (236)
Other current assets 4,632 4,846 (214)
Other current assets 6,291 6,741 (450)
Trade payables 1,154 886 268
Other current payables 5,749 6,180 (431)
Short-term liabilities for the year 6,903 7,066 (163)
Net working capital (612) (325) (287)
Provisions and other non-current tax liabilities 41 60 (19)
Employee benets 1,947 1,870 77
Net non-current liabilities 1,988 1,930 58
Net Invested Capital 94,787 90,138 4,649
Shareholders’ Equity 97,650 95,208 2,442
Liquidity and other nancial assets (3,217) (5,689) 2,472
Current and non-current nancial debt 42 251 (209)
Total Net Financial Position (3,175) (5,438) 2,263
Financial liabilities rights of use IFRS 16 267 314 (47)
Liabilities and commitments to minority shareholders for equity investments 45 54 (9)
Total Net Financial Position Reported (2,863) (5,070) 2,207
The balance sheet as at 30 April 2022 shows an increase in net invested capital of Euro 4,649 thousand, referring to the equity
segment.
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5
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statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
From the point of view of nancial sources, the Net Financial Position was positive for Euro 2,863 thousand at 30 April 2022
compared to Euro 5,070 thousand at 30 April 2021. The nancial requirements for investments in xed assets were covered by the
operating cash ow generated in the year and by the ow of dividends received from subsidiaries.
Shareholders’ equity as of 30 April 2022 amounted to Euro 97,650 thousand, an increase compared to Euro 95,208 thousand as of
30 April 2021, mainly due to the prot for the year, net of dividends distributed in September 2021 in the amount of Euro 13.2 million
and the purchase of treasury shares made during the year in the amount of approximately Euro 6 million.
Net Financial Position
(Euro thousands) 30/04/2022 30/04/2021 Variation 22/21
Liquidity (3,217) (5,689) 2,472
Current nancial receivables
Current nancial debt 42 251 (209)
Current nancial debt (3,175) (5,438) 2,263
Non-current nancial debt
Non-current nancial debt
Net Financial Position (3,175) (5,438) 2,263
Liabilities IFRS 16 267 314 (47)
Liabilities and commitments to minority shareholders for equity investments (Earn
out, Put Option, deferred prices)
45 54 (9)
Net Financial Position reported (2,863) (5,070) 2,207
83
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3.4. Key sustainability performance
Sustainability Indicators
Environmental Performance Indicators
9
30/04/2022 30/04/2021 30/04/2020
Energy Consumption (GJ) 39,265 35,500 32,514
- Electricity purchased (GJ) 33,011 28,443 25,948
- Natural gas (GJ) 6,254 7,057 6,566
Scope 1 + Scope 2 GHG emissions (tCO
2
) 5,165 5,963 6,656
Emissions per capita (tCO
2
)
10
1.36 1.99 2.99
Total Energy consumed (kWh) 10,207,630 7,900,912 7,207,807
o/w energy purchased from low-impact renewable sources (kWh) 7,921,934
o/w self-produced energy from renewable sources (kWh) 1,037,902 250,773 273,187
Natural Gas (tCO
2
) 352 397 367
- smc 177,266 200,011 185,982
Diesel for generators (tCO
2
) 8 9 8
- litres 2,890 3,280 2,800
- GJ 105 119 102
Water withdrawals (Megalitres
11
) 26.37 30.73 32.38
- of which from water-stressed areas 18.28 22.09 23.31
12
Fuel consumption (tCO
2
) 4,038 2,987 3,694
Fuel consumption (GJ) 54,711 40,617 50,224
Total waste (t) 157 326 364
Total waste per capita (t) 0.04 0.11 0.16
Economic Value Generated 314,898 250,180 181,126
Net economic Value retained 64,674 42,138 42,188
Net economic value distributed 250,255 208,042 138,938
o/w remuneration of employees 197,163 162,972 114,763
o/w remuneration of the Public Administration 31,750 26,378 18,771
o/w remuneration of shareholders (*) 13,946 13,171 0
(*) determined on the basis of the proposed allocation of the 2022 annual result submitted to the Shareholders’ Meeting on 25 August 2022 (26 August on second call).
9. Compared to the previous year, the group’s HR perimeter as at 30 April 2022 increased by 21.0% and revenue increased by 17.3%
10. GHG emissions Scope 1 + Scope 2 market-based (tCO
2
) / average.
11. 1 megalitre equals.1,000 cubic metres.
12. Data on water withdrawals from water-stressed areas as at 30 April 2020 have been restated in order to make the data more comparable over the three-year period.
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13. The calculation of indirect GHG emissions from energy consumption (scope 2) was carried out by means of an emission coefcient for electricity taken from the document “International
comparisons” prepared by Terna, equal to 0.336 kg CO
2
/kWh.
14. Self-generated electricity fed back into the market.
15. For greenhouse gas emissions (scope 1), resulting from the consumption of natural gas, diesel for generators and fuel for the vehicle eet (methane, diesel, petrol, and LPG), the emission
coefcients in the Ministry of the Environment’s national standard parameter table, updated to 2021, were used.
3.4.1. Environment
The Sesa Group considers it important to provide complete
and transparent information for the benet of stakeholders
regarding its environmental performance.
ENERGY, WATER AND NATURAL GAS CONSUMPTION
In the nancial year to 30 April 2022, in which the Sesa Group
increased its human resources by 21% and revenues by more
than 17% compared to the previous year, with a considerable
expansion of both domestic and European locations, electricity
and natural gas consumption amounted to 39,265 GJ with an
increase of 10.6%, recording a signicant reduction in the
consumption of natural gas (-11% Y/Y), water (-14% Y/Y)
and waste production (-52% Y/Y) and a strong growth in self-
generation of energy from renewable sources (+314% Y/Y).
The Group’s greenhouse gas emissions are those of an ofce-
based organisation, resulting from the use of fossil fuels for
heating, the purchase of electricity produced by third parties,
which are on the whole limited and related to traditional
assets, such as electrical and thermal plants.
The main consumption arises from the use of electricity for
ofces and the data centre and IT equipment, building heating
and fuel for company cars. The Group considers it important
to monitor greenhouse gas and other emissions in order to
pursue a progressive reduction of its carbon footprint.
ENERGIA ELETTRICA
As far as electricity consumption is concerned, a total of 10.2
million kWh was used as at 30 April 2022, with green and self-
produced energy equal to approximately 90% of the total. The
increase in electricity consumption compared to the previous
year is a consequence of the increase in the workforce, the
expansion of the premises used for ofce purposes, and of the
companies included in the consolidation area.
At the Empoli Technological hub and at the plants of the
companies P.M. Service, Di.Tech, Elmas and Base Digitale, in
particular, photovoltaic systems are operating with an annual
production of over 1 million kWh as of 30 April 2022 (+314 Y/Y).
We calculate GHG emissions based on the GHG Protocol
reporting standard by applying both methods envisaged:
market-based and location-based. The market-based method
provides for the attribution of emission factors equal to zero for
purchases of electricity from renewable sources. The location-
based method provides instead the application of emission
factors equal to the national average ones.
Electricity consumption
13
30/04/2022 30/04/2021 30/04/2020
kWh 10,207,630 7,900,912 7,207,807
GJ 33,011 28,443 25,948
tCO
2
Scope 2 Location-based 3,430 2,570 2,588
tCO
2
Scope 2 Market-based 768
Self-production of Electricity
14
tCO
2
evitate - Scope 2 349 85 102
Totale (kWh) 1,037,902 250,773 273,187
Totale (GJ) 3,736 903 983
Natural gas consumption
15
30/04/2022 30/04/2021 30/04/2020
tCO
2
- Scope 1 352 397 367
Smc 177,266 200,011 185,982
GJ 6,254 7,057 6,566
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Performance as of April 30, 2022
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NATURAL GAS
As regards the consumption of natural gas, used solely in heating systems, as of 30 April 2022, a total of 352 tonnes of CO
2
were produced, compared to 397 tonnes the previous year (-11.3% Y/Y) and 367 tonnes as of 30 April 2020, due to the effect of
efciency-boosting actions at the Group’s sites and, in particular, the replacement of heat generators and chiller units at the Empoli
Technological hub, which allowed for a signicant reduction in gas consumption.
DIESEL FOR GENERATORS
Diesel consumption for generators decreased by about 12% from 3,280 litres as at 30 April 2021 to 2,890 litres as at 30 April 2022.
This reduction is a consequence of the efciency-boosting activities of the new multi-purpose generators, which ensured better
management of peak activity in the proprietary data centre.
Diesel consumption for generators
30/04/2022 30/04/2021 30/04/2020
tCO
2
- Scope 1 7.78 8.79 7.51
Litres 2,890 3,280 2,800
GJ 105.32 119.54 102.05
FUEL CONSUMPTION BY GROUP FLEET
During the year, work continued on modernising the Group’s eet on the basis of “green” criteria, with the progressive adoption
of vehicles with a reduced environmental impact and the use of collaboration tools to reduce travel between Group ofces. The
installation of spaces for recharging electric cars at the Group’s company headquarters continues. As of 30 April 2022, the Sesa
Group used 54,711 GJ of fuel, compared to 40,617 GJ in the previous year, with a growth that reects the expansion of the
perimeter and the comparison with the period as of 30 April 2021 heavily impacted by full lock-down measures. Fuel consumption
was substantially stable compared to the Full Year at 30 April 2020, despite an increase in the perimeter of about 40%, due to the
aforementioned progressive adoption of a eet of cars with reduced environmental impact as well as sustainable mobility measures
to encourage the use of public transport.
Fuel consumption by type (GJ)
30/04/2022 30/04/2021 30/04/2020
Total consumption 54,711.41 40,616.67 50,223.93
PETROL 3,284.92 1,776.03 1,928.81
- Empoli hub 2,227.47 1,040.84 1,109.93
- Other Local Units 1,057.45 735.19 818.88
DIESEL 51,218.10 38,722.12 48,128.33
- Empoli hub 30,056.89 22,675.82 26,945.36
- Other Local Units 21,161.21 16,046.30 21,182.97
METHANE 171.10 48.54 27.93
- Empoli hub 41.58 24.48 12.69
- Other Local Units 129.51 24.06 15.24
LPG 37.29 69.98 138.86
- Empoli hub 21.86 40.97 48.48
- Other Local Units 15.42 29.02 90.38
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Fuel consumption by type (tCO
2
)
30/04/2022 30/04/2021 30/04/2020
Total 4,037.99 2,986.84 3,693.53
PETROL 240.08 130.25 141.45
- Empoli hub 162.79 76.33 81.40
- Other Local Units 77.28 53.92 60.05
DIESEL 3,785.84 2,849.27 3,541.41
- Empoli hub 2,221.68 1,668.54 1,982.71
- Other Local Units 1,564.15 1,180.73 1,558.70
METHANE 9.62 2.73 1.56
- Empoli hub 2.34 1.38 0.71
- Other Local Units 7.28 1.35 0.85
LPG 2.46 4.59 9.11
- Empoli hub 1.44 2.69 3.18
- Other Local Units 1.02 1.90 5.93
WATER CONSUMPTION
The Group’s water consumption refers exclusively to the hygienic and sanitary use of water by the various sites of the Group
companies and to the technological uses by the same, such as air-conditioning and re-ghting systems. Although the number of
consolidated companies and the Group’s turnover are growing, there has been a gradual reduction in water consumption compared
to the previous year at 30 April 2021 (-14% Y/Y) and the pre-pandemic year at 30 April 2020 (-19% Y/Y), due to more efcient
management of the cooling systems in the Group’s data centres, strategies to minimise possible plant losses and the internal
awareness campaign aimed at using less water. As regards the type of water withdrawn (100% of water withdrawals come from
aqueducts), all water consumption falls into the fresh water category with ≤1,000 mg/l of total dissolved solids.
Water withdrawals
30/04/2022 30/04/2021 30/04/2020
Total (Cubic Metres) 26,374 30,729
16
32,380
Empoli hub 7,394 8,735 9,484
Other Local Units 18,980 21,994 22,896
Total (Mega Litres) 26.4 30.7 32.4
Empoli hub 7.4 8.7 9.5
Other Local Units 19.0 22.0 22.9
Withdrawal from water-stressed areas (Mega Litres) 18.3 22.1 23.3
15
% of total withdrawals 69% 72% 72%
16. The data relating to water withdrawals and the corresponding quantities of withdrawals from water-stressed areas as of April 30, 2020 and as of April 30, 2021 have been restated for the
purpose of greater comparability.
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Performance as of April 30, 2022
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WATER STRESS
Water stress refers to the ability to meet the demand for water, both from humans and from ecosystems as a whole, and thus to
the availability, quality, and accessibility of water. As a tool for assessing water stress areas, reference was made to the World
Resources Institute’s Aqueduct Water Risk Atlas (https://www.wri.org/aqueduct), which identies the water stress level of Sesa’s
reference territory.
WASTE
Municipal solid waste is managed by the public collection service and the quantity and method of disposal cannot be measured.
Waste of paper and cardboard, plastic, wood and discarded electronic equipment are considered “special” and therefore treated
with specic methods and recorded. As of 30 April 2022, 157 tonnes of this waste were produced by the Group, a signicant
decrease compared to the previous year (-52% Y/Y). This decrease is due to the progressive adoption of management policies
and procedures required by the ISO 14001 Environmental Certication, as well as the elimination of the consumption of sludge
from septic tanks, which following regulatory changes (Law No. 108 of July 2021) are considered to be produced by the operator
performing the maintenance cleaning activity and no longer by the company itself. Moreover, the Sesa Group has recently completed
the structural works aimed at connecting the buildings of the Empoli Technological hub to the public sewage system, which, in any
case, guarantee the zeroing of waste produced. In relation to the average number of human resources, the per capita consumption
of waste is signicantly reduced from 0.11 tonnes as at 30 April 2021 to 0.04 tonnes per employee as at 30 April 2022 (-32% Y/Y).
Waste generated by type (Tonnes)
30/04/2022 30/04/2021 30/04/2020
Totale 157 326 364
Paper and cardboard 75 68 68
Wood and pallets 41 27 50
Plastic 11 10 12
Other types:
WEEE 29 41 44
Toner 1
Septic tank sludge 119 138
Other waste
17
1 61 52
0.04
0.1
0.16
year 2022year 2021year 2020
Waste per capita in tonnes
18
17. Mixed waste from construction and renovation activities belongs to this category
18. Total waste produced / average HRsworkforce.
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Separate nancial
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3.4.2. People
Composition of Human Capital
30/04/2022 30/04/2021 30/04/2020
Total Human Resources 4,163 3,441 2,547
- Men 2,821 2,374 1,725
- Women 1,342 1,067 822
Total recruitment 607 402 322
Total terminations 361 218 113
Incoming turnover 14.9% 11.7% 12.6%
Job classication and gender
30/04/2022 30/04/2021 30/04/2020
Executives 46 35 22
Middle Managementrs 372 331 252
White collars 3,547 2,974 2,209
Blue collars 98 101 64
Trainees
19
100
Total 4,163 3,441 2,547
Other indicators
Average workforce in the year 3,802 2,994 2,224
Personnel costs 197,673 162,972 114,763
Average cost per employee 52.0 54.5 51.6
Percentage of permanent employees 99% 99% 99%
Human resources are a core value of the Sesa Group and
the most relevant stakeholder in terms of value generation
and distribution. The skills and specialisations of human
capital are the basis of the Group’s ability to offer innovative
technological and digital solutions to support businesses
and organisations. The Sesa Group promotes programmes
and activities to develop professionalism and diversity and
improve the wellbeing and quality of working life of its human
resources, applying distinctive values such as integrity,
fairness, attention to people, inclusion and sustainability that
guide the Group’s strategy in human capital management.
As at 30 April 2022, the number of Group employees totalled
4,163 (employees and trainees of the companies included
in the scope of consolidation), with an increase of 722 units
(+21% Y/Y) compared to the previous year, thus conrming
the long-term growth and development trend that has
characterised the Sesa Group since its establishment.
Human capital as a primary value of the Group constitutes a
strategic resource to be retained and developed through long-
term professional growth paths.
The Sesa Group is therefore pursuing a policy of hiring its
resources on an open-ended basis, which as at 30 April
2022 accounted for 99% of the total workforce, implemented
through targeted hiring plans for young graduates and
university graduates, with development and retention tools
(training, career plans, work-life balance initiatives and
19. The number of trainees was rst reported from the period to 30 April 2022.
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Performance as of April 30, 2022
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corporate welfare). During the nancial year to 30 April 2022, an outgoing turnover rate of 7.74% was recorded in relation to
Group companies operating in Italy, which compares with a national average
20
of 18%. Moreover, the sector in which the Group
operates presents a structural situation of professional shortage and a mobility of human resources well above the national average.
Moreover, the Group recorded a high incoming turnover during the year and an extremely positive ratio of 1.68 between new hires
and terminations.
OCCUPATIONAL HEALTH AND SAFETY PROGRAMMES
Health and Safety
30/04/2022 30/04/2021 30/04/2020
Total accidents 17 8 4
Men 10 4 2
Women 7 4 2
Rate of accidents at work* 2.71 1.38 1.24
Severity Index** 0.01 0.03 0.04
Absenteeism (accidents, illness, parental leave)
- Absenteeism rate*** 2.72% 2.30% 2.60%
* The rate of accidents at work is calculated as ratio (no. accidents/no. of work hours) x 1,000,000
** The severity index is calculated as ratio (no. of days lost due to accident /no. of work hours) x 1,000
*** Absenteeism rate is calculated by dividing the total number of hours of absence by the number of work hours
Maternity and paternity leave
30/04/2022 30/04/2021 30/04/2020
Men Women Men Women Men Women
Parental leave 80 98 78 61 59 42
Returns at the end of leave 80 98 78 58 56 42
Return rate 100% 100% 100% 95% 95% 100%
Post-parental leave retention rate
21
85% 97% 97% 93% 100% 100%
One of the Sesa Group’s top priorities is to guarantee maximum health and safety for its human resources. A team of specialised
resources (Human Resources Management, RSPP [Responsabile del Servizio Prevenzione e Prevenzione, prevention and
protection service manager], Medical Ofcer, RLS [Rappresentante dei Lavoratori per la Sicurezza, workers' health and safety
representative]) is responsible for ensuring a safe working environment that complies with current regulations, dening guidelines,
coordinating monitoring activities and, where necessary, programmes to improve safety conditions.
In the nancial year 2022 there were very few accidents, all of them minor, consistent with previous years. The absenteeism rate
is 2.72% (calculated by calculating the hours of absence excluding holiday and leave), which is very low despite the impact of the
pandemic emergency.
Sesa has always been committed to supporting female colleagues facing the experience of parenthood by guaranteeing the use
of parental leave in accordance with current regulations and local legislation. As of 30 April 2022, 178 Group employees had taken
parental leave, 7.3% of the female workforce and 2.8% of the male workforce, respectively.
20. The outgoing turnover rate of Italian private sector companies in the year 2020 (latest available data) was about 18% (Source: Centro Studi Assolombarda).
21. The retention rate refers to the number of employees who continue to work at the company 12 months after taking parental leave.
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COMPOSITION OF HUMAN CAPITAL
30/04/2022 30/04/2021 30/04/2020
Total Employees 4,163 3,441 2,547
Gender n % n % n %
Men (%) 2,821 68% 2,374 69% 1,725 68%
Women (%) 1,342 32% 1,067 31% 822 32%
Geographic area
Northern Italy 2,047 49% 1,294 38% 889 35%
Central Italy 1,766 42% 1,909 55% 1,577 62%
Southern Italy 69 2% 36 1% 32 1%
Abroad 281 7% 202 6% 49 2%
Age
< 21-30 ≥ 900 22% 605 18% 357 14%
≤ 31-50 > 2,165 52% 1,890 55% 1,454 57%
≥ 50 1,098 26% 946 27% 736 29%
The Group’s strategy is based on developing the diversity
of its human capital and a distributed territorial presence,
with physical presence in major Italian cities and a strong
presence in the Empoli technology hub, its main operational
headquarters. There are also foreign branches in Germany,
China, Spain, France, Switzerland, Austria, and Romania with
approximately 300 employees.
The Group encourages the integration of different age groups:
as at 30 April 2022, personnel under 50 years of age made
up 74% of the workforce, and those under 30 years of age
21%, up from 18% as at 30 April 2021 and 14% as at 30 April
2020. The Group’s average length of service is 9 years, an
extremely positive gure when compared to the business
segment in which the Group operates, which is subject to
strong mobility and professional shortages.
As at 30 April 2022,female employment constituted a
signicant component, amounting to 32% of the total
workforce, compared to 31% in the previous year, thanks to
the Group’s growing commitment to gender equality policies
applied to a sector with technical-scientic professions that
historically present a structural shortage of female resources.
It should be noted that the Group’s companies with the most
recent date of incorporation have an extremely qualied female
component, averaging over 40%. The Group also invests in
welcoming disabled personnel into its work structures, mainly
with permanent contracts. For the integration of workers
belonging to protected categories, multi-year recruitment
and integration programmes have been dened, through
continuous collaboration with institutional bodies in charge
of targeted employment. As of 30 April 2022, the number of
protected categories employed by Group companies was 119,
up by about 20% Y/Y.
HUMAN CAPITAL DIVERSITY
The Sesa Group considers the protection of diversity to be
fundamental and is committed to offering equal opportunities
for the development and growth of its human capital starting
from the personnel selection phase. In addition, with the aim of
making workers aware of these Diversity and Inclusion issues,
training courses have been held for the entire workforce.
The Group’s remuneration system is dened in such a way
as to attract, motivate and retain people with the professional
skills required by the business. It is based on the principles
of ethics, equal opportunities, and meritocracy. The denition
of remuneration takes into account specic criteria, including
the characteristics of the role and responsibilities assigned,
the distinctive skills of the people and the comparison with the
external market.
The remuneration policy consists of four macro-groups: xed
remuneration, variable remuneration, benets, and welfare.
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Performance as of April 30, 2022
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The xed component takes into account the breadth and
strategic nature of the role held and is modulated on the
trend of the reference markets, with periodic reviews aimed
at ensuring the competitiveness of remuneration and staff
retention. In this sense, multi-year career plans are also
launched aimed at young people with high potential, with
growth objectives correlated to the progressive development
of professional skills.
Variable remuneration is linked to pre-determined qualitative
and quantitative performance objectives that are measurable
and consistent with the Group’s strategic objectives, aimed at
promoting sustainable growth with the inclusion from 2021,
in the MBOs of the Group’s key gures, of ESG objectives
such as those of organisational climate, human capital
satisfaction and environmental sustainability. There is also
a comprehensive benets and welfare plan that includes
services, initiatives and work-life balance programmes for the
benet of the Group’s employees and their families.
The Gender Pay Gap reported as of April 30, 2022 (difference
in pay between genders expressed in points percentages with
the same qualication) is equal to 8.74%, with an extremely
positive gure for the category of managerial staff of 2.68%.
This compares with a national gure (source: Eurostat index,
2020) of Gender Pay Gap of 16.5%.
HIRING PROGRAMMES
Recruitment by area and age bracket
30/04/2022
Total new hires
- Men 427
- Women 180
Age group (n)
< 21-30 ≥ 283
≤ 31-50 < 252
≥ 50 72
Incoming Turnover Rate
30/04/2022 30/04/2021 30/04/2020
Total new hires 607 402 322
Total employees 4,163 3,441 2,547
Incoming turnover rate 14.94% 11.70% 12,60%
% Men 15.44% 13.40% 14,50%
% Women 13.88% 7.90% 8,80%
Age group (%)
< 21-30 ≥ 35.38% 32.60% 34.40%
≤ 31-50 < 11.64% 8.40% 10.90%
≥ 50 6.56% 4.90% 5.40%
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The Sesa Group has always been strongly committed to
attracting and identifying talented people who stand out for
their technical skills, passion, dynamism and propensity for
innovation in tune with the Group’s values.
The strategic governance of human capital pursues the
retention of permanent resources (99% of which are on
permanent contracts) and the inclusion of young high school
and university graduates undergoing training in the areas of
greatest development potential.
The Group’s ability to attract talented people is also reected
in the growth of the workforce recorded during the last scal
year, with a positive balance of 607 new hires. Of these, about
50% are young resources under 30, mostly based in Central
and Northern Italy.
The personnel recruitment and selection programme is
implemented through:
• Partnerships with top vocational schools, universities
and business schools, with which the Group has well-e-
stablished relationships, including internships for studen-
ts or recent graduates, project development and disser-
tations;
• Participation in Career Days and University events;
• Social communication plans using the main recruiting
tools, including LinkedIn and leading recruitment sites;
• Hiring events at the Group’s main locations, aimed at
presenting placement and career development opportu-
nities for young graduates;
• Academy with specic focus in the most specialised are-
as of the IT sector;
• Collaboration with local secondary education institutions
by participating in School-Work Alternation programmes.
In December 2021, Sesa contributed to the establishment of
the ITS Prodigi Foundation, which will manage the regional
post-diploma training programmes mainly at the Empoli
Technological hub, with the aim of meeting the need to develop
technical skills in the digital sphere. For the educational year
2022/23, three specialisation courses have been planned to
train a total of 75 resources for a duration of 2,000 hours (of
which 1,100 in the classroom and 900 in internships at Group
companies).
The Group offers numerous internship opportunities every
year, giving young people with potential the chance to get to
know the company and gain training experience, also through
participation in school-work alternation schemes. As of 30
April 2022, 100 internships were place, including curricular
and extra-curricular internships aimed at placement.
The total number of apprentices in vocational training and
development courses increased to 340 units as at 30 April
2022.
Participants in the School-Work Alternation Programme 2022, Experience Lab Sesa meeting May 2022
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Performance as of April 30, 2022
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HUMAN RESOURCES TRAINING
Training plays a key role in the process of enhancing the value of people, as well as being a fundamental tool for developing the
professional skills of Group resources. Over the last two years, the main training programmes have been strengthened in relevant
areas, also in light of market developments such as safety and sustainability. As at 30 April 2022, 60,907 hours of training were
provided, an increase of 132% compared to the previous year, with a focus on technical, sustainability and soft skills.
Training
Number of trained employees 30/04/2022 30/04/2021 30/04/2020
Compulsory training 1,716 2,022 527
Training in basic and transversal skills 478 233 224
Technical training 1,247 503 355
Training hours
Total 60,907 26,302 20,017
Compulsory training 11,225 11,539 4,631
Training in basic and transversal skills 16,262 2,409 6,891
Technical training 33,420 12,354 8,495
The training programmes include a signicant component managed centrally by the Parent Company’s training ofce with reference
to specic topics on issues such as personal data protection (GDPR-General Data Protection Regulation), Cyber Security,
Sustainability, Diversity and Compliance, and the use of e-learning platforms that have enabled an increasing number of resources
to be involved.
CORPORATE WELFARE AS A MEANS
FOR SUSTAINABILITY AND WORK-LIFE
BALANCE
The Group has been committed for over 10 years to identifying
concrete initiatives aimed at promoting and increasing
the individual and family wellbeing of workers through an
articulated Welfare Plan. The Welfare Plan perfectly combines
Sesa’s mission, principles and core values, enabling the use
of services and programmes aimed at improving the quality of
life, work-life balance and well-being of workers, their families
and the communities in which they live.
Family work-life balance, wellbeing and environmental
sustainability are the cornerstones of the new 2022-2023
welfare programme, which has been further strengthened
compared to the previous year’s programme and is structured
along the following lines:
• Diversity and parenthood: support for the birth of children
with nancial assistance for childbirth and contributions
for baby-sitting, pedagogy, and nursery services (at the
Empoli site in the company nursery Sesa Baby); scholar-
ships for the purchase of schoolbooks, for participation
in summer centres for employees’ children; contributions
for the purchase of information tools for employees’ chil-
dren; and nancial support for health and social assistan-
ce for disabled family members;
• Employees’ welfare: exible benets to supplement em-
ployees’ expenditure (food shopping, sports, wellness,
culture, shopping and professional parenting services);
support for housing mobility (contribution for employe-
es who move their residence out of the family of origin);
scholarships for employees’ participation in part-time uni-
versity degree or master courses;
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6
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30, 2022
• Environmental sustainability: support of sustainable
mobility of employees for the use of public and electric
transport and E-Car Sharing programmes; programmes
aimed at reducing the consumption of natural resources
within the Group’s locations;
• Work-life balance: solidarity and people caring for the
well-being and health of employees; company micro-cre-
dit programmes for employees access to subsidised lo-
ans; psychological and counselling desk available free of
charge for employees.
All welfare programmes are available to the Group’s resources
through access to a digital and dedicated portal that allows the
selection of initiatives.
Among the main welfare programmes are those in favour
of employees’ children up to three years of age: the Sesa
Group protects maternity and return to work by supporting
parents through the organisation of the Sesa Baby company
crèche, within the Empoli Technological hub, with monthly
contributions for the children of employees attending the
crèche in all the Group’s locations.
Sesa Group Welfare Plan
Number of interventions 30/04/2022 30/04/2021 30/04/2020
Total 7,996 6,312 5,062
- Provisions 1,965 1,553 1,405
- Flexible Benets 5,951 4,700 3,584
- Nursery school 80 59 73
Signicant support for the Group’s welfare programmes is
provided by the Sesa Foundation, a non-prot organisation set
up by Sesa’s founding partners in 2014 with the aim of creating a
structure dedicated to social solidarity and philanthropy activities
in the territories where the Sesa Group companies operate.
The following section of this report provides a detailed illustration
of some of the main initiatives promoted by the Sesa Foundation
in the nancial year ended 30 April 2022.
Sesa Baby, company crèche inside the Empoli Technological hub
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Performance as of April 30, 2022
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3.4.3. Community
SOCIAL RESPONSIBILITY
Sesa, partly through the Foundation that bears its name, has
always promoted social initiatives and projects. For Sesa
it is important to pay attention not only to economic and
nancial management but to the people and social needs of
the communities in which it operates. The development of
activities with social aims is the common heritage of the entire
Group. Sesa contributes to the promotion and dissemination
of digital skills, particularly in the economic sphere, through
constant cooperation with local institutions: training institutes,
universities, and business organisations.
THE SESA FOUNDATION
The Sesa Foundation is a non-prot organisation based in
Empoli whose aim is to carry out social solidarity activities
mainly in the eld of education, scientic research, social and
health care in the territory of the Region of Tuscany. Within the
framework of its institutional aims, the Foundation:
• promotes and organises seminars, training courses,
events, conferences, study meetings, round tables, and
more generally scientic and educational initiatives;
• promotes and encourages the education and instruction
of young people in particular in the region, also by means
of scholarships and/or donations;
• carries out charitable activities for the benet of econo-
mically disadvantaged social groups, including but not
limited to the target area;
• promotes initiatives and activities of a charitable nature,
including those of a medical nature, aimed in particular
at contributing to the well-being of the Sesa Group’s em-
ployees.
ACTIVITIES DURING THE FINANCIAL YEAR ENDED 31 DECEM-
BER 2021
The initiatives and activities carried out in 2021 (reporting year
January - December 2021) were many and in line with the
institutional aims and concerned: (i) The Foundation’s own
projects; (ii) Projects carried out at the suggestion of local
organisations or entities.
The Foundation’s actions in the year ended 31 December
2021 reached a total value of about Euro 123 thousand (+55%
Y/Y) with the goal of further growth in the year 2022.
The most signicant donations made by the Sesa Foundation
are briey outlined below:
• The “Sesa Vaccine hub” project: support for the Lo-
cal Health Unit in the Centre of Empoli vaccine hub by
granting a loan for use of company premises to set up a
Vaccine Centre with a capacity to administer approxima-
tely 1,000 doses per day. The Foundation also took care
of the supply of computer equipment necessary to carry
out the service;
• “The Fucecchio Vaccine hub” project: donation for the
construction of the vaccine hub in Fucecchio (Florence);
• The “ASD Off Road Crew” project: contribution for the
promotion of two-wheel sports by disabled persons;
• “Il cuore di Empoli” (The Heart of Empoli) project:
donation to the cardiology department of the San Giu-
seppe Hospital in Empoli for the purchase of diagnostic
instruments and the treatment of cardiac arrhythmias;
• “Un passo per te” (One step for you) project: dona-
tion to the University of Pisa’s Muscular Disease Rese-
arch Foundation for basic and clinical research projects;
• The “Fibromyalgia Research Project”: donation to
the Associazione Odv Algea - Fibromyalgia and Chronic
Pain, for a scientic research project entitled “Study of
T helper 1 and T helper 17 lymphocyte populations and
subpopulations in patients with bromyalgia” coordinated
by Prof. Mario Milco D’Elios, of the Department of Experi-
mental and Clinical Medicine, University of Florence;
• The “Physiotherapy and Hydrokinesiotherapy for
ALS sufferers” project: donation to the Italian Associa-
tion for Amyotrophic Lateral Sclerosis (AISLA), Florence
section, for the care and treatment of 20 ALS sufferers in
the Florentine metropolitan area.
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5
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statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
PROGRAMMES FOR THE FINANCIAL
YEAR ENDED 31 DECEMBER 2022
The 2022 business plan of the Sesa Foundation envisages
the reinforcement of programmes in the areas of philanthropy,
support to local communities and the Sesa Group’s welfare
plan. In particular, the following areas of intervention have
been conrmed:
• Philanthropy and Charity: support for non-prot and local
associations that increasingly turn to the Foundation with
a focus on the social inclusion of disadvantaged groups
such as the disabled and elderly;
• Art and cultural initiatives in the area: support for cultural
activities and events in the area and enhancement of the
historical, artistic and environmental heritage.
The following was conrmed also for the year 2022:
• the support for the management of the Local Health Unit
Vaccine hub for the Covid-19 health emergency, also
through the loan for use of the premise of over 500 squa-
re metres in Via Giuntini (Empoli), with the administration
of over 400,000 vaccine doses from the beginning of the
pandemic to date;
• contribution for the organisation and operation of the
Sesa Baby company crèche located within the Empoli
technological hub, Via del Pino, Via Piovola with about
30 children housed, offered as part of the Group’s welfa-
re plan for workers’ children;
• support for micro-credit programmes made available to
the group’s employees.
Sesa Vaccine hub
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Performance as of April 30, 2022
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3.5. ESG indicators, objectives, and targets
The growing importance of extra-nancial aspects in the denition of corporate strategies, the consideration that investors place
on ESG issues in their investment choices, as well as the interest of all stakeholders in the Company’s modus operandi in the
context that surrounds it, drive Sesa to systematically and transparently measure its impact on the environment and communities.
Already equipped with a sustainable development model for years and committed to reducing its impacts through sustainability
projects and initiatives, Sesa has decided to strengthen and further integrate sustainability into its business through the denition
of KPIs and specic targets belonging to the environmental sphere (natural gas emissions, energy savings, green innovation, soil
and biodiversity protection), social sphere (welfare, employee engagement, safety, gender diversity, responsible and sustainable
supply chain, local communities) and governance sphere (governance structure and its functioning, infrastructure reliability, anti-
corruption, sustainable nance).
ESG indicators
Unit of measure 30/04/2022 30/04/2021 30/04/2020 Var. 22/21 Var. 21/20 Var. 22/20
Energy intensity index
22
GJ/€ million 16.43 17.43 18.31 -5.73% -4.81% -10.26%
Energy Intensity Index per capita
23
GJ/HR 10.33 11.68 14.62 12.90% 18.91% 29.38%
Emissions per capita
24
tCO
2
/HR 1.36 1.99 2.99 -31.79% -33.47% -54.62%
Scope 1 emissions per capita
25
tCO
2
/HR 1.16 1.13 1.83 2.08% -38.08% -36.79%
Scope 2 market-based emissions per capita
26
tCO
2
/HR 0.20 0.86 1.16 -76.47% -26.25% -82.65%
Water withdrawals per capita
27
liters/HR 6.94 10.26 14.56 -32.41% -34.18% -52.37%
Waste per capita
28
tons/HR 0.04 0.11 0.16 -62.18% -33.49% -74.84%
Permanent contracts HR 3,999 3,135 2,305 27.56% 36.01% 73.49%
Welfare interventions Number of interventions 7,996 6,312 5,062 26.68% 24.69% 57.96%
Training Training hours 60,907 26,302 20,017 131.57% 31.40% 204.28%
Emissions per capita (tCO
2
) Training hours
1.36
60,907
1.99
26,302
2.99
20,017
year 2022
year 2022
year 2021
year 2021
year 2020
year 2020
22. Energy consumption (electricity and natural gas) / Group revenues
23. Energy consumption (electricity and natural gas) in average GJ / Average HR
24. (Scope 1 + Scope 2 market-based GHG emissions) / Average HR
25. Scope 1 GHG emissions / Average HR
26. Scope 2 Market-based GHG emissions/ Average HR
27. Water withdrawals/Average HR
28. Waste produced/Average HR
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6
Separate nancial
statements as of April
30, 2022
To this end, in the nancial year ended 30 April 2022, quantitative ESG targets were jointly dened, which will give greater consistency
to the Group’s commitment in the short and medium term by integrating ESG and Corporate Social Responsibility objectives into
industrial and nancial strategies.
The targets were dened with the contribution of the main corporate functions and with the guidance of the Group’s management.
A shared path that ended in their approval by the Sustainability Steering Committee and the Board of Directors on the occasion of
the approval of this Integrated Annual Integrated Report. The targets cover the main ESG areas and thus refer to environmental,
social and governance aspects.
Material topic
KPI TARGET 2023 (Y/Y)
Energy consumption
Energy intensity index (consumption in GJ/turnover) -2%
100% renewable, low-impact energy supply >90% (threshold)
Per capita emissions (tCO
2
) -2%
Emissions
tonne emissions Scope 1 -2% of emissions
tonne emissions Scope 2 market-based 0 by 2024
Water consumption annual consumption in Litres/HR -5%
Waste kg waste produced/HR -5%
Responsible supply chain % suppliers subject to self-evaluation >60% (threshold)
Relationship with local communities Amount of donations in euro (Sesa Foundation) +10%
Employment
Number of permanent human resources +5%
% incoming turnover >10% (threshold)
% outgoing turnover <10% (threshold)
Corporate Welfare
Bonuses paid in Euro/HR +5%
Number of welfare/HR interventions +5%
Development of skills and
staff training
Hours devoted to training +10%
Number of Employees trained +10%
Equal opportunities and diversity % women of total HR >30% (threshold)
Staff health and safety Accident Severity Index <0,05 (threshold)
Protection of Human Rights Number of reports arising from the whistleblowing system Maintain at 0
Ethics, compliance, anti-corruption % HR trained on Code of Ethics/Anti-Corruption Programme +10%
Our commitments focus on a number of priority areas, and
have been broken down into qualitative and quantitative
targets that can be measured over time, including:
• Equal opportunities: ensuring fair gender representa-
tion and equality of opportunity;
• Reduction of direct environmental impact: reduction
of CO
2
emissions and waste generation;
• Contribution to economic growth: development of
employment and generated value for all stakeholders;
• Support for local communities: responsible relation-
ship with the local communities in which Group compa-
nies operate.
The Group’s commitment to sustainability has been realised
through the integration of qualitative and quantitative ESG
targets into the incentive plans of the top management of
Group companies.
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3.6. European taxonomy
for environmentally
sustainable activities
INTRODUCTION
The European Commission has dened a specic
classication system to identify environmentally
sustainable economic activities as an enabling factor to
support sustainable investments and to adopt the European
Green Deal. By providing appropriate information about
economic activities that can be considered environmentally
sustainable, the aim is to strengthen investor security and
transparency, protect private investors from greenwashing,
support companies in planning the transition, mitigate
market fragmentation and, nally, close the sustainable
investment gap.
The European Taxonomy denes six environmental
objectives to identify environmentally sustainable
economic activities: climate change mitigation, climate
change adaptation, sustainable use and protection of
water and marine resources, transition to a circular
economy, pollution prevention and control, and protection
and restoration of biodiversity and ecosystems. Thus, an
economic activity is dened as environmentally sustainable
if (i) it contributes substantially to the achievement of one
or more of the six environmental objectives, (ii) it does
not cause signicant harm to any of the environmental
objectives (Do No Signicant Harm - DNSH), and (iii) it is
carried out in compliance with minimum safeguards.
In July 2018, the European Commission set up a Technical
Expert Group (TEG) on sustainable nance with the aim
of developing recommendations for dening technical
screening criteria
for economic activities that can contribute substantially to
climate change mitigation or adaptation without creating
signicant damage to the other four environmental
objectives. Based on input from the TEG and a wide range
of stakeholders and institutions, the Taxonomy Regulation
was published in the Ofcial Journal of the European
Union on 22 June 2020 and entered into force on 12 July
of the same year.
As of January 2022, companies subject to the obligation
to publish a consolidated non-nancial statement (NFS)
must disclose the proportion of their revenue, capital
expenditure (Capex) and operating expenditure (Opex) that
qualies as environmentally sustainable. The Taxonomy
Regulation also empowers the European Commission to
adopt delegated acts and acts specifying how competent
authorities and market operators are to comply with the
requirements of the regulation.
Sesa welcomed the development of the EU Taxonomy, as
it will provide a common language for all stakeholders, with
a particular focus on the decarbonisation of the European
economy by 2050.
Specically, as required for the simplied disclosure for
the rst year of application, the analysis below focuses
on the variables of Turnover, Capital Expenditure (CapEx)
and Operating Expenditure (OpEx) related to business
activities included in the Taxonomy to date, with reference
to the rst two environmental objectives indicated by
the European Commission, such as “Climate Change
Mitigation” and “Climate Change Adaptation”.
In subsequent publications, the Group’s analysis will be
expanded to include the other objectives indicated by the
European Commission.
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6
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30, 2022
HOW SESA ADOPTED THE EUROPEAN
TAXONOMY
Following the recommendations of the TEG, we developed a
ve-step process through which we analysed the applicability
of the Taxonomy along the entire value chain. The process
focused exclusively on climate change mitigation and
adaptation objectives, as these are the only two for which
the European Commission has published criteria. Economic
activities along the entire value chain were divided into the
following three categories.
Eligible activity: an economic activity that simultaneously
fulls the following two conditions: (i) it has been explicitly
included in the Taxonomy Regulation because it contributes
substantially to climate change mitigation or adaptation; (ii) it
satises the criteria in the Taxonomy Regulation for the two
environmental objectives.
Non-eligible activity: an economic activity that simultaneously
fulls the following two conditions: (i) it has been explicitly
included in the Taxonomy Regulation because it contributes
substantially to climate change mitigation or adaptation; (ii) it
does not meet the criteria in the Taxonomy Regulation for the
two environmental objectives.
Activity not covered: an economic activity that has not been
included in the Taxonomy Regulation because it does not
make a substantial contribution to climate change mitigation
or adaptation, so no specic technical criteria have been
developed. The European Commission considers that this
type of activity may not have a signicant impact on climate
change mitigation or adaptation, i.e., it could be included in
the Taxonomy Regulation at a later stage.
The existence of this third category makes it impossible to
achieve a business model fully aligned with the criteria of the
Taxonomy, since currently most of the activities along Sesa’s
value chain were not considered to be substantial contributors
to climate change mitigation.
The descriptions of the individual activities included in Annexes
I and II of the Delegated Act of 04 June2021 (hereinafter
referred to as the “Climate Change Delegated Act”) were
compared with the business activities of the Sesa Group.
The Group’s activities that have been classied as eligible as
meeting climate change mitigation or adaptation objectives
are as follows:
• Data processing, hosting and related activities. Data
processing, hosting and related activities, i.e., the stora-
ge, management, movement, control, display, switching,
interchange, transmission or processing of data through
data centres, including edge computing are a signicant
part of the Sesa Group’s business. These include the sa-
les of services, IT solutions and software for edge com-
puting, security and collaboration of the VAD Sector and
the SSI Sector, as well as activities related to the digital
platforms of the Business Services Sector;
• Production of electrical energy using photovoltaic
solar technology. The installation, maintenance and re-
pair of renewable energy technologies were an integral
part of the activities carried out by P.M. Service Srl, Sebic
Srl and the photovoltaic systems installed on top of the
Group’s various locations;
• Installation, maintenance, and repair of energy ef-
ciency devices. During the year, work was carried out
to increase the energy efciency of the Group’s plants.
For the nancial year as at 30 April 2022, Article 8 of the
Delegated Act requires the indication of the share of economic
activities eligible under the Taxonomy and not eligible in
terms of turnover, capital expenditure (Capex) and operating
expenditure (Opex). The nancial statement data used to
determine the shares are those extracted from the Sesa
Group’s Annual Integrated Report as at 30 April 2022:
Consolidated revenues
Total (€/000)
Percentage of economic activities
eligible for taxonomy (%)
Percentage of economic activities
not eligible for taxonomy (%)
Revenues and Other Income 2,389,823 19.1% 80.9%
CapEx 18,525 30.0% 70.0%
OpEx 222,126 19.5% 80.5%
101
Performance as of April 30, 2022
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Below, some comments on the data presented in the table:
• The column “Total (€/000)” shows the values extracted
from the consolidated nancial statements as at 30 April
2022 for Revenues and Other Income, CapEx (invest-
ments in tangible assets) and OpEx (expenses for ser-
vices);
• In the column “Percentage of economic activities eligi-
ble for taxonomy (%)” and in the complementary column
“Percentage of economic activities not eligible for taxo-
nomy (%)”, the percentages of Taxonomy-eligible econo-
mic activities were considered for Turnover, CapEx and
OpEx as the ratio between the share of these quantities
associated with Taxonomy-eligible activities (numerator)
and the Group’s Turnover, CapEx and OpEx (denomi-
nator).
3.7. Signicant events
occurring after the end of
the nancial year
In the rst months of the new nancial year, the Sesa Group
continued its operations and its development of business
and competencies, also thanks to some further company
acquisitions:
• in the period May-June 2022, Base Digitale Group’s ac-
quisition of three companies specialised in the sector of
digital platforms for the Financial Services segment and
in particular of: (i) 72% of Digital Voice Recording Italia
Srl (“DVR”), a company operating in the design of robo-
tization systems with a proprietary contact management
platform, integrated with articial intelligence solutions,
(ii) 51% of Emmedi Srl, operating in the development of
dematerialisation and process automation solutions for
the banking world, and (iii) 52% of Ever Green Mobility
Rent Srl (“Evergreen”), a company that has developed
a proprietary platform for the management of eet ma-
nagement and sustainable mobility company processes;
• in May 2022, Var Group SpA’s acquisition of 51% of
Durante SpA, a company with around 140 employees
specialising in the design and offer of Digital Workspa-
ce solutions, Collaboration and integration of multimedia
systems with over 500 leading national and international
customers. Durante will expand the Var Group’s offering
by establishing the new Business Unit digital workspace;
• in June 2022, Var Group SpA’s acquisition of 55% of Eu-
rolab Srl, a long-standing partner in the IBM ecosystem,
with a workforce of around 20 people, specialising in the
design and offer of value-added services and solutions
for the monitoring and control of systems and networks
and the implementation of complex IT infrastructures;
• in July 2022, Var Group SpA’s acquisition of the majority
of the capital of YoctoIT Srl, a player specialising in Cloud
and Security services and solutions with around 20 spe-
cialised resources.
The integration of digital competencies and the development
of human capital continued on the basis of an organisational
model focused on specialisation in vertical market areas and
the generation of balanced value for stakeholders.
No further signicant events occurred after the end of the
nancial year.
3.8. Business outlook
In light of the developments in the rst few months of the new
nancial year, the Group conrms an expectation of business
growth in line with its long-term growth track record, thanks
to the success of its strategic positioning and beneting
from the strong demand for digitisation by companies and
organisations.
In the new nancial year, sustainability programmes will be
further implemented in the areas of governance, human
resources management, environmental protection and social
responsibility, with a strong commitment to supporting the
generation of sustainable value for all stakeholders.
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6
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30, 2022
Consolidated
non-nancial
statement
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43
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of April 30, 2022
5
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statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
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Non-nancial statement
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30, 2022
4.1. Reporting principles
and criteria
This Consolidated Non-Financial Statement as at 30 April
2022 is an integral part of the Sesa Group’s Annual Integrated
Report which, based on a framework issued by the IIRC
(International Integrated Reporting Council), represents the
most innovative reporting tool. Based on the analysis of the
6 key pillars - nancial, infrastructural, organisational, human,
relational, social and environmental - the Integrated Report
allows for a sustainable and integrated strategic vision of all
levels of the organisation, focusing not only on the dimension
of sustainability but also on that of intangible capitals.
The Group has prepared this document by choosing a “GRI
– Referenced” approach to the international “GRI Standards”
Guidelines prepared by the Global Reporting Initiative,
updated to the 2020 version.
To date, these Guidelines represent the most widespread and
recognised European standard for non-nancial reporting.
Compliance with the provisions of Legislative Decree
254/2016 is ensured not only by the information contained in
this Chapter, but also by cross-referencing to other sections of
the Annual Integrated Report and other corporate documents,
if the information is already contained therein or to which
reference is made for further details.
Specically:
• The business model of management and organisation is
illustrated in the sections “Business Model: Activities and
Sectors”, “Sustainability Governance” and “Responsible
Business Management: Ethical Compliance and Risk
and Opportunity Management”, which describe the way
in which the organisation generates results through its
business activities, aiming to achieve strategic objectives
and create value in the short, medium and long term;
• Risk management is described in the sections “Material
Issues Related to Business Activities” and “Responsible
Business Management: Ethical Compliance and Risk
and Opportunity Management” which describe in greater
detail the main non-nancial risks associated with ma-
terial issues, their possible impacts and how to manage
them;
• The corporate policies are described in the section “Com-
pliance and anti-corruption” that denes the principles
and general rules of conduct that must inspire Sesa’s
activities. In addition, the chapter “Performance as at 30
April 2022” sets out, in correspondence with the relevant
paragraphs related to each material issue, the strategic
objectives and the operational methods to achieve them;
• Performance is illustrated in the sections of chapter “Per-
formance as at 30 April 2022”, which illustrates the main
initiatives of the year and the results achieved over the
past year.
PRINCIPLE OF MATERIALITY
The information was selected on the basis of a “materiality”
(i.e., “relevance”) principle that identies those through which
an understanding of the company’s activities on non-nancial
issues can be ensured. The process led to the identication
of the areas where the greatest risks and opportunities are
concentrated in order to develop the company’s business in
a long-term perspective and create value for all stakeholders.
In order to facilitate the reader’s understanding of the
document, the report presents a correlation table between
the areas referred to in Decree 254/16, the material issues
of the Sesa Group, the policies practised, the risks identied,
and the indicators reported within the NFS, with notes on the
alignment between what is reported and what is referred to in
the GRI Guidelines and the requirements of the Decree.
With regard to the data contained therein, the reporting scope
is the same as that of the Sesa Group’s Consolidated Financial
Statements
29
. Any changes to this scope are appropriately
reported in the document.
During the reporting process for the nancial year to 30 April
2022, it was evaluated to revise the method of calculating
some GRI indicators, as reported in the notes to the reference
tables. In particular, we point out the updating of data on water
withdrawals from water-stressed areas as of 30/04/2020
(Chapter “3.4 Key Sustainability Performance”).
With reference to the changes in the consolidation
perimeter during the period in question, relating to company
29. The Sesa Foundation is not included in the scope of consolidation but has been reported as a non-prot organisation of the Group that carries out philanthropic and welfare activities on
behalf of Sesa SpA.
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acquisitions, we report the following: in the Software and
System Integration Sector, Adacto Srl, Cadlog France, Cadlog
Gmbh, Cadlog Group Srl, Cadlog Spain, Cimtec GmbH, Datef
SpA, Digital Security Srl, Digital Workspace Srl, FEN WO,
ICOS Gmbh, NGS Srl, PAL IFL Srl, Pegaso Srl, Polymatic Srl,
Superresolution Srl, Z3 Engineering Srl; in the Value Added
Distribution Sector, Brainworks Gmbh, P.M. Service Srl Kolme
Srl; in the Business Services Sector the companies A Plus Srl,
Base Digitale Platform Srl, Base Digitale Security Solutions
Srl, Citel SpA, Omigrade Srl, Omigrade Servizi Srl, STB Srl,
T&O Srl.
The document was prepared by the Sustainability Operations
Committee, which is in charge of coordinating the monitoring
and improvement actions of the Sesa Group’s overall
sustainability prole and consists of the Team Leader, some
of the main Corporate Governance functions as well as the
Human Resources ofce in cooperation with the AFC and
Group Financial Statements functions.
In order to allow for the comparability of data over time, a
comparison was made for the nancial years as at 30 April
2020, 30 April 2021 and 30 April 2022. In order to ensure
the reliability of the data, the use of estimates was limited
and, where present, these are appropriately reported in the
document. Specically: electricity: for companies that did not
have the consumption value in kWh but only in Euro, this
value was converted proportionally with respect to the actual
consumption in kwh of the companies managed internally;
natural gas: for companies that did not have the consumption
value in smc but only in Euro, the value in smc was estimated
through the average cost of natural gas relative to the actual
gas consumption of the companies managed internally; fuel:
for companies that did not have the value of consumption in
a specic unit of measurement, the available value of fuel
consumption in euros was converted considering the average
price of diesel, petrol, LPG and methane incurred by the
companies under internal management.
The water, electricity and natural gas consumption of the
companies that entered in the scope of consolidation during
the nancial year as at April 30, 2022 (A Plus Srl, Adacto Srl,
Brainworks Gmbh, Base Digitale Platform Srl, Base Digitale
Security Solutions Srl, Citel SpA , Datef SpA, Digital Security
Solutions Srl, Digital Workspace Srl, ICOS Gmbh, Kolme Srl,
NGS Srl, Omigrade Srl, Omigrade Servizi Srl, PAL IFM Srl,
Pegaso Srl, Sebic Srl, STB Srl, T&O Srl, Z3 Engineering Srl)
are considered only for the portion pertaining to them, based
on the number of months. Water consumption was promptly
reported and, where not available, the data was estimated
based on the number of HRs. With regard to the KPI “Total
hours of training” we specify that for the companies that
entered the scope of consolidation during the nancial year
as at April 30, 2022, a period of 12 months was considered,
as it is not possible to use a precise estimate for the months
of competence.
The gender pay gap was calculated by including the Italian
companies of the Group. The coverage of the perimeter of the
data is equal to 85%."
During the reporting process for the nancial year to 30
April 2022, the method of calculating some GRI indicators
was revised. In particular, the updated data relate to water
withdrawals as of 30/04/2021 and water withdrawals from
water-stressed areas as at 30/04/2020, reported in Chapter
“3.4 Key Sustainability Performance”.
The Sesa Group’s Annual Integrated Report was approved
by the Board of Directors of Sesa SpA on 12 July 2022 and,
in accordance with the provisions of Legislative Decree
254/2016, subjected to an opinion of conformity by the auditing
rm PricewaterhouseCoopers SpA (“limited assurance
engagement” according to the criteria indicated by the ISAE
3000 Revised standard) and published on the institutional
website of Sesa SpA (www.sesa.it).
Chronologically, this document was:
• drafted by Sesa and, specically, by the related working
group, which coordinated and involved the main com-
pany functions in the phase of data collection, analysis
and consolidation, with the task of checking and valida-
ting all the information reported in the Statement, each
one for its own area of competence;
• approved by the Board of Directors, convened to appro-
ve the draft nancial statements;
• audited by the PricewaterhouseCoopers SpA auditing
company;
• made available to shareholders and the public within the
same time limits and in the same manner as for the pre-
sentation of the draft nancial statements;
• published and downloadable from the corporate website.
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The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
ACCOUNTING PRINCIPLES
Materiality
The document describes the main economic, social, and environmental impacts directly related to
Sesa’s activities that are of greatest signicance both for the Group and for the internal and external
stakeholders involved in the company’s activities.
Stakeholder inclusiveness
Sesa takes into account the expectations and interests of all stakeholders who in various ways
contribute to or are affected by the company’s activities. The document offers a description of the
Group’s main stakeholders and the main document sources/channels of dialogue through which their
interests and expectations are identied.
Context of sustainability
The reporting of non-nancial results was carried out taking into consideration the socio-economic
context in which the Group operates and the issues of greatest relevance for the Information and
Communication Technology sector, also through the analysis of sustainability reports of national and
international groups in the reference sector or related industries.
Completeness
The choices made regarding the subjects reported and the scope of the Statement allow stakehol-
ders to make a comprehensive assessment of the Group’s main economic, social, and environmen-
tal impacts.
Balance
The document presents the Group’s key sustainability performance, reporting both aspects in which
the Group shows positive results and trends, and areas where room for further improvement is
identied.
Comparability
The indicators in the document are chosen to ensure the analysis of the Group’s performance over
the years. In order to ensure the comparison or contextualization of the information, data referring to
the years 2020 and 2021 have been included and appropriately indicated.
Accuracy
In order to ensure the homogeneity and accuracy of the reported information, data were reported
through direct observation, limiting the use of estimates as much as possible. Where necessary,
such data are duly noted in the text.
Promptness
Sesa’s Annual Integrated Report is prepared annually and made public on the institutional website
following the Shareholders’ meeting approval.
Reliability
All data and information reported have been validated by the head ofcers of the relevant corporate
departments and are processed on the basis of documentary evidence proving their existence,
completeness and accuracy.
Clarity
Sesa’s Annual Integrated Report contains information presented in a way that is understandable and
accessible to all stakeholders.
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4.2. Correlation Table pursuant to Legislative Decree
254/2016
Table explaining the contents of the Non-nancial Statement with reference to the adoption of the GRI Sustainability Reporting
Standards and the requirements of Legislative Decree 254/16.
Topic Leg. Decree
254/2016
Material Topic
Risk
identied
Practised
policies
Topic specic standard
disclosure
Cap./Par.
of reference
Reporting
perimeter
Notes
Transversal Transversal
Cap. 3
Par. 2.4
Par. 1.4.3
207-1 Approach to taxation
207-2 Tax Governance, control and risk management
207-3 Involvement of stakeholder and management of tax
concerns
207-4: Reporting country by country Reporting
30
Cap. 3
Par. 2.4
Par. 1.4.3
Consolidated
companies
integrally to
30.04.2022
Environmental
Energy
consumption
Cap. 3
Par. 3.4.1
Cap. 3
Par. 3.4.1
302-1: Energy consumed
302-3: Energy intensity
Cap. 3
Par. 3.4.1
Consolidated
companies
integrally to
30.04.2022
1
Emissions
305-1: Direct GHG emissions (Scope 1)
305-2: Indirect GHG emissions (Scope 2)
31
305-4: GHG emissions intensity
2
Waste
management and
circular economy
306-3: Waste produced
3
Water consumption 303-3: Water withdrawals
4
Social
Responsible
supply chain
Cap. 1
Par. 1.6
Cap. 1
Par. 1.6
N/A
Cap. 1
Par. 1.6
Consolidated
companies
integrally to
30.04.2022
5
Value creation for
the community
Cap. 3
Par. 3.4.3
Cap. 3
Par. 3.4.3
201-1: Economic value generated and distributed
Cap. 3
Par. 3.4.3
6
Transparent
relationship with
customers
Cap. 1
Par. 1.6
Cap. 1
Par. 1.6
N/A
Cap. 1
Par. 1.6
Sustainability
environmental of
local community
Cap. 3
Par. 3.4.3
Cap. 3
Par. 3.4.3
N/A
Cap. 3
Par. 3.4.3
HR and Human
Rights
Corporate welfare
and occupation
Cap. 3
Par. 3.4.2
Cap. 3
Par. 3.4.2
102-8: Information on employees and other workers
401-1: New hires and turonver
401-3: Parental Leave
Cap. 3
Par. 3.4.2
Consolidated
companies
integrally to
30.04.2022
7
HR health & Safety
403-5: Worker training in occupational health and safety
403-9: Occupational Accidents
8
HR skills
development and
training
404-1: Average hours of training per year and per employee
9
Diversity &
Inclusion
405-1: Diversity in governing bodies and employees
10
405-2 Ratio of basic salary and remuneration of
women to men
See note 11 for
more details
11
Protection of
Human Rights
Cap. 2
Par. 2.4.2
Cap. 2
Par. 2.4.2
406-1: Discriminatory incidents and corrective measures
taken
Cap. 2
Par. 2.4.2
Consolidated
companies
integrally to
30.04.2022
12
Prevention of
active and passive
corruption
Anti-corruption
Cap. 1
Par. 1.4.3
Cap. 2
Par. 2.4.3
Cap. 1
Par. 1.4.3
Cap. 2
Par. 2.4.3
419-1: Non-compliance with social and economic laws and
regulations
205-3: Established incidents of corruption and intra- venous
actions
Cap. 1
Par. 1.4.3
Cap. 2
Par. 2.4.3
Consolidated
companies
integrally to
30.04.2022
Ethics and
compliance
Cap. 2
Par. 2.4.3
Cap. 2
Par. 2.4.3
Cap. 2
Par. 2.4.3
Data and privacy
protection
Cap.2
Par. 2.4.4
Cap.2
Par. 2.4.4
418-1: Proven complaints regarding violations of the
customer privacy and loss of customer data
Cap.2
Par. 2.4.4
(1) Policies: Environmental Policy and ISO 14001 Certication. The Company reports energy consumption in GJ broken down by energy source. (2) Policies: The Group manages these issues
according to a practice geared towards efcient environmental impacts. (3) Policies: Environmental Policy and ISO 14001 Certication. Indicators: With reference to the waste indicator, it was not
possible report the tons of solid urban waste as they are managed by the public collection service. (4) Other (non-GRI) - Risks and Policies: water is only used for health services, there is no need
to formalise policies and risks. (5) Risks and Policies: implemented a risk monitoring system and related management policies related to socio-environmental aspects. (6) Other (non-GRI): Total
amount disbursed for social projects; Number of projects and students involved. The Group reports on the activities carried out by the Sesa Foundation. (7) GRI 102-8: The Group reports details
of employees by contract type (full-time and part-time). GRI 401-1: The Group reports the recruitment rate and provides disclosure on the total number of new hires with details by gender, age
group and geographic area. No detail of new hires by geographic area is reported. (8) Indicators: Part of the disclosure is not available, as the gure for non-employee workers is not monitored,
given the absence of an obligation to collect this information in compliance with current regulations. In addition, the company does not report details of the type of accident for registered accidents
and hours worked. (9) The Group reports training hours by gender and course type but does not report the average annual training per employee by gender and professional category. (10) The
company reports the information required by the GRI indicator considering employees and trainees. (11) Indicator: the Group reports the overall Group gender pay gap indicator including only
the Italian companies of the Group and excluding only the professional category of Executives, as it is not representative of the sample under examination. The Company does not report the
percentage of the governing body by age group. (12) Indicator: the total number of incidents of discrimination during the reporting period is 0.
30. In 2022, the Group provided a partial disclosure of the indicator and set the goal of full disclosure in the coming years
31. The Group reports indirect GHG emissions (scope 2) for the following gas: CO
2
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Performance as
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5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
4.3. Global Compact Reconciliation Table
Principles Sesa Non-nancial reporting 2021 Pages
Principles 1, 2 - Businesses are required to pro-
mote and respect universally recognised human
rights within their spheres of inuence and to
ensure that they do not collude in human rights
abuses, even indirectly.
Human Rights
Commitment to ensure and promote respect for human rights, a priority for the Group, in all business areas and
among all stakeholders, whether they are Group employees or suppliers. Activities are carried out in accordance
with the fundamental standards of human rights.
The Group’s policies and practices are aligned with the International Charter of Human Rights, including the
United Nations (UN) Universal Declaration of Human Rights, the International Labour Organisation (ILO) Core
Conventions, the Organisation for Economic Co-operation and Development (OECD) Guidelines for Multinatio-
nal Enterprises as well as the UN Global Compact Ten Principles.
Sesa promotes sustainability and business ethics in the supply chain, carrying out audits on matters of human
rights, environment, occupational health, and safety on its suppliers. Sesa protects occupational health and
safety by means of training, awareness, and information.
52-58
Principles 3, 4, 5, 6 - Businesses are required to
uphold the freedom of association of employees
and recognise the right to collective bargaining;
the elimination of all forms of forced
and compulsory labour; the effective elimination
of child labour; the elimination of all forms of
discrimination in employment and occupation.
Work
Sesa undertakes to respect the four fundamental labour standards of the ILO, as set out in the Declaration on
Fundamental Principles and Rights at Work: freedom of association and the right to collective bargaining; the
elimination of all forms of forced or compulsory labour; the effective abolition of child labour; and the elimination
of all forms of discrimination in relation to employment and occupation.
Sesa rejects all forms of discrimination and undertakes to maintain a working environment free from all form of
violence and harassment. Sesa regulates relations with political organisations and trade unions exclusively on
the basis of the laws, regulations, and agreements/contracts in force, ensuring the highest principles of transpa-
rency and fairness. Sesa undertakes initiatives to reconcile life and work. Sesa ensures the provision of training
and professional development to its employees.
Sesa promotes sustainability and business ethics at the supply chain, carrying out audits on human rights,
environment, health and safety at work on its suppliers. Sesa protects health and safety at work through training,
awareness and information initiatives.
52-58
88-96
Principles 7, 8, 9 - Businesses are required to
support a precautionary approach to environ-
mental challenges, to engage in initiatives that
promote greater environmental responsibility,
and to encourage the development and dissemi-
nation of environmentally friendly technologies.
Environment
Sesa undertakes to:
• reduce its direct impacts by reducing the consumption and the waste produced and choosing to favour the
use of environmentally sustainable resources, such as energy from certied renewable sources;
• protect the environment and identify environmental management systems as the tool for implementing and
monitoring the actions taken to full the commitments made;
• follow all international best practices to minimise environmental impact and develop new technologies to
save energy, reduce emissions and increase the performance and quality of the vehicles used;
• raise awareness of environmental aspects among their suppliers.
29-36
Principle 10 - Businesses undertake to ght
corruption in all its forms, including extortion
and bribery.
Fighting against corruption
Sesa disseminates ethical principles and corporate values and provides training on legality and anti-corruption.
Sesa conducts reputational audits of suppliers and third parties. No corruption cases were reported in 2021.
Sesa promotes sustainability and business ethics at the supply chain, carrying out audits on human rights, envi-
ronment, occupational health and safety on its suppliers. Sesa protects occupational health and safety through
training, awareness and information initiatives.
52-58
Support of Sustainable Development Goals.
Sesa also undertakes to contribute to the achievement of the Sustainable Development Goals dened by the
United Nations. The Company is particularly active on goals 5, 8, 9, 10, 13, 16, 17
40-42
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Non-nancial statement
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Independent Auditor’s report on the Consolidated Non-Financial Statement as of April 30, 2022
Independent auditor’s report on the consolidated non-
financial statement
pursuant to article 3, paragraph 10, of Legislative Decree no. 254/2016 and article 5 of
CONSOB regulation no. 20267 of January 2018
To the Board of Directors of Sesa SpA
Pursuant to article 3, paragraph 10, of Legislative Decree No. 254 of 30 December 2016 (the “Decree”)
and article 5 of CONSOB Regulation No. 20267/2018, we have undertaken a limited assurance
engagement on the consolidated non-financial statement of Sesa SpA and its subsidiaries (the
“Group”) for the year ended 30 April 2022 prepared in accordance with article 4 of the Decree,
presented in the Integrated Annual Report and approved by the Board of Directors on 12 July 2022
(the “NFS”).
Our review does not extend to the information set out in the paragraph European taxonomy for
environmentally sustainable activities of the NFS, required by article 8 of European Regulation
2020/852.
Responsibilities of the Directors and the Management Control Committee for the NFS
The Directors are responsible for the preparation of the NFS in accordance with articles 3 and 4 of the
Decree and with the Global Reporting Initiative Sustainability Reporting Standards defined in 2016,
and updated to 2020, by the GRI - Global Reporting Initiative (the “GRI Standards”), stated in the
"Reporting Principles and Criteria" section of the NFS
The Directors are also responsible, in the terms prescribed by law, for such internal control as they
determine is necessary to enable the preparation of a NFS that is free from material misstatement,
whether due to fraud or error.
Moreover, the Directors are responsible for identifying the content of the NFS, within the matters
mentioned in article 3, paragraph 1, of the Decree, considering the activities and characteristics of the
Group and to the extent necessary to ensure an understanding of the Group’s activities, its
performance, its results and related impacts.
Finally, the Directors are responsible for defining the business and organisational model of the Group
and, with reference to the matters identified and reported in the NFS, for the policies adopted by the
Group and for the identification and management of risks generated and/or faced by the Group.
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management
2
Consolidated
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43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
2 of 4
The management control committee is responsible for overseeing, in the terms prescribed by law,
compliance with the Decree.
Auditor’s Independence and Quality Control
We are independent in accordance with the principles of ethics and independence set out in the Code
of Ethics for Professional Accountants published by the International Ethics Standards Board for
Accountants, which are based on the fundamental principles of integrity, objectivity, competence and
professional diligence, confidentiality and professional behaviour. Our audit firm adopts International
Standard on Quality Control 1 (ISQC Italia 1) and, accordingly, maintains an overall quality control
system which includes processes and procedures for compliance with ethical and professional
principles and with applicable laws and regulations.
Auditor’s responsibilities
We are responsible for expressing a conclusion, on the basis of the work performed, regarding the
compliance of the NFS with the Decree and with the GRI Standards. We conducted our work in
accordance with International Standard on Assurance Engagements 3000 (Revised) – Assurance
Engagements Other than Audits or Reviews of Historical Financial Information (“ISAE 3000
Revised”), issued by the International Auditing and Assurance Standards Board (IAASB) for limited
assurance engagements. The standard requires that we plan and apply procedures in order to obtain
limited assurance that the NFS is free of material misstatement. The procedures performed in a
limited assurance engagement are less in scope than those performed in a reasonable assurance
engagement in accordance with ISAE 3000 Revised, and, therefore, do not provide us with a sufficient
level of assurance that we have become aware of all significant facts and circumstances that might be
identified in a reasonable assurance engagement.
The procedures performed on the NFS were based on our professional judgement and consisted in
interviews, primarily of company personnel responsible for the preparation of the information
presented in the NFS, analyses of documents, recalculations and other procedures designed to obtain
evidence considered useful.
In detail, we performed the following procedures:
1. analysis of the relevant matters reported in the NFS relating to the activities and
characteristics of the Group, in order to assess the reasonableness of the selection process
used, in accordance with article 3 of the Decree and with the reporting standard adopted;
2. analysis and assessment of the criteria used to identify the consolidation area, in order to
assess their compliance with the Decree;
3. comparison of the financial information reported in the NFS with the information reported in
the consolidated financial statements of the Sesa Group;
4. understanding of the following matters:
a. business and organisational model of the Group with reference to the management of
the matters specified by article 3 of the Decree;
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3 of 4
b. policies adopted by the Group with reference to the matters specified in article 3 of the
Decree, actual results and related key performance indicators;
c. key risks generated and/or faced by the Group with reference to the matters specified
in article 3 of the Decree.
With reference to those matters, we compared the information obtained with the information
presented in the NFS and carried out the procedures described under point 5 a) below;
5. understanding of the processes underlying the preparation, collection and management of the
significant qualitative and quantitative information included in the NFS.
In detail, we held meetings and interviews with the management of Sesa SpA and we
performed limited analyses of documentary evidence, to gather information about the
processes and procedures for the collection, consolidation, processing and submission of the
non-financial information to the function responsible for the preparation of the NFS.
Moreover, for material information, considering the activities and characteristics of the Group:
- at a group level,
a) with reference to the qualitative information included in the NFS, and in
particular to the business model, the policies adopted and the main risks, we
carried out interviews and acquired supporting documentation to verify its
consistency with available evidence;
b) with reference to quantitative information, we performed analytical procedures
as well as limited tests, in order to assess, on a sample basis, the accuracy of
consolidation of the information.
- for the technological hub located in Empoli (Florence), which was selected on the basis
of its activities and its contribution to the performance indicators at a consolidated
level, we met local management and gathered supporting documentation regarding the
correct application of the procedures and calculation methods used for the key
performance indicators.
Conclusion
Based on the work performed, nothing has come to our attention that causes us to believe that the NFS
of the Sesa Group for the year ended 30 April 2022 is not prepared, in all material respects, in
accordance with articles 3 and 4 of the Decree and with reference to a selection of GRI Standards
therein contained.
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1
Strategy and risk
management
2
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non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
4 of 4
Our conclusions on the NFS of the Sesa Group do not extend to the information set out in the
paragraph European taxonomy for environmentally sustainable activities of the NSF, required by
article 8 of European Regulation 2020/852.
Florence, 25 July 2022
PricewaterhouseCoopers SpA
Signed by Signed by
Francesco Forzoni Paolo Bersani
(Partner) (Authorised signatory)
This report has been translated from the Italian original solely for the convenience of international
readers. We have not performed any controls on the NFS 2022 translation included in the Integrated
Annual Report.
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43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
Consolidated
nancial
statements as of
April 30, 2022
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
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management
2
Consolidated
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43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
CONSOLIDATED INCOME STATEMENT
Year ended 30 April
(Euro thousands) Note 2022 2021
Revenues 7 2,362,603 2,022,454
Other income 8 27,220 14,769
Consumables and goods for resale 9 (1,818,391 ) (1,590,272 )
Costs for services and rent, leasing, and similar costs 10 (203,805 ) (157,031 )
Personnel costs 11 (197,673 ) (162,972 )
Other operating costs 12 (14,053 ) (10,463 )
Amortisation and Depreciation 13 (41,706 ) (32,483 )
Operating result 114,195 84,002
Share of prots of companies valued at equity 14 1,744 2,345
Financial income 15 9,054 8,578
Financial expenses 15 (15,910 ) (14,099 )
Prot before taxes 109,083 80,826
Income taxes 16 (30,464 ) (24,040 )
Prot for the year 78,619 56,786
of which:
Prot attributable to non-controlling interests 5,100 4,514
Prot attributable to the Group 73,519 52,272
Earnings per share - basic (in Euro) 25 4.76 3.39
Earnings per share - diluted (in Euro) 25 4.74 3.37
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Year ended 30 April
(Euro thousands) Note 2022 2021
Prot for the year 78,619 56,786
Items that cannot be reclassied to the Income Statement
Actuarial gain/loss for employee benets - Gross effect 25 2,213 216
Actuarial gain/loss for employee benets - Tax effect 25 (562 ) (51 )
Comprehensive income for the year 80,270 56,951
of which:
Comprehensive income attributable to non-controlling interests 5,313 4,538
Comprehensive income attributable to the Group 74,957 52,413
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Consolidated nancial statements as of April 30, 2022
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 30 April
(Euro thousands) Note 2022 2021
Intangible assets 17 228,280 142,826
Rights of use 57,401 55,220
Property, plant and equipment 18 54,542 44,722
Investment property 19 290 290
Equity investments value at equity 14 14,593 13,850
Receivables for deferred tax assets 20 15,910 12,987
Other non-current receivables and assets 21 16,655 14,644
Total non-current assets 387,671 284,539
Inventory 22 144,034 86,920
Current trade receivables 23 434,579 355,781
Current tax receivables 6,651 6,001
Other current receivables and assets 21 86,718 57,634
Cash and cash equivalents 24 496,311 426,665
Total current assets 1,168,293 933,001
Total assets 1,555,964 1,217,540
Share capital 37,127 37,127
Share premium reserve 33,144 33,144
Other reserves (44,978 ) (19,421 )
Prots carried forward 290,148 227,776
Total shareholders’ equity attributable to the Group 315,441 278,626
Shareholders' equity attributable to non-controlling interests 19,718 18,729
Total Shareholders' equity 25 335,159 297,355
Non-current loans 26 123,559 128,554
Financial liabilities for non-current rights of use 33,849 33,626
Non current nancial liabilities and commitments for purchase of shares from non-controlling interests 76,808 47,838
Employee benets 27 44,379 40,897
Non-current provisions 28 4,240 2,284
Deferred tax liabilities 20 63,333 35,989
Total non-current liabilities 346,168 289,188
Current loans 26 130,054 100,994
Financial liabilities for current rights of use 11,084 10,245
Current nancial liabilities and commitments for purchase of shares from non-controlling interests 31,589 10,967
Trade payables 525,879 366,101
Current tax payables 10,940 7,403
Other current liabilities 29 165,091 135,287
Total current liabilities 874,637 630,997
Total liabilities 1,220,805 920,185
Total shareholders' equity and liabilities 1,555,964 1,217,540
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43
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of April 30, 2022
5
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statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
CONSOLIDATED STATEMENT OF CASH FLOWS
Year ended 30 April
(Euro thousands) Note 2022 2021
Prot before taxes 109,083 80,826
Adjustments for:
Amortisation and Depreciation 13 41,706 32,483
Accruals to provisions relating to personnel and other provisions 12,11 12,235 10,411
Net nancial (income) expense 15 3,344 3,309
Prot of companies valued using the equity method 14 (1,743 ) (2,345 )
Other non-monetary entries 829 2,403
Cash ows generated by operating activities before changes in net working capital 165,454 127,087
Change in inventory 22 (50,042 ) 6,149
Change in trade receivables 23 (46,860 ) 55,692
Change in payables to suppliers 120,232 (28,727 )
Change in other assets 21 (9,960 ) (2,231 )
Change in other liabilities 29 868 19,168
Use of provisions for risks 28 (2,152 ) (785 )
Employee benets 27 (2,538 ) (1,769 )
Change in deferred taxes 20 (5,217 ) (3,373 )
Change in receivables and payables for current taxes 2,600 977
Interest paid 15 (4,449 ) (4,009 )
Taxes paid (22,460 ) (20,291 )
Net cash ow generated by operating activities 145,476 147,888
Investments in companies net of cash acquired 6 (25,381 ) (10,322 )
Investments in property, plant and equipment 18 (18,525 ) (17,072 )
Investments in intangible assets 17 (6,973 ) (9,927 )
Disposal of property, plant and equipment and intangible assets 17,18 296
Investments in associated companies 14 (810 ) (28 )
Non-current equity investments in other companies 21 (1,181 ) (1,812 )
Disposals of non-current equity investments in other companies 21 (163 )
Dividends collected 1,367 690
Interest collected 15 588 581
Net cash ow generated by/(used in) by investment activity (50,915 ) (37,757 )
Subscription of long-term loans 4,26 80,650 65,917
Repayment of long-term loans 4,26 (89,416 ) (76,202 )
(Reduction)/increase in short-term loans 4,26 18,289 (26,947 )
Repayment of nancial liabilities for rights of use (13,555 ) (11,561 )
Investments/disinvestments in nancial assets (236 ) 478
Treasury shares 25 (6,005 ) (3,107 )
Dividends distributed 25 (14,642 ) (510 )
Net cash ow generated by/(used in) nancial activities (24,915 ) (51,932 )
Change in cash and cash equivalents 69,646 58,199
Opening balance of cash and cash equivalents 426,665 368,466
Closing balance of cash and cash equivalents 496,311 426,665
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(Euro thousands)
Share
capital
Share
premium
reserve
Other
reserves
Prots for the year
and prots carried
forward
Shareholders’
equity
attributable to
the Group
Shareholders'
equity attributable
to non-controlling
interests
Total
Shareholders'
equity
At 30 April 2020 37,127 33,144 (17,763 ) 183,884 236,392 17,467 253,859
Prot for the year 52,272 52,272 4,514 56,786
Actuarial gain/(loss) for employee benets - gross 185 185 31 216
Actuarial gain/(loss)for employee benets - tax effect (44 ) (44 ) (7 ) (51 )
Comprehensive income for the year 141 52,272 52,413 4,538 56,951
Transactions with shareholders
Purchase of treasury shares (3,108 ) (3,108 ) (3,108 )
Sale of treasury shares
Distribution of dividends (510 ) (510 )
Assignment of shares in execution of Stock Grant plan
Stock Grant plans - shares vesting in the period 3,257 3,257 3,257
Allocation of prot for the year 11,100 (11,100 )
Change in the scope of consolidation and other
changes
(13,048 ) 2,720 (10,328 ) (2,766 ) (13,094 )
At 30 April 2021 37,127 33,144 (19,421 ) 227,776 278,626 18,729 297,355
Prot for the year 73,519 73,519 5,100 78,619
Actuarial gain/(loss) for employee benets - gross 1,929 1,929 284 2,213
Actuarial gain/(loss) for employee benets - tax effect (491 ) (491 ) (71 ) (562 )
Comprehensive income for the year 1,438 73,519 74,957 5,313 80,270
Transactions with shareholders
Purchase of treasury shares (6,005 ) (6,005 ) (6,005 )
Sale of treasury shares
Distribution of dividends (2,122 ) (11,046 ) (13,168 ) (1,474 ) (14,642 )
Assignment of shares in execution of Stock Grant plan
Stock Grant plan - shares vesting in the period 4,312 4,312 4,312
Allocation of prot for the year
Change in the scope of consolidation and other
changes
(23,761 ) 480 (23,281 ) (2,850 ) (26,131 )
At 30 April 2022 37,127 33,144 (44,978 ) 290,148 315,441 19,718 335,159
120
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6
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statements as of April
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Notes to the Consolidated
Financial Statements
1. General information
SESA S.p.A. (hereinafter “Sesa”, the “Company” or the
“Parent Company”) is a company incorporated and domiciled
in Italy, with registered ofce in Empoli, at no. 138 Via Piovola,
organised in compliance with the legal system of the Italian
Republic.
The Company and its subsidiaries (jointly the “Group”)
operate in Italy in the Information Technology sector and, in
particular, in the value-added distribution of IT software and
technologies (Value Added Distribution or VAD), in the offer of
System Integrator services aimed at training and supporting
companies as IT end-users (Software and System Integration
or VAR), and in the provision of business services for the
nance & banking sector (BS Sector).
The Company is controlled by ITH SpA, which holds 52.81%
of the share capital.
This document was approved by the Company's Board of
Directors on 12 July 2022.
2. Summary of Accounting
Standards
The main accounting criteria and standards applied in the
preparation of the consolidated nancial statements of
Sesa SpA for the year ended 30 April 2022 (hereinafter the
“Consolidated nancial statements”) are illustrated below.
2.1. Basis of preparation
The Consolidated nancial statements for the year ended
30 April 2022 have been prepared in accordance with the
international accounting standards ("IFRSs") issued by the
International Accounting Standards Board ("IASB") and
approved by the European Union, and with the provisions
issued in implementation of art. 9 of Legislative Decree no.
38/2005. The IFRSs also include all revised international
accounting standards ("IAS"), as well as all interpretations
issued by the International Financial Reporting Interpretations
Committee (IFRIC) and the previous Standing Interpretations
Committee (SIC). The Consolidated nancial statements have
been prepared under the assumption that the company is a
going concern, in that the Directors have veried that there
are no nancial, management or other indicators such as to
indicate critical issues regarding the Group's ability to full its
obligations in the foreseeable future and particularly in the next
12 months. A description of how the Group manages nancial
risks is contained in note 3 on "Financial risk management".
The Consolidated nancial statements have been prepared
and presented in Euro, which is the currency of the prevailing
economic environment in which the Group operates. All
amounts included in this document, unless otherwise
indicated, are stated in Euro thousands.
The nancial statement schedules and relative classication
criteria adopted by the Group within the scope of the options
envisaged by IAS 1 Presentation of Financial Statements are
indicated below:
• The statement of nancial position has been prepared
with the classication of assets and liabilities according
to the "current/non-current" criterion;
• The income statement has been prepared with the clas-
sication of operating costs by type;
• The statement of comprehensive income includes, in ad-
dition to the prot for the year resulting from the income
statement, other changes in shareholders' equity items
attributable to transactions not entered into with Com-
pany shareholders;
• The statement of cash ows shows the cash ows from
operating activities according to the “indirect method”.
The Consolidated nancial statements have been prepared
on the basis of the conventional historical cost method except
for the valuation of nancial assets and liabilities, where the
application of the fair value method is required.
2.2. Scope of Consolidation and
Consolidation Criteria
The Consolidated nancial statements include the nancial
statements of the Company as well as the nancial
statements of the subsidiaries approved by their respective
administrative bodies. These nancial statements have been
suitably adjusted, where necessary, to bring them into line
with IFRS and the Company's reporting date at 30 April. The
companies included in the scope of consolidation at 30 April
2022 are detailed in Annex 1, which is an integral part of the
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Consolidated nancial statements. For further details on the
main changes that occurred in the scope of consolidation in
the years under review, see Note 5.
SUBSIDIARIES
Subsidiaries are consolidated on a line-by-line basis from the
date on which control is effectively acquired and cease to be
consolidated from the date on which control is transferred to
a third party. The criteria adopted for line-by-line consolidation
are the following:
• assets and liabilities, income and expenses of subsidia-
ries are considered line by line, attributing the portion of
shareholders' equity and net prot for the period to the
minority shareholders, where applicable; these portions
are shown separately under shareholders' equity and in
the income statement;
• business combinations of companies in which the con-
trol of an entity is acquired are recognised, in accordan-
ce with the provisions of IFRS 3, using the acquisition
method. The acquisition cost is represented by the
current value ("fair value") on the date of purchase of
the assets transferred, liabilities assumed and equity in-
struments issued. The identiable assets, liabilities and
potential liabilities assumed are recorded at their current
value on the acquisition date, except for deferred tax
assets and liabilities, assets and liabilities for employee
benets and assets held for sale, which are recorded
in accordance with the pertinent accounting standards.
Where positive, the difference between the acquisition
cost and the current value (fair value) of the assets and
liabilities acquired, is recorded under intangible assets
as goodwill. Where negative, it is recorded, after veri-
fying the correct measurement of the current values of
the assets and liabilities acquired and the acquisition
cost, directly in the income statement as income. Acces-
sory costs are recognised in the income statement at the
time they are incurred;
• the acquisition cost also includes the potential conside-
ration, recorded at fair value, on the date of acquisition of
control and, if the conditions are met, the expected value
of any put options granted to minority shareholders. Sub-
sequent changes in fair value are recognised in the inco-
me statement or statement of comprehensive income if
the potential consideration is a nancial asset or liability.
Potential consideration classied as shareholders' equity
is not recalculated and the subsequent extinction is reco-
gnised directly under shareholders' equity;
• if the business combinations through which control is
acquired take place in several stages, the Group recal-
culates the stake previously held in the company being
acquired at the respective fair value on the acquisition
date and recognises any resulting gain or loss in the in-
come statement;
• acquisitions of minority interests relating to entities which
are already controlled or the disposal of minority intere-
sts that do not result in the loss of control are conside-
red as equity transactions; consequently, any difference
between the acquisition/disposal cost and the related
portion of equity acquired/disposed of is recognised as
an adjustment of the Group's shareholders' equity;
• business combinations in which the participating com-
panies are denitively controlled by the same company
or companies both before and after the business combi-
nation, with said control being permanent, are classied
as transactions "under common control". These tran-
sactions do not fall within the scope of IFRS 3, which
governs the method of accounting for business combi-
nations, nor of other IFRS. In the absence of a reference
accounting standard, the Group, in accordance with the
provisions of OPI 1 Accounting treatment of "business
combinations of entities under common control" in the
statutory and consolidated nancial statements, issued
by Assirevi, and with the provisions of IAS 8, has booked
these entities on the basis of the book values resulting
from the nancial statements of the company acquired
on the date of transfer. Any differences between the cost
incurred for the acquisition and the relative portions of
shareholders' equity acquired are recorded directly un-
der shareholders' equity;
• signicant gains and losses, including the related tax
effects, deriving from transactions between companies
consolidated on a line-by-line basis and not yet realised
with third parties, are eliminated, except for losses that
are not eliminated if the transaction provides evidence of
impairment of the asset transferred. Reciprocal payables
and receivables, costs and revenues, and nancial inco-
me and expenses are also eliminated, if signicant;
• The nancial statements of subsidiaries are prepared
using the currency of the main economic environment in
which they operate.
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6
Separate nancial
statements as of April
30, 2022
ASSOCIATED COMPANIES
Associated companies are those over which the Group
exercises signicant inuence, which is presumed to exist
when the between 20% and 50% of the voting rights are held.
Investments in associated companies are valued using the
equity method and are initially recorded at cost. The equity
method is described below:
• the book value of these investments is aligned with the
shareholders' equity adjusted, where necessary, to reect
the application of IFRS and includes the recognition of
the higher values attributed to assets and liabilities and
any goodwill, if any, identied at the time of acquisition;
• prots or losses pertaining to the Group are recognised
from the date on which the signicant inuence began
and until the date on which the signicant inuence ce-
ases. If, due to losses, the company valued using the
equity method has a negative shareholders' equity,
the book value of the investment is cancelled and any
excess pertaining to the Group, where the Group has
undertaken to full the legal or implicit obligations of the
investee company, or to cover its losses, is recorded in
a specic provision; changes in the equity of companies
valued using the equity method, not represented by the
result of the income statement, are recorded directly in
the statement of comprehensive income;
• unrealised prots and losses generated by transactions
entered into between the Company/subsidiaries and the
investee company valued using the equity method, inclu-
ding the distribution of dividends, are eliminated on the
basis of the value of the Group's interest in the investee
company, except for losses where these represent a re-
duction in the value of the underlying asset.
CONVERSION OF TRANSACTIONS IN A CURRENCY OTHER
THAN THE FUNCTIONAL CURRENCY
Transactions in currencies other than the functional currency
of the entity entering into the transaction are converted using
the exchange rate in force on the date of the transaction.
Exchange gains and losses generated by the closing of the
transaction or by the year-end conversion of assets and
liabilities in foreign currency are recorded in the income
statement.
2.3. Valuation criteria
The most signicant accounting principles and valuation
criteria used to prepare the Consolidated nancial statements
are briey described below.
PROPERTY PLANT AND EQUIPMENT
Property, plant and equipment are recorded at purchase or
production cost, net of accumulated depreciation and any
impairment losses. The purchase or production cost includes
all costs directly incurred to prepare the assets for use, as well
as any deinstallation and removal costs that will be incurred
as a result of contractual obligations that require restoration of
the asset to its original condition. Financial expenses, if directly
attributable to the acquisition, construction or production of
qualied assets, are capitalised and amortised on the basis of
the useful life of the asset to which they refer.
Charges incurred for ordinary and/or cyclical maintenance
and repairs are charged to the income statement when they
are incurred. Costs relating to the expansion, modernisation
or improvement of structural elements owned or under lease
are capitalised to the extent that they meet the requirements
for separate classication as an asset or part of an asset.
Assets recorded in relation to leasehold improvements are
depreciated on the basis of the duration of the rental contract,
or on the basis of the specic useful life of the asset, if lower.
Depreciation is calculated on a straight-line basis using
rates that allow depreciation of assets until the end of their
useful life. When the asset subject to depreciation consists of
distinctly identiable elements the useful life of which differs
signicantly from that of the other parts comprising the asset,
depreciation is carried out separately for each of these parts in
accordance with the component approach method.
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The estimated useful life for the various tangible asset categories is as follows:
Class of property, plant and equipment
Useful life in years
Buildings 33
General installations 7
Specic data centre installations 20
Furniture and furnishings 8
Ofce equipment 2-5
Vehicles 4
The useful life of property, plant and equipment is reviewed and updated, where applicable, at least at the end of each nancial year.
Land is not subject to depreciation.
2.4. Right of use
Contracts for the leasing of property, plant and equipment entered into as a lessee entail the recognition of an asset representing
the right to use the leased asset and the nancial liability for the obligation to make the payments envisaged by the contract. In
particular, the lease liability is recognised initially as equal to the current value of the future payments to be made, adopting a
discount rate equal to the interest rate implicit in the lease or, if this cannot be easily determined, using the lessee's incremental
nancing rate.
After initial recognition, the lease liability is measured at amortised cost using the effective interest rate and is restated following
contractual renegotiations, changes in rates and changes in the valuation of any contractual options envisaged.
The right of use is initially recognised at cost and is subsequently adjusted to take into account amortisation and depreciation, any
impairment losses and the effects of any recalculations of lease liabilities.
The Group has decided to adopt certain simplications envisaged by the Standard, excluding contracts with a duration of less than
or equal to 12 months (so-called "short-term", calculated on the residual duration at rst-time adoption) and those with a value of
less than Euro ve thousand (so-called "low-value").
INTANGIBLE ASSETS
Intangible assets are identiable non-monetary elements without physical substance, controllable and capable of generating future
economic benets. These elements are initially recognised at purchase or production cost, including directly attributable expenses
for preparing the asset for use. Any interest expense accrued during and for the development of intangible assets is considered part
of the purchase cost. In particular, the following main intangible assets can be identied within the Group:
(A) GOODWILL
Goodwill, if recognised, is classied as an intangible asset with an undened useful life and is initially recognised at cost, as
described above, and subsequently subject to impairment testing at least once a year. No write-back is allowed in the event of a
previous write-down for impairment.
(B) OTHER INTANGIBLE ASSETS WITH A DEFINITE USEFUL LIFE
Intangible assets with a denite useful life are recognised at cost, as described above, net of accumulated amortisation and any
impairment losses. Amortisation begins when the asset becomes available for use and is systematically distributed in relation to its
residual possibility of use, i.e. on the basis of its estimated useful life.
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2
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43
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5
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statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
The useful life estimated by the Group for the various tangible asset categories is as follows:
Class of intangible assets
Useful life in years
Software licences and similar 5
Client list 10-15
Technological know-how 20
The "Technological know-how" class includes the intangible value of skills and technologies acquired externally by the group as part
of the business combinations operations carried out; this activity, like client lists, is recorded in the nancial statements following the
Purchase Price Allocation (PPA) process.
The useful life of intangible xed assets is reviewed and updated, where applicable, at least at the end of each nancial year.
INVESTMENT PROPERTY
Properties held for the purpose of obtaining lease payments or for the purpose of increasing the value of the investment are recorded
under "Investment property". They are evaluated at purchase or production cost, plus any accessory costs, net of accumulated
depreciation and any losses in value.
REDUCTION IN THE VALUE OF INTANGIBLE ASSETS, PROPERTY, PLANT AND EQUIPMENT AND INVESTMENT PROPERTY
(A) GOODWILL
As previously stated, goodwill, if recognised, is subject to impairment testing once a year or more frequently if there are indications
that its value may have been impaired. As at 30 April 2021, no goodwill was recorded.
In the presence of goodwill, the impairment test is carried out with reference to each of the cash generating units (CGUs) to which
the goodwill has been allocated. Any impairment of goodwill is recognised if its recoverable value is lower than its book value.
Recoverable value is the higher between the fair value of the CGU, net of disposal costs, and its value in use, the latter being the
current value of estimated future cash ows for the asset. In determining the value in use, expected future cash ows are discounted
using a pre-tax discount rate that reects current market evaluations of the cost of money, compared to the period of the investment
and the specic risks of the asset. If the impairment resulting from the impairment test is greater than the value of goodwill allocated
to the CGU, the residual excess is allocated to the assets included in the CGU in proportion to their carrying amount. Such allocation
shall be limited by the higher of the following amounts:
• the fair value of the asset net of sale expenses;
• the value in use, as dened above;
• zero.
The original value of goodwill cannot be restored if the reasons for its reduction in value no longer exist.
(B) ASSETS (INTANGIBLE ASSETS, PROPERTY, PLANT AND EQUIPMENT AND INVESTMENT PROPERTY WITH A DEFINITE USEFUL
LIFE
At each balance sheet date, an impairment test is carried out to determine whether there are any indications that property, plant
and equipment, intangible assets or investment property may have suffered a loss in value. To this end, both internal and external
sources of information are considered. With regard to the former (internal sources), the following are considered: the obsolescence
or physical deterioration of the asset, any signicant changes in the use of the asset and the economic performance of the asset
125
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compared to expectations. As regards external sources, the
following are considered: the trend in the market prices of the
assets, any technological, market or regulatory discontinuities,
the trend in market interest rates or in the cost of the capital
used to evaluate the investments.
If the presence of such indicators is identied, the recoverable
value of the abovementioned assets is estimated, recording
any write-down with respect to the relative book value in the
income statement. The recoverable value of an asset is
the higher between the fair value, net of sale costs, and its
value in use, the latter being the current value of estimated
future cash ows for the asset. In determining the value in
use, expected future cash ows are discounted using a pre-
tax discount rate that reects current market evaluations of
the cost of money, compared to the period of the investment
and the specic risks of the asset. For an asset that does not
generate largely independent cash ows, the recoverable
value is determined in relation to the cash generating unit to
which the asset belongs.
A loss in value is recognised in the income statement if the
book value of the asset, or of the related CGU to which it is
allocated, is higher than its recoverable value. Impairment of
CGUs are rst recognised as a reduction in the book value
of any goodwill attributed to them and then as a reduction
in other assets, in proportion to their book value and within
the limits of their recoverable value. If the conditions for a
previously made write-down no longer exist, the book value
of the asset is restored and recorded in the income statement,
within the limits of the net book value that the asset in question
would have had if the write-down had not taken place and the
relative amortisation had been applied.
TRADE RECEIVABLES AND OTHER FINANCIAL ASSETS
Based on the characteristics of the instrument and the
business model adopted for its management, the following
three categories are distinguished in compliance with IFRS 9:
(i) nancial assets measured at amortised cost; (ii) nancial
assets measured at fair value, recording the effects among
the other comprehensive income components; (iii) nancial
assets measured at fair value, recording the effects in the
income statement.
Financial assets are measured using the amortised cost
method if both of the following conditions are met:
• the nancial asset management model consists of hol-
ding the nancial asset for the sole purpose of collecting
the related cash ows; and
• the nancial asset generates, at contractually predeter-
mined dates, cash ows that are exclusively representa-
tive of the return on the nancial asset.
Financial assets representing debt instruments with a business
model that envisages both the possibility of collecting the
contractual cash ows and the possibility of realising capital
gains on disposal (so-called business model hold to collect
and sell), are measured at fair value, recording the effects
under other comprehensive income (FVTOCI).
A nancial asset represented by debt securities that is not
measured at amortised cost or FVTOCI is measured at fair
value, recording the effects in the income statement (FVTPL).
Trade receivables are initially recognised at fair value and
subsequently measured at amortised cost using the effective
interest rate method. Trade receivables are included in current
assets, with the exception of those with a contractual maturity
in excess of twelve months from the balance sheet date,
which are classied as non-current assets.
In the case of factoring transactions for trade receivables
that do not involve transferral to the factor of the risks and
rewards associated with the receivables assigned (the Group
continues to be exposed to the risk of insolvency and delayed
payment - the so-called assignments with recourse), the
transaction is treated in the same way as a loan secured
by the receivable subject to assignment. In this case, the
receivable assigned continues to be represented in the
Group's balance sheet and nancial report until it is collected
by the factor and any advance obtained from the factor is
offset by a nancial payable. The nancial cost of factoring
transactions is represented by interest on the amounts
advanced recognised in the income statement on an accruals
basis, which are classied as nancial expense. Commissions
accruing on sales with recourse are included under nancial
expense, while commissions on sales without recourse are
recorded under other operating costs.
IFRS 9 denes a new impairment/write-down model for these
assets, with the aim of providing useful information to users of
the nancial statements on the relative expected losses.
For trade receivables, the Group adopts a simplied approach
to valuation which does not require the recognition of periodic
changes in credit risk, but rather the recognition of an
Expected Credit Loss ("ECL") calculated over the entire life
of the receivable.
Receivables are entirely written down when there is objective
evidence that the Group will not be able to recover the
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statements as of April
30, 2022
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Separate nancial
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receivable due from the counterparty on the basis of the
contractual terms.
Objective evidence includes events such as:
• signicant nancial difculties of the debtor;
• legal disputes with the debtor relating to receivables;
• the likelihood that the debtor will go bankrupt or that
other nancial restructuring procedures will be initiated.
The amount of the write-down is measured as the difference
between the book value of the asset and the current value of
the estimated future cash ows and recorded in the income
statement. If the reasons for the previous write-downs cease
to apply in subsequent periods, the value of the asset is
reinstated up to the value that would have derived from the
application of the amortised cost.
INVENTORY
Inventories are recorded at the lower between purchase or
production cost and net realisable value, represented by the
amount that the Group expects to obtain from their sale in
the normal course of business, net of sale costs. The cost is
determined using the FIFO method. The cost of nished and
semi-nished products includes design costs, raw materials,
direct labour costs and other production costs (determined
on the basis of normal operating capacity). The valuation
of inventories does not include nancial expense, which
is charged to the income statement when incurred, as the
timing conditions for capitalisation are not met. Inventories of
raw materials and semi-nished products that can no longer
be used in the production cycle, and inventories of nished
products that cannot be sold, are written down.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents include cash and bank deposits
available and other forms of short-term investment with an
original maturity of three months or less.
NON-CURRENT ASSETS HELD FOR SALE
Non-current assets with a book value that will be recovered
mainly through sale rather than through continuous use are
classied as held for sale and reported separately from other
assets in the statement of nancial position. This condition
is considered met when the sale is highly probable and the
asset or group of assets being disposed of is available for
immediate sale in its present condition.
Non-current assets held for sale are not subject to amortisation
and are measured at the lower between their book value and
fair value, minus sale costs.
A discontinued operating asset represents a part of the
enterprise that has been disposed of or classied as held
for sale and (i) represents an important business unit or
geographical area of activity; (ii) is part of a coordinated plan
to dispose of an important business unit or geographical area
of activity; or (iii) is a subsidiary acquired solely for the purpose
of being resold.
The results of discontinued operating assets are disclosed
separately in the income statement, net of tax effects. The
corresponding gures for the previous year, if any, are
reclassied and disclosed separately in the income statement,
net of tax effects, for comparative purposes.
FINANCIAL PAYABLES
Financial payables are initially recognised at fair value, net
of directly attributable accessory costs, and are subsequently
measured at amortised cost, applying the effective interest
rate method. In compliance with IFRS 9, they also include
trade payables and payables of a varying nature. Financial
payables are classied as current liabilities, except for those
maturing more than twelve months after the balance sheet
date and those for which the Group has an unconditional right
to defer payment for at least twelve months after the reference
date.
Financial payables are recorded at the date of negotiation of
the transaction and are removed from the nancial statements
when they are extinguished and when the Group has
transferred all the risks and charges relating to the instrument.
DERIVATIVE INSTRUMENTS
Derivatives are evaluated as securities held for trading and
measured at fair value with a balancing entry in the income
statement. They are classied under other current and non-
current assets or liabilities.
Financial assets and liabilities with a balancing entry in the
income statement are initially recognised and subsequently
measured at fair value and the relative accessory costs are
immediately expensed in the income statement. Prots and
losses deriving from changes in the fair value of exchange
rate derivatives are presented in the income statement under
nancial income and expense in the period in which they are
recorded.
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EMPLOYEE BENEFITS
Short-term benets consist of wages, salaries, relative social
security charges, payments in lieu of holidays and incentives
in the form of bonuses payable in the twelve months following
the balance sheet date. These benets are recorded as
components of payroll costs in the period in which the work
is performed.
Dened-benet plans, which also include severance
indemnities due to employees pursuant to Article 2120 of
the Italian Civil Code ("TFR"), include the amount of benets
payable to employees that can only be quantied after
termination of employment, and are linked to one or more
factors such as age, years of service and remuneration;
consequently, the relative cost is recorded in the income
statement on the basis of actuarial calculations. The liability
recognised in the nancial statements for dened benet
plans corresponds to the current value of the obligation at the
balance sheet date.
Obligations for dened benet plans are determined annually
by an independent actuary using the projected unit credit
method. The current value of the dened benet plan is
determined by discounting future cash ows at an interest
rate equal to that of high-quality corporate bonds issued in
Euro, which takes into account the duration of the relative
pension plan. Actuarial prots and losses arising from the
abovementioned adjustments and changes in actuarial
assumptions are recognised in the statement comprehensive
income.
As of 1 January 2007, the 2007 budget law and the relative
implementation decrees introduced signicant changes to the
rules governing employee severance indemnities, including
the possibility for employees to choose the destination of
their accruing employee severance indemnities. In particular,
new ows of severance indemnity may be allocated by the
employee to selected pension schemes or kept within the
company. In the case of allocation to external pension funds,
the company is only required to pay a dened contribution
to the fund chosen, and from that date the newly accrued
amounts are considered dened contribution plans which are
not subject to actuarial evaluation..
STOCK GRANT PLAN
In compliance with IFRS 2 - Share-based payments, the
total amount of the current value of the stock grants at the
assignment date is recognised entirely in the income statement
under payroll costs, with a balancing entry recognised directly
under shareholders' equity. If there is a "vesting period" in
which certain conditions must be met (achievement of goals)
for the assignees to become holders of the right, the cost of
remuneration, determined on the basis of the current value
of the shares at the assignment date, is recognised under
payroll costs on a straight-line basis over the period between
the assignment date and the vesting date, with a balancing
entry recognised directly under shareholders' equity.
PROVISIONS FOR RISK AND CHARGES
Provisions for risks and charges are set aside to hedge losses
and specic expenses which denitely or probably exist but for
which the amount or date of occurrence cannot be determined.
The entry is recorded only when there is a current obligation,
legal or implicit, for a future outow of economic resources as
a result of past events and it is probable that such outow is
necessary for the fullment of the obligation.
This amount represents the best estimate of the cost of
extinguishing the obligation. The rate used to determine the
current value of the liability reects current market values
and takes into account the specic risk associated with each
liability.
When the nancial effect of time is signicant and the dates
of payment of the obligations can be reliably estimated, the
provisions are measured at the current value of the expected
outlay using a rate that reects market conditions, the change
in the cost of money over time and the specic risk associated
with the obligation. The increase in the value of the provision,
determined by changes in the cost of money over time, is
recorded as interest expense.
The risks for which the occurrence of a liability is only a
possibility are indicated in the specic section providing
information on potential liabilities and no provision is made
for them.
TRADE PAYABLES AND OTHER PAYABLES
Trade payables and other liabilities are initially recognised
at fair value, net of directly attributable accessory costs, and
are subsequently measured at amortised cost, applying the
effective interest rate method.
EARNINGS PER SHARE
(A) EARNINGS PER SHARE - BASIC
Basic earnings per share is calculated by dividing the Group's
share of prot by the weighted average number of ordinary
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shares in circulation during the year, excluding treasury
shares.
(B) EARNINGS PER SHARE - DILUTED
Diluted earnings per share is calculated by dividing the
Group's share of prot by the weighted average number of
ordinary shares in circulation during the year, excluding
treasury shares. To calculate diluted earnings per share, the
weighted average number of shares in circulation is modied
by assuming the exercise by all the assignees of rights that
potentially have a diluting effect, while the Group's share of
prot is adjusted to take into account any effects, net of taxes,
of the exercise of such rights.
TREASURY SHARE
Treasury shares are recorded as a reduction in shareholders'
equity. The original cost of the treasury shares and the
revenues deriving from any subsequent sales are recorded as
changes in shareholders' equity.
REVENUE RECOGNITION
On the basis of the ve-stage model introduced by IFRS 15,
the Group proceeds with the recognition of revenues after
identifying the contracts with its customers and the relative
services to be provided (transfer of goods and/or services),
determining the payment to which it believes it is entitled in
exchange for the provision of each of these services, and
assessing the manner in which these services are to be
provided (performance obligation satisifed at a point in time
versus over time.)
When the above requirements are met, the Group applies the
recognition rules described below.
Revenues from the sale of products are recognised when
control connected with ownership of the goods is transferred
to the buyer, or when the customer acquires full capacity to
decide on the use of the goods and to substantially reap all the
benets. Revenues from services are recognised when they
are rendered with reference to the state of progress.
Revenues also include lease payments recognised on a
straight-line basis throughout the duration of the contract.
Revenues are recognised at the fair value of the price received
for the sale of products and services in the ordinary course
of the Group' s business. Revenues are recognised net of
value added tax, expected returns, allowances, discounts
and certain marketing activities carried out with the help of
customers, the value of which depends on the revenues
themselves.
COST RECOGNITION
Costs are recognised when they relate to goods and services
purchased or consumed during the year or by systematic
allocation. Cash discounts on invoices dened with technology
suppliers are deducted from the purchase cost as the
commercial component is considered to be the predominant
component.
TAXES
Current taxes are determined on the basis of an estimate
of taxable income, in compliance with the tax regulations
applicable to Group companies.
Deferred tax assets and liabilities are calculated on the basis
of all the differences that emerge between the taxable amount
of an asset or liability and its book value, with the exception
of goodwill upon initial recognition and those relating to
differences arising from investments in subsidiaries, when
the timing of reversal of these differences is subject to Group
control and it is probable that they will not occur within a
reasonably foreseeable period of time. Deferred tax assets,
including those relating to previous tax losses, not offset by
deferred taxes, are recognised to the extent that it is probable
that future taxable income will be available to enable their
recovery. Deferred tax assets and liabilities are determined
using the tax rates that are expected to be applicable in the
years in which the differences will be realised or extinguished.
Current, deferred taxe assets and liabilities are recorded
in the income statement under "Income taxes", with the
exception of those relating to items recorded in the statement
of comprehensive income other than net prot and those
relating to items directly charged or credited to shareholders'
equity. In the latter cases, deferred taxes are recorded in
the statement of comprehensive income and directly under
shareholders' equity. Deferred tax assets and liabilities are
offset when they are applied by the same tax authority, there
is a legal offsetting right and a settlement of the net balance
is expected.
Other taxes not related to income, such as indirect taxes and
duties, are included in the income statement under "Other
operating costs”.
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Consolidated nancial statements as of April 30, 2022
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2.5. Newly issued accounting standards
At the date of this Report, the competent bodies of the
European Union had approved the adoption of the following
accounting standards and amendments applied by the Group
at 1 May 2021.
• In August 2020, the IASB issued amendments to IFRS
9 (Financial Instruments), IAS 39 (Financial Instrumen-
ts: Recognition and Measurement), IFRS 7 (Financial
Instruments: Disclosure), IFRS 4 (Insurance Contracts);
IFRS 16 (Leases) -'Interest Rate Benchmark Reform
- Phase 2'. The new standard is applicable for annual
periods beginning on or after 1 January 2021. The
amendments modify requirements for hedge accounting
application, providing for temporary exceptions and ad-
dress the uncertainty arising from the implementation of
the IBOR rate reform (still in progress) on the future cash
ows in the period preceding the reform completion,. In
addition the amendments require to provide additional
information on hedging relationships that are directly
affected by the uncertainties generated by the reform.
These amendments had no signicant effect on the con-
solidated nancial statements as of 30 April 2022;
• In June 2020, the IASB published an amendment to
“IFRS 4 Insurance Contracts - deferral of IFRS 9”. The
amendments extend the expiry date of the temporary
exemption from the application of IFRS 9 from 1 January
2021 to 1 January 2023, to align the dates of entry into
force of IFRS 9 “Financial Instruments” with IFRS 17 “In-
surance Contracts” The amendment will be applicable
for annual periods beginning on or after 1 January 2021
and had no signicant effect on the consolidated nan-
cial statements as of 30 April 2022;
• In March 2021, the IASB published an amendment to
IFRS 16 "Leases” Covid-19 related rent concessions
that provides an optional practical expedient for the pe-
riod from 30 June 2021 to 30 June 2022 for the valuation
of leases where concessions relating to lease payment
have been obtained as a result of the Covid-19 emer-
gency. The amendment is applicable for annual periods
beginning on or after 1 April 2021. At the date of this Re-
port, the Group had not made use of the optional practi-
cal expedient introduced by the above amendment.
At the date of this Report, the competent bodies of the
European Union had approved the adoption of the following
accounting standards and amendments not yet applied by the
Company:
• In May 2017 the IASB issued the new standard IFRS
17 “Insurance Contracts”. The new standard will replace
IFRS 4 and will be effective for annual periods beginning
on or after 1 January 2023;
• In May 2020, the IASB published amendments to IFRS
3 "Business combinations", IAS 16 "Property, plant and
equipment" and IAS 37 "Provisions, contingent liabilities
and contingent assets". Amendments to IFRS 1 "First-ti-
me Adoption of IFRS", IFRS 9 "Financial Instruments",
IAS 41 "Agriculture" and the illustrative examples an-
nexed to IFRS 16 "Leases" were also published. These
changes will be applicable from 1 January 2022;
• In February 2021, the IASB published a number of minor
amendments to IAS 1, Practice Statement 2 and IAS 8.
The amendments aim to improve reporting on accoun-
ting standards and to help users of nancial statements
distinguish between changes in accounting estimates
and changes in accounting policies. The amendment is
applicable for annual periods beginning on or after 1 Ja-
nuary 2023.
The Group will adopt these new standards, amendments and
interpretations, based on their expected date of application.
At present, the Group is analysing the above-mentioned
accounting standards and assessing whether their adoption
will have a signicant impact on the nancial statements. At
the date of this Report, the competent bodies of the European
Union had not yet completed the endorsement process
necessary for the adoption of the following accounting
standards and amendments:
• On 23 January 2020, the IASB published an amendment
to IAS 1 "Presentation of nancial statements: Classi-
cation of Liabilities as Current or Non-Current” which
provides for the classication of liabilities as current and
non-current based on rights that are in existence at the
end of the reporting period,. In addition it claries that
classication is not impacted by expectations about
whether the entitywill exercise its right to defer settle-
ment of liability. Finally, it that settlement refers to the
transfer to the counterparty for the transfer of cash, equi-
ty instruments, other activities or services. The amend-
ment is applicable from 1 January 2023;
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6
Separate nancial
statements as of April
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• In May 2021, the IASB published an amendment to
IAS 12 “Income Taxes”, “Deferred Tax related to Assets
and Liabilities arising from a Single Transaction”, which
claries how companies report deferred taxes on tran-
sactions such as leases and decommissioning obliga-
tions. The amendment is applicable for annual periods
beginning on or after 1 January 2023;
• In December 2021 the IASB published the amendments
IFRS 17 and IFRS 9 with the aim of indicating the transi-
tion options relating to comparative information on nan-
cial assets presented upon initial application of the IFRS
17. The amendment is applicable for annual periods be-
ginning on or after 1 January 2023.
The Group will adopt these new standards, amendments
and interpretations, on the basis of the expected date of
application, and will assess their potential impacts, when they
are approved by the European Union.
3. Financial Risk Management
The Group's assets are exposed to the following risks: market
risk (dened as exchange and interest rate risk), credit risk,
liquidity risk and capital risk.
The Group's risk management strategy aims to minimise
potential negative effects on the Group's nancial
performance. Some types of risk are mitigated by using
derivative instruments. Risk management is centralised in
the treasury function, which identies, evaluates and hedges
nancial risks in close collaboration with the Group's operating
units. The treasury function provides indications for monitoring
risk management, as well as indications for specic areas,
concerning interest rate risk, exchange rate risk and the use
of derivative and non-derivative instruments.
MARKET RISK
The Group is exposed to market risks with regard to interest
rates and exchange rates.
INTEREST RATE RISK
Exposure to interest rate risk mainly derives from the fact that
Group companies carry out a commercial activity characterised
by a negative nancial requirement during certain periods of
the year. This need is hedged through the sale of receivables,
loans and credit lines at oating rates. The Group did not
consider it appropriate to activate specic nancial instruments
to hedge interest rate risks, as, considering the current level of
nancial indebtedness and interest rates, these would, on the
whole, be inconvenient compared to any benets.
The amount of oating rate debt not hedged against the
interest rate risk represents the main risk element due to the
possible impact on the income statement as a result of an
increase in market interest rates.
On the basis of an analysis of the Group's indebtedness, it
should be noted that all long-term and short-term debts as at
30 April 2022 are at oating rates.
EXCHANGE RATE RISK
The Group is active mainly on the Italian market and its exposure
to exchange rate risk is limited to a few minor purchases and
sales of goods in US dollars. In order to reduce the exchange
rate risk deriving from expected assets, liabilities and cash
ows in foreign currencies, the Group uses forward contracts
to hedge cash ows in currencies other than the Euro. The
Group mainly establishes the exchange rates of the functional
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Consolidated nancial statements as of April 30, 2022
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currencies of the Group companies (Euro) against the US
dollar, as some purchases and sales of consumables and
goods are denominated in US dollars. In fact, it is the Group's
policy to hedge, where possible, commercial forecast ows in
US dollars deriving from certain or highly probable contractual
commitments. The maturity of existing forward contracts does
not exceed 12 months. The instruments adopted by the Group
do not meet all the requirements necessary to be recorded in
accordance with the rules of hedge accounting.
At 30 April 2022 there were 76 forward contracts in force, 2 of
which had a negative fair value of Euro 11 thousand and 74 of
which had a positive fair value of Euro 1.816 thousand.
CREDIT RISK
Credit risk essentially derives from receivables from customers
for the sale of products and services. As regards credit risk
relating to the management of nancial and cash resources,
deposited on a pro tempore basis with credit institutions,
the Group has procedures in place to ensure that relations
are maintained with high-prole and secure independent
counterparties. As at 30 April 2022, almost all of the nancial
and cash resources are deposited with rated or investment
grade counterparties.
To mitigate credit risk related to commercial counterparties, the
Group has implemented procedures aimed at ensuring that
sales of products are carried out with customers considered
reliable on the basis of past experience and available
information, as well as using risk hedging procedures using
credit insurance and/or non-recourse factoring contracts.
Furthermore, the Group constantly monitors its commercial
exposure and ensures that receivables are collected in
compliance with the contractual deadlines.
With reference to trade receivables, the most risky situation
concerns relations with resellers. The collections and
payment times of these receivables are, therefore, monitored
constantly. The amount of nancial assets considered doubtful
and not signicant is however hedged by appropriate accruals
to the provision for bad debts, which also consider the current
pandemic. See note 22 for more details on the provision for
bad debts.
The following table provides a breakdown of current trade
receivables as at 30 April 2022 and 30 April 2021, grouped
by due date, net of the portion of the provision for bad debts.
Current Trade Receivables
(Euro thousands) At 30 April 2022 At 30 April 2021
Yet to mature 378,552 321,741
Expired by 0-90 days 45,644 23,235
Expired by 90-180 days 4,191 2,810
Expired by 180-360 days 3,753 2,968
Expired by over 360 days 2,438 4,017
Total 434,579 354,771
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6
Separate nancial
statements as of April
30, 2022
LIQUIDITY RISK
Liquidity risk is associated with the Group's ability to full its commitments deriving mainly from nancial liabilities. Prudent
management of the liquidity risk arising from the Group's normal operations implies maintaining an adequate level of cash and cash
equivalents and the availability of funds obtainable through an adequate amount of credit lines.
It should also be noted that:
• there are different sources of nancing, with different banks;
• there are no signicant concentrations of liquidity risk with regard to both nancial assets and sourcing of funding.
The following tables show the expected cash ows in future years for nancial liabilities at 30 April 2022 and 30 April 2021:
At 30 April 2022
(Euro thousands) Book value Within 12 months Between 1 and 5 years Over 5 years
Current and non-current loans 311,153 110,786 200,367
Short-term loans 50,267 50,267
Advances received from factoring companies 590 590
Financial liabilities for rights of use 44,933 11,084 23,584 10,265
Exchange rate derivatives
Trade payables 525,879 525,879
Other current and non-current payables 165,091 165,091
At 30 April 2021
(Euro thousands) Book value Within 12 months Between 1 and 5 years Over 5 years
Current and non-current loans 254,181 77,789 176,392
Short-term loans 33,781 33,781
Advances received from factoring companies 391 391
Financial liabilities for rights of use 43,871 10,245 22,094 11,532
Exchange rate derivatives
Trade payables 366,101 366,101
Other current and non-current payables 135,287 135,287
CAPITAL RISK
The Group's goal in terms of capital risk management is mainly to safeguard business continuity so as to guarantee returns for
shareholders and benets for other stakeholders. The Group also aims to maintain an optimal capital structure in order to reduce
the cost of borrowing.
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Consolidated nancial statements as of April 30, 2022
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FINANCIAL ASSETS AND LIABILITIES BY CATEGORY
With reference to the classication and valuation of nancial assets, it should be noted that the nancial assets held by the group
are valued:
• at amortised cost in the case of nancial assets relating to the "hold to collect" business model;
• at fair value, recorded under other comprehensive income components in the case of nancial assets relating to the "hold to
collect and sell" business model.
A nancial asset representing a debt instrument that is not measured at amortised cost or FVTOCI is measured at fair value,
recording the effects in the income statement. The fair value of trade receivables and other nancial assets, trade payables and
other payables and other nancial liabilities, recorded under "current" items of the statement of nancial position measured using
the amortised cost method, as these are mainly assets underlying commercial transactions the settlement of which is envisaged
in the short term, does not differ from the book values of the nancial statements at 30 April 2022 and 30 April 2021. Non-current
nancial assets and liabilities are settled or measured at market rates and their fair value is therefore deemed to be substantially
in line with current book values. The following table provides a breakdown of nancial assets and liabilities by category at 30 April
2022 and 30 April 2021:
At 30 April 2022
(Euro thousands)
Assets and liabilities at
amortised cost
Asset of FVOCI
Assets and liabilities
at FVPL
Derivative nancial
instruments
Total
Assets
Current trade receivables 434,579 434,579
Other current and non-current
assets
89,591 11,955 1,827 103,373
Cash and cash equivalents 496,311 496,311
Total assets 1,020,481 11,955 1,827 1,034,263
Liabilities
Current and non-current loans 272,786 89,224 362,010
Financial liabilities for rights
of use
44,933 44,933
Trade payables 525,879 525,879
Other current liabilities 165,080 11 165,091
Total liabilities 1,008,678 89,224 11 1,097,913
At 30 April 2021
(Euro thousands)
Assets and liabilities at
amortised cost
Asset of FVOCI
Assets and liabilities
at FVPL
Derivative nancial
instruments
Total
Assets
Current trade receivables 355,781 355,781
Other current and non-current
assets
61,110 11,147 21 72,278
Cash and cash equivalents 426,665 426,665
Total assets 843,556 11,147 21 854,724
Liabilities
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6
Separate nancial
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At 30 April 2021
(Euro thousands)
Assets and liabilities at
amortised cost
Asset of FVOCI
Assets and liabilities
at FVPL
Derivative nancial
instruments
Total
Current and non-current loans 246,742 41,611 288,353
Financial liabilities for rights
of use
43,871 43,871
Trade payables 366,101 366,101
Other current liabilities 134,922 365 135,287
Total liabilities 791,636 41,661 365 833,612
FAIR VALUE MEASUREMENT
IFRS 13 denes fair value as the price that would be received for the sale of an asset or paid for the transfer of a liability at the
measurement date in a free transaction between market operators.
The fair value of nancial instruments listed on an active market is based on the market prices on the closing date. The fair value
of instruments that are not listed on an active market is determined using valuation techniques based on a series of methods and
assumptions linked to market conditions at the balance sheet date.
The following table shows the classication of the fair values of nancial instruments on the basis of the following hierarchical levels:
• Level 1: Fair value determined with reference to listed (unadjusted) prices on active markets for identical nancial instruments;
• Level 2: Fair value determined using valuation techniques with reference to variables observable on active markets;
• Level 3: Fair value determined using valuation techniques with reference to variables that cannot be observed on active markets.
The table below shows the assets and liabilities that, at 30 April 2022, were measured and recorded at fair value, indicating the
hierarchical level of their fair value:
(Euro thousands) Level 1 Level 2 Level 3
Asset measured at Fair Value
Derivative nancial instruments 1,827
Assets available for sale
Investments in other companies 11,955
Other Assets
Total 1,827 11,955
Liabilities measured at Fair Value
Derivative nancial instruments 11
Financial liabilities at fair value through prot or loss 20,229
Other Liabilities 68,995
Total 89,235
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Consolidated nancial statements as of April 30, 2022
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Derivative nancial instruments include forward currency transactions entered into by the Group to manage the exchange rate risk
on certain supplies in currencies other than the Euro. The fair value of assets and liabilities was determined using the exchange
rates in foreign currency observed at the date of preparation of the nancial statements.
Other assets include shares in mutual funds issued by leading brokers and recorded at fair value according to data observable on
the active market and an insurance policy measured at fair value on the basis of redemption value.
Derivative nancial instruments include the fair value (MtM) of forward transactions in the Euro/Dollar category at 30 April 2022.
Non-current investments in other companies refer to companies that are not listed on an active market. These investments are
valued at cost less any impairment losses. The evaluation of these investments therefore represents the best approximation of the
fair value.
Financial liabilities at fair value and other liabilities include nancial payables for contractual earn-outs and payables for put options
issued on shares of companies over which the Group has already acquired control. The valuation was determined on the basis of
the net expected value of the earn-out and exercise of the put options.
The following tables show the changes in Level 1, Level 2 and Level 3 during the year ended 30 April 2022:
(Euro thousands) Level 1
Balance at 30 April 2021
Prots and (losses) through prot or loss
Increases/(Decreases)
Balance at 30 April 2022
Total
(Euro thousands) Level 2
Balance at 30 April 2021 (41,955)
Prots and (losses) through prot or loss 1,472
Increases/(Decreases) (46,885)
Balance at 30 April 2022 (87,408)
Total (41,955)
(Euro thousands) Level 3
Balance at 30 April 2021 11,147
Prots and (losses) through prot or loss 410
Increases/(Decreases) and reclassications 398
Balance at 30 April 2022 11,955
Total 11,955
136
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
4. Estimates and assumptions
The preparation of the nancial statements requires the
application by the directors of accounting standards and
methods that, in some circumstances, are based on difcult
and subjective assessments and estimates based on historical
experience and assumptions that are considered reasonable
and realistic in relation to the relative circumstances. The
application of these estimates and assumptions inuences the
amounts reported in the nancial statements, the statement
of nancial position, the income statement, the statement of
comprehensive income, the statement of cash ows and the
notes provided. The nal results of the nancial statement
items for which the above estimates and assumptions
have been used may differ from those reported in nancial
statements that record the effects of the occurrence of the
estimated event, due to the uncertainty that characterises the
assumptions and the conditions on which the estimates are
based.
Here is a brief description of the areas that require greater
subjectivity on the part of directors in making estimates and for
which a change in the conditions underlying the assumptions
used could have a signicant impact on the nancial data.
(A) REDUCTION IN VALUE OF ASSETS
In compliance with the accounting standards applied by the
Group, property, plant and equipment, intangible assets
and investment property are tested for impairment, which
should be recognised through a write-down, when there are
indications that it may be difcult to recover their net book
value through use. Verication of the existence of the above
indicators requires directors to make subjective assessments
based on information available within the Group and on the
market, as well as on historical experience. Moreover, if it is
determined that a potential reduction in value may have been
generated, the Group proceeds to determine said value using
appropriate evaluation techniques. The correct identication
of the elements that indicate the existence of a potential
reduction in the value of property, plant and equipment,
intangible assets and investment property, as well as the
estimates for their determination, depend on factors that may
vary over time, inuencing the evaluations and estimates
made by the directors.
(B) AMORTISATION AND DEPRECIATION
The cost of property, plant and equipment and intangible
assets is depreciated/amortised on a straight-line basis over
the estimated useful life of the relative assets.
The useful economic life of these assets is determined by the
directors at the moment of purchase; it is based on historical
experience for similar assets, market conditions and advances
regarding future events that could have an impact on the
useful life of the assets, including any changes in technology.
Consequently, the actual economic life may differ from the
estimated useful life.
(C) PROVISION FOR BAD DEBTS
The provision for bad debts reects the estimated losses on
the Group's portfolio of receivables. Provisions have been
made for losses expected on receivables, calculated on the
whole life of the receivable. Estimates and assumptions are
reviewed on a regular basis and the effects of each change
are reected in the income statement in the year to which they
refer.
(D) INVENTORY OBSOLESCENCE PROVISION
The Group uses the inventory obsolescence provision to
hedge probable losses in the value of inventories. The
determination of these provisions involves the assumption
of estimates based on current knowledge of factors that may
change over time, thus generating nal results that may differ
signicantly from those taken into account in the preparation
of this repor.
(E) EMPLOYEE BENEFITS
The current value of the pension funds recorded in the
consolidated nancial statements depends on an independent
actuarial calculation and on the various assumptions taken
into consideration. Any changes in assumptions and in the
discount rate used are promptly reected in the calculation of
the current value and could have a signicant impact on the
data in the nancial statements. The assumptions used for the
actuarial calculation are reviewed annually.
The current value is determined by discounting future cash
ows at an interest rate equal to that of high-quality corporate
bonds issued in the currency in which the liability will be
liquidated and which takes into account the duration of the
relative pension plan. For further information, see notes 26
Employee benets and 10 Personnel costs.
137
Consolidated nancial statements as of April 30, 2022
www.sesa.it
(F) BUSINESS COMBINATION
The verication of the existence of control, joint control or
signicant inuence over another entity requires the exercise
of complex professional judgement by the Company's
management, taking into account the characteristics of the
corporate structure, agreements between the parties and
any other fact or circumstance that may be relevant to such
verication. The use of signicant accounting estimates
also characterises the processes of allocation of fair value
to identiable assets and liabilities acquired in business
combinations.
(G) POTENTIAL LIABILITIES
The Group recognises a liability for ongoing litigation when
it believes that a future outow of funds is probable and
when the amount of the resulting losses can be reasonably
estimated. If a nancial outow is possible but the amount
cannot be determined, this event is mentioned in the notes
to the nancial statements. The Group constantly monitors
the status of pending lawsuits and consults with its legal and
tax advisors. However, given the uncertainties inherent in
assessing the development of ongoing proceedings, it cannot
be excluded that the value of the Group's provisions for legal
proceedings and litigation may change as a result of future
developments in ongoing proceedings.
5. Business combinations
Among the business combinations carried out during the
year, we report the details of the most signicant are provided
below.
In the VAD Sector, there was the acquisition of the majority of
the capital of PM Service Srl, based in Pontassevie (Florence)
a company that offers technological solutions for energy
efciency and the production of energy from renewable
sources.
Again in the VAD Sector, in September 2021 the Group
acquired a majority stake in Kolme Srl, a leading operator
in the provision of ICT solutions and telecommunications
services on the Italian market, with a customer base of over
2,500 business partners throughout the country.
In the SSI Sector in November 2021 saw the conclusion of
the acquisition of 51% of Datef SpA a company specialized in
digital services, cloud and security, with over 100 enterprise
customers mainly located in German-speaking areas.
In March 2022 two important business combination were
nalised in the SSI Sector: (i) 100% stake of Adacto Srl,
company specialized in end-to-end projects of Digital
Communication and Customer Experience Management for
major Enterprise customers, with a presence also iin LATAM
region; and (ii) the acquisition of the majority stake in NGS
Srl, company skilled in network and edge security, for the
protection of major national and international enterprises,
operating in the manufacturing and maritime industries.
In the Business Services Sector we note the business
combination between Omigrade Srl, a company that operates
together with STB Srl, Omigrade Servizi Srl and T&O Srl in IT
consulting, ERP and digital platforms and digital transformation
services for the nancial services industry, with major national
and international customers in central-northern Italy. The
business combination started in February 2020 through the
subscription of binding agreements and the arrangements for
corporate - acquisitions. The business combination will be
completed during the next scal year.
138
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
6. Sector Disclosures
The criteria applied to identify the business segments
reported are in line with the methods used by management to
manage the Group. In particular, the structure of the business
segments reported corresponds to the structure of the reports
regularly analysed by the Board of Directors for the purposes
of managing the Group's business. Specically, the main
dimension of management analysis used by the Group is that
relating to the following operating segments:
• the Corporate Sector comprises activities related to the
strategic governance and management of the Group's
operating machinery and nancial platform, centralised
within Sesa SpA. For the main operating companies of
the group in particular, the Administration, Finance and
Audit, Human Resources, Organisation, Information Te-
chnology, Investor Relations, Corporate Governance,
Legal and Internal Audit functions are managed by the
parent company, Sesa SpA;
• the VAD Sector includes activities related to the Value
Added Distribution (VAD) of technological innovation so-
lutions and IT services, with focus on the Data Centre,
Enterprise Software, Networking and Collaboration, Se-
curity and Cloud Computing segments. The VAD Sector
is managed by the wholly-owned subsidiary Computer
Gross SpA;
• the Software and System Integration (SSI) Sector
offers technological innovation and digital transforma-
tion solutions for companies in the SME and Enterprise
segments. The Software and System Integration Sector
is managed by the wholly-owned subsidiary Var Group
SpA;
• the Business Services (BS) Sector offers business
process outsourcing, security and digital transformation
services for the nance segment. The BS Sector is ma-
naged by the subsidiary Base Digitale SpA.
The Group's management assesses the performance of the
various operating segments, using the following indicators:
• revenues from third parties by operating segment;
• Ebitda dened as the prot for the year before deprecia-
tion and amortisation, accruals to the provision for bad
debts, accruals to the provisions for risks, notional costs
relating to stock grant plans assigned to executive direc-
tors, nancial income and expense, prot (loss) of com-
panies measured using the equity method and taxes;
• prot for the year.
As Ebitda is not identied as an accounting measure by the
IFRSs (Non-GAAP Measures), its quantitative determination
might be fuzzy. Ebitda is a measure used by management
to monitor and evaluate the operating performance of Group
companies.
The criterion for determining the Ebitda reported above and
applied by the Group may not be consistent with that adopted
by other companies or groups, so its value may not be
comparable with that determined by them.
139
Consolidated nancial statements as of April 30, 2022
www.sesa.it
Business combinations
(Euro thousands) Fen Wo
PM
Services
Cadlog
Group
Cadlog
GMBH
Cimtec Kolme Polymatic Pegaso Total
Intangible assets 5,414 12,148 6,228 1,340 165 5,814 943 32 32,084
Property, plant and equipment 1 294 10 65 31 123 68 178 770
Other current and non-current
assets
29 2,849 4,346 193 1 3,951 82 22 11,473
Inventory 3,957 211 369 1,934 5 6,476
Trade receivables 446 13,262 5,093 213 293 4,152 706 261 24,426
Cash and cash equivalents 124 4,239 2,439 495 277 6,049 410 293 14,326
Assets purchased 6,015 36,749 18,327 2,675 767 22,023 2,214 786 89,556
Non-current loans 1,984 2,504 4,743 323 9,554
Employee benets 196 18 214 491 126 1,045
Current loans 472 368 4 1,256 33 2,133
Deferred tax liabilities 1,560 3,491 1,762 434 48 1,676 266 8 9,245
Trade payables 169 18,451 2,443 183 188 4,729 73 26,236
Other liabilities 9 948 6,444 1,151 41 1,587 384 244 10,808
Provisions 53 50 57 67 989 1,216
Liabilities purchased 1,738 25,595 13,589 1,825 348 15,194 1,464 484 60,237
Non-controlling interests (155) (834) (26) (134) (1,149)
Net assets purchased 4,277 11,154 4,583 850 419 5,995 724 168 28,170
Price 4,277 11,154 4,583 850 419 5,995 724 168 28,170
Cash and cash equivalents 124 4,239 2,439 495 277 6,049 410 293 14,326
Other non-monetary entries (1,989) (2,693) (225) (34) (4,941)
Net Price 4,153 4,926 2,144 355 142 -2,747 89 -159 8,903
Business combinations
(Euro thousands) Superresolution Citel A Plus Datef
Z3
Engineering
Pal Ifm Omigrade Total
Intangible assets 205 612 1,250 16,269 830 520 8,480 28,166
Property, plant and equipment 41 128 395 1,362 7 3 31 1,967
Other current and non-current
assets
5 1,763 147 826 113 28 2,500 5,382
Inventory 383 150 37 570
Trade receivables 77 2,973 274 3,255 363 481 1,887 9,310
Cash and cash equivalents 123 26 29 3,159 77 205 389 4,008
Assets purchased 451 5,885 2,245 24,871 1,390 1,237 13,324 49,403
Non-current loans 850 261 109 389 1,609
Employee benets 2 400 32 444 65 13 755 1,711
Current loans 1,110 3 202 1,315
140
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
Business combinations
(Euro thousands) Superresolution Citel A Plus Datef
Z3
Engineering
Pal Ifm Omigrade Total
Deferred tax liabilities 57 365 383 4,496 258 69 2,410 8,038
Trade payables 75 1,354 186 5,597 129 233 431 8,005
Other liabilities 341 538 1,002 159 333 2,557 4,930
Provisions 244 195 11 132 582
Liabilities purchased 134 4,664 1,403 11,734 731 648 6,876 26,190
Non-controlling interests (86) (53) (249) (198) (586)
Net assets purchased 231 1,221 842 13,137 606 340 6,250 22,627
Price 231 1,221 842 13,137 606 340 6,250 22,627
Cash and cash equivalents 123 26 29 3,159 77 205 389 4,008
Other non-monetary entries (68) (68)
Net Price 40 1,195 813 9,978 529 135 5,861 18,551
Business combinations
(Euro thousands)
Omigrade
Servizi
T&O STB Adacto NGS Icos GMBH Sebic Brainworks Total
Intangible assets 51 1 2,699 9,783 7,868 265 2 2,070 22,739
Property, plant and equipment 8 35 261 280 18 602
Other current and non-current
assets
613 9 866 472 538 90 78 2,323 4,989
Inventory 26 26
Trade receivables 394 172 499 1,207 2,150 387 118 4,927
Cash and cash equivalents 136 50 237 2,170 1,364 219 97 550 4,823
Assets purchased 1,194 240 4,301 13,667 12,207 574 844 5,079 38,106
Non-current loans 1,010 1,010
Employee benets 372 15 220 186 91 884
Current loans 1 55 0 56
Deferred tax liabilities 59 48 777 3,252 2,937 76 103 598 7,850
Trade payables 91 3 53 2,720 1,531 294 698 76 5,466
Other liabilities 171 39 498 569 104 33 3,005 4,419
Provisions 409 409
Liabilities purchased 694 160 1,548 6,567 6,138 474 834 3,679 20,094
Non-controlling interests (30) (253) (127) -410
Net assets purchased 500 50 2,500 7,100 5,942 100 10 1,400 17,602
Price 500 50 2,500 7,100 5,791 100 10 1,400 17,451
Cash and cash equivalents 136 50 237 2,170 1,364 219 97 550 4,823
Other non-monetary entries
Net Price 364 2,263 4,930 4,427 -119 -87 850 12,628
141
Consolidated nancial statements as of April 30, 2022
www.sesa.it
The following table shows information about results of operations by operating sector for the years ended 30 April 2022 and 30
April 2021.
Year ended 30 April 2022
(Euro thousands)
Value Added
Distribution
Software and
System Integration
Business
Services
Corporate Eliminations
Third-party revenues 1,750,678 555,481 55,696 748 2,362,603
Inter-sector revenues 90,086 4,713 2,116 12,037 108,952
Revenues 1,840,764 560,194 57,812 12,785 (108,952) 2,362,603
Other income 16,515 11,974 1,090 3,084 (5,443) 27,220
Total revenues and other income 1,857,279 572,168 58,902 15,869 (114,395) 2,389,823
Consumables and goods for resale (1,697,189) (200,870) (5,711) (61) 85,440 (1,818,391)
Costs for services and rent, (43,164) (154,912) (25,077) (5,129) 28,789 (199,493)
leasing, and similar costs (23,774) (144,886) (22,121) (6,999) 107 (197,673)
Personnel costs (2,571) (3,645) (276) (193) 117 (6,568)
Other operating costs 90,581 67,855 5,717 3,487 58 167,698
Ebitda (9,892) (33,694) (5,192) (4,725) (53,503)
Amortisation, depreciation, write-downs and other
non-monetary costs
80,689 34,161 525 (1,238) 58 114,195
Operating Result (Ebit) (3,779) (1,439) (445) 551 (5,112)
Net nancial income and expense 76,910 32,722 80 (687) 58 109,083
Prot before taxes (20,355) (9,864) (170) (58) (17) (30,464)
Income taxes 56,555 22,858 (90) (745) 41 78,619
Prot for the year 841 4,403 140 (284) 5,100
Prot attributable to non-controlling interests 55,714 18,455 (230) (745) 325 73,519
Prot attributable to the Group
Year ended 30 April 2021
(Euro thousands)
Value Added
Distribution
Software e System
Integration
Business
Services
Corporate Eliminations
Third-party revenues 1,507,639 469,171 44,253 1,391 2,022,454
Inter-sector revenues 86,104 3,771 2,479 17,953 110,307
Revenues 1,593,743 472,942 46,732 19,344 (110,307) 2,022,454
Other income 7,543 8,910 528 3,412 (5,624) 14,769
Total revenues and other income 1,601,286 481,852 47,260 22,756 (115,931) 2,037,223
Consumables and goods for resale (1,481,941) (181,850) (8,362) (233) 82,114 (1,590,272)
Costs for services and rent, leasing, and similar costs (33,689) (122,162) (21,793) (9,419) 33,289 (153,774)
Personnel costs (19,376) (120,521) (13,992) (9,083) (162,972)
Other operating costs (2,032) (1,829) (172) (315) 148 (4,200)
Ebitda 64,248 55,490 2,941 3,706 (380) 126,005
Amortisation, depreciation, write-downs and other
non-monetary costs
(7,557) (28,145) (2,480) (3,847) 26 (42,003)
Operating Result (Ebit) 56,691 27,345 461 (141) (354) 84,002
Net nancial income and expense (934) (95) (340) (27) (1,780) (3,176)
Prot before taxes 55,757 27,250 121 (168) (2,134) 80,826
Income taxes (15,504) (8,229) (96) (211) (24,040)
Prot for the year 40,253 19,021 25 (379) (2,134) 56,786
Prot attributable to non-controlling interests 548 3,890 72 4 4,514
Prot attributable to the Group 39,705 15,131 (47) (379) (2,138) 52,272
142
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
The following table shows the nancial information by operating sector for the years ended 30 April 2022 and 30 April 2021.
Year ended 30 April 2022
(Euro thousands)
Value Added
Distribution
Software e System
Integration
Business
Services
Corporate Eliminations
Intangible assets 26,380 156,158 43,941 2,159 (358) 228,280
Property, plant and equipment 33,427 17,995 5,716 263 57,401
Right of use 15,198 36,471 2,467 406 54,542
Investment property 281 9 290
Investments valued at equity 10,953 3,691 130 768 (949) 14,593
Receivables for deferred tax assets 6,573 6,150 2,085 1,187 (85) 15,910
Non-current receivables
Other non-current receivables and assets 2,468 7,172 1,745 92,894 (87,624) 16,655
Total non-current assets 95,280 227,637 56,084 97,686 (89,016) 387,671
Inventory 119,601 22,259 2,413 (239) 144,034
Current trade receivables 289,826 159,176 22,457 6,796 (43,676) 434,579
Current tax receivables 2,562 3,556 475 58 6,651
Other current receivables and assets 31,887 51,361 4,061 651 (1,242) 86,718
Cash and cash equivalents 336,268 140,678 15,810 3,555 496,311
Total current assets 780,144 377,030 45,216 11,060 (45,157) 1,168,293
Total assets 875,424 604,667 101,300 108,746 (134,173) 1,555,964
Share capital 40,000 3,800 6,231 37,127 (50,031) 37,127
Share premium reserve 4,051 16,212 33,144 (20,263) 33,144
Other reserves and prots carried forward 229,988 12,803 (9,354) 27,860 (16,127) 245,170
Total shareholders’ equity attributable to the group 269,988 20,654 13,089 98,131 (86,421) 315,441
Shareholders' equity attributable to non-controlling interests 3,637 14,957 3,161 (2,037) 19,718
Total shareholders’ equity 273,625 35,611 16,250 98,131 (88,458) 335,159
Non-current loans 31,118 82,988 9,453 123,559
Financial liabilities for non-current rights of use 18,481 12,249 2,966 153 33,849
Non-current nancial liabilities and commitments for purcha-
se of shares from non-controlling interests
10,740 52,321 13,747 123,559
Employee benets 3,141 34,293 5,024 1,921 44,379
Non-current provisions 594 3,011 635 4,240
Deferred tax liabilities 10,838 40,213 11,902 620 (240) 63,333
Total non-current liabilities 74,912 225,075 43,727 2,694 (240) 346,168
Current loans 67,901 58,567 3,544 42 130,054
Current nancial liabilities for rights of use 2,854 6,299 1,816 115 11,084
Current nancial liabilities and commitments for purchase of
shares from non-controlling interests
1,779 25,378 4,387 45 31,589
Trade payables 420,799 131,758 14,541 3,158 (44,377) 525,879
Current tax payables 5,195 5,151 578 6 10 10,940
Other current liabilities 28,359 116,828 16,457 4,555 (1,108) 165,091
Total current liabilities 526,887 343,981 41,323 7,921 (45,475) 874,637
Total liabilities 601,799 569,056 85,050 10,615 (45,715) 1,220,805
Total shareholders’ equity and liabilities 875,424 604,667 101,300 108,746 (134,173) 1,555,964
143
Consolidated nancial statements as of April 30, 2022
www.sesa.it
Year ended 30 April 2021
(Euro thousands)
Value Added
Distribution
Software e System
Integration
Business
Services
Corporate Eliminations
Intangible assets 7,800 114,329 18,894 2,161 (358) 142,826
Property, plant and equipment 12,614 30,381 910 817 44,722
Right of use 30,508 17,318 7,081 313 55,220
Investment property 281 9 290
Investments valued at equity 10,981 3,050 768 (949) 13,850
Receivables for deferred tax assets 5,206 5,232 1,636 982 (69) 12,987
Other non-current receivables and assets 4,297 5,575 509 87,916 (83,653) 14,644
Total non-current assets 71,687 175,885 29,030 92,966 (85,029) 284,539
Inventory 69,345 16,105 1,767 -297 86,920
Current trade receivables 243,969 137,081 14,593 9,533 (49,395) 355,781
Current tax receivables 2,344 3,491 130 36 6,001
Other current receivables and assets 16,347 39,214 2,995 832 (1,754) 57,634
Cash and cash equivalents 264,020 135,920 19,159 7,566 426,665
Total current assets 596,025 331,811 38,644 17,967 (51,446) 933,001
Total assets 667,712 507,696 67,674 110,933 (136,475) 1,217,540
Share capital 40,000 3,800 5,435 37,127 (49,235) 37,127
Share premium reserve 4,051 7,682 33,144 (11,733) 33,144
Other reserves 191,348 16,759 -693 27,461 (26,553) 208,322
Total shareholders’ equity attributable to the group 231,348 24,610 12,424 97,732 (87,521) 278,593
Shareholders' equity attributable to non-controlling
interests
2,071 12,378 1,716 2,597 18,762
Total shareholders’ equity 233,419 36,988 14,140 97,732 (84,924) 297,355
Non-current loans 40,679 79,502 8,376 (3) 128,554
Non-current nancial liabilities for rights of use 16,695 12,211 4,632 88 33,626
Non-current nancial liabilities and commitments for
purchase of shares from non-controlling interests
3,056 44,254 483 45 47,838
Employee benets 2,689 33,329 2,623 2,256 40,897
Non-current provisions 87 2,022 175 2,284
Deferred tax liabilities 4,807 25,972 4,853 597 (240) 35,989
Total non-current liabilities 68,013 197,290 21,142 2,983 (240) 289,188
Current loans 52,287 45,596 3,064 47 100,994
Current nancial liabilities for rights of use 2,379 5,541 2,088 237 10,245
Current nancial liabilities and commitments for purchase
of shares from non-controlling interests
45 8,706 2,000 216 10,967
Trade payables 280,653 115,920 15,018 3,803 (49,293) 366,101
Current tax payables 1,241 3,600 255 2,297 10 7,403
Other current liabilities 29,675 94,055 9,967 3,618 (2,028) 135,287
Total current liabilities 366,280 273,418 32,392 10,218 (51,311) 630,997
Total liabilities 434,293 470,708 53,534 13,201 (51,551) 920,185
Total shareholders’ equity and liabilities 667,712 507,696 67,674 110,933 (136,475) 1,217,540
144
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
7. Revenues
The Group's revenues are generated mainly in Italy. The component of sales consolidated abroad which at 30 April 2022 amounted
to € 59,967 thousand compared to € 30,954 thousand at 30 April 2021, showed an increase (+ 93.7%) as a result of the greater
presence of the Group in Europe. The revenues of the Group's foreign-based companies, such as PBU, Beenear, Wss It Sagl, Fen
Wo, Cimtec, Icos Gmbh, Cadlog France, Cadlog Spain and Cadlog Gmbh contribute to the item Revenues for a total of Euro 29,213
thousand to which must be added those of Computer Gross SpA and Var Group SpA for Euro 30,764 thousand.
The revenues item is detailed as follows:
Year ended 30 April
(Euro thousands) 2022 2021
Sale of solutions, software and accessories 1,943,101 1,692,674
Development of software and other services 215,245 167,138
Hardware and software assistance 168,518 120,981
Marketing activities 16,125 9,895
Other sales 19,614 31,766
Total 2,362,603 2,022,454
Group revenues equal to of Euro 2,363 thousand at 30 April 2022 recorded an increase of 16.8% compared to the previous year,
favoured by (i) sales of IT solutions and software, up by 14.7% compared to 30 April 2021 , (ii) provision of services both in the eld
of IT projects (developments, consultancy and other services) and infrastructure (assistance, cloud computing, etc.), up by 28.8%
compared to 30 April 2021.
8. Other Income
The item in question is detailed as follows:
Year ended 30 April
(Euro thousands) 2022 2021
Transport activities 2,231 956
Capital gains on disposals 3,812 1,259
Commission 2,083 1,667
Leases and rents 665 160
Training courses 30 103
Other income 18,399 10,624
Total 27,220 14,769
The Other income item refers mainly to marketing contributions from suppliers, recovery of expenses and other non-typical revenues.
145
Consolidated nancial statements as of April 30, 2022
www.sesa.it
9. Consumables and goods for resale
The item in question is detailed as follows:
Year ended 30 April
(Euro thousands) 2022 2021
Purchase of hardware 1,254,914 1,074,657
Purchase of software 562,329 513,147
Consumables and other purchases 1,148 2,468
Total 1,818,391 1,590,272
10. Costs for Services and rent, leasing and similar costs
The item in question is detailed as follows:
Year ended 30 April
(Euro thousands) 2022 2021
Technical assistance for hardware and software maintenance 66,718 53,591
Consulting activities 49,355 40,302
Agents’ commissions and contributions 11,321 9,421
Rentals and hires 4,769 3,200
Marketing 9,870 4,768
Transport 7,259 4,994
Insurance policies 3,700 3,255
Utilities 2,892 2,565
Logistics and warehouse storage 1,316 752
Support and training expenses 2,040 2,136
Maintenance 8,483 5,579
Other service expenses 36,082 26,468
Total 203,805 157,031
The increase in Costs for Services and rent, leasing and similar costs compared to the previous year reects the Group's greater
concentration on areas of the IT market with a greater contribution to innovation and IT services. As a result, costs for technical
assistance, consulting and commissions increased in line with the business. The growth in other service components mainly reects
the growth in sales of services, particularly in the SSI Sector and Business Services consistently with the Group's staff.
146
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
11. Personnel Costs
The item in question is detailed as follows:
Year ended 30 April
(Euro thousands) 2022 2021
Wages and salaries 139,405 115,548
Social security payments 38,484 32,009
Contributions to dened contribution pension funds 9,162 7,361
Contributions to pension funds for dened benets 67 45
Reimbursements and other personnel costs 10,555 8,009
Total 197,673 162,972
The following table shows the precise number of Group employees:
Precise number of employees at 30 April
(in units) 2022 2021
Executives 46 35
Middle Management 372 331
Ofce Staff 3,547 2,974
Blue Collars 98 101
Interns* 100
Total 4,163 3,441
*The number of trainees was entered and reported for the rst time in the Group's indices. For a correct historical reporting of the correlated indices of the previous two years, no retroactive
changes will be made.
The average number of employees for the nancial year as at 30 April 2022 was 3,802 resources compared to 2,994 average
resources in the previous year.
12. Other Operating Costs
The item in question is detailed as follows:
Year ended 30 April
(Euro thousands) 2022 2021
Accrual to the bad debt provision (net of recoveries) 5,663 5,883
Expenses and commissions for the assignment of receivables without recourse 1,226 1,509
Duties and taxes 1,286 861
Capital losses on disposals 73 53
Losses on receivables 223 121
Provisions for risks and charges 1,821 381
147
Consolidated nancial statements as of April 30, 2022
www.sesa.it
Year ended 30 April
(Euro thousands) 2022 2021
Other operating costs 3,761 1,655
Total 14,053 10,463
13. Amortisation and Depreciation
The item in question is detailed as follows:
Year ended 30 April
(Euro thousands) 2022 2021
Intangible assets 18,572 12,041
Amortisation of right of use 11,191 9,518
Property, plant and equipment 11,943 10,924
Total 41,706 32,483
14. Share of prots from companies valued at equity
A breakdown of the changes in the value of equity investments in associated companies measured using the equity method in the
years ended 30 April 2022 and 30 April 2021 is provided below:
Year ended 30 April
(Euro thousands) 2022 2021
Opening balance 13,850 12,158
Acquisitions and capital increases 845 10
Sales and liquidations (25)
Dividends received (518) (288)
Prot/(loss) of companies evaluated at equity 1,744 2,345
Reclassications (1,303) (375)
Closing balance 14,593 13,850
The following table shows the share of the results of the main associated companies and the aggregate value of their assets,
liabilities and revenues at the date of the last approved nancial statements:
(Euro thousands) Total assets Total liabilities Revenues Prot (loss) for the year % held
Attiva SpA 104,040 61,320 620,865 6,558 21,0%
M.K. Italia Srl 1,663 1,159 5,092 130 45,0%
Studio 81 Data System Srl 2,272 1,946 4,276 144 50,0%
Gendata Srl 2,130 1,959 2,382 52 20,0%
148
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
15. Financial Income and Expense
The item in question is detailed as follows:
Year ended 30 April
(Euro thousands) 2022 2021
Interest expense on sales of receivables (1,669) (1,639)
Expenses and commissions for sales of receivables with recourse (601) (376)
Bank and loan interest expense (425) (240)
Other interest payable (2,355) (2,130)
Commissions and other nancial expense (4,001) (2,786)
Financial expense related to severance indemnities (332) (284)
Total nancial expense (9,383) (7,455)
Interest income on other short-term receivables 553 523
Other nancial income. 1231 16
Bank interest income 35 39
Dividends from shareholdings 849 402
Total nancial income 2,668 980
Total nancial income and charges (a) (6,715) (6,475)
Losses on exchanges (6,527) (6,644)
Gains on exchanges 6,386 7,598
Total exchange gains and losses (b) (141) 954
Net nancial expense (a+b) (6,856) (5,521)
Net nancial expenses present a net negative balance of Euro 6,856 thousand at 30 April 2022, an decrease compared to a
negative balance of Euro 5,521 thousand at 30 April 2021, due to (i) exchange gains and losses (net balance of exchange losses
and gains) which goes from a positive balance of Euro 954 thousand at 30 April 2021 to a negative balance of Euro 141 thousand
at 30 April 2022, as a result of a less favourable trend in the euro/dollar exchange rate, (ii) nancial income and charges which,
following the greater business volumes recorded in the year, goes from a negative net balance of Euro 6,475 thousand at 30 April
2021 to a negative balance of Euro 6,715 thousand at 30 April 2022.
16. Income Taxes
The item in question is detailed as follows:
Year ended 30 April
(Euro thousands) 2022 2021
Current taxes 33,415 26,115
Deferred tax liabilities (2,931) (2,110)
149
Consolidated nancial statements as of April 30, 2022
www.sesa.it
Year ended 30 April
(Euro thousands) 2022 2021
Taxes relating to previous years (20) 35
Total 30,464 24,040
The following table shows the reconciliation of the theoretical tax burden with the actual tax burden for the years ended 30 April
2022 and 30 April 2021.
Year ended 30 April
(Euro thousands) 2022 2021
Result before taxes 109,084 80,826
Theoretical taxes 26,180 19,398
Taxes relating to previous years (20) 659
Subsidised taxation on dividends 251 170
Permanent differences 540 205
IRAP (regional tax on production); excluding other changes 3,513 3,608
Actual tax charge 30,464 24,040
17. Intangible Assets
The item in question and relatives changes are detailed as follows:
(Euro thousands) Client List
Software and other
intangible assets
Technological
know-how
Total
Balance at 30 April 2021 46,752 12,860 83,214 142,826
Of which:
- historical cost 59,288 27,774 93,134 180,196
- accumulated amortisation (12,536) (14,914) (9,920) (37,370)
Change in the scope of consolidation 20,829 2,480 73,563 96,872
Investments 3,136 3,854 164 7,154
Disinvestments
Amortisation (5,374) (6,270) (6,928) (18,572)
Balance at 30 April 2022 65,343 12,924 150,013 228,280
Of which:
- historical cost 83,253 34,108 166,861 284,222
- accumulated amortisation (17,910) (21,184) (16,848) (55,942)
150
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
The balance of intangible xed assets as at 30 April 2021 consists mainly of client lists and technological know-how which increased
during the year mainly following the entry into the scope of consolidation of the companies recently purchased. Further information
can be found in the Business Combinations section.
18. Propertly, plant and equipment
The item in question and relative changes are detailed as follows:
(Euro thousands) Land Buildings
Ofce
Equipment
Leashold
Improvements
Other property,
plant and
equipment
Right of use Total
Of which: 1,801 4,435 17,449 3,707 6,949 49,617 83,958
- historical cost
- accumulated depreciation 1,801 5,395 40,718 8,668 15,755 60,787 133,124
Investments (960) (23,269) (4,961) (8,806) (11,170) (49,166)
Disinvestments 1,258 2,429 10,637 1,619 1,929 9,875 27,747
Change in the scope of consolidation (296) (296)
Depreciation 93 545 1,987 436 668 5,246 8,975
Other changes (229) (7,842) (1,002) (1,851) (9,518) (20,442)
Balance at 30 April 2021
Of which: 3,152 7,180 21,935 4,760 7,695 55,220 99,942
- historical cost
- accumulated depreciation 3,152 8,369 53,046 10,723 18,352 75,908 169,550
Investments (1,189) (31,111) (5,963) (10,657) (20,688) (69,608)
Disinvestments 131 12,020 3,440 2,934 9,457 27,982
Change in the scope of consolidation
Depreciation 156 1,212 724 256 890 3,915 7,153
Other changes (299) (8,969) (870) (1,805) (11,191) (23,134)
Balance at 30 April 2022
Of which: 3,308 8,224 25,710 7,586 9,714 57,401 111,943
- historical cost
- accumulated depreciation 3,308 9,712 65,790 14,419 22,176 89,280 204,685
- fondo ammortamento (1,488) (40,080) (6,833) (12,462) (31,87) (92,742)
Investments in the purchase of ofce equipment recorded during the year refer mainly to purchases of technology for the provision
of IT services and solutions by Var Group SpA to customers. Investments in land and buildings include the costs incurred for the
expansion of the ofce of Var Group Spa in Milan. The difference in right of use is due to rents contract for building to support the
growth of perimeter and the growth of the Group's workforce.
151
Consolidated nancial statements as of April 30, 2022
www.sesa.it
19. Investment Property
The item in question and relative changes are detailed as follows:
(Euro thousands) Land Buildings Total
Balance at 30 April 2020 281 9 290
Of which:
- historical cost 281 10 291
- accumulated depreciation (1) (1)
Investments
Disinvestments
Depreciation
Balance at 30 April 2021 281 9 290
Of which:
- historical cost 281 10 291
- accumulated depreciation (1) (1)
Investments
Disinvestments
Depreciation
Balance at 30 April 2022 281 9 290
Of which:
- historical cost 281 10 291
- accumulated depreciation (1) (1)
20. Deferred tax assets and liabilities
The expected maturity of receivables for deferred tax assets and liabilities can be broken down as follows:
At 30 April
(Euro thousands) 2022 2021
Receivables for deferred tax assets within 12 months 12,739 10,287
Receivables for deferred tax assets after 12 months 3,171 2,700
Total receivables for deferred tax assets 15,910 12,987
Deferred tax liabilities 63,333 35,989
Total deferred tax liabilities 63,333 35,989
152
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
Net changes in these items are detailed as follows:
At 30 April
(Euro thousands) 2022 2021
Opening balance (23,002) (8,984)
Of which:
- receivables for deferred tax assets 12,987 9,901
- deferred tax liabilities 35,989 18,885
Change in the scope of consolidation (25,205) (16,077)
Impact on income statement 1,346 2,110
Impact on statement of comprehensive income (562) (51)
Closing balance (47,423) (23,002)
Of which:
- receivables for deferred tax assets 15,910 12,987
- deferred tax liabilities 63,333 35,989
Changes in receivables for deferred tax assets can be broken down as follows:
Receivables for deferred tax assets
(Euro thousands)
Differences in value of property, plant
and equipment and intangible assets
Provisions for risks and charges
and other provisions
Employee
benets
Other
Entries
Total
Balance at 30 April 2020 3,865 5,569 198 269 9,901
Change in the scope of
consolidation
1,716 1,716
Impact on income
statement
298 1,072 1,370
Impact on statement of
comprehensive income
Balance at 30 April 2021 5,879 6,641 198 269 12,987
Change in the scope of
consolidation
1,574 1,574
Impact on income
statement
880 469 1,349
Impact on statement of
comprehensive income
Balance at 30 April 2022 8,333 7,110 198 269 15,910
Changes in deferred taxes liabilities can be broken down as follows:
Deferred tax liabilities
(Euro thousands)
Differences in value of property, plant and
equipment and intangible assets
Employee
benets
Other
Entries
Total
Balance at 30 April 2020 18,106 (821) 1,600 18,885
Change in the scope of consolidation 17,793 17,793
Impact on income statement (943) 203 (740)
153
Consolidated nancial statements as of April 30, 2022
www.sesa.it
Deferred tax liabilities
(Euro thousands)
Differences in value of property, plant and
equipment and intangible assets
Employee
benets
Other
Entries
Total
Impact on statement of comprehensive income 51 51
Balance at 30 April 2021 34,956 (567) 1,600 35,989
Change in the scope of consolidation 26,779 26,779
Impact on income statement (2,369) 530 1,842 3
Impact on statement of comprehensive income 562 562
Balance at 30 April 2022 59,366 525 3,442 63,333
Receivables for deferred tax assets refer to accruals to provisions for obsolescence, bad debts and risks, which will be deductible
for tax purposes only when the loss becomes certain.
Deferred tax liabilities relate mainly to property, plant and equipment and intangible assets (client lists and technological know-how)
for which the value deductible for tax purposes is lower than the book value.
21. Other current and non-current receivables
The item in question is detailed as follows:
At 30 April
(Euro thousands) 2022 2021
Non-current receivables from others 2,878 2,781
Non-current equity investments in other companies 11,955 11,147
Non-current securities 461 225
Other non-current tax receivables 1,311 441
Non-current receivables from associated companies 50 50
Total other non-current receivables and assets 16,655 14,644
Current receivables from others 25,788 18,999
Other current tax receivables 10,864 9,378
Accrued income and prepaid expenses 47,472 28,723
Other current securities 2,594 240
Current receivables from non-consolidated group companies 294
Total other current receivables and assets 86,718 57,634
Non-current receivables from others mainly include receivables relating to VAT recovery for invoices issued to customers subject
to bankruptcy proceedings.
154
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
Non-current equity investments in other companies refer to companies that are not listed on an active market, the fair value of which
cannot be measured reliably; therefore, these equity investments are evaluated at cost, net of any impairments. These include the
investments in DV Holding SpA and Cabel Holding SpA.
Non-current investments in other companies can be broken down as follows:
At 30 April
(Euro thousands) 2022 2021
Opening balance 11,147 10,984
Acquisitions and revaluations 1,956 2,136
Sales, write-downs and impairment (1,224) (19)
Reclassications 76 (1,954)
Closing balance 11,955 11,147
The increase in Non-current equity investments during the year includes the acquisition of 55% of Addfor Industriale Srl (Euro 1,143
thousand) and 19% of Essedi Consulting Srl (Euro 187 thousands). The reduction in this item is due mainly to the depreciation and
to the exit from the perimeter of Cosesa Srl.
22. Inventory
The item in question is detailed as follows:
At 30 April
(Euro thousands) 2022 2021
Finished products and goods for resale 141,301 84,087
Work in progress and semi-nished products 2,733 2,833
Total 144,034 86,920
Finished products and goods are shown net of the provision for obsolescence, changes in which are shown in the following table.
(Euro thousands) Provision for obsolescence of nished products and goods
Balance at 30 April 2021 1,785
Net change 792
Balance at 30 April 2022 2,577
155
Consolidated nancial statements as of April 30, 2022
www.sesa.it
23. Current Trade Receivables
The item in question is detailed as follows:
At 30 April
(Euro thousands) 2022 2021
Trade receivables 462,974 378,615
Provision for bad debts (29,812) (24,392)
Trade receivables net of the provision for bad debts 433,162 354,223
Receivable from associates 1,417 1,558
Total current trade receivables 434,579 355,781
To provide a better representation, trade receivables are recorded net of the balance relating to customers subject to bankruptcy
proceedings and composition with creditors which, at 30 April 2022, amounted to Euro 21,974 thousand, compared to Euro 23,178
thousand at 30 April 2021. These positions are fully written down through the recognition of a specic provision.
The table below shows changes in the provision for bad debts:
(Euro thousands) Provision for bad debts
Balance at 30 April 2020 20,387
Accrual to provisions 6,460
Use and other changes (4,212)
Change in the scope of consolidation 1,757
Balance at 30 April 2021 24,392
Accrual to provisions 5,898
Use and other changes (2,880)
Change in the scope of consolidation 2,402
Balance at 30 April 2022 29,812
24. Cash and Cash Equivalents
The item in question is detailed as follows:
At 30 April
(Euro thousands) 2022 2021
Bank and post ofce deposits 496,189 426,568
Cheques 26 7
Cash 96 90
Total cash and cash equivalents 496,311 426,665
156
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
The following table shows the Group's cash and cash equivalents by currency at 30 April 2022 and 30 April 2021:
At 30 April
(Euro thousands) 2022 2021
Cash and cash equivalents in Euro 487,390 423,463
Cash and cash equivalents in foreign currency 8,921 3,202
Total cash and cash equivalents 496,311 426,665
25. Shareholders’ Equity
SHARE CAPITAL
At 30 April 2022, the fully subscribed and paid-up share capital of the Parent Company amounted to Euro 37,127 thousand and
consisted of 15,494,590 ordinary shares, all with no nominal value. The Company has no Warrants or shares other than ordinary
shares.
As at 30 April 2021, the parent company Sesa SpA 40,862 shares, equating to 0,263% of the share capital, purchased at an
average price of 152,0 Euro under the treasury share purchase plan approved by the shareholders' meeting of 26 August 2021.
In application of the international accounting standards, these instruments are deducted from the company's shareholders' equity.
The table below provides details of changes in shares in circulation and treasury shares during the year:
Share capital
Number of shares
Situation as at 30 April 2021
Shares issued 15,494,590
Treasury shares in portfolio 61,160
Shares in circulation 15,433,430
Situation as at 30 April 2022
Assignment of shares in execution of the Stock Grant Plan 58,000
Purchase of treasury shares 37,702
Situation as at 30 April 2022
Shares issued 15,494,590
Treasury shares in portfolio 40,862
Shares in circulation 15,453,728
The shareholders who, as at 30 April 2022, hold a signicant investment in the Issuer's share capital with voting rights are the
following:
Declarant Direct shareholder
Number of shares with
voting rights held
% of total share
capital with voting rights
HSE SpA ITH SpA 8,183,323 52.81%
157
Consolidated nancial statements as of April 30, 2022
www.sesa.it
There are no other shareholders, other than those mentioned above, with a signicant investment (more than 5%) that have
communicated to Consob and Sesa SpA pursuant to art. 117 of Consob Regulation no. 11971/99 on notication requirements for
signicant investments.
OTHER RESERVES
The "Other reserves" and "Minority actuarial gain (loss) reserve" items can be broken down as follows:
(Euro thousands)
Legal
Reserve
Treasury
shares
Group actuarial gain
(loss) reserve
Miscellaneous
reserves
Total Other
reserves
Minority actuarial gain
(loss) reserve
At 30 April 2020 2,860 (3,300) (2,969) (14,354) (17,763) (1,011)
Actuarial gain(loss) for employee benets
- gross
185 185 31
Actuarial gain(loss) for employee benets
- tax effect
(44) (44) (7)
Purchase of treasury shares (3,108) (3,108)
Sale of treasury shares
Distribution of dividends
Assignment of Stock Grants 2,363 (2,363)
Vesting of Stock Grant plans 3,257 3,257
Allocation of prot for the year 555 10,544 11,099
Change in the scope of consolidation and
other changes
(13,047) (13,047)
At 30 April 2021 3,415 (4,045) (2,828) (15,963) (19,421) (987)
Actuarial gain(loss) for employee benets
- gross
1,929 1,929 284
Actuarial gain(loss) for employee benets
- tax effect
(491) (491) (71)
Purchase of treasury shares (6,005) (6,005)
Sale of treasury shares
Distribution of dividends (2,122) (2,122)
Assignment of Stock Grants 3,835 (3,835)
Vesting of Stock Grant plans 4,312 4,312
Allocation of prot for the year 581 581
Change in the scope of consolidation and
other changes
(23,761) (23,761)
At 30 April 2022 3,996 (6,215) (1,390) (41,369) (44,978) (774)
DIVIDENDS
On 22 September 2022 Sesa distribuited a dividend for 0,85 Euro per share as resolved by the Ordinary Shareholders' Meeting
of Sesa SpA held on 26 August 2021. The total amount of dividendi is equal to 13.168 Euro thousand, net of dividend of treasury
share for which ahas been obtained.
158
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
EARNINGS PER SHARE
The following table shows the calculation of basic and diluted earnings per share.
Year ended 30 April
(in Euro, unless otherwise specied) 2022 2021
Prot for the year - Group share in Euro thousands 73,519 52,271
Average number of ordinary shares (*) 15,456,094 15,432,403
Earnings per share - basic 4.76 3.39
Average number of ordinary shares (*) 15,494,590 15,490,403
Earnings per share - diluted 4.74 3.37
(*) Monthly weighted average of shares in circulation, net of treasury shares in portfolio.
(**) Monthly weighted average of shares in circulation, net of treasury shares in portfolio and including the impact of Stock Options
Other comprehensive income components:
(in Euro thousands, unless otherwise specied)
Provision
for result
Group
Total
Equity attributable to
non-controlling interest
Total other Comprehensive
Income Components
At 30 April 2022
Items that cannot be reclassied to the income statement
Actuarial gains / (losses) for employee benets 1,438 1,438 213 1,651
Total 1,438 1,438 213 1,651
Other Comprehensive Income Components 1,438 1,438 213 1,651
26. Current and Non-current Loans
The table below provides a breakdown of this item at 30 April 2022 and 30 April 2021:
At 30 April 2022
(Euro thousands) Within 12 months Between 1 and 5 years Over 5 years Total
Long-term loans 110,786 200,367 311,153
Short-term loans 50,267 50,267
Advances received from factoring companies 590 590
Financial liabilities for rights of use 11,084 23,584 10,265 44,933
Total 172,727 223,951 10,265 406,943
At 30 April 2021
(Euro thousands) Within 12 months Between 1 and 5 years Over 5 years Totale
Long-term loans 77,789 176,392 254,181
Short-term loans 33,781 33,781
Advances received from factoring companies 391 391
159
Consolidated nancial statements as of April 30, 2022
www.sesa.it
At 30 April 2021
(Euro thousands) Within 12 months Between 1 and 5 years Over 5 years Totale
Financial liabilities for rights of use 10,245 22,094 11,532 43,871
Total 122,206 198,486 11,532 332,224
The table below summarises the main loans in place with a residual nominal value of more than Euro 5,000 thousand:
At 30 April
Funding entity
Original
Amou
Company New Loan Expiry
Rate
applied
30
April
2022
Of which
current
30
April
2021
Of which
current
30
April
2020
Of which
current
BNL BNP
Paribas S.p.A.
40,000
Var Group
S.p.A.
apr-22 apr-27
Euribor 6m
+0.75%
40,000 8,000
BNL BNP
Paribas S.p.A.
25,000
Computer
Gross Italia
S.p.A
lug-19 gen-25
Euribor 3m
+ 1.10%
15,000 5,000
18,750 5,000 22,500 3,750
CARIPARMA
S.p.A. - Credit
Agricole
25,000
Var Group
S.p.A.
lug-20 lug-24
Euribor 3m
+0.60%
14,136 6,259
20,358 6,222
Banca Intesa
S.p.A.
25,000
Var Group
S.p.A.
mar-20 mar-25
Euribor 3m
+1.10%
12,000 4,000
16,000 4,000 20,000 4,000
Banca Popolare
Emilia Romagna
S.p.A.
20,000
Var Group
S.p.A.
feb-20 feb-23
Euribor 3m
+0.85%
8,333 8,333
16,666 8,333
Banca BPM 12,000
Var Group
S.p.A.
mar-22 mar-27
Euribor 3m
+1.1%
12,000 2,370
Unicredit S.p.A. 11,500
Var Group
S.p.A.
mag-21 mag-25
Euribor 3m
+1.00%
9,344 2,875
Unicredit S.p.A. 10,000
Computer
Gross Italia
S.p.A
mag-21 mag-25
Euribor 6m
+0,65%
8,750 2,500
Banca MPS
S.p.A.
10,000
Computer
Gross Italia
S.p.A
feb-20 giu-25
Euribor 6m
+0.65%
7,000 2,000
9,000 2,000 10,000 1,000
Banca Intesa
S.p.A.
10,000
Computer
Gross Italia
S.p.A
nov-20 nov-23
Euribor 3m
+0.85%
5,846 3,353
9,171 3,325
It should be noted that the loans in progress do not include asset or nancial covenants but essentially clauses for the forfeiture of
the benet of the term in the event of cross default or change of control, with the exception of the following:
• Euro 40.0 million (residual value Euro 40.0 milioni) subscribed by Var Group SpA with BNL BNP Paribas in April 2022 (maturity
2027);
• Euro 25.0 million (residual value Euro 14.1 million) subscribed by Var Group SpA with Credit Agricole SpA in July 2020 (ma-
turity 2024);
• Euro 20.0 milioni (residual value Euro 12.0 milioni) subscribed by Var Group SpA with Banca Intesa SpA in March 2020 (ma-
turity 2025). This loan has been fully repaid in May 2022 following a new subscription of a loan with Banca Intesa SpA of Euro
25.0 million;
160
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
• Euro 25.0 million (residual value Euro 8.3 million) subscribed by Var Group SpA with Ubi Banca SpA in February 2020, tran-
sferred to BPER following the sale of UBI (maturity 2023);
• Euro 12.0 million (residual value Euro 12.0 million) subscribed by Var Group SpA with Banco BPM SpA in March 2022 (maturity
2027);
• Euro 11.5 million (residual value Euro 9.3 million) subscribed by Var Group SpA with Unicredit SpA in May 2021 (maturity
2025).
These loans require compliance with certain ratios of net nancial position/shareholders' equity and/or net nancial position/Ebitda
of the SSI Sector. In the nancial year ended 30 April 2022, the above parameters were complied with.
The table below summarises the nancial lease agreements, including the main ones relating to the properties located in Empoli
owned by Computer Gross SpA and operating leases, car leases and rentals entered into by Group companies for the exercise of
their operating activities:
At 30 April
(Euro thousands)
Funding entity New loan Expiry 2022
Of which
current
2021
Of which
current
Leasint SpA May-18 May-30 3,347 332 3,675 328
Leasint SpA Jan-17 May-30 6,204 437 6,630 425
Leasint SpA Sep-13 May-30 448 25 472 25
Leasint SpA Oct-10 May-30 5,341 304 5,639 298
Leasint SpA Dec-08 Sep-25 151 92 238 87
Operating leases, car leases and rentals 29,442 9,894 27,217 9,082
Total 44,933 11,084 43,871 10,245
The following table summarises the minimum payments of nancial lease liabilities:
At 30 April
(Euro thousands) 2022 2021
Minimum payments due
Within 12 months 11,927 11,246
Between 1 and 5 years 25,296 24,349
Over 5 years 10,831 12,344
48,054 47,939
Future nancial expenses (3,121) (4,068)
Current value of nancial leasing liabilities 44,933 43,871
161
Consolidated nancial statements as of April 30, 2022
www.sesa.it
the table below shows the Group's net nancial debt at 30 April 2022 and 30 April 2021 in accordance with ESMA and Consob
recommendations:
At 30 April
(Euro thousands) 2022 2021
A. Cash 96 90
B. Cash equivalents 496,215 426,575
C. Other current nancial assets 2,594 240
D. Liquidity (A) + (B) + (C) 498,905 426,905
E. Current nancial debt (including debt instruments but excluding the current portion
of non-current nancial debt)
50,857 34,172
F. Current portion of non-current nancial debt 121,870 88,034
G. Current nancial debt (E) + (F) 172,727 122,206
H. Net current nancial debt (G) - (D) (326,178) (304,699)
I. Non-current nancial debt (excluding the current portion and debit instruments) 234,216 210,018
J. Non-current nancial debt (I) 234,216 210,018
K. Net current nancial debt (G) + (J) (91,962) (94,681)
Below is the reclassied statement of cash ows for a reconciliation of the Net debt at the beginning of the year with that at the end
of the year.
At 30 April
(Euro thousands) 2022 2021
Cash ows generated by operating assets before changes in net working capital 167,726 127,087
change in working capital (17,861) 21,041
Cash ow generated by (used in) operating activities before changes in lease liabilities 149,865 148,128
Payment of lease principal (13,555) (11,561)
Cash ow generated by (used in) operating activities (A) 136,310 136,567
Cash ow generated by (used in) investment activities (B) (25,314) (30,263)
Free cash ow (A+B) 110,996 106,304
Cash ow generated by (used in) acquisition investment activities (C) (92,311) (61,974)
(Purchase) sale of other equity investments and securities (D) (757) (732)
Cash ow generated by (used in) investment activities (B+C+D) (118,382) (92,969)
Cash ow generated by (used in) operating and investment activities 17,928 43,598
Treasury shares (6,005) (3,107)
Dividends distributed (14,642) (510)
Change in net debt (2,719) 39,981
Opening Net Financial Position 94,681 54,700
Change in Net Financial Position (2,719) 39,981
Closing Net Financial Position 91,962 94,681
162
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
27. Employee Benets
This item includes the provision for severance indemnities (TFR) for employees of Group companies.
Changes in this item are detailed as follows:
Year ended 30 April
(Euro thousands) 2022 2021
Opening balance 40,897 31,022
Service cost 4,516 3,525
Bond interest 332 283
Uses and advances (3,423) (1,769)
Actuarial loss/(gain) (2,213) (216)
Change in the scope of consolidation and purchase of business branches 4,270 8,052
Closing balance 44,379 40,897
The actuarial assumptions used to calculate dened benet pension plans are detailed in the following table:
At 30 April
(Euro thousands) 2022 2021
Economic assumptions
Rate of ination 1.70% 1.00%
Discount rate 2.29% 0.78%
TFR increase rate 2.78% 2.25%
With regard to the discount rate, the iBoxx Eurozone Corporates AA index with a duration of 10+ was used as the reference at the
various valuation dates, in line with the residual average term of the staff subject to assessment.
SENSITIVITY ANALYSIS
In accordance with the requirements of IAS 19R, a sensitivity analysis was carried out on the basis of changes in the main actuarial
assumptions included in the calculation model. In detail, the most signicant assumptions were increased and decreased, i.e. the
average annual discount rate, the average annual ination rate and the turn-over rate, respectively, by half, one quarter and two
percentage points.
(Euro thousands) Scenarios Past service liability
Annual discounting rate 0.50% 42,554
-0.50% 45,937
Average annual rate of ination 0.50% 44,961
-0.50% 43,439
Turnover rate 0.50% 44,105
-0.50% 44,201
163
Consolidated nancial statements as of April 30, 2022
www.sesa.it
28. Provisions for Risks and Charges
Chenges in these items are detailed as follows:
(Euro thousands) Provision for agents’ pension plans Other risk provisions Total
At 30 April 2020 1,323 961 2,284
Change in the scope of consolidation 98 272 370
Accruals to provisions 157 1,730 1,887
Uses (28) (273) (301)
Discharges 1,550 2,690 4,240
Changes in Other Provisions for Risks during the year particularly reect:
• Changes in the scope of consolidation related to the companies entering the scope of consolidation in the year ended at 30
April 2022;
• Accruals to provisions for miscellaneous charges equal to Euro 1,730 thousand attributable to the probable expenses to be
incurred for the settlement of disputes and contractual obligations of some Group companies, including mainly Var Group SpA,
IFM Infomaster SpA and Apra SpA;
• Uses of Euro 273 thousand referring mainly to the settlement of certain liabilities already recognised among provisions at 30
April 2022.
It should be noted that Var Group SpA was subject to audit by the “Guardia di Finanza” (Financial Police) of Florence which ended
with the issue of a Tax Audit Report (Processo Verbale di Constatazione - “PVC”) on 2 April 2021, containing ndings on IRES,
IRAP and VAT for the years 2016-2017-2018-2019 for a total of Euro 10.5 million plus penalties and interest. Although the Company
believes that it has always complied with its tax obligations in the years under review, it has settled some of the issues contained in
the tax audit report, paying the relative taxes, penalties and interest for a total of Euro 1.5 million.
On May 2021, the Company presented its observations pursuant to article 12, paragraph 7, of Law no. 212/2000, highlighting
the inconsistency of the ndings and the correctness of its conduct with regard to tax obligations. Therefore, on the basis of the
information currently available, the Company, supported by the opinion of its tax experts, considers it unlikely that there will be a
negative outcome from the claims referred to in the above-mentioned tax audit report for the portion not already settled and paid
in 2021.
It should also be noted that, at the date of preparation of this annual report, despite the Group's constantly e expanding perimeter,
there were no further tax disputes of a signicant amount.
164
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
29. Other Current Liabilities
The item in question is detailed as follows:
At 30 April
(Euro thousands) 2022 2021
Accrued liabilities and deferred income 95,994 70,642
Tax payables 13,675 11,001
Payable to personnel 30,900 24,666
Other payables 10,493 7,566
Payable to social security institutions 6,681 5,753
Advances from customers 7,180 15,293
Derivative liabilities 168 366
Total other current liabilities 165,091 135,287
30. Further Information
POTENTIAL LIABILITIES
We are not aware of the existence of further tax disputes or proceedings that could have signicant repercussions on the Group' s
economic and nancial situation.
FURTHER DISCLOSURES
There is no further relevant information to report.
COMMITMENTS
As at 30 April 2021, the Group had not undertaken any commitments not reected in the nancial statements.
DIRECTORS AND STATUTORY AUDITORS' FEES
The following is a breakdown of the remuneration of the directors and statutory auditors of the Parent Company, gross of social
security and tax contributions for the year, paid by Sesa SpA and other Group companies. For a complete description and analysis of
the remuneration payable to Directors, Statutory Auditors and Executives with strategic responsibilities, reference should be made
to the Remuneration Report available at the company's registered ofce, as well as on the company's website in the "Corporate
Governance" section.
Year ended 30 April
(Euro thousands) 2022
Payments to directors 955
Payments to statutory auditors
23
165
Consolidated nancial statements as of April 30, 2022
www.sesa.it
The remuneration of the directors shown in the table includes xed and variable remuneration as well as that due for participation
in internal committees. However, the reversible fees of the directors and the shares assigned under the stock grant plan approved
by the shareholders' meeting of 28 August 2020 are excluded. In relation to the stock grant plan as at 30 April 2022, the shares
relating to the annual target of 58,000 shares have matured. The remuneration of the statutory auditors refers only to the period 1
May 2021 to 26 August 2021, the date on which the company adopted the one-tier governance model.
For an overview of the fees and remuneration paid to the corporate bodies, reference should be made to the Remuneration Report.
PAYMENTS TO THE INDEPENDENT AUDITOR
The following table, prepared in accordance with article 149-duodecies of the Consob Issuers' Regulation, shows the fees for the
year ended 30 April 2022 for audit and non-audit services provided by the Independent Auditor and by entities belonging to its
network, including expenses.
Type of service Service provider Consignee
Remuneration for the year ended 30 April 2021
(Euro thousands)
Independent audit PwC Parent Company Sesa SpA 98
Independent audit PwC Subsidiary Companies 129
Other assurance services PwC Parent Company Sesa SpA 10
Other assurance services PwC Subsidiary Companies 14
Other services PwC Parent Company Sesa SpA 25
Remuneration includes, in addition to fees, out-of-pocket expenses and the supervisory contribution. In addition to the audit activities
at 30 April 2022, further services were rendered relating mainly to the limited review of the Non-Financial Statement of Sesa SpA
and other audit procedures.
31. Transaction with Related Parties
Transactions between the Group and related parties, associates and parent companies, are mainly of a commercial nature and
mostly concern the purchase and sale of hardware and software and relative technical assistance. The Company believes that all
transactions with related parties are substantially regulated on the basis of normal market conditions..
The following table details the balances with related parties as at 30 April 2022 and 30 April 2021:
(Euro thousands)
Associated
companies
Parent
companies
Top
Management
Other related
parties
Total
Impacton the
item
Current trade receivables
At 30 April 2022 6,101 10 6,111 1.41%
At 30 April 2021 1,209 4 1,213 0.34%
Other current receivables and
assets
At 30 April 2022 29 29 0.17%
At 30 April 2021 28 28 0.05%
Employee benets
166
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
(Euro thousands)
Associated
companies
Parent
companies
Top
Management
Other related
parties
Total
Impacton the
item
At 30 April 2022 67 67 0.15%
At 30 April 2021 59 59 0.14%
Trade payables
At 30 April 2022 3,861 138 71 4,070 0.77%
At 30 April 2021 2,797 194 222 3,213 0.88%
Other current liabilities
At 30 April 2022 114 114 0.07%
At 30 April 2021 159 159 0.12%
The following table details the economic effects of transactions with related parties in the years ended 30 April 2022 and 30 April
2021:
(Euro thousands)
Associated
companies
Parent
companies
Top
Management
Other related
parties
Total
Impacton the
item
Revenues
At 30 April 2022 9,990 78 10 2 10,080 0.43%
At 30 April 2021 5,175 78 10 11 5,274 0.26%
Other income
At 30 April 2022 53 4 15 72 0.26%
At 30 April 2021 57 2 15 74 0.50%
Consumable materials and
goods
At 30 April 2022 1,176 1,176 0.06%
At 30 April 2021 6,811 6,811 0.43%
Costs for services and for the
use of third-party goods
At 30 April 2022 9,266 5,680 488 15,434 7.57%
At 30 April 2021 8,031 4,580 439 13,050 8.31%
Personnel costs
At 30 April 2022 1,117 1,117 0.57%
At 30 April 2021 1,049 1,049 0.64%
Other operating costs
At 30 April 2022 0.00%
At 30 April 2021 0.00%
Financial income
At 30 April 2022 0.00%
At 30 April 2021 0.00%
Financial expenses
At 30 April 2022 2 2 0.01%
At 30 April 2021 1 1 0.01%
167
Consolidated nancial statements as of April 30, 2022
www.sesa.it
ASSOCIATED COMPANIES
Relations with associated companies refer mainly to the purchase and sale of technological solutions and to the technical assistance
services related to them carried out at normal market conditions. The associated companies with which the Group had business
relations for the purchase and sale of IT solutions are Sistemi Manageriali Srl, Attiva SpA, Studio 81 Srl and GV way Srl while IT
services were mainly purchased from Mediamente Consulting Srl, Var IT Srl and Innorg Srl. The increase in trade receivables from
associated companies is attributable to the sales of IT solutions to Sistemi Manageriali Srl, an associated company acquired during
the year.
PARENT COMPANIES
Relations with parent companies refer to services provided by Sesa SpA.
TOP MANAGEMENT
Relations with top management refer mainly to the remuneration of directors and executives with strategic responsibilities, as well as
close family members. In particular, payroll costs include the remuneration of directors and executives with strategic responsibilities
for employment, while costs for services and the use of third-party assets include remuneration for directors, also including the stock
grant cost for the year.
OTHER RELATED PARTIES
Relations with other related parties, mainly companies in which the statutory auditors or directors of the parent companies of Sesa
SpA have an interest, relate to commercial activities regulated at normal market conditions.
32. Events Occurring After the End of the Year
As regards the description of events occurring after the end of the nancial year, reference should be made to that already stated
in the Report, specically in the paragraphs “Signicant events occurring after the end of the year” and “Outlook”.
33. Authorisation for publication
The publication of the consolidated nancial statements of the Sesa Group for the year ended 30 April 2021 was authorised by a
resolution of the Board of Directors on 12 July 2022.
168
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
Certication of the Consolidated Financial Statements
pursuant to article 154 of Legislative Decree 58/98
1. The undersigned Paolo Castellacci, in his capacity as Chairman of the Board, and Alessandro Fabbroni, in his capacity as Exe-
cutive Responsible for the preparation of the corporate accounting documents of Sesa SpA, taking into account that envisaged
by article 154-bis, paragraphs 3 and 4, of Legislative Decree No. 58 of 24 February 1998, hereby certify:
• the adequacy in relation to the characteristics of the business, and
• the effective application of the administrative and accounting procedures for the preparation of the consolidated nancial sta-
tements as at 30 April 2022.
2. The application of the administrative and accounting procedures for the preparation of the consolidated nancial statements
as at 30 April 2022 did not reveal any signicant aspects.
It is also certied that:
The consolidated nancial statements:
a. have been prepared in compliance with the applicable international accounting standards recognised by the European
Community pursuant to EC Regulation 1606/2002 of the European Parliament and of the Council of 19 July 2002;
b. correspond to the results of the accounting books and records;
c. provide a truthful and fair representation of the issuer’s assets and liabilities, as well as its nancial and economic position, and
of all the companies included within the scope of consolidation.
• the Report on Operations includes a reliable analysis of the performance and results of operations as well as the situation of
the issuer and of all the companies included within the scope of consolidation, together with a description of the main risks and
uncertainties to which they are exposed.
Empoli, 12 July 2022
Paolo Castellacci
Chairman of the Board of Directors
Alessandro Fabbroni
In his capacity as Executive in charge of
preparation of the corporate
accounting documents
169
Consolidated nancial statements as of April 30, 2022
www.sesa.it
Independent Auditor’s Report on the Consolidated Financial Statements
171
Consolidated nancial statements as of April 30, 2022
www.sesa.it
173
Consolidated nancial statements as of April 30, 2022
www.sesa.it
175
Consolidated nancial statements as of April 30, 2022
www.sesa.it
Annex 1
SUBSIDIARIES
Held by Company Registered ofce
Share capital
in Euro
Percentage held at
30-Apr-22 30-Apr-21
ADIACENT SRL 47DECK SRL Reggio Emilia (RE) 20,000
Merger with
Adiacent
100.0%
BASE DIGITALE SECURITY
SOLUTIONS SR
A PLUS SRL Empoli (FI) 100,000 51.0% n.a.
ADVIEW SRL
OTCADA MEX S
DE RL DE DV
Guadalajara, Jalisco,
Messico
10,000 MXN 100.0% n.a.
BASE DIGITALE SECURITY
SOLUTIONS SRL
ABS TECHNOLOGY SPA Firenze (FI) 2,300,000 100.0% n.a.
BASE DIGITALE SPA ABS TECHNOLOGY SPA Firenze (FI) 2,300,000 n.a. 100.0%
ADIACENT SRL ADACTO SRL Empoli (FI) 100,000 100.0% n.a.
VAR GROUP SPA
ADDFOR
INDUSTRIALE SRL
Empoli (FI) 10,850 58.5% n.a.
ADACTO SRL ADVIEW SRL Empoli (FI) 10,000 100.0% n.a.
ADIACENT SRL AFB NET SRL Ponte San Giovanni (PG) 15,790 62.0% 62.0%
ADIACENT SRL
ADIACENT
NTERNATIONAL SRL
Empoli (FI) 10,100 60.4% 60.4%
VAR GROUP SPA
ANALYTICS
NETWORK SRL
Casalecchio di Reno ( BO) 40,000 51.0% 51.0%
BASE DIGITALE SPA TECNIKE’ SRL Arezzo (AR) 10,000 51.0% 51.0%
VAR GROUP SPA APRA SPA Jesi (AN) 150,000 87.5% 75.0%
APRA SPA
APRA COMPUTER
SYSTEM SRL
Pesaro (PS) 98,200 55.0% 55.0%
SESA SPA
BASE DIGITALE
GROUP SRL
Firenze (FI) 6,230,920 81.3% n.a.
BASE DIGITALE GROUP SRL BASE DIGITALE SPA Firenze (FI) 5,435,000 81.3% n.a.
SESA SPA BASE DIGITALE SPA Firenze (FI) 5,435,000 n.a. 71.0%
BASE DIGITALE GROUP SRL
BASE DIGITALE
PLATFORM SRL
Firenze (FI) 10,000 81.3% n.a.
BASE DIGITALE GROUP SRL
BASE DIGITALE
SECURITY SOLUTION SRL
Firenze (FI) 10,000 99.0% n.a.
DI.TECH SPA BEENEAR SRL Iasi 4,442,650 RON 100.0% 100.0%
VAR GROUP SPA
BLOCKIT SRL Padova (PD) 27,400
69.8% 66.2%
YARIX SRL 30.2% 30.2%
ICOS GMBH
BRAINWORKS
COMPUTER-TECHNOLO-
GIE GmBH
Munchen 25,659 100.0% n.a.
VAR GROUP SPA CADLOG GROUP SRL Milano (MI) 100,000 60.0% n.a.
CADLOG GROUP SRL CADLOG SRL Milano (MI) 10,000
Merger with
cadlog group
n.a.
CADLOG GROUP SRL CADLOG GMBH Eching 25,565 100.0% n.a.
CADLOG GROUP SRL CADLOG SL Madrid 3,000 94.0% n.a.
CADLOG GROUP SRL CADLOG SAS Tremblay-en-France 10,000 100.0% n.a.
PBU CAD-Systeme GMBH CIMTEC GMBH Großheirath 25,000 100.0% n.a.
BASE DIGITALE SECURITY
SOLUTIONS SRL
CITEL SPA Milano (MI) 606,060 67.0% n.a.
176
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
Held by Company Registered ofce
Share capital
in Euro
Percentage held at
30-Apr-22 30-Apr-21
VAR GROUP SPA DATEF SPA Bolzano (BZ) 126,000 51.0% n.a.
BEENEAR SRL
DI VALOR SOLUÇÕES EM
TECNOLOGIA E
CONSULTORIA LTDA
Jardim Das Perdizes 375,000 Reais
10.0% 10.0%
DI.TECH SPA 90.0% 90.0%
VAR GROUP SPA
VAR4TEAM SRL Bergamo (BG) 202,500
60.5% 60.5%
VAR ONE SRL 14.2% 14.2%
COMPUTER GROSS SPA VALUE 4CLOUD SRL Empoli (FI) 50,000 100.0% 100.0%
COMPUTER GROSS SPA
CLEVER
CONSULTING SRL
Milano (MI) 34,860 55.0% 55.0%
VAR GROUP SPA VAR BMS SPA Milano (MI) 1,562,500 91.4% 90.0%
APRA SPA CENTRO 3 CAD SRL Jesi (AN) 10,000 80.0% 80.0%
COMPUTER GROSS SPA KOLME SRL Milano (MI) 150,000 66.0% n.a.
SAILING SRL MERSY SRL Empoli (FI) 10,000 100.0% 100.0%
COMPUTER GROSS SPA
COMPUTER GROSS
ACCADIS SRL
Roma (RM) 100,000 51.0% 51.0%
SESA SPA COMPUTER GROSS SPA Empoli (FI) 40,000,000 100.0% 100.0%
COMPUTER GROSS SPA
COMPUTER GROSS
NESSOS SRL
Empoli (FI) 52,000 60.0% 60.0%
VAR GROUP SRL
VAR GROUP
NORD OVEST SRL
Genova (GE) 10,000
Merger with Var
Group Srl
100.0%
VAR GROUP SPA COSESA SRL Empoli (FI) 15,000 100.0% 100.0%
VAR GROUP SPA DELTA PHI SIGLA SRL Empoli (FI) 99,000 100.0% 100.0%
VAR GROUP SPA DI.TECH SPA Bologna (BO) 2,575,780 100.0% 100.0%
VAR GROUP SPA DIGITAL CLOUD SRL Empoli (FI) 80,000 79.3% n.a.
VAR GROUP SPA DIGITAL SECURITY SRL Empoli (FI) 100,000 90.3% n.a.
BASE DIGITALE PLATFORM SRL DIGITAL STORM SRL Milano (MI) 25,000 60.0% n.a.
BASE DIGITALE SPA DIGITAL STORM SRL Milano (MI) 25,000 n.a. 60.0%
GENCOM SRL
DIGITAL
WORKSPACE SRL
Empoli (FI) 20,000
35.0% n.a.
MY SMART SERVICES SRL 65.0% n.a.
VAR GROUP SPA
EAST SERVICES SRL Bolzano (BZ) 200,000
18.0% 18.0%
VAR SYSTEM SRL 82.0% 82.0%
BASE DIGITALE SECURITY
SOLUTIONS SRL
75.0% n.a.
ABS TECHNOLOGY SPA
ELMAS SRL Empoli (FI) 41,600
n.a. 60.0%
VAR GROUP SPA 7.5% 7.5%
YARIX SRL 7.5% 7.5%
APRA SPA EVOTRE SRL Jesi (AN) 210,000 56.0% 56.0%
ADIACENT SRL ENDURANCE SRL Bologna (BO) 15,600 51.0% 51.0%
ADIACENT INTERNATIONAL SRL
FEN WO (SHANGAI)
MANAGEMENT
CONSULTING CO., LTD
Shanghai 195,624 55.3% n.a.
DIGITAL SECURITY SRL
GENCOM SRL Forlì (FO) 82,000
40.0% n.a.
YARIX SRL 60.0% 60.0%
BASE DIGITALE PLATFORM SRL IFM INFOMASTER SPA Genova (GE) 661,765 66.8% n.a.
BASE DIGITALE SPA IFM INFOMASTER SPA Genova (GE) 661,765 n.a. 60.2%
177
Consolidated nancial statements as of April 30, 2022
www.sesa.it
Held by Company Registered ofce
Share capital
in Euro
Percentage held at
30-Apr-22 30-Apr-21
COMPUTER GROSS SPA ICOS SPA Ferrara (FE) 510,200 81.3% 79.4%
ICOS SPA ICOS Deutschland GmbH Munchen 100,000 100.0% 100.0%
COMPUTER GROSS SPA
ICT LOGISTICA SRL Empoli (FI) 775,500
66.7% 66.7%
VAR GROUP SPA 33.3% 33.3%
SESA SPA IDEA POINT SRL Empoli (FI) 10,000 100.0% 100.0%
DATEF SRL
INDUSTRIAL CYBER
SECURITY SRL
Bolzano (BZ) 50,000 70.0% n.a.
ADIACENT INTERNATIONAL SRL ALISEI CONSULTING LDT Shanghai 200,000 CNY 100.0% 100.0%
VAR GROUP SPA INFOLOG SPA Modena (MO) 300,000 51.0% 51.0%
VAR GROUP SPA KLEIS SRL TORINO (TO) 10,400 51.0% 51.0%
DIGITAL CLOUD SRL
NEBULA SRL Empoli (FI) 22,000
49.0% n.a.
LEONET4CLOUD SRL 51.0% 51.0%
VSH SRL VAR SERVICE SRL Empoli (FI) 66,263 72.0% 63.6%
M.F. SERVICES SRL VAR SERVICE SRL Empoli (FI) 66,263 2.8% 2.8%
COMPUTER GROSS SPA
COLLABORATION
VALUE SRL
Empoli (FI) 20,000 58.0% 58.0%
DIGITAL CLOUD SRL LEONET4CLOUD SRL Empoli (FI) 60,000 100.0% n.a.
VAR GROUP SPA LEONET4CLOUD SRL Empoli (FI) 60,000 n.a. 100.0%
VSH SRL M.F. SERVICES SRL Campagnola Emilia (RE) 118,000 70.0% 70.0%
VAR GROUP SPA
MY SMART
SERVICES SRL
Empoli (FI) 20,000 100.0% 100.0%
DIGITAL SECURITY SRL NGS SRL Padova (PD) 10,000 60,0% n.a.
BASE DIGITALE GROUP SRL OMIGRADE SRL Colecchio (PR) 63,000 40,0% n.a.
OMIGRADE SRL OMIGRADE SERVIZI SRL Colecchio (PR) 46,800 100,0% n.a.
PALITASOFT SRL PAL IFM SRL Catanzaro ( CZ) 50,000 55.0% n.a.
APRA SPA PALITALSOFT SRL Jesi (AN) 135,000 55.0% 55.0%
SIRIO INFORMATICA E SISTEMI SPA
PANTHERA SRL Milano (MI) 500,000
79.4% 80.4%
VAR GROUP SPA 9.6% 9.6%
TECH VALUE SRL
PBU CAD-SYSTEME
GmbgH
Aichach 26,100 60.0% 60.0%
VAR ONE SRL PEGASO SRL Piacenza (PC) 51,480 51.0% n.a.
COMPUTER GROSS SPA PICO SRL Reggio Emilia (RE) 50,000
Merger with Com-
puter Gross Spa
100.0%
COMPUTER GROSS SPA P.M. SERVICE S.R.L. Pontassieve (FI) 145,928 70.0% n.a.
APRA SPA POLYMATIC SRL San Giovanni Teatino (CH) 50,000 68.1% n.a.
VAR GROUP SPA PRAGMA PROGETTI SRL TORINO (TO) 100,000 36.0% 20.0%
PANTHERA SRL SOFTHARE Tunisi 250000 TND 99.0% 99.0%
LEONET4CLOUD SRL
VAR EVOLUTION SRL Empoli (FI) 66,667
31.8% 31.8%
VAR INDUSTRIES SRL 31.8% 31.8%
SESA SPA
ADIACENT SRL Empoli(FI) 1,091,586
27.4% 33.5%
VAR GROUP SPA 50.9% 53.1%
BASE DIGITALE SPA 2.5% 2.5%
APRA SPA 7.4% 7.4%
178
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
Held by Company Registered ofce
Share capital
in Euro
Percentage held at
30-Apr-22 30-Apr-21
VAR GROUP SPA SAILING SRL Reggio Emilia (RE) 10,000 87.5% 75.0%
PM SERVICE SRL SEBIC INVESTMENTS SRL Pontassieve (FI) 10,000 100.0% n.a.
ADACTO SRL SEMIO SRL Empoli (FI) 20,000 100.0% n.a.
COMPUTER GROSS SPA
SERVICE
TECHNOLOGY SRL
Arezzo (AR) 12,350 55.0% 55.0%
VAR ONE SRL
SINAPSI
INFORMATICA SRL
Monselice (PD) 55,488
Merger with Var
One Nord est
67.0%
VAR ONE SRL
VAR ONE
NORD EST SRL
Pordenone (PN) 30,000 100.0% 100.0%
VAR GROUP SPA
SIRIO INFORMATICA E
SISTEMI SPA
Milano (MI) 1,020,000 51.0% 51.0%
VAR SERVICE SRL ISD NORD SRL Roma (RM) 10,400 100.0% 100.0%
ADIACENT SRL SKEELLER SRL Perugia (PG) 35,000 51.0% 51.0%
VAR GROUP SPA SPS SRL Bologna (BO) 10,400 30.0% 30.0%
BASE DIGITALE GROUP SRL S.T.B. SRL Collecchio (PR) 46,800 70.0% n.a.
ADIACENT SRL SUPERRESOLUTION SRL Empoli (FI) 10,000 51.0% n.a.
OMIGRADE SRL S.T.B. SRL Colecchio (PR) 46,800 30.0% n.a.
VAR GROUP SPA TALENT WARD SRL Empoli (FI) 50,000 80.0% n.a.
OMIGRADE SRL T&O SRL Colecchio (PR) 1,000 65.0% n.a.
TECH VALUE IBERICA SRL
TECH VALUE DELS
PIRINEUS S.L.
Andorra la Vella (AND) 3,000 100.0% 100.0%
VAR GROUP SPA TECH VALUE SRL Milano (MI) 308,504 61.0% 61.0%
TECH VALUE SRL TECH VALUE IBERICA SRL Milano (MI) 50,000 100.0% 100.0%
VAR GROUP SPA
URBANFORCE S.C.A.R.L. Empoli (FI) 20,000
28.6% n.a.
ADIACENT SRL 14.3% n.a.
VAR GROUP SPA VAR 4 ADVISORY SPA Empoli (FI) 80,000 50.0% 50.0%
VAR GROUP SRL VAR ALDEBRA SRL Rimini (RN) 73,432
Merger with Var
group Srl
100.0%
TECH VALUE SRL VAR ENGINEERING SRL Empoli (FI) 160,000 96.6% 95.6%
VAR GROUP SRL VAR GROUP CENTRO SRL Empoli (FI) 41,053
Merger with Var
Group Srl
100.0%
SESA SPA VAR GROUP SPA Empoli (FI) 3,800,000 100.0% 100.0%
VAR GROUP SPA VAR GROUP SRL Empoli (FI) 100,000 100.0% 100.0%
VAR GROUP SPA
VAR Hub SRL Empoli 33,333
45.0% 100.0%
DI.TECH SPA 55.0% n.a.
VAR BMS SPA VAR ONE SRL Empoli (FI) 255,364 81.0% 78.1%
VAR GROUP SPA VAR PRIME SRL Empoli (FI) 136,402 100.0% 100.0%
APRA SPA
VAR INDUSTRIES SRL Milano (MI) 214,286
2.5% 2.5%
SAILING SRL 2.5% 2.5%
SIRIO INFORMATICA E SISTEMI SPA 45.0% 45.0%
VAR ENGINEERING SRL 10.0% 10.0%
VAR GROUP SPA 21.0% 21.0%
VSH SRL VAR NEXT SRL Treviso (TV) 10,000 85.0% 85.0%
MY SMART SERVICES SRL VAR SYSTEM SRL Empoli (FI) 40,000 100.0% n.a.
179
Consolidated nancial statements as of April 30, 2022
www.sesa.it
Held by Company Registered ofce
Share capital
in Euro
Percentage held at
30-Apr-22 30-Apr-21
LEONET4CLOUD SRL
VAR SYSTEM SRL Empoli (FI) 40,000
n.a. 50.0%
VAR GROUP NORD OVEST SRL n.a. 50.0%
MY SMART SERVICES SRL VAR4YOU SRL Empoli (FI) 30,000 100.0% n.a.
LEONET4CLOUD SRL
VAR4YOU SRL Empoli (FI) 30,000
n.a. 70.0%
VAR SERVICE SRL n.a. 30.0%
VAR GROUP SPA VAR THEIA SRL Empoli (FI) 200,000 50.0% 50.0%
MY SMART SERVICES SRL VSH SRL Empoli (FI) 50,000 100.0% 100.0%
VAR GROUP SPA YARIX SRL Montebelluna (TV) 30,000 n.a. 100.0%
DIGITAL SECURITY SRL YARIX SRL Montebelluna (TV) 30,000 100.0% n.a.
DIGITAL SECURITY SRL
WEELGO SRL Bergamo (BG) 10,000
49.0% n.a.
GENCOM SRL 51.0% 51.0%
WSS ITALIA SRL WSS IT sagl Camorino 20,000 CHF 100.0% 100.0%
VAR GROUP SPA WSS ITALIA SRL Milano (MI) 35,000 55.0% 55.0%
VAR GROUP SPA
XAUTOMATA
TECHNOLOGY GMBH
Klagenfurt 40,000 55.0% n.a.
APRA SPA
Z3 ENGINEERING SRL Lanciano (CH) 10,500
35.0% n.a.
VAR ONE SRL 25.0% n.a.
DIGITAL CLOUD SRL ZERO12 SRL Padova (PD) 10,101 100.0% n.a.
VAR GROUP SPA ZERO12 SRL Padova (PD) 10,000 n.a. 54.5%
ASSOCIATED COMPANIES
Held by Company Registered ofce
Share capital
in Euro
Percentage held at
30-Apr-22 30-Apr-21
VAR PRIME SRL 4CONSULTING SRL Limena (PD) 20,000 20.0% n.a.
COMPUTER GROSS SPA ATTIVA SPA Brendola (VI) 4,680,000 21.0% 21.0%
VAR BMS SPA B.I.T. SRL Milano (MI) 100,000 25.0% 25.0%
SESA SPA C.G.N. SRL Milano (MI) 100,000 47.5% 47.5%
COMPUTER NESSOS SRL COLLABORA SRL Vinci (FI) 15,000 29.0% 29.0%
VAR GROUP SPA DOTDIGITAL SRL Empoli (FI) 50,000 50.0% 50.0%
APRA SPA EVIN SRL Ascoli Piceno (AP) 30,000 20.0% 20.0%
GENCOM SRL GENDATA SRL Forlì 50,000 20.0% 20.0%
ADIACENT SRL G.G. SERVICES SRL Pontedera (PI) 10,200 33.3% 33.3%
VAR GROUP SPA GVWAY SRL Paderno Dugnano (MI) 150,000 30.0% 30.0%
DATEF SRL INOVA Q GMBH Wien 51,646 45.0% n.a.
VAR INDUSTRIES SRL INN-3D SRL Empoli (FI) 10,500 28.6% 28.6%
VAR BMS SPA INNORG SRL Torino (TO) 12,000 50.0% 50.0%
M.F. SERVICES SRL
ISD ITALY SRL Frascati (RM) 21,000
14.3% n.a.
VAR SERVICE SRL 14.3% n.a.
VSH SRL 14.3% n.a.
180
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
Held by Company Registered ofce
Share capital
in Euro
Percentage held at
30-Apr-22 30-Apr-21
VAR BMS SPA ISO SISTEMI SRL Genova (GE) 63,000 25.0% 25.0%
VAR PRIME SRL J.D.I. SRL Udine (UD) 10,000 n.a. 20.0%
COMPUTER GROSS SPA KOLME SRL Milano (MI) 150,000 n.a. 33.3%
VAR GROUP SPA LABOVAR SRL Instrana (TV) 50,000 49.0% n.a.
ADACTO SRL LAGUNAROCK SRL Pontedera (PI) 10,000 35.0% n.a.
OMIGRADE SRL LAW ON CHAIN S.R.L. Colecchio (PR) 50,000 30.6% n.a.
VAR GROUP SPA M.K. ITALIA SRL Empoli (FI) 100,000 45.0% 45.0%
VAR GROUP SPA
MEDIAMENTE
CONSULTING SRL
Empoli (FI) 10,000 33.0% 20.0%
VSH SRL MTS&CARE Gorlago (BG) 10,000 25.0% n.a.
VAR GROUP SPA NOA SOLUTION SRL Cagliari (CA) 118,000 24.0% 24.0%
APRA SPA POLYMATIC SRL San Giovanni Teatino (CH) 50,000 n.a. 20.0%
LEONET4CLOUD SRL S.A. CONSULTING SRL Milano (MI) 10,000 30.0% 30.0%
VAR GROUP SPA SESA PROGETTI SRL Cascina (PI 10,400 25.0% 25.0%
COMPUTER GROSS SPA
SISTEMI
MANAGERIALI SRL
Pratovecchio Stia (AR) 12,000 33.1% n.a.
APRA SPA SO WINE SRL Verona (VR) 10,000 35.0% 35.0%
VAR GROUP SRL
STUDIO 81 DATA
SYSTEM SRL
Roma (RM) 18,504 50.0% 50.0%
ADACTO SRL The Greenwatch srl Milano (MI) 10,000 35.0% n.a.
GENCOM SRL
T-STATION
ACADEMY SRL
Forlì (FO) 25,000 40.0% 40.0%
VAR GROUP SRL VAR & ENGINFO SRL Empoli (FI) 70,000 30.0% 30.0%
VAR GROUP SRL VAR IT SRL Parma (PR) 50,000 22.0% 22.0%
SIRIO INFORMATICA E SISTEMI SPA WEBGATE ITALIA SRL Milano (MI) 40,000 30.0% 30.0%
APRA SPA WINLAKE ITALIA SRL Novi Ligure (AL) 10,200 33.3% 33.3%
VAR GROUP SPA
XAUTOMATA
TECHNOLOGY GMBH
Klagenfurt 40,000 n.a. 50.0%
ALTRE IMPRESE
Held by Company Registered ofce
Share capital
in Euro
Percentage held at
30-Apr-22 30-Apr-21
VAR PRIME SRL 4CONSULTING SRL Limena (PD) 20,000 n.a. 10.0%
VAR GROUP SPA ALDEBRA SPA Trento (TN) 1,398,800 11.8% 9.0%
VAR INDUSTRIES SRL AMAECO SRL Fiorano Modenese (MO) 20,000 10.0% 10.0%
APRA SPA ANALISYSIS SRL Trebbo di Reno (Bo 10,400 15.0% 15.0%
VAR GROUP SPA APIO SRL Pescara (PE) 14,882 9.3% 9.3%
YARIX SRL ATHESYS SRL Padova (PD) 30,000 10.0% 10.0%
VAR GROUP SPA AXED SPA Latina (LT) 2,000,000 0.1% 0.1%
VAR GROUP SPA CAP SOLUTIONS SRL Genova (GE) 100,000 15.0% 15.0%
181
Consolidated nancial statements as of April 30, 2022
www.sesa.it
Held by Company Registered ofce
Share capital
in Euro
Percentage held at
30-Apr-22 30-Apr-21
SESA SPA
CABEL HOLDING SPA Empoli (FI) 12,000,000
1.9% 1.9%
VAR GROUP SPA 1.9% 1.9%
GENCOM SRL CAVAREI IMPRESA SOCIALE Forlì 281,925 0.2% 0.2%
YARIX SRL
COMMERC.IO SRL SCHIO (VI) 370,000
0.7% 0.7%
VAR GROUP SPA 0.7% 0.7%
APRA SPA COMPUTER VAR TORINO SRL Torino (TO) 20,000 14.0% 14.0%
APRA SPA
CONSORZIO NIDO
INDUSTRIA VALLESI
Ancona (AN) 55,555 1.8% 1.8%
LEONET4CLOUD SRL CONSORZIO SIS Sassari (SS) 50,000 4.0% 4.0%
VAR GROUP SPA CONSORZIO TEKNOBUS San Donà di Piave (VE) 16,000 25.0% 25.0%
VAR GROUP SRL DELTA INFOR SRL Lodi (LO) 100,000 10.0% 10.0%
VAR GROUP SPA DEXIT SRL Trento (TN) 700,000 13.5% 13.5%
ADIACENT SRL DIGITAL SERVICE LEONE SRL Firenze (FI) 1,160,000 13.8% 13.8%
VAR PRIME SRL
DYNAMICS BUSINESS
SOLUTION SRL
Caserta (CE) 11,765 19.9% n.a.
VAR GROUP SPA DITECFER SCARL Pistoia (PT) 96,000 2.0% 2.0%
SESA SPA DV HOLDING SPA Roma (RM) 100,000 6.0% n.a.
VAR ONE SRL ECA CONSULT SRL Mordano (BO) 40,000 8.0% 8.0%
COLLABORATION VALUE SRL EMM&MME INFORMATICA SRL Lastra a Signa (FI) 94,000 19.0% 19.0%
COMPUTER GROSS SPA EMPOLI F.B.C. SPA Empoli (FI) 1,040,000 3.0% 3.0%
APRA SPA ENOGIS SRL Trento (TN) 10,000 10.0% 10.0%
VAR BMS SPA ESSEDI CONSULTING SRL Cologno Monzese (MI) 10,000 19.0% n.a.
APRA SPA G.L. ITALIA Srl Milano (MI) 10,400 9.0% 9.0%
VAR GROUP SPA GLOBAL BUSINESS AREZZO SRL Arezzo (AR) 65,519 10.0% 10.0%
LEONET4CLOUD SRL INFOSVIL SRL Firenze (FI) 20,400 10.0% 10.0%
COLLABORATION VALUE SRL ITF SRL Empoli (FI) 100,000 10.0% 10.0%
VAR INDUSTRIES SRL LINFA DIGITALE SRL Lucca (LU) 10,000 10.0% n.a.
VAR GROUP SPA
MACRO GROUP
COMMERCIALE SRL
Bologna (BO) 50,000 19.0% 19.0%
COSESA SRL NEGENTIS SRL Firenze (FI) 82,051 2.5% 2.5%
SESA SPA PARENTSMILE SRL Vicenza (VI) 200,000 10.0% n.a.
VAR PRIME SRL PIESSE QUADRO SRL Bovolone (VR) 20,800 10.0% 10.0%
COMPUTER GROSS SPA P.M. SERVICE S.R.L. Pontassieve (FI) 145,928 n.a. 19.0%
DELTA PHI SIGLA SRL PLAYERP SRL Empoli (FI) 20,000 19.0% n.a.
ABS TECHNOLOGY SPA R & C APPALTI SRL Roma (RM) 13,600 17.0% n.a.
BASE DIGITALE SPA
SAIL CLOUD SOLUTIONS SRL TORINO (TO) 13,000
n.a. 9.5%
ADIACENT SRL n.a. 9.5%
DATEF SRL SAIM SRL Terni 200,000 2.5% n.a.
182
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
Held by Company Registered ofce
Share capital
in Euro
Percentage held at
30-Apr-22 30-Apr-21
DELTA PHI SIGLA SRL
CONSORZIO VAR GROUP Empoli (FI) 45,448
5.9% 5.9%
YARIX SRL 5.9% 5.9%
GENCOM SRL 5.9% 5.9%
DATEF SRL 5.9% n.a.
ICT LOGISTICA SRL 5.9% 5.9%
VAR4YOU SRL 5.9% 5.9%
LEONET4CLOUD SRL 5.9% 5.9%
DIGITAL SECURITY SRL 5.9% n.a.
VAR NEXT SRL 5.9% 5.9%
EAST SERVICES SRL 5.9% 5.9%
NEBULA SRL 5.9% 5.9%
VAR ENGINEERING SRL 5.9% 5.9%
MF SERVICES SRL 5.9% 5.9%
APRA SPA 5.9% n.a.
WSS ITALIA SRL 5.9% 5.9%
ZERO 12 SRL 5.9% 5.9%
VAR SERVICE SRL 5.9% 5.9%
MY SMART SERVICES SRL 5.9% 5.9%
PALITALSOFT SRL 5.9% n.a.
VAR SYSTEM SRL 5.9% 5.9%
ADIACENT SRL 5.9% 5.9%
VAR GROUP SPA 5.9% 5.9%
SINAPSI INFORMATICA SRL SIGEA SRL Oderzo (TV) 100,000 10.0% 10.0%
DELTA PHI SIGLA SRL SIGLA TAILOR MADE SRL Empoli (FI) 10,000 19.0% 19.0%
VAR GROUP SRL S.I.L. COMPUTER SRL Livorno (LI) 10,000 19.9% 19.9%
VAR GROUP SPA SMARTLABS SRL Roma (RM) 150,000 10.0% 10.0%
TECH VALUE SRL SOLVE.IT SRL Torino (TO) 90,000 12.4% 12.0%
VAR GROUP SPA SPORTEAMS SRL Bagno a Ripoli (FI) 20,652 0.2% n.a.
ADIACENT SRL SUPERRESOLUTION SRL Empoli (FI) 10,000 n.a. 15.0%
VAR GROUP SPA SYSDAT.IT Srl Milano (MI) 100,000 10.0% 10.0%
VAR PRIME SRL VAR4RETAIL SRL Treviso (TV) 23,529 15.0% n.a.
VAR INDUSTRIES SRL VAR PLUS SRL Empoli (FI) 10,000 15.0% 15.0%
VAR GROUP SRL VAR SOLUTIONS SRL Milano (MI) 10,000 10.0% 10.0%
183
Consolidated nancial statements as of April 30, 2022
www.sesa.it
184
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
Separate nancial
statements as of
April 30, 2022
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
185
Separate nancial statements as of April 30, 2022
www.sesa.it
186
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
SEPARATE INCOME STATEMENT
Year ended 30 April
(Euro thousands) Note 2022 2021
Revenues 5 12,273 11,242
Other income 6 3,074 2,695
Consumables and goods for resale 7 (57) (32)
Costs for services and rent, leasing, and similar costs 8 (9,136) (7,459)
Personnel costs 9 (6,858) (6,057)
Other operating costs 10 (204) (147)
Amortisation and Depreciation 11 (413) (399)
Operating result (1,321) (157)
Share of prots of companies valued at equity
Financial income 12 18,581 12,023
Financial expenses 12 (29) (31)
Prot before taxes 17,231 11,835
Income taxes 13 (35) (208)
Prot for the year 17,196 11,627
SEPARATE STATEMENT OF COMPREHENSIVE INCOME
Year ended 30 April
(Euro thousands) Note 2022 2021
Prot for the year 17,196 11,627
Items that cannot be reclassied to the Income Statement
Actuarial gain (loss) for employee benets - Gross effect 142 -64
Actuarial gain (loss) for employee benets - Tax effect (34) 15
Comprehensive income for the year 17,304 11,578
187
Separate nancial statements as of April 30, 2022
www.sesa.it
SEPARATE STATEMENT OF FINANCIAL POSITION
At 30 April
(Euro thousands) Note 2022 2021
Intangible assets 14 197 197
Rights of use 263 311
Property, plant and equipment 15 408 578
Investment property 16 6 7
Equity investments 17 88,626 83,645
Deferred tax assets 18 1,100 868
Other non-current receivables and assets 19 6,787 6,787
Total non-current assets 97,387 92,393
Current trade receivables 20 1,659 1,895
Current tax receivables 49 17
Other current receivables and assets 19 4,583 4,829
Cash and cash equivalents 3,217 5,689
Total current assets 9,508 12,430
Total assets 106,895 104,823
Share capital 21 37,127 37,127
Share premium reserve 33,144 33,144
Other reserves 21 10,183 13,310
Prots carried forward 17,196 11,627
Total Shareholders' equity 97,650 95,208
Non-current loans 23
Financial liabilities for non-current rights of use 146 71
Non current nancial liabilities and commitments for purchase of shares from
non-controlling interests
Employee benets 24 1,947 1,870
Non-current provisions 25
Deferred tax liabilities 18 41 60
Total non-current liabilities 2,134 2,001
Current loans 23 42 251
Financial liabilities for current rights of use 121 243
Current nancial liabilities and commitments for purchase of shares from
non-controlling interests
45 54
Trade payables 1,154 886
Current tax payables 6 2,295
Other current liabilities 26 5,743 3,885
Total current liabilities 7,111 7,614
Total liabilities 9,245 9,615
Total shareholders' equity and liabilities 106,895 104,823
188
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
SEPARATE STATEMENT OF CASH FLOWS
Year ended 30 April
(Euro thousands) Note 2022 2021
Prot before taxes 17,231 11,835
Adjustments for:
Amortisation and Depreciation 11 412 399
Accruals to provisions relating to personnel and other provisions 24 305 171
Net nancial (income) expense 12 (17,991) (12,001)
Capital gains/losses from transfer and other non-monetary entries 3,738 3,257
Cash ows generated from operating activities before changes in net working
capital
3,695 3,661
Change in trade receivables 20 236 (571)
Change in payables to suppliers 268 39
Change in other assets 19 (115) 3,873
Change in other liabilities 26 1,858 (2,291)
Employee benets 24 (104) (76)
Change in deferred taxes (349) (375)
Change in receivables and payables for current taxes (1,718) 559
Interest paid (6)
Taxes paid (638) (713)
Net cash ow generated from operating activities 3,133 4,100
Equity investments 17 (3,500) (7,936)
Investments in property, plant and equipment 14 (42) (355)
Investments in intangible assets 15 (63) (132)
Disposal of tangible and intangible assets 2
Non-current equity investments in other companies 19 (1,481) (3,780)
Disposals of non-current equity investments in other companies 17,19 1,000
Dividends collected 18,000 12,000
Interest collected 7 23
Net cash ow generated from/(used in) investing activities 13,921 (178)
(Reduction)/increase in short-term loans 3,26 (197) (752)
Repayment of nancial liabilities for rights of use (156) (140)
Treasury shares (6,005) (3,108)
Capital increase and/or Shareholder payment 21
Dividends distributed (13,168)
Net cash ow generated from/(used in) nancing activities (19,526) (4,000)
Translation difference on cash and cash equivalents
Change in cash and cash equivalents (2,472) (78)
Opening balance of cash and cash equivalents 5,689 5,767
Closing balance of cash and cash equivalents 3,217 5,689
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SEPARATE STATEMENT OF CHANGES IN EQUITY
Changes in separate shareholders’ equity
(Euro thousands) Share Capital
Share premium
reserve
Other
reserves
Prots for the year and
prots carried forward
Shareholders’
Equity
At 30 April 2020 37,127 33,144 2,109 11,100 83,480
Actuarial gain/(loss) for employee benets - gross (64) (64)
Actuarial gain/(loss) for employee benets - tax effect 15 15
Transactions with shareholders
Purchase of treasury shares (3,108) (3,108)
Sale of treasury shares
Distribution of dividends
Assignment of shares in execution of Stock Grants
Stock Grant Plan - shares vesting in the period 3,257 3,257
Other changes 0
Allocation of prot for the year 11,100 (11,100)
Prot for the year 11,627 11,627
At 30 April 2021 37,127 33,144 13,309 11,627 95,207
Actuarial gain/(loss) for employee benets - gross 142 142
Actuarial gain/(loss) for employee benets - tax effect (34) (34)
Transactions with shareholders
Purchase of treasury shares (6,005) (6,005)
Sale of treasury shares
Distribution of dividends (2,122) (11,046) (13,168)
Assignment of shares in execution of Stock Grants
Stock Grant Plan - shares vesting in the period 4,312 4,312
Other changes
Allocation of prot for the year 581 (581)
Prot for the year 17,196 17,196
At 30 April 2022 37,127 33,144 10,183 17,196 97,650
190
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43
Performance as
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5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
Notes to the Separate
Financial Statements
1. General Information
Sesa SpA is a company incorporated and domiciled in Italy,
with registered ofce in Empoli, at no. 138 Via Piovola,
organised in compliance with the legal system of the Italian
Republic.
Sesa SpA is parent company of the Sesa Group and provides
services of administrative and nancial management,
organisation, planning and auditing, management of
information systems and human resources on behalf of
the subsidiaries, and also acts as a holding company, with
reference to companies essentially operating in the ICT sector.
Sesa SpA is an Italian company with shares admitted to trading
on the STAR segment of the MTA market. This document was
approved by the Company's Board of Directors on 12 July
2022.
2. Summary of Accounting
Standards
The main accounting criteria and standards applied in the
preparation of these separate nancial statements for the year
ended 30 April 2022 are illustrated below.
2.1 Preparation Basis
The separate nancial statements for the year ended 30 April
2022 have been prepared in accordance with the international
accounting standards ("IFRS") issued by the International
Accounting Standards Board ("IASB") and approved by the
European Union,
and with the provisions issued in implementation of art. 9 of
Legislative Decree no. 38/2005. The "IFRS" also include all
revised international accounting standards ("IAS"), as well
as all interpretations issued by the International Financial
Reporting Interpretations Committee (IFRIC) and the previous
Standing Interpretations Committee (SIC).
These Financial Statements present comparative data as at
30 April 2021, prepared in compliance with the same principles.
The separate nancial statements have been prepared under
the assumption that the company is a going concern, in that the
Directors have veried that there are no nancial, management
or other indicators that could indicate critical issues regarding
the Group's ability to full its obligations in the foreseeable
future and particularly in the next 12 months. A description of
how the Group manages nancial risks is contained in note
3 on "Financial risk management". The separate nancial
statements have been prepared and presented in Euro,
which is the currency of the prevailing economic environment
in which the Group operates. All amounts included in this
document, unless otherwise indicated, are stated in Euro
thousands. The nancial statement schedules and relative
classication criteria adopted by the Group within the scope
of the options envisaged by IAS 1 Presentation of Financial
Statements are indicated below:
• The statement of nancial position has been prepared
with the classication of assets and liabilities according
to the "current/non-current" criterion;
• The income statement has been prepared with the clas-
sication of operating costs by type;
• The statement of comprehensive income includes, in ad-
dition to the prot for the year resulting from the income
statement, other changes in shareholders' equity items
attributable to transactions not entered into with Com-
pany shareholders;
• The statement of cash ows shows the cash ows from
operating activities according to the “indirect method”.
The separate nancial statements have been prepared on
the basis of the conventional historical cost method except
for the valuation of nancial assets and liabilities, where the
application of the fair value method is required.
2.2. Valuation Criteria
The most signicant accounting principles and valuation
criteria used to prepare the separate nancial statements are
briey described below.
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment are recorded at purchase or
production cost, net of accumulated depreciation and any
impairment losses. The purchase or production cost includes
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all costs directly incurred to prepare the assets for use, as well
as any deinstallation and removal costs that will be incurred
as a result of contractual obligations that require restoration of
the asset to its original condition. Financial expenses directly
attributable to the acquisition, construction or production of
qualied assets, are capitalised and depreciated the basis of
the useful life of the asset to which they refer.
Charges incurred for ordinary and/or cyclical maintenance
and repairs are charged to the income statement when they
are incurred. Costs relating to the expansion, modernisation
or improvement of structural elements owned or under lease
are capitalised to the extent that they meet the requirements
for separate classication as an asset or part of an asset.
Assets recorded in relation to leasehold improvements are
amortised on the basis of the duration of the rental contract,
or on the basis of the specic useful life of the asset, if lower.
Depreciation is calculated on a straight-line basis using
rates that allow depreciation of assets until the end of their
useful life. When the asset subject to depreciation consists of
distinctly identiable elements the useful life of which differs
signicantly from that of the other parts comprising the asset,
depreciation is carried out separately for each of these parts in
accordance with the component approach method.
The estimated useful life for the various tangible asset
categories is as follows:
Useful life of tangible assets
Class of property, plant and equipment Useful life in years
Buildings 33
Furniture and furnishings 8
Ofce equipment 5
Vehicles 4
The useful life of tangible xed assets is reviewed and updated, where applicable, at least at the end of each nancial year.
RIGHTS OF USE
Contracts for the leasing of property, plant and equipment
entered into as a lessee entail the recognition of an asset
representing the right to use the leased asset and the nancial
liability for the obligation to make the payments envisaged
by the contract. In particular, the lease liability is recognised
initially as equal to the current value of the future payments to
be made, adopting a discount rate equal to the interest rate
implicit in the lease or, if this cannot be easily determined,
using the lessee's incremental nancing rate.
After initial recognition, the lease liability is measured
at amortised cost using the effective interest rate and is
restated following contractual renegotiations, changes in
rates and changes in the valuation of any contractual options
envisaged. The right of use is initially recognised at cost and is
subsequently adjusted to take into account amortisation and
depreciation, any impairment losses and the effects of any
recalculations of lease liabilities. The company has decided
to adopt certain simplications envisaged by the Standard,
excluding contracts with a duration of less than or equal to
12 months (so-called "short-term", calculated on the residual
duration at rst-time adoption) and those with a value of less
than Euro ve thousand (so-called "low-value").
INTANGIBLE ASSETS
Intangible assets are identiable non-monetary elements
without physical substance, controllable and capable of
generating future economic benets. These elements are
initially recognised at purchase or production cost, including
directly attributable expenses for preparing the asset for use.
Any interest expense accrued during and for the development
of intangible assets is considered part of the purchase cost.
In particular, the following main intangible assets can be
identied within the Company:
a. Goodwill
• Goodwill, if recognised, is classied as an intangi-
ble asset with an undened useful life and is initially
recognised at cost, as described above, and subse-
quently subject to impairment testing at least once
a year. No write-back is allowed in the event of a
previous write-down for impairment.
b. Other intangible assets with a dened useful life
• Intangible assets with a dened useful life are reco-
gnised at cost, as described above, net of accumu-
lated amortisation and any impairment losses.
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43
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5
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statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
Useful life of intangible assets
Class of intangible assets Useful life in years
Software licences and similar 5
Client list 10-15
Trademarks and patents 5
The useful life of intangible xed assets is reviewed and updated, where applicable, at least at the end of each nancial year.
Amortisation begins when the asset becomes available for
use and is systematically distributed in relation to its residual
possibility of use, i.e.: on the basis of its estimated useful life.
The useful life estimated by the Company for the various
tangible asset categories is as follows:
INVESTMENTS PROPERTY
Properties held for the purpose of obtaining lease payments
or for the purpose of increasing the value of the investment
are recorded under "Investment property"; they are evaluated
at purchase or production cost, plus any accessory costs, net
of accumulated depreciation and any losses in value.
REDUCTION IN THE VALUE OF INTANGIBLE ASSETS,
PROPERTY, PLANT AND EQUIPMENT AND INVESTMENT
PROPERTY
a. Goodwill
As previously stated, goodwill, if recognised, is subject
to impairment testing once a year or more frequently
if there are indications that its value may have been
impaired. As at 30 April 2022, no goodwill was
recorded.
In the presence of goodwill, the impairment test is carried out
with reference to each of the cash generating units (CGUs)
to which the goodwill has been allocated. Any impairment of
goodwill is recognised if its recoverable value is lower than
its book value. Recoverable value is the higher between the
fair value of the CGU, net of disposal costs, and its value in
use, the latter being the current value of estimated future cash
ows for the asset. In determining the value in use, expected
future cash ows are discounted using a pre-tax discount rate
that reects current market evaluations of the cost of money,
compared to the period of the investment and the specic risks
of the asset. If the impairment resulting from the impairment
test is greater than the value of goodwill allocated to the CGU,
the residual excess is allocated to the assets included in the
CGU in proportion to their carrying amount. Such allocation
shall be limited by the higher of the following amounts:
• the fair value of the asset net of sale expenses;
• the value in use, as dened above;
• zero.
The original value of goodwill cannot be restored if the reasons
for its reduction in value no longer exist.
b. Assets (intangible, property, plant and equipment and in-
vestment property) with a dened useful life
At each balance sheet date, an impairment test is carried
out to determine whether there are any indications that
property plant and equipment, intangible assets or
investment property may have suffered a loss in value.
To this end, both internal and external sources of
information are considered. With regard to the former
(internal sources), the following are considered: the
obsolescence or physical deterioration of the asset,
any signicant changes in the use of the asset and
the economic performance of the asset compared
to expectations. As regards external sources, the
following are considered: the trend in the market prices
of the assets, any technological, market or regulatory
discontinuities, the trend in market interest rates or in
the cost of the capital used to evaluate the investments.
If the presence of such indicators is identied, the recoverable
value of the abovementioned assets is estimated, recording
any write-down with respect to the relative book value in the
income statement. The recoverable value of an asset is
the higher between the fair value, net of sale costs, and its
value in use, the latter being the current value of estimated
future cash ows for the asset. In determining the value in
use, expected future cash ows are discounted using a pre-
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tax discount rate that reects current market evaluations of
the cost of money, compared to the period of the investment
and the specic risks of the asset. For an asset that does not
generate largely independent cash ows, the recoverable
value is determined in relation to the cash generating unit to
which the asset belongs.
A loss in value is recognised in the income statement if the
book value of the asset, or of the related CGU to which it is
allocated, is higher than its recoverable value.
Impairment of CGUs are rst recognised as a reduction in the
book value of any goodwill attributed to them and then as a
reduction in other assets, in proportion to their book value and
within the limits of their recoverable value. If the conditions for
a previously made write-down no longer exist, the book value
of the asset is restored and recorded in the income statement,
within the limits of the net book value that the asset in question
would have had if the write-down had not taken place and the
relative amortisation had been applied.
TRADE RECEIVABLES AND OTHER FINANCIAL ASSETS
Based on the characteristics of the instrument and the
business model adopted for its management, the following
three categories are distinguished in compliance with IFRS 9:
(i) nancial assets measured at amortised cost; (ii) nancial
assets measured at fair value, recording the effects among
the other comprehensive income components; (iii) nancial
assets measured at fair value, recording the effects in the
income statement.
Financial assets are measured using the amortised cost
method if both of the following conditions are met:
• the nancial asset management model consists of hol-
ding the nancial asset for the sole purpose of collecting
the related cash ows; and
• the nancial asset generates, at contractually predeter-
mined dates, cash ows that are exclusively representa-
tive of the return on the nancial asset.
Financial assets representing debt instruments with a business
model that envisages both the possibility of collecting the
contractual cash ows and the possibility of realising capital
gains on disposal (so-called business model hold to collect
and sell), are measured at fair value, recording the effects
under comprehensive income (FVTOCI).
A nancial asset represented by debt securities that is not
measured at amortised cost or FVTOCI is measured at fair
value, recording the effects in the income statement (FVTPL).
Trade receivables are initially recognised at fair value and
subsequently measured at amortised cost using the effective
interest rate method. Trade receivables are included in current
assets, with the exception of those with a contractual maturity
in excess of twelve months from the balance sheet date,
which are classied as non-current assets..
In the case of factoring transactions for trade receivables that
do not involve transferral to the factor of the risks and rewards
associated with the receivables assigned (the Company
continues to be exposed to the risk of insolvency and delayed
payment - the so-called assignments with recourse), the
transaction is treated in the same way as a loan secured by the
receivable subject to assignment. In this case, the receivable
assigned continues to be represented in the Company's
balance sheet and nancial report until it is collected by the
factor and any advance obtained from the factor is offset by a
nancial payable.
The nancial cost of factoring transactions is represented by
interest on the amounts advanced recognised in the income
statement on an accruals basis, which are classied as nancial
expense. Commissions accruing on sales with recourse are
included under nancial expense, while commissions on sales
without recourse are recorded under other operating costs.
IFRS 9 denes a new impairment/write-down model for these
assets, with the aim of providing useful information to users of
the nancial statements on the relative expected losses.
For trade receivables, the Group adopts a simplied approach
to valuation which does not require the recognition of periodic
changes in credit risk, but rather the recognition of an
Expected Credit Loss ("ECL") calculated over the entire life of
the receivable (so-called ECL lifetime).
Receivables are entirely written down in the nancial
statements when there is objective evidence that the
Company will not be able to recover the receivable due from
the counterparty on the basis of the contractual terms.
Objective evidence includes events such as:
• signicant nancial difculties of the debtor;
• legal disputes with the debtor relating to receivables;
• the likelihood that the debtor will go bankrupt or that
other nancial restructuring procedures will be initiated.
The amount of the write-down is measured as the difference
between the book value of the asset and the current value of
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43
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of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
the estimated future cash ows and recorded in the income
statement. If the reasons for the previous write-downs cease
to apply in subsequent periods, the value of the asset is
reinstated up to the value that would have derived from the
application of the amortised cost.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents include cash and bank deposits
available and other forms of short-term investment with an
original maturity of three months or less.
NON - CURRENT ASSETS HELD FOR SALE
Non-current assets with a book value that will be recovered
mainly through sale rather than through continuous use are
classied as held for sale and reported separately from other
assets in the statement of nancial position.
This condition is considered met when the sale is highly
probable and the asset or group of assets being disposed of
is available for immediate sale in its present condition.
Non-current assets held for sale are not subject to amortisation
and are measured at the lower between their book value and
fair value, minus sale costs.
A discontinued operating asset represents a part of the
enterprise that has been disposed of or classied as held
for sale and (i) represents an important business unit or
geographical area of activity; (ii) is part of a coordinated plan
to dispose of an important business unit or geographical area
of activity; or (iii) is a subsidiary acquired solely for the purpose
of being resold.
The results of discontinued operating assets are disclosed
separately in the income statement, net of tax effects. The
corresponding gures for the previous year, if any, are
reclassied and disclosed separately in the income statement,
net of tax effects, for comparative purposes.
FINANCIAL PAYABLES
Financial payables are initially recognised at fair value, net
of directly attributable accessory costs, and are subsequently
measured at amortised cost, applying the effective interest
rate method.
In compliance with IFRS 9, they also include trade payables
and payables of a varying nature. Financial payables are
classied as current liabilities, except for those maturing more
than twelve months after the balance sheet date and those
for which the Company has an unconditional right to defer
payment for at least twelve months after the reference date.
Financial payables are recorded at the date of negotiation of
the transaction and are removed from the nancial statements
when they are extinguished and when the Company has
transferred all the risks and charges relating to the instrument.
DERIVATIVE INSTRUMENTS
Derivatives are evaluated as securities held for trading and
measured at fair value with a balancing entry in the income
statement. They are classied under other current and non-
current assets or liabilities. Financial assets and liabilities
with a balancing entry in the income statement are initially
recognised and subsequently measured at fair value and the
relative accessory costs are immediately expensed in the
income statement.
Prots and losses deriving from changes in the fair value
of exchange rate derivatives are presented in the income
statement under nancial income and expense in the period
in which they are recorded.
EMPLOYEE BENEFITS
Short-term benets consist of wages, salaries, relative social
security charges, payments in lieu of holidays and incentives
in the form of bonuses payable in the twelve months following
the balance sheet date. These benets are recorded as
components of payroll costs in the period in which the work
is performed.
Dened-benet plans, which also include severance
indemnities due to employees pursuant to Article 2120 of
the Italian Civil Code ("TFR"), include the amount of benets
payable to employees that can only be quantied after
termination of employment, and are linked to one or more
factors such as age, years of service and remuneration;
consequently, the relative cost is recorded in the income
statement on the basis of actuarial calculations. The liability
recognised in the nancial statements for dened benet
plans corresponds to the current value of the bond at the
balance sheet date. Obligations for dened benet plans are
determined annually by an independent actuary using the
projected unit credit method. The current value of the dened
benet plan is determined by discounting future cash ows
at an interest rate equal to that of high-quality corporate
bonds issued in Euro, which takes into account the duration
of the relative pension plan. Actuarial prots and losses
arising from the abovementioned adjustments and changes
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in actuarial assumptions are recognised in the statement of
comprehensive income.
As of 1 January 2007, the 2007 budget law and the relative
implementation decrees introduced signicant changes to the
rules governing employee severance indemnities, including
the possibility for employees to choose the destination of
their accruing employee severance indemnities. In particular,
new ows of severance indemnity may be allocated by the
employee to selected pension schemes or kept within the
company. In the case of allocation to external pension funds,
the company is only required to pay a dened contribution
to the fund chosen, and from that date the newly accrued
amounts are considered dened contribution plans which are
not subject to actuarial evaluation.
STOCK GRANT PLAN
In compliance with IFRS 2 - Share-based payments, the
total amount of the current value of the stock grants at
the assignment date is recognised entirely in the income
statement under personnel costs, with a balancing entry
recognised directly under shareholders' equity. If there is a
"vesting period" in which certain conditions must be met
(achievement of goals) for the assignees to become holders
of the right, the cost of remuneration, determined on the basis
of the current value of the shares at the assignment date, is
recognised under personnel costs on a straight-line basis over
the period between the assignment date and the vesting date,
with a balancing entry recognised directly under shareholders'
equity.
PROVISIONS FOR RISKS AND CHARGES
Provisions for risks and charges are set aside to hedge losses
and specic expenses which denitely or probably exist but for
which the amount or date of occurrence cannot be determined.
The entry is recorded only when there is a current obligation,
legal or implicit, for a future outow of economic resources
as a result of past events and it is probable that such outow
is necessary for the fullment of the obligation. This amount
represents the best estimate of the cost of extinguishing the
obligation. The rate used to determine the current value of the
liability reects current market values and takes into account
the specic risk associated with each liability. When the
nancial effect of time is signicant and the dates of payment
of the obligations can be reliably estimated, the provisions are
measured at the current value of the expected outlay using
a rate that reects market conditions, the change in the cost
of money over time and the specic risk associated with the
obligation. The increase in the value of provision, determined
by changes in the cost of money over time, is recorded as
interest expense. The risks for which the occurrence of a
liability is only a possibility are indicated in the specic section
providing information on potential liabilities and no provision
is made for them.
TRADE PAYABLES AND OTHER LIABILITIES
Trade payables and other liabilities are initially recognised
at fair value, net of directly attributable accessory costs, and
are subsequently measured at amortised cost, applying the
effective interest rate method.
EARNINGS PER SHARE
a. Earnings per share - basic
Basic earnings per share is calculated by dividing the
Company's share of prot by the weighted average
number of ordinary shares in circulation during the
year, excluding treasury shares.
b. Earnings per share - diluted
Diluted earnings per share is calculated by dividing the
Company's share of prot by the weighted average
number of ordinary shares in circulation during the
year, excluding treasury shares. To calculate diluted
earnings per share, the weighted average number
of shares in circulation is modied by assuming the
exercise by all the assignees of rights that potentially
have a diluting effect, while the Company's share of
prot is adjusted to take into account any effects, net
of taxes, of the exercise of such rights.
TREASURY SHARES
Treasury shares are recorded as a reduction in shareholders'
equity. The original cost of the treasury shares and the
revenues deriving from any subsequent sales are recorded as
changes in shareholders' equity.
RECOGNITION OF REVENUES
On the basis of the ve-stage model introduced by IFRS 15,
the Company proceeds with the recognition of revenues after
identifying the contracts with its customers and the relative
services to be provided (transfer of goods and/or services),
determining the payment to which it believes it is entitled in
exchange for the provision of each of these services, and
assessing the manner in which these services are to be
provided (fullment at a given time versus fullment over time.)
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statements as of April
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statements as of April
30, 2022
When the above requirements are met, the Group applies the
recognition rules described below.
Revenues from the sale of products are recognised when
control connected with ownership of the goods is transferred
to the buyer, or when the customer acquires full capacity to
decide on the use of the goods and to substantially reap all
the benets.
Revenues from services are recognised when they are
rendered with reference to the state of progress.
Revenues also include lease payments recognised on a
straight-line basis throughout the duration of the contract.
Revenues are recognised at the fair value of the price received
for the sale of products and services in the ordinary course
of the Company's business. Revenues are recognised net
of value added tax, expected returns, allowances, discounts
and certain marketing activities carried out with the help of
customers, the value of which depends on the revenues
themselves
RECOGNITION OF COSTS
Costs are recognised when they relate to goods and services
purchased or consumed during the year or by systematic
allocation.
TAXES
Current taxes are determined on the basis of an estimate
of taxable income, in compliance with the tax regulations
applicable to the Company.
Deferred tax assets and liabilities are calculated on the basis
of all the differences that emerge between the taxable amount
of an asset or liability and its book value, with the exception
of goodwill upon initial recognition and those relating to
differences arising from investments in subsidiaries, when the
timing of reversal of these differences is subject to Company
control and it is probable that they will not occur within a
reasonably foreseeable period of time. Deferred tax assets,
including those relating to previous tax losses, not offset by
deferred taxes, are recognised to the extent that it is probable
that future taxable income will be available to enable their
recovery. Deferred tax assets and liabilities are determined
using the tax rates that are expected to be applicable in the
years in which the differences will be realised or extinguished.
Current, deferred tax assets and liabilities are recorded in the
income statement under "Income taxes", with the exception
of those relating to items recorded in the statement of
comprehensive income other than net prot and those relating
to items directly charged or credited to shareholders' equity. In
the latter cases, deferred taxes are recorded in the statement
of comprehensive income and directly under shareholders'
equity. Deferred tax assets and liabilities are offset when they
are applied by the same tax authority, there is a legal offsetting
right and a settlement of the net balance is expected.
Other taxes not related to income, such as indirect taxes and
duties, are included in the income statement under "Other
operating costs".
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2.3 Newly issued standards
At the date of this Report, the competent bodies of the
European Union had approved the adoption of the following
accounting standards and amendments applied by the
Company at 1 May 2021.
• In January 2020, the IASB endorsed some amendmen-
ts, in particular: Amendments to IFRS 9 (Financial In-
struments); IAS 39 (Financial Instruments: Recognition
and Measurement), IFRS 7 (Financial Instruments: Di-
sclosure); IFRS 4 (Insurance Contracts); IFRS 16 (Lea-
ses) - Interest Rate Benchmark Reform phase 2. These
amendments are effective for annual reporting periods
beginning on or after 1 January 2021. The amendment
modies some of the requirements for the application of
hedge accounting, providing for temporary exceptions
in order to mitigate the impact of the uncertainty of the
IBOR reform (still in progress) on future cash ows in the
period preceding its completion;
• In March 2021, the IASB published an additional amend-
ment to IFRS 16 to extend the possibility of using also for
the period from 30 June 2021 to 30 June 2022 the op-
tional practical expedient for the assessment of leasing
contracts in the event that, following the Covid-19 emer-
gency, concessions relating to the lease payments have
been obtained. The amendment is effective for annual
reporting periods beginning on or after 1 January 2021.
As of the date of this Report, the Group has not made
use of the optional practical experience introduced by the
amendment indicated above;
• In June 2020, the IASB published an amendment to
“IFRS 4 Insurance Contracts - deferral of IFRS 9” with
the aim of clarifying some application aspects of IFRS
9 pending the denitive application of IFRS 17. The
amendments apply to annual reporting periods begin-
ning on or after 1 January 2021.These amendments did
not have any impact on the consolidated nancial state-
ments of the Group.
At the date of this Report, the competent bodies of the
European Union had approved the adoption of the following
accounting standards and amendments not yet applied by the
Company.
• In May 2017 the IASB issued the new standard IFRS
17 “Insurance Contracts”. The new standard will replace
IFRS 4 and will be effective for annual periods beginning
on or after 1 January 2023;
• In May 2020, the IASB published amendments to IFRS
3 "Business combinations", IAS 16 "Property, plant and
equipment" and IAS 37 "Provisions, contingent liabilities
and contingent assets". Amendments to IFRS 1 "First-ti-
me Adoption of IFRS", IFRS 9 "Financial Instruments",
IAS 41 "Agriculture" and the illustrative examples nexed
to IFRS 16 "Leases" were also published. These amend-
ments will be applicable from 1 January 2022;
• In February 2021, the IASB published a number of minor
amendments to IAS 1, Practice Statement 2 and IAS 8.
The amendments aim to improve reporting on accoun-
ting standards and to help users of nancial statements
distinguish between changes in accounting estimates
and changes in accounting policies. The amendment is
applicable for annual periods beginning on or after 1 Ja-
nuary 2023;
The Company will adopt these new standards, amendments
and interpretations, based on their expected date of
application. At present, the Company is analysing the above-
mentioned accounting standards and assessing whether
their adoption will have a signicant impact on the nancial
statements.
• On January 23, 2020, the IASB issued the document
"Amendments to IAS 1 - Presentation of nancial state-
ments: classication of liabilities as current or non-cur-
rent" in which a liability is expected to be classied as
current or non-current based on of the rights existing at
the balance sheet date. Furthermore, it establishes that
the classication is not impacted by the expectation of
the entity to exercise its rights to postpone the settlement
of the liability. Finally, it is claried that this regulation
refers to the transfer of cash, capital instruments, other
assets or services to the counterparty. The amendments
apply to annual reporting periods beginning on or after 1
January 2023. Early application is permitted;
• In May 2021, the IASB published an amendment to IAS
12 “Income Taxes”, “Deferred Tax related to Assets and
Liabilities arising from a Single Transaction”, which clari-
es how companies report deferred taxes on transactions
such as leases and decommissioning obligations. The
amendment is applicable for annual periods beginning on
or after 1 January 2023;
• In December 2021, the IAS published the amendmen-
ts to IFRS 17 and IFRS 9 with the aim of indicating the
transition options relating to comparative information on
nancial assets presented upon initial application of the
IFRS 17. The amendment is applicable for annual pe-
198
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
riods beginning on or after 1 January 2023.
The Company will adopt these new standards, amendments
and interpretations, on the basis of the expected date of
application, and will assess their potential impacts, when they
are approved by the European Union.
3. Financial Risk Management
The Company’s assets are exposed to credit risk. The
Company's risk management strategy aims to minimise
potential negative effects on the Company's nancial
performance. Risk management is centralised in the treasury
function, which identies, evaluates and hedges nancial
risks. The treasury function provides indications for monitoring
risk management, as well as indications for specic areas,
concerning interest rate risk and exchange rate risk.
MARKET RISK
The Company is exposed to market risks only with regard to
credit risk.
INTEREST RATE RISK
The Company's capital structure is characterised by a
structurally positive net nancial position and is therefore not
exposed to interest rate risk.
EXCHANGE RATE RISK
In the year ended 30 April 2022, the Company did not operate
in currencies other than the Euro.
CREDIT RISK
The credit risk is represented by exposure to potential losses
that may derive from failure to full obligations undertaken by
customers. To mitigate the credit risk related to commercial
counterparties, and therefore customers, the Company
has implemented procedures to ensure that services are
supplied to customers considered reliable on the basis of
past experience and available information. Furthermore, the
Company constantly monitors its commercial exposure and
ensures that receivables are collected in compliance with
the contractual deadlines. We would also point out that the
company's exposure is concentrated mainly on companies
belonging to the Sesa Group. The credit risk deriving from
normal operations is constantly monitored using customer
information and assessment procedures, with the creation of
a provision for bad debts.
The following table provides a breakdown of current trade
receivables as at 30 April 2022 and 30 April 2021, grouped
by due date, net of the portion of the provision for bad debts.
Year ended 30 April
2022 2021
Yet to mature 1,533 1,670
Expired by 0-30 days 69 184
Expired by 31-90 days 41 30
Expired by 91-180 days 2 1
Expired by 181 – 360 days 2 3
Expired by over 360 days 12 7
Total 1,659 1,895
199
Separate nancial statements as of April 30, 2022
www.sesa.it
LIQUIDITY RISK
Liquidity risk is associated with the Company's ability to full its commitments deriving mainly from nancial liabilities. Prudent
management of the liquidity risk arising from the Company's normal operations implies maintaining an adequate level of cash and
cash equivalents and the availability of funds obtainable through an adequate amount of credit lines.
The Company's capital structure is characterised by a structurally positive net nancial position and is therefore not exposed to
liquidity risk.
The following tables show the expected cash ows in future years for nancial liabilities at 30 April 2022 and 30 April 2021:
At 30 April 2022
(Euro thousands) Book value Within 12 months Between 1 and 5 years Over 5 years
Current and non-current loans 42 42
Financial liabilities for rights of use 267 121 146
Trade payables 1,154 1,154
Other current and non-current payables 5,794 5,794
At 30 April 2021
(Euro thousands) Book value Within 12 months Between 1 and 5 years Over 5 years
Current and non-current loans 305 305
Financial liabilities for rights of use 314 243 71
Trade payables 886 886 - -
Other current and non-current payables 6,180 6,180 - -
Other current and non-current payables refer mainly to group VAT payables and other relations with companies included in the
scope of the tax consolidation.
CAPITAL RISK
The Company's goal in terms of capital risk management is mainly to safeguard business continuity so as to guarantee returns for
shareholders and benets for other stakeholders. The Group also aims to maintain an optimal capital structure in order to reduce
the cost of borrowing.
FINANCIAL ASSETS AND LIABILITIES BY CATEGORY
With reference to the classication and valuation of nancial assets, it should be noted that the nancial assets held by the group
are valued: at amortised cost in the case of nancial assets relating to the "hold to collect" business model;
at fair value, recorded under other comprehensive income components in the case of nancial assets relating to the "hold to collect
and sell" business model.
A nancial asset representing a debt instrument that is not measured at amortised cost or FVTOCI is measured at fair value,
recording the effects in the income statement.
The fair value of trade receivables and other nancial assets, trade payables and other payables and other nancial liabilities,
recorded under "current" items of the statement of nancial position measured using the amortised cost method, as these are
mainly assets underlying commercial transactions the settlement of which is envisaged in the short term, does not differ from the
book values of the nancial statements at 30 April 2022 and 30 April 2021.
200
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
Non-current nancial assets and liabilities are settled or measured at market rates and their fair value is therefore deemed to be
substantially in line with current book values.
The following table provides a breakdown of nancial assets and liabilities by category at 30 April 2022 and 30 April 2021:
At 30 April 2022
(Euro thousands)
Assets and liabilities at
amortised cost
Assets at
FVOCI
Assets and liabilities
at FVPL
Derivative nancial
instruments
Total
Assets
Current trade receivables 1,659 1,659
Other current and non-current assets 12,519 12,519
Cash and cash equivalents 3,217 3,217
Total assets 17,395 17,395
Liabilities
Current and non-current loans 42 42
Financial liabilities for rights of use 267 267
Trade payables 1,154 1,154
Other current liabilities 5,794 5,794
Total liabilities 7,257 7,257
At 30 April 2022
(Euro thousands)
Assets and liabilities at
amortised cost
Assets at
FVOCI
Assets and liabilities
at FVPL
Derivative nancial
instruments
Total
Assets
Current trade receivables 1,895 1,895
Other current and non-current assets 12,501 12,501
Cash and cash equivalents 5,689 5,689
Total assets 20,085 20,085
Liabilities
Current and non-current loans 305 305
Financial liabilities for rights of use 314 314
Trade payables 886 886
Other current liabilities 6,180 6,180
Total liabilities 7,685 7,685
201
Separate nancial statements as of April 30, 2022
www.sesa.it
FAIR VALUE MEASUREMENT
IFRS 13 denes fair value as the price that would be received
for the sale of an asset or paid for the transfer of a liability at
the measurement date in a free transaction between market
operators.
The fair value of nancial instruments listed on an active
market is based on the market prices on the closing date. The
fair value of instruments that are not listed on an active market
is determined using valuation techniques based on a series of
methods and assumptions linked to market conditions at the
balance sheet date.
The following table shows the classication of the fair values of
nancial instruments on the basis of the following hierarchical
levels:
• Level 1: Fair value determined with reference to listed
(unadjusted) prices on active markets for identical nan-
cial instruments;
• Level 2: Fair value determined using valuation techni-
ques with reference to variables observable on active
markets;
• Level 3: Fair value determined using valuation techni-
ques with reference to variables that cannot be observed
on active markets.
4. Estimates and Assumptions
The preparation of the nancial statements requires the
application by the directors of accounting standards and
methods that, in some circumstances, are based on difcult
and subjective assessments and estimates based on historical
experience and assumptions that are considered reasonable
and realistic in relation to the relative circumstances.
The application of these estimates and assumptions
inuences the amounts reported in the nancial statements,
the statement of nancial position, the income statement,
the statement of comprehensive income, the statement of
cash ows and the notes provided. The nal results of the
nancial statement items for which the above estimates
and assumptions have been used may differ from those
reported in nancial statements that record the effects of the
occurrence of the estimated event, due to the uncertainty that
characterises the assumptions and the conditions on which
the estimates are based.
Here is a brief description of the areas that require greater
subjectivity on the part of directors in making estimates and for
which a change in the conditions underlying the assumptions
used could have a signicant impact on the nancial data.
a. Reduction of value of assets
In compliance with the accounting standards applied
by the Company, property, plant and equipment,
intangible assets and investment property are tested
for impairment, which should be recognised through a
write-down, when there are indications that it may be
difcult to recover their net book value through use.
Verication of the existence of the above indicators
requires directors to make subjective assessments
based on information available within the Company
and on the market, as well as on historical experience.
Moreover, if it is determined that a potential reduction
in value may have been generated, the Company
proceeds to determine said value using appropriate
evaluation techniques. The correct identication of
the elements that indicate the existence of a potential
reduction in the value of property, plant and equipment,
intangible assets and investment property, as well as
the estimates for their determination, depend on factors
that may vary over time, inuencing the evaluations
and estimates made by the directors.
b. Amortisation and depreciation
The cost of property, plant and equipment and intangible
assets is depreciated/amortised on a straight-line basis
over the estimated useful life of the relative assets.
The useful economic life of these assets is determined
by the directors at the moment of purchase; it is based
on historical experience for similar assets, market
conditions and advances regarding future events that
could have an impact on the useful life of the assets,
including any changes in technology. Consequently,
the actual economic life may differ from the estimated
useful life.
c. Provision for bad debts
The provision for bad debts reects the estimated
losses on the Company's portfolio of receivables.
Provisions have been made for losses expected on
receivables, estimated on the basis of past experience
with reference to receivables with similar credit risk,
current and historical outstanding amounts, as well as
the careful monitoring of the quality of the receivables
202
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
portfolio and the current and expected conditions of
the economy and the reference markets. Estimates
and assumptions are reviewed on a regular basis and
the effects of each change are reected in the income
statement in the year to which they refer.
d. Employee benets
The current value of the pension funds recorded in
the separate nancial statements depends on an
independent actuarial calculation and on the various
assumptions taken into consideration. Any changes
in assumptions and in the discount rate used are
promptly reected in the calculation of the current
value and could have a signicant impact on the data
in the nancial statements. The assumptions used for
the actuarial calculation are reviewed annually.
The current value is determined by discounting future
cash ows at an interest rate equal to that of high-
quality corporate bonds issued in the currency in which
the liability will be liquidated and which takes into
account the duration of the relative pension plan. For
further information, see notes 24 Employee benets
and 9 Personnel costs.
5. Revenues
All the Company revenues are generated in Italy. The revenues item is detailed as follows:
Year ended 30 April
(Euro thousands) 2022 2021
Provision of services and other revenues 11,185 10,326
Other revenues 1,088 916
Total 12,273 11,242
Revenues refer mainly to administration, nance and auditing services, personnel management, and management of information
systems supplied to Sesa Group companies.
6. Other Income
The item in question is detailed as follows:
Year ended 30 April
(Euro thousands) 2022 2021
Leases and rents 33 40
Other income 3,041 2,655
Total 3,074 2,695
The lease item refers to rents receivable for the premises located in Rome.
Other income refers mainly to the recovery of costs incurred on behalf of other Group companies and, residually, to the reversible
remuneration of the Chairman of the Board of Directors and of an Executive Deputy Chairman.
203
Separate nancial statements as of April 30, 2022
www.sesa.it
7. Consumables and goods for resale
The item in question is detailed as follows:
Year ended 30 April
(Euro thousands) 2022 2021
Consumables and other purchases 57 32
Total 57 32
8. Costs for Services and rent, leasing and similar costs
The item in question is detailed as follows:
Year ended 30 April
(Euro thousands) 2022 2021
Technical assistance for hardware and software maintenance 250 267
Consulting activities 6,458 5,101
Rentals and hires 240 234
Marketing 123 126
Insurance policies 147 156
Utilities 71 70
Support and training expenses 19 7
Maintenance 34 36
Other service expenses 1,794 1,462
Total 9,136 7,459
The consulting activities item includes costs for the stock grant plan assigned to executive directors for Euro 4,312 thousand.
9. Personnel Costs
The item in question is detailed as follows:
Year ended 30 April
(Euro thousands) 2022 2021
Wages and salaries 4,762 4,321
Social security payments 1,340 1,239
Contributions to dened contribution pension funds 450 289
Reimbursements and other personnel costs 306 208
Total 6,858 6,057
204
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
The following table shows the precise number of Company employees:
Number of employees at 30 April
(in units) 2022 2021
Executives 4 2
Middle Management 12 11
Ofce Staff 114 101
Total 130 114
The average number of employees as of 30 April 2022 was 122 resources compared to 121 resources of the previous year.
10. Other Operating Costs
The item in question is detailed as follows:
Year ended 30 April
(Euro thousands) 2022 2021
Duties and taxes 82 68
Other Operating Costs 122 79
Total 204 147
11. Amortisation and Depreciation
The item in question is detailed as follows:
Year ended 30 April
(Euro thousands) 2022 2021
Intangible assets 64 57
Right of use 136 135
Property plant and equipment 213 207
Total 413 399
205
Separate nancial statements as of April 30, 2022
www.sesa.it
12. Financial Income and Expenses
The item in question is detailed as follows:
Year ended 30 April
(Euro thousands) 2022 2021
Commissions and other nancial expense (13) (15)
Financial expenses related to severance indemnities (16) (16)
Total nancial expenses (29) (31)
Other nancial income. 574 1
Bank interest income 7 22
Dividends from shareholdings 18,000 12,000
Total nancial income 18,581 12,023
Net nancial income 18,552 11,992
13. Income Taxes
The item in question is detailed as follows:
Year ended 30 April
(Euro thousands) 2022 2021
Current taxes 309 639
Deferred taxes and previous years’ taxes (274) (431)
Total 35 208
Sesa SpA, in its capacity as consolidating company, has exercised the option for the national tax consolidation regime (pursuant to
art. 117 et seq. of the Consolidated Income Tax Act), which allows the determination of IRES on a single taxable base corresponding
to the algebraic sum of the positive and negative taxable amounts of the individual participating companies, specically Computer
Gross SpA, Var Group SpA and ICT Logistica Srl, the latter as consolidated companies.
In the preparation of the nancial statements, the effects of the transfer of the tax positions deriving from the tax consolidation,
as regulated by the relative consolidation agreements in force, have therefore been taken into account and, in particular, the
consequent credit/debit relationships with the consolidated companies have been recorded. The option to join the Group's VAT
regime was also renewed with a special form sent to the Italian Revenue Department. Consequently, since that date, Sesa SpA has
acted as liquidator of VAT credit/debit positions also for its subsidiaries Computer Gross SpA and Var Group SpA.
206
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
The following table shows the reconciliation of the theoretical tax burden with the actual tax burden for the years ended 30 April
2022 and 30 April 2021.
Year ended 30 April
(Euro thousands) 2022 2021
Result before taxes 17,231 11,835
Theoretical taxes 4,135 24.00% 2,840 24.00%
Taxes relating to previous years 9
Subsidised taxation on dividends 216 144
Other differences
(4,181)
(2,459)
IRAP, including changes in deferred tax assets and liabilities (144) (317)
Actual tax charge 35 208
14. Intangible Assets
The item in question and relative changes are detailed as follows:
Intangible Assets
(Euro thousands) Client List
Software and other
intangible assets
Trade marks and
patents
Total
Balance at 30 April 2020 2 119 121
Of which:
- historical cost 25 256 9 290
- accumulated amortisation (23) (137) (9) (169)
Investments 133 133
Disinvestments
Amortisation (2) (55) (57)
Balance at 30 April 2021 197 197
Of which:
- historical cost 25 389 9 423
- accumulated amortisation (25) (192) (9) (226)
Investments 82
Disinvestments (25)
Amortisation (57)
Balance at 30 April 2022 197 197
Of which:
- historical cost 25 446 9 480
- accumulated amortisation (25) (249) (9) (283)
The balance of intangible assets at 30 April 2022 consists mainly of software and software licenses in use at the company.
207
Separate nancial statements as of April 30, 2022
www.sesa.it
15. Property, plant and equipment and Rights of use
The item in question and relative changes are detailed as follows:
Property, plant and equipment
(Euro thousands) Ofce equipment
Other property,
plant and equipment
Rights of use Total
Balance at 30 April 2020 433 294 727
Of which:
- historical cost 899 135 390 1,424
- accumulated depreciation (466) (135) (96) (697)
Investments 347 7 152 506
Disinvestments (2) (2)
Depreciation (205) (2) (135) (342)
Balance at 30 April 2021 573 5 311 889
Of which:
- historical cost 1,244 142 542 1,928
- accumulated depreciation (671) (137) (231) (1,039)
Investments 44 88 132
Disinvestments (1) (1)
Depreciation (211) (2) (136) (349)
Balance at 30 April 2022 405 3 263 671
Of which:
- historical cost 1,287 142 630 2,059
- accumulated depreciation (882) (139) (367) (1,388)
Investments in the year ended 30 April 2022 mainly included the acquisition of the IT infrastructure for the corporate services activity
carried out by the Company for the Group companies, while the Right of use item includes the subscription of car rentals for the
Company’s employees.
208
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
16. Investment Property
The item in question and relative changes are detailed as follows:
Investment Property
(Euro thousands) Land Buildings Total
Balance at 30 April 2020 7 7
Of which:
- historical cost 281 10 291
- accumulated depreciation (281) (3) (284)
Balance at 30 April 2021 7 7
Of which:
- historical cost 281 10 291
- accumulated depreciation (281) (3) (284)
Balance at 30 April 2022 6 6
Of which:
- historical cost 281 10 291
- accumulated depreciation (281) (4) (285)
17. Equity investments
The item in question and relative changes are detailed as follows:
Year ended 30 April
(Euro thousands) 2022 2021
Computer Gross SpA 53,163 53,163
Var Group SpA 13,999 13,999
Base Digitale Srl 12,859
Base Digitale Group Srl 18,091
Adiacent Srl 2,244 2,595
C.G.N. Srl 994 994
Parentsmile Srl 100
Idea Point Srl 35 35
Total 88,626 83,645
209
Separate nancial statements as of April 30, 2022
www.sesa.it
The changes in the Equity Investments item are shown below
Changes in the equity investments
(Euro thousands) Equity investments
Balance at 30 April 2020 75,709
Changes:
- Purchases or subscriptions 7,936
Balance at 30 April 2021 83,645
Changes:
- Purchases or subscriptions 5,407
- Sales (426)
Balance at 30 April 2022 88,626
The net increase in the item Equity investments mainly refers: (i) for Euro 5.2 million, to the purchase of 7.5% of Base Digitale SpA
and to the subsequent conferment of the same equity investment in Base Digitale Group Srl, reaching the interest of 81.2% and (ii)
for Euro 0.4 million to the sale of 5.5% of Adiacent, generating a capital gain of Euro 574 thousand.
18. Deferred Tax Assets and Liabilities
The expected maturity of receivables for deferred tax assets and liabilities can be broken down as follows:
At 30 April
(Euro thousands) 2022 2021
Deferred tax assets within 12 months 1,100 868
Total deferred tax assets 1,100 868
Deferred tax liabilities within 12 months 36 54
Deferred tax liabilities after 12 months 5 6
Total deferred tax liabilities 41 60
Net changes in these items are detailed as follows:
At 30 April
(Euro thousands) 2022 2021
Opening balance 808 353
Impact on income statement 285 429
Impact on the statement of comprehensive income (34) 15
Reclassication 11
Closing balance 1,059 808
Of which:
- deferred tax assets 1,100 868
- deferred tax liabilities 41 60
210
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
Changes in deferred tax assets can be broken down as follows:
Deferred tax assets
(Euro thousands)
Differences in value of tangible
and intangible assets
Provisions for risks
and charges and other
provisions (stock grant))
Employee
benets
Other
entries
Total
Balance at 30 April 2020 271 123 (10) 384
Impact on income statement 419 (5) 414
Impact on the statement of com-
prehensive income
15 15
Other changes (261) 251 65 55
Balance at 30 April 2021 10 793 65 868
Impact on income statement 259 7 266
Impact on the statement of com-
prehensive income
(34) (34)
Other changes
Balance at 30 April 2022 10 1,052 38 1,100
Changes in deferred tax liabilities can be broken down as follows:
Deferred tax liabilities
(Euro thousands)
Differences in value of tangible
and intangible assets
Employee
benets
Other
entries
Total
Balance at 30 April 2020 3 28 31
Reclassication 4 40 44
Impact on income statement 2 (17) (15)
Balance at 30 April 2021 3 6 51 60
Reclassication
Impact on income statement (1) (18) (19)
Balance at 30 April 2022 3 5 33 41
211
Separate nancial statements as of April 30, 2022
www.sesa.it
19. Other current and non-current receivables
The item in question is detailed as follows:
At 30 April
(Euro thousands) 2022 2021
Non-current receivables from others 37 65
Non-current equity investments in other companies 95,413 90,432
Total other non-current receivables and assets 95,450 90,497
Current receivables from subsidiaries 4,109 4,294
Current receivables from others 31 7
Accrued income and prepaid expenses 443 528
Total other current receivables and assets 4,583 4,829
Non-current equity investments in other companies refer to companies that are not listed on an active market, the fair value of which
cannot be measured reliably; therefore, these equity investments are measured at cost, net of any permanent impairments.
20. Current Trade Receivables
The item in question is detailed as follows:
At 30 April
(Euro thousands) 2022 2021
Trade receivables 1,646 1,628
Provision for bad debts (62) (62)
Trade receivables net of the provision for bad debts 1,584 1,566
Receivables from subsidiaries 61 314
Receivable from associates 14 11
Receivables from parent companies 4
Total current trade receivables 1,659 1,895
212
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
The table below shows changes in the provision for bad debts:
Changes provision for bad debts
(Euro thousands) Provision for bad debts
Balance at 30 April 2020 62
Use
Balance at 30 April 2021 62
Use
Balance at 30 April 2022 62
21. Shareholders’ Equity
SHARE CAPITAL
At 30 April 2022, the fully subscribed and paid-up share capital of the Company amounted to Euro 37,127 thousand and consisted
of 15,494,590 ordinary shares, all with no nominal value. The Company has no Warrants or shares other than ordinary shares.
At 30 April 2022, Sesa SpA held 40,862 treasury shares, equating to 0.263% of the share capital, purchased at an average price of
Euro 152.0 under the treasury share purchase plan approved by the shareholders' meeting of 26 August 2021. In application of the
international accounting standards, these instruments are deducted from the company's shareholders' equity.
The table below provides details of changes in shares in circulation and treasury shares during the year:
Shareholders’ Equity
Number of shares
Situation at 30 April 2021
Shares issued 15,494,590
Treasury shares in portfolio 61,160
Shares in circulation 15,433,430
Situation at 30 April 2022
Assignment of shares in execution of the Stock Grant Plan 58,000
Purchase of treasury shares 37,702
Situation at 30 April 2022
Shares issued 15,494,590
Treasury shares in portfolio 40,862
Shares in circulation 15,453,728
213
Separate nancial statements as of April 30, 2022
www.sesa.it
The shareholders who, as at 30 April 2022, hold a signicant investment in the Issuer's share capital with voting rights are the
following:
Declarant Direct shareholder
Number of shares
with voting rights held
% of total share capital
with voting rights
HSE SpA ITH SpA 8,183,323 52.81%
There are no other shareholders, other than those mentioned above, with a signicant investment (more than 5%) that have
communicated to Consob and Sesa SpA pursuant to art. 117 of Consob Regulation no. 11971/99 on notication requirements for
signicant investments.
OTHER RESERVES
The "Other reserves" and "Minority actuarial gain (loss) reserve" items can be broken down as follows:
Other Reserves
(Euro thousands Legal reserve Treasury Shares
Actuarial gain
(loss) reserve
Miscellaneous
reser
Total other
reserves
At 30 April 2020 2,860 (3,300) (222) 2,770 2,108
Actuarial gain/(loss) for employee benets - gross (64) (64)
Actuarial gain/(loss) for employee benets - tax effect 15 15
Purchase of treasury shares (3,108) (3,108)
Sale/cancellation of treasury shares 0
Distribution of dividends 0
Assignment of shares in execution of the Stock Grant Plan 2,363 (2,363) 0
Stock Grant plan - shares vesting in the period 3,257 3,257
Other changes (15) 15
Allocation of prot for the year 555 10,545 11,100
At 30 April 2021 3,451 (4,045) (286) 14,225 13,309
Actuarial gain/(loss) for employee benets - gross 142 142
Actuarial gain/(loss) for employee benets - tax effect (34) (34)
Purchase of treasury shares (6,005) (6,005)
Sale/cancellation of treasury shares 0
Distribution of dividends (2,122) (2,122)
Assignment of shares in execution of the Stock Grant Plan 3,835 (3,835) 0
Stock Grant plan - shares vesting in the period 4,312 4,312
Allocation of prot for the year 581 581
At 30 April 2022 3,996 (6,215) (178) 12,580 10,183
214
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
22. Earnings per Share
For the calculation of earnings per share and diluted earnings per share, see the notes to the Group's consolidated nancial
statements.
23. Current and Non-current Loans
The table below provides a breakdown of this item at 30 April 2022 and 30 April 2021:
At 30 April 2022
(Euro thousand) Within 12 months Between 1 and 5 years Over 5 years Total
Short-term loans 42 42
Financial liabilities for rights of use 121 146 267
Total 163 146 0 309
At 30 April 2021
(Euro thousand) Within 12 months Between 1 and 5 years Over 5 years Total
Long-term loans 305 305
Financial liabilities for rights of use 243 71 314
Total 549 71 0 619
A summary of the net nancial position is provided below:
At 30 April
(Euro thousands) 2022 2021
Cash equivalents 3,217 5,689
Other current nancial assets
Liquidity (A) + (B) + (C) 3,217 5,689
Current nancial debt (including debt instruments but excluding
the current portion of non-current nancial debt)
87 305
Current portion of non-current nancial debt 121 243
Current nancial debt (E) + (F) 208 548
Net current nancial debt (G) - (D) (3,009) (5,141)
Non-current nancial debt (excluding current portion and debt instruments) 146 71
Non-current nancial debt (I) + (J) + (K) 146 71
Net nancial debt (H) + (L) (2,863) (5,070)
215
Separate nancial statements as of April 30, 2022
www.sesa.it
24. Employee Benets
This item includes the provision for severance indemnities (TFR) for employees.
Changes in this item are detailed as follows:
Year ended 30 April
(Euro thousands) 2022 2021
Opening balance 1,870 1,696
Service cost 193 171
Bond interest 16 16
Uses and advances (54) (152)
Actuarial loss/(gain) (142) 49
Change in workforce due to transferral of resources 64 90
Closing balance 1,947 1,870
The actuarial assumptions used to calculate dened benet pension plans are detailed in the following table:
At 30 April
2022 2021
Rate of ination 1.70% 1.00%
Discount rate 2.29% 0.78%
TFR increase rate 2.78% 2.25%
With regard to the discount rate, the iBoxx Eurozone Corporates AA index with a duration of 10+ was used as the reference at the
various valuation dates, in line with the residual average term of the staff subject to assessment.
SENSITIVITY ANALYSIS
In accordance with the requirements of IAS 19R, a sensitivity analysis was carried out on the basis of changes in the main actuarial
assumptions included in the calculation model. In detail, the most signicant assumptions were increased and decreased, i.e. the
average annual discount rate, the average annual ination rate and the turn-over rate, respectively, by half, one quarter and two
percentage points.
Sensitivity analysis
Scenarios Past service liability
Annual discounting rate 0.50% 1,848
-0.50% 2,000
Annual rate of ination 0.50% 1,955
-0.50% 1,889
Turnover rate 0.50% 1,920
-0.50% 1,925
216
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
25. Provisions for Risks and Charges
The value of this item was zero at 30 April 2022.
26. Other Current Liabilities
The item in question is detailed as follows:
At 30 April
(Euro thousands) 2022 2021
Accrued liabilities and deferred income 31 4
Tax payables 3,017 1,487
Payables to personnel 1,244 1,189
Other payables 1,252 1,028
Payables to social security institutions 199 177
Total other current liabilities 5,743 3,885
27. Further information
POTENTIAL LIABILITIES
There are no disputes in progress.
COMMITMENTS
There are no commitments as at April 30 April 2022.
DIRECTORS AND STATUTORY AUDITORS' FEES
The following is a breakdown of the remuneration of the directors and statutory auditors of Sesa SpA, gross of social security and
tax contributions for the year. For a complete description and analysis of the remuneration payable to Directors, Statutory Auditors
and Executives with strategic responsibilities, reference should be made to the Remuneration Report available at the company's
registered ofce, as well as on the company's website in the "Corporate Governance" section.
Year ended 30 April
(Euro thousands) 2022
Payments to directors 768
Payments to statutory auditors 23
The remuneration of the directors shown in the table includes xed and variable remuneration as well as that due for participation in
internal committees. However, the reversible fees of the directors and the shares assigned under the stock grant plan approved by
the shareholders' meeting of 28 August 2020 are excluded. In relation to the stock grant plan as at 30 April 2022, the shares relating
to the annual target of 58,000 shares have fully matured. The remuneration of the statutory auditors refers only to the period 1 May
2021 to 26 August 2021, the date on which the company adopted the one-tier governance model.
217
Separate nancial statements as of April 30, 2022
www.sesa.it
PAYMENTS TO THE INDEPENDENT AUDITOR
The following table, prepared in accordance with article 149-duodecies of the Consob Issuers' Regulation, shows the fees for the
year ended 30 April 2022 for audit and non-audit services provided by the Independent Auditor and by entities belonging to its
network, including expenses.
Payments to the independent auditor
Type of service Service Provider Consignee
Remuneration for the year
ended 30 April 2022 (Euro thousands
Independent audit PwC Sesa SpA 98
Other assurance services PwC Sesa SpA 10
Payments include, in addition to fees, out-of-pocket expenses and the supervisory contribution. In addition to the audit activities
at 30 April 2022, further services were rendered relating mainly to the limited review of the Non-Financial Statement of Sesa SpA.
28. Transactions with Related Parties
Relations between the Company and its associated and controlling companies are commercial and nancial in nature.
The Company believes that all transactions with related parties are substantially regulated on the basis of normal market conditions.
The following table details the balances with related parties as at 30 April 2022 and 30 April 2021.
Transactions with related parties
(Euro thousands) Subsidiaries
Associated
companies
Parent
companies
Top
Management
Other related
parties
Total
Impact on
the item
Current trade receivables
at 30 April 2022 480 18 498 26.3%
at 30 April 2021 912 8 4 924 48.8%
Other current receivables
and assets
at 30 April 2022 4,109 4,109 85.1%
at 30 April 2021 4,294 4,294 88.9%
Employee benets
at 30 April 2022 1 1 0.1%
at 30 April 2021 1 1 0.1%
at 30 April 2022 371 11 37 419 47.3%
at 30 April 2021 186 13 88 12 299 33.7%
Other current liabilities
at 30 April 2022 1,242 62 1,304 33.6%
at 30 April 2021 999 67 1,066 27.4%
218
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
The following table details the P&L effects of transactions with related parties in the years ended 30 April 2022 and 30 April 2021.
P&L effects
(Euro thousands) Subsidiaries
Associated
companies
Parent
companies
Top
Management
Other related
parties
Total
Impact on
the item
Revenues
as at 30 April 2022 11,859 92 78 12,029 98.01%
as 30 April 2021 10,807 91 77 10,975 97.62%
as at 30 April 2022 2,928 41 4 6 2,979 96.91%
as 30 April 2021 2,449 35 2 7 2,493 92.50%
Consumables and goods for
resale
as at 30 April 2022 8 8 14.04%
as 30 April 2021 8 8 25.00%
Costs for services and rent,
leasing, and similar costs
as at 30 April 2022 1,088 5,078 73 6,239 68.29%
as 30 April 2021 860 5 3.994 48 4,907 65.79%
Personnel costs
as at 30 April 2022 5 567 572 8.34%
as 30 April 2021 507 507 8.37%
as at 30 April 2022 - 0.00%
as 30 April 2021 - 0.00%
Financial income
as 30 April 2021 1 1 0.01%
The information shown in the table does not include dividends received from subsidiaries and investee companies.
SUBSIDIARIES, ASSOCIATES AND PARENT COMPANIES
Relations with subsidiaries, associates and parent companies refer mainly to the provision of administration, nancial and auditing
services, organisation, personnel management and information systems in favour of Group companies. Other receivables from and
payables to subsidiaries include receivables and payables relating to the Group's tax consolidation and VAT regime.
TOP MANAGEMENT
Relations with top management refer mainly to the remuneration of directors and executives with strategic responsibilities, including
the notional cost for the annual stock grant plan. Specically, personnel costs include remuneration for members of the Board of
Directors of companies not included in service costs.
219
Separate nancial statements as of April 30, 2022
www.sesa.it
29. Events Occurring After the End of the Year
No signicant events occurred after the end of the year.
30. Authorisation for publication
The publication of the nancial statements of Sesa SpA for the year ended 30 April 2022 was authorised by a resolution of the Board
of Directors on 12 July 2022.
31. Allocation of the prot/loss for the year
We propose to the shareholders' meeting the distribution of a dividend of Euro 0.90 per share for a total of Euro 13.9 million, gross
of treasury shares in portfolio, up 5.9% compared to the previous year (Euro 0.85 per share).
220
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
Certication of the Separate Financial Statements
pursuant to article 154-bis of Legislative Decree 58/98
1. The undersigned Paolo Castellacci, in his capacity as Chairman of the Board, and Alessandro Fabbroni, in his capacity as
Executive in charge of the preparation of the corporate accounting documents of Sesa SpA, taking into account that envisaged
by article 154-bis, paragraphs 3 and 4, of Legislative Decree No. 58 of 24 February 1998, hereby certify:
• the adequacy in relation to the characteristics of the business, and
• the effective application of the administrative and accounting procedures for the preparation of the nancial statements as at
30 April 2022
2. The application of the administrative and accounting procedures for the preparation of the nancial statements as at 30 April
2022 did not reveal any signicant aspects.
It is also certied that:
The nancial statements:
a. have been prepared in compliance with the applicable international accounting standards recognised by the European
Community pursuant to EC Regulation 1606/2002 of the European Parliament and of the Council of 19 July 2002;
b. correspond to the results of the accounting books and records;
c. provide a truthful and fair representation of the issuer’s assets and liabilities, as well as its nancial and economic position
• The Report on Operations includes a reliable analysis of the performance and results of operations as well as the situation of
the issuer, together with a description of the main risks and uncertainties to which they are exposed.
Empoli, 12 July 2022
Paolo Castellacci
Chairman of the Board of Directors
Alessandro Fabbroni
In his capacity as Executive in charge of
preparation of the corporate
accounting documents
221
Separate nancial statements as of April 30, 2022
www.sesa.it
Independent Auditor’s Report on the Separate Financial Statements of Sesa SpA
223
Separate nancial statements as of April 30, 2022
www.sesa.it
225
Separate nancial statements as of April 30, 2022
www.sesa.it
226
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
SeSa S.p.A
Report of the Management Control Committee to the
Shareholders’ Meeting
pursuant to article 153(1) of Legislative Decree No. 58 of 24
February 1998
Financial Statements as at 30 April 2022
Dear Shareholders,
In the financial year under approval, SeSa S.p.A. (hereinafter the “Company”) - for the period between 1 May 2021 and the
Ordinary Shareholders’ Meeting held on 26 August 2021 - was organised according to the traditional management and
control model pursuant to article 2380-bis et seq. of the Italian Civil Code; subsequent to this Shareholders’ Meeting, it has
been managed according to the one-tier system.
On 27 January 2021, the Extraordinary Shareholders’ Meeting of the Company amended its Articles of Association and
adopted the one-tier management and control system pursuant to articles 2409 sexiesdecies et seq. of the Italian Civil Code.
This provision has been in force since the renewal of the corporate bodies on 26 August 2021. On that date, the Company’s
Shareholders’ Meeting appointed the new Board of Directors until the approval of the Financial Statements closing on 30
April 2024, setting the number of Board members at ten. The Board of Directors, which met on the same date, appointed
the Management Control Committee (hereinafter the “Committee”) - pursuant to article 23 of the Articles of Association -
in the persons of Mr. Giuseppe Cerati - Chairman pursuant to article 17 of the Articles of Association, Ms. Chiara
Pieragnoli and Ms. Giovanna Zanotti; all members thereof meet the requirements of integrity, professionalism and
independence set forth for statutory auditors by Legislative Decree no. 58 of 24 February 1998 (hereinafter referred to as
the “TUF”) and by the Corporate Governance Code of listed companies.
The Committee, thus established, exercises the powers and functions attributed to it by the regulations in force, including
the supervision of compliance with the law, statutory and regulatory provisions, and compliance with the principles of
proper management.
The Committee performs the same tasks assigned to the Supervisory Body in the traditional model pursuant to the
provisions of the Articles of Association, article 2409-octiesdecies of the Italian Civil Code, as well as the tasks provided for
by article 19 of Legislative Decree no. 39/2010 as the Control and Audit Committee. In line with the Corporate Governance
Code, the Committee acts and exercises the functions of the Control and Risk Committee and the functions of the Related
Parties Committee.
During the year ended 30 April 2022, the Committee carried out the supervisory activities required by law. In particular,
pursuant to the combined provisions of article 149, paragraph 1 of the TUF, article 19, paragraph 1 of Legislative Decree No.
39 of 27 January 2010 and article 2409 octiesdecies of the Italian Civil Code, the Committee supervised:
- compliance with the law and the Articles of Association, as well as observance of the principles of proper management
in the conduct of corporate activities;
- the adequacy of the Company’s organisational structure, for the aspects falling within its competence, the internal control
system and the administrative and accounting system, as well as its suitability to correctly represent management events;
- the processes for concretely implementing the corporate governance rules laid down in the Corporate Governance Code,
to which the Company adheres;
- the adequacy of the instructions given to its subsidiaries by the Company to enable it to regularly fulfil its statutory
market disclosure obligations;
- the financial reporting process and the adequacy of the Company’s administrative and accounting system, as well as the
reliability of the latter in correctly representing management performance;
- the statutory audit of annual and consolidated accounts, and the independence of the auditing firm
PriceWaterhouseCoopers S.p.A. (“PwC”).
In carrying out its supervisory duties, the Committee also took into account the provisions of Regulation (EU) No. 537 of 16
April 2014 (hereinafter the “Regulation (EU) 537/2014”), the principles of conduct of the Board of Statutory Auditors for
listed companies recommended by the National Council of Chartered Accountants and Accounting Experts, the Consob
provisions on corporate controls and the behavioural indications contained in the Corporate Governance Code.
This Report also acknowledges the supervisory activities carried out for the year ended 30 April 2022 as required by Consob
Communication No. DEM/1025564 of 6 April 2001 and subsequent supplements and amendments.
During the financial year ended 30 April 2022, 5 meetings of the Board of Statutory Auditors were held (up to 26 August 2021)
and 6 Committee meetings; both the meetings of the Board of Auditors and the Committee were always attended by the heads
of the Internal Auditing function and the Legal & Compliance function. First the Board of Statutory Auditors and then the
Committee attended all the meetings of the Board of Directors.
The “planning”
of the Committee’s supervisory activities was carried out taking into account the information acquired by
the internal control functions (Internal Auditing and Legal & Compliance), the Boards of Statutory Auditors of the main
subsidiaries as well as the Group’s independent auditor in the performance of their respective tasks.
Report of the Management Control Committee
227
Separate nancial statements as of April 30, 2022
www.sesa.it
In carrying out its checks and controls on the above-mentioned profiles and areas of activity, the Committee found no
particular critical issues to report.
The Sesa Group has systematically maintained the necessary measures to safeguard the health and safety of its collaborators
on Covid - consistently with the provisions issued from time to time by the competent Authorities - to guarantee the
operation of essential services for its stakeholders. The Group has always promptly activated a flow of informative
communication to its resources, concerning the operating procedures and rules of conduct to be observed, the methods of
access to company offices, as well as the contents and mandatory provisions of Government Decrees.
Supervision of compliance with the law and the Articles of Association
The Committee monitored compliance with the law and the Articles of Association and has no observations to make in this
regard.
The Committee implemented and approved its own Regulations and verified that its members met the requirements of
professionalism, integrity and independence during their appointment, in accordance with current legislation.
Supervisory activities on compliance with the principles of proper management
The Committee received from the Chief Executive Officer, on a quarterly basis, by attending the meetings of the Board of
Directors, adequate information on the activities carried out, on the general economic trend of operations and its foreseeable
outlook, as well as on the most significant economic, financial and equity transactions carried out by the Company during
the year, also through directly or indirectly controlled companies.
In this regard, the Committee has ascertained compliance with the law, the Articles of Association and the principles of
proper management of the resolutions and related actions implemented, and can reasonably ensure that the transactions
resolved upon are not manifestly reckless or imprudent, in potential conflict of interest or in contrast with the resolutions
passed by the shareholders’ meeting or such as to compromise the integrity of the company’s assets.
During the year, the Board of Directors constantly provided the market with information on the most significant transactions
and events.
Supervision of related party transactions
During the year, the Committee did not find any atypical and/or unusual transactions carried out with third parties or
related parties (including Group companies), nor did it receive any information in this regard from the Board of Directors,
the independent auditor or the CEO.
The Committee acknowledges that during the financial year ended 30 April 2022, transactions were carried out with related
parties such as the Parent Company, Subsidiaries, Associates and Senior Management. Information on the main intra-group
transactions and transactions with other related parties, carried out during the year, as well as a description of their
characteristics and economic effects, are reported in Section 28 of the Notes to the Financial Statements. Reference is made
to this section to identify the type of transactions in question and their economic and financial effects.
It is hereby acknowledged that the Company has adopted a specific Related Parties Procedure, in compliance with the
provisions of article 2391-bis of the Italian Civil Code and Consob Regulation No. 17221 of 12 March 2010, to which the
Report on Corporate Governance and Ownership Structure makes reference.
Pursuant to article 4 of the aforementioned Consob Regulation, the Committee verified the conformity of the Procedure with
the Consob Regulation and its compliance. All transactions with related parties were carried out in the interest of the
Company and regulated at market conditions and the Committee was periodically informed and, where required by law,
expressed its opinion in its capacity as the Related Parties Committee.
Based on the information available, the Committee determined that the instructions issued by the Company to its
subsidiaries pursuant to article 114, paragraph 2 of the TUF are, on the whole, adequate to fulfil the disclosure obligations
pursuant to article 114, paragraph 2 of the TUF.
Supervisory activities on the adequacy of the organisational structure
The Committee monitored, inasmuch as competent, the adequacy of the organisational structure of the Company.
In this regard, the Committee points out that the delegations and powers conferred by the Board of Directors on the CEO
are appropriate to the Company’s needs and adequate in relation to the current state of corporate management.
The Committee, taking into account the size of the Company, the nature and the way in which it pursues its corporate
purpose, following the acquisition of information from the heads of the main corporate functions and meetings with
representatives of the independent auditors has no particular critical issues to report in terms of structure, procedures, skills
and responsibilities.
Supervision of the adequacy of the internal control and risk management system (SCIGR)
228
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
The Committee supervises the adequacy and effectiveness of the internal control and risk management system in order to
ensure:
- the sustainability of medium- to long-term investments, through the analysis of financial coverage and value creation
capacity of investments conducted by top management;
-
the efficiency and effectiveness of management activities, through performance analysis;
-
the reliability of financial and non-financial reporting by means of tests on the reliability of procedures related to financial
reporting, carried out by the Internal Auditing function and specialised consultants;
-
the compliance of operational activities with the system of rules and procedures that characterises the company’s control
context by means of checks on the adequacy of company procedures/instructions with respect to the regulatory
framework in force and their proper application, by the Internal Auditing function and the Supervisory Board.
Consistently with international reference standards and the principles dictated by article 6 of the Corporate Governance
Code, the Board of Directors has played the role of guiding and assessing the adequacy of the SCIGR; in the meeting held
on 12 July 2022, it assessed its adequacy with respect to the characteristics of the company and the risk profile assumed, as
well as its effectiveness.
The Company’s internal control and risk management system also includes the Organisational and Management Model
(“Model 231”), aimed at preventing the commission of offences that may entail the Company’s liability pursuant to
Legislative Decree No. 231/2001.
The Company has also assigned the Committee the functions of Supervisory Board pursuant to Legislative Decree No.
231/2001 (“SB”). During the year, the Committee, in its capacity as SB, acquired all useful information in order to verify the
aspects inherent to its autonomy, independence and professionalism required to perform the assigned activity. In its capacity
as Supervisory Board, the Committee acquired information on the 231 Model adopted by the Company, its actual
functioning and implementation.
The Supervisory Board is involved in the monitoring of sensitive processes pursuant to “the 231 Model”, with particular
reference to the prevention of corporate offences and, in compliance with their respective autonomy of action, has
coordinated with the internal control functions for the fulfilment of its verification programme.
In its half-yearly reports, the Supervisory Board illustrated the activities carried out during the financial year ended 30 April
2022, without pointing out any significant critical profiles, highlighting a situation of substantial alignment with the
provisions of the 231 Model.
The Committee monitored the adequacy and effectiveness of the internal control and risk management system, mainly
through periodic meetings with the head of the Company’s Internal Auditing function, where the periodic reports of the
audit activities were analysed, from which there were no particular critical issues to report.
The Committee also points out that with updated procedures as of 1 May 2021:
-
the obligations concerning inside information are fulfilled according to a “Procedure for the Public Disclosure of
Inside Information”;
-
the management of the Group Register of persons having access to Inside Information takes place in accordance with
the procedure updated on that date;
-
the management of disclosure obligations arising from Internal Dealing regulations takes place in accordance with
a procedure that complies with existing regulations.
The Committee acknowledges that, on the basis of the information gathered in the performance of its supervisory duties, each
of the Company’s bodies (or functions) has duly fulfilled the disclosure obligations imposed by law.
The Committee acknowledges that the Company has established the nature and level of risk compatible with the Company’s
strategic objectives in relation to the indications provided by the Control and Risk Committee formed within the Board of
Directors. The Board of Directors of the Company, in accordance with the provisions of the Corporate Governance Code in
force during the Year, established the Control and Risk Committee within the Board. Pursuant to article IA 2.10.1, paragraph
2, of the Instructions to the Stock Exchange Regulations - in compliance with the provisions of article 2.2.3, paragraph 3,
letter p), of the Italian Stock Exchange Regulations limited to issuers with STAR qualification - the Company has appointed
a Control and Risk Committee, in compliance with principle 7.C.1 and 7.C.2 provided for by article 7 of the Corporate
Governance Code in force at the time; this Committee also complies with the provisions of recommendation nos. 32(c), 33
and 35 of article 6 of the Corporate Governance Code.
The Committee has adopted its own Rules of operation. In this regard, it should be noted that, following the approval of
the financial statements for the financial year 2021, the Rules of operation for the Control and Risk Committee was updated
in relation to the regulatory and organisational developments of the Company, to take into account, in particular, the
adoption of the one-tier management and control model.
The persons and functions involved in the internal control and risk management system are:
- the Board of Directors, assisted by the Control and Risk and Related Parties Committee and the Internal Auditing
function;
229
Separate nancial statements as of April 30, 2022
www.sesa.it
- the Management Control Committee;
- the Supervisory Board;
- the Head of Internal Auditing;
- the Head of Legal & Compliance;
- the executive appointed to draw up the company accounting documents.
The Committee acknowledged the overall assessment of the internal control and risk management system and found that
the internal control system is adequate in relation to the current corporate structure.
Supervision of the administrative accounting system and statutory audit activities
During the year under review, the Committee monitored the adequacy of the financial reporting process and the adequacy
of the administrative and accounting system, as well as the reliability of the latter to correctly represent management
performance by examining company documents, obtaining information from the Appointed Executive and exchanging
information with the company appointed to audit the accounts, in accordance with the provisions of articles 150 and 151-
ter, TUF and article 2409 septies of the Italian Civil Code.
In its meeting of 12 July 2022, the Board of Directors assessed the adequacy of the organisational, administrative and
accounting structure of the Issuer and strategically important subsidiaries, with particular reference to the risk control and
management system, pursuant to recommendation no. 1, letter d) of the Corporate Governance Code. In carrying out this
review, the Board of Directors confirmed that the subsidiaries Computer Gross S.p.A. and Var Group S.p.A. were those
having strategic relevance as they represent the main sources of the Group’s core business development. In addition,
following a partial reorganisation of the business services segment, which took place with the establishment of the company
Base Digitale Group S.r.l (directly controlled by the Company), the Board of Directors deemed it necessary to identify the
latter among the companies of strategic importance.
The Committee points out that the Internal Auditing function, for the performance of the audit activities in the financial year
2021-2022 envisaged by the audit plan, had direct access to all information useful for the performance of the assignment,
operating - in some cases and in compliance with the different attributions - in synergy with the Legal & Compliance
function. The main activities carried out by the Internal Auditing function, as set out in the audit plan for the financial year
ended 30 April 2022, concerned:
-
supporting the identification and assessment of business risks, as well as the definition of risk monitoring and mitigation
tools;
-
supporting the improvement of internal audit systems and the integrated management of group compliance with regard
to issues concerning the adoption of the company’s 231 Model, Code of Ethics, protocols pursuant to Law 262/2005 and
certified management systems;
-
checks on business procedures, as envisaged by the Audit Plan;
-
operational control tests for the purposes of certification pursuant to article 154-bis, TUF.
The Internal Auditing function also availed itself of the advice of KPMG S.p.A. to carry out tests on the effectiveness of the
administrative and accounting procedures of the Company and the Group, with particular reference to the controls
pursuant to Law 262/2005. The outcome of the tests did not reveal any deficiencies with regard to the adequacy and effective
application of the procedures.
The Committee took note of the certifications issued by the Chief Executive Officer and the Executive Appointed to draw up
the company accounting documents on the adequacy and effective application of the administrative and accounting
procedures for the preparation of the Group’s annual financial statements and consolidated financial statements as at 30
April 2022.
The Committee supervised the operations of the appointed auditing firm, PwC, analysing its work, with particular reference
to the methodological framework, the audit approach used for the various significant areas of the financial statements and
the planning of work, and shared with the auditing firm the issues related to business risks.
The Committee was also informed about the audits carried out by the auditing firm on the regularity of the bookkeeping
and the correct recording of management performance in the accounting records, from which no observations emerged.
The Committee met several times during the year with the Independent Auditor in order to exchange data and information
concerning the activities carried out in the performance of their respective tasks.
It should be noted that during the financial year, the Company provided PwC with services other than the statutory audit
as “other certification services” for a total cost of 10,000 Euros.
The auditor also rendered services related to the limited review of the Non-Financial Statement. The fees were considered
appropriate to the complexity and size of the work performed and such as not to affect the independence of the auditor.
The Board of Statutory Auditors issued opinions on these specific engagements.
230
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
The statutory auditor has verified the preparation of the Consolidated Non-Financial Statement. With reference to the latter,
the Company prepared it as an integral part of the Group’s Integrated Annual Report. The independent auditors expressed,
in a separate report from that relating to the financial statements, a certification as to the conformity of the information
provided with the provisions of the Legislative Decree.
The Committee reports that the auditing firm Pwc:
(i)
today issued the Reports pursuant to article 14 of Legislative Decree no. 39/2010 and article 10 of Regulation (EU) No.
537/2014 without findings, in which it certifies that, in its opinion, the financial statements of SeSa S.p.A. and the
consolidated financial statements of the SeSa Group as at 30 April 2022 have been prepared in accordance with the
International Financial Reporting Standards (IFRS) adopted by the European Union, as well as the measures issued in
implementation of article 9 of Legislative no. 38/2005, and provide a true and fair view of the financial position, results
of operations and cash flows of the Company and the Group. In the aforementioned reports, the independent auditors
also certify the consistency of the Management Report and of the information indicated in the Report on Corporate
Governance and Ownership Structure pursuant to article 123-bis, paragraph 4 of the Consolidated Law on Finance,
with the financial statements of SeSa S.p.A. and with the Group’s consolidated financial statements as of 30 April 2022;
(ii)
today issued the certification pursuant to article 3, paragraph 10, of Legislative Decree No. 254/16 concerning the SeSa
Group’s Consolidated Non-Financial Statement relating to the financial year ended 30 April 2022 in which it declares
that on the basis of the work carried out, no evidence has been received to suggest that the Non-Financial Statement
has not been prepared, in all significant aspects, in accordance with the requirements of articles 3 and 4 of the Decree
and the GRI Standards reported therein;
(iii)
also issued on the same date the Additional Report for the Internal Control and Audit Committee pursuant to article
11 of Regulation (EU) No. 537/2014, which includes the statement of independence pursuant to article 6, paragraph 2,
letter a) of the aforementioned Regulation.
The Committee keeps the independence of the auditor under constant review - within the scope of its assigned supervisory
tasks - particularly with regard to the provision of non-audit services.
The Committee acknowledges that PwC carried out the audit of the financial statements in accordance with the International
Standards on Auditing (ISA Italia) prepared pursuant to article 11, Legislative Decree No. 39/2010 and in the resulting report
pursuant to article 14, paragraph 2, of Legislative Decree No. 39/2010, issued today, it did not point out any facts deemed
reprehensible, findings, limitations, anomalies, critical issues or irregularities such as to require reporting pursuant to article
155 of the TUF.
In light of the evidence found, the information provided by the Appointed Executive and on the basis of the Independent
Auditors’ observations, the Committee has reason to believe that the Company’s administrative and accounting system is
capable of ensuring a correct representation of management performance and that there are no significant deficiencies in the
internal control system in relation to the financial reporting process.
On the basis of the information received, the effective application of administrative and accounting procedures for the
preparation of the financial statements and all other financial disclosures is also verified.
In consideration of the foregoing, the Committee considers that the organisational structure, the system of internal controls
and the administrative and accounting system are on the whole substantially adequate to the company’s current needs.
Omissions and reprehensible facts observed, opinions issued
The Committee is not aware of any facts or complaints to report to the Shareholders’ Meeting. In the course of its activity
from the date of its establishment to the date of this Report, no omissions, reprehensible facts or irregularities were observed,
no complaints were received from shareholders pursuant to article 2408, paragraph 3, of the Italian Civil Code, nor were any
complaints of any kind filed.
No opinion required by law and/or the Italian Civil Code was issued by the Management Control Committee during the
year, with the exception of the opinions issued by the Committee - in its capacity as the Related Parties Committee -
where required by law and internal regulations.
Processes for concretely implementing corporate governance regulations
On the basis of the information acquired, the Committee acknowledges that the Company has adjusted its corporate
governance structure to implement the Corporate Governance Code, adopting the principles and application criteria
provided therein. The Committee monitored how the Corporate Governance Code, to which th
e Company adheres, was
actually implemented, verifying the conformity of the Company’s corporate governance system with the recommendations
expressed therein. The information on the corporate governance system adopted by the Company is contained in the Report
on Corporate Governance and Ownership Structure for the year ended 30 April 2022 approved by the Board of Directors on
12 July 2022, where a description of the adherence to the recommendations set forth in the Corporate Governance Code is
provided.
The Committee, pursuant to Principle 3.C.5 of the Corporate Governance Code, verified the correct application of the
231
Separate nancial statements as of April 30, 2022
www.sesa.it
assessment criteria and procedures adopted by the Board of Directors to assess the independence of its non-executive
members. The Committee also verified compliance with the criteria of professionalism, independence, integrity and
competence of its members, also acknowledging compliance with the limit on the accumulation of offices provided for by
article 144-terdecies of the Regulation adopted by Consob resolution no. 11971 of 14 May 1999 (“Issuers’ Regulation”). The
Committee also carried out a self-assessment of its composition and functioning, evaluating these aspects as adequate also in
light of the differentiation of gender and professional skills existing within it.
On 26 August 2021, the authorisation to purchase treasury ordinary shares that had been adopted by the Ordinary
Shareholders’ Meeting of 28 August 2020 expired. The Shareholders’ Meeting of 26 August 2021 therefore resolved on a new
authorisation for transactions for the purchase and disposal of treasury ordinary shares, aimed at enabling the Company to
acquire treasury shares for the purposes contemplated by article 5 of Regulation (EU) No. 596/2014 of 16 April 2014 and
related implementing provisions, where applicable, also for the purpose of the possible execution of the Company’s share-
based incentive plans that may be approved by the Shareholders’ Meeting. In particular, the Shareholders’ Meeting of 26
August 2021 authorised the purchase of a number of ordinary shares of the Company, without par value, not exceeding 10%
of the share capital represented by ordinary shares, and in any case for a maximum countervalue of 6,000,000.00 euros, with
a duration until the date of approval of the financial statements as of 30 April 2022 and, in any case, no longer than a period
of eighteen months from the date of the resolution. As of 30 April 2022, the Company held 40,862 treasury shares
corresponding to approximately 0.2637 % of the share capital.
Concluding remarks on the supervisory activities carried out
In view of the above, the Committee, as a result of the supervisory activity performed, taking into account the considerations
of the statutory audit in its reports, does not indicate, inasmuch as competent, any elements preventing the approval of the
financial statements of the Company as at 30 April 2022 accompanied by the Management Report and Explanatory Notes,
as resolved by the Board of Directors on 12 July 2022.
The Committee expresses a favourable opinion on the proposal for the allocation of profit for the year and the distribution
of reserves included in the financial statements.
Empoli, 25 July 2022
The Management Control Committee
The Chairman
Giuseppe Cerati
Giovanna Zanotti
Chiara Pieragnoli
The Sesa Group
1
Strategy and risk
management
2
Consolidated
non-nancial statement
43
Performance as
of April 30, 2022
5
Consolidated nancial
statements as of April
30, 2022
6
Separate nancial
statements as of April
30, 2022
www.sesa.it
Via della Piovola 138,
Share Capital Euro 37.126.927,50 f.p.,
VAT number, Fiscal and number of the Florence Company
Register 07116910964