1.09
2024 ANNUAL FINANCIAL
REPORT
TABLE OF CONTENTS
01 REPORT ON OPERATIONS
02 The Group's economic performance
04 Statement of financial position and cash flows
05 Total financial debt
06 Economic and financial indicators
06 Risk Factors
10 Research and Development, Corporate governance, Personal data protection
11 Key intangible resources, Derivative financial instruments, Atypical or unusual
transactions, Management and coordination, Intra-group transactions and related-
party transactions
11 Business outlook
12 Business and financial situation of Sabaf S.p.A.
14 Reconciliation between parent company and consolidated shareholders’ equity and
net profit for the period
14 Proposal for allocation of 2024 profit
15 Consolidated Sustainability Statement 2024
15 ESRS 2 General Information
50 E - Information on environmental aspects
92 S - Information on social aspects
116 G - Information on governance aspects
122 Certification of Sustainability Statement pursuant to Article 81-ter, paragraph
1, of Consob Regulation No. 11971 of 14 May 1999 and subsequent
amendments and additions
123 Annexes to the Report on Operations
126 SABAF GROUP CONSOLIDATED FINANCIAL STATEMENTS at 31 December 2024
127 Group structure and corporate bodies
128 Consolidated statement of financial position
129 Consolidated income statement
130 Consolidated statement of comprehensive income
131 Statement of changes in consolidated shareholders’ equity
132 Consolidated statement of cash flows
133 Explanatory Notes
188 Certification of the Consolidated Financial Statements, in accordance with Article
154 bis of Legislative Decree 58/98
189 SABAF S.p.A. SEPARATE FINANCIAL STATEMENTS at 31 December 2024
190 Corporate bodies
191 Statement of financial position
192 Income statement
193 Comprehensive income statement
194 Statement of changes in shareholders' equity
195 Statement of Cash Flows
196 Explanatory Notes
249 Certification of Separate financial statements pursuant to Article 154-bis of
Legislative Decree 58/98
Sabaf Group | 2024 Report on Operations
1
SABAF GROUP
REPORT ON OPERATIONS
Sabaf Group | 2024 Report on Operations
2
The Group's economic performance
This paragraph presents and comments on the normalised financial results for the Group,
i.e. which have been adjusted for the effects of the application of IAS 29 - hyperinflation
accounting standard - with reference to the financial statements of the subsidiary Sabaf
Turkey. The comparative normalised consolidated economic results of the 2023 financial
year also exclude the start-up costs of Sabaf India, Sabaf Mexico and the Induction
division, the results of which are instead included in the normalised consolidated figures
in 2024. This representation allows a better understanding of the Group's performance and
a more accurate comparison with previous periods.
2024
2023
2024-2023
change
% change
Sales revenue
285,091
237,949
47,142
+19.8
Hyperinflation – Turkey
(8,126)
1,160
Start-up revenue
-
(23)
Normalised revenue
276,965
239,086
37,879
+15.8
EBITDA
43,704
29,612
14,092
+47.6
EBITDA %
15.3
12.4
Start-up costs
-
2,649
Hyperinflation – Turkey
(3,306)
786
Normalised EBITDA
40,398
33,047
7,351
+22.2
Normalised EBITDA%
14.6
13.8
EBIT
17,739
11,062
6,677
+60.4
EBIT %
6.2
4.6
Start-up costs
-
3,724
Hyperinflation – Turkey
3,465
2,710
Normalised EBIT
21,204
17,496
3,708
+21.2
Normalised EBIT%
7.7
7.3
Group net result
6,928
3,103
3,825
+123.3
Net result %
2.4
1.3
Start-up costs
-
3,530
Hyperinflation – Turkey
9,022
7,521
Normalised result of the Group
15,950
14,154
1,796
+12.7
Normalised result %
5.8
5.9
The Sabaf Group ended the 2024 financial year with normalised sales revenue of €277
million, up 15.8% (+10.1% on a like-for-like basis) compared to €239.1 million in 2023.
This is, historically, the highest level of revenue achieved by the Group, and the figure is
highly significant when one considers that the weakness in the household appliances
sector continued even in 2024. Sabaf focused on internationalisation, product range
expansion and increased production potential to increase its market share. Growth was
supported by a good performance in Europe, a positive contribution from the South
American market and the steady expansion of activities at the new sites in Mexico and
India.
Average sales prices in 2024 were essentially unaltered from 2023.
The recovery in sales volumes compared to 2023 contributed to the improvement of
profitability: normalised EBITDA was €40.4 million (14.6% of turnover), up 22.2% from
Sabaf Group | 2024 Report on Operations
3
€33 million in 2023 (13.8% of turnover) and normalised EBIT reached €21.2 million (7.7%
of turnover) compared to €17.5 million in 2023 (7.3% of turnover). Normalised net profit
was €16 million (5.8% of sales) compared to €14.2 million (5.9% of sales) in 2023.
The subdivision of normalised sales revenues by product line is shown in the table below:
Normalised revenue
2024
%
2023
%
% change
Gas parts
164,081
59.2%
144,010
60.2%
+13.9%
Hinges
86,627
31.3%
70,410
29.4%
+23.0%
Electronic components
25,783
9.3%
24,666
10.3%
+4.5%
Induction
474
0.2%
-
-
-
Total
276,965
100%
239,086
100%
+15.8%
The geographical breakdown of normalised revenues is shown below:
Normalised revenue
2024
%
2023
%
% change
Europe (excluding
Turkey)
79,036
28.5%
71,734
30.0%
+10.2%
Turkey
70,459
25.4%
63,419
26.5%
+11.1%
North America
60,088
21.7%
47,697
19.9%
+26.0%
South America
35,654
12.9%
27,858
11.7%
+28.0%
Africa and Middle East
15,190
5.5%
17,762
7.4%
-14.5%
Asia and Oceania
16,538
6.0%
10,616
4.4%
+55.8%
Total
276,965
100%
239,086
100%
+15.8%
Normalised labour costs as a percentage of revenue were affected by inflation in 2023,
rising from 24.2% in 2023 to 25% in 2024. Normalised net financial expenses as a
percentage of revenue remained low (0.7%); during the year, the Group recognised
normalised positive exchange rate differences of €1.4 million in the income statement (€2.2
million of negative exchange rate differences had been recognised in 2023).
In 2024, the Group recognised income taxes of €3.4 million (in 2023, normalised income
of €2.4 million was recognised under this item, mainly related to tax benefits on
investments).
Sabaf Group | 2024 Report on Operations
4
Statement of financial position and cash flows
The Group’s statement of financial position, reclassified based on financial criteria, is
illustrated below
1
:
(
€
/000)
31/12/2024
31/12/2023
Non-current assets
177,663
181,167
Short-term assets
2
142,200
133,401
Short-term liabilities
3
(63,953)
(61,553)
Working capital
4
78,247
71,848
Provisions for risks and charges, post-employment
benefit, deferred taxes, other non-current payables
(8,285)
(9,477)
Net invested capital
247,625
243,538
Short-term net financial position
(11,026)
20,118
Medium/long-term net financial position
(62,855)
(93,268)
Net financial debt
(73,881)
(73,150)
Shareholders’ equity
173,744
170,388
Cash flows for the financial year are summarised in the table below:
(
€
/000)
2024
2023
Opening liquidity
36,353
20,923
Operating cash flow
27,033
39,852
Cash flow from investments
(14,706)
(16,942)
Free cash flow
12,327
22,910
Cash flow from financing activities
(16,773)
(14,670)
Share capital increase
-
17,312
Acquisitions
-
(9,108)
Foreign exchange differences
(1,266)
(1,014)
Cash flow for the period
(5,712)
15,430
Closing liquidity
30,641
36,353
1
Net financial debt and liquidity shown in the tables below are defined in compliance with the net financial
position detailed in Note 24 of the consolidated financial statements, as required by CONSOB memorandum
of 28 July 2006
2
Sum of Inventories, Trade receivables, Tax receivables and Other current receivables
3
Sum of Trade payables, Tax payables and Other liabilities
4
Difference between short-term assets and short-term liabilities
Sabaf Group | 2024 Report on Operations
5
In 2024, the Group generated operating cash flow of €27 million (€39.9 million in 2023).
At 31 December 2024, the impact of the net working capital on revenue was 27.4%
compared to 30.2% at 31 December 2023
5
.
In 2024, in line with the budget, the net investments of the Group amounted to €14.7
million (€16.9 million in 2023). The main investments were aimed at:
• product innovation, including the development of components for induction
cooking;
• industrialising new products;
• optimising the efficiency and automation of production processes.
In 2024, the positive free cash flow
6
generated by the Sabaf Group was €12.3 million (€22.9
million in 2023).
Total financial debt
At 31 December 2024, net financial debt was €73.9 million (€73.2 million at 31 December
2023). The change in net financial debt is summarised in the table below:
Net financial debt at 31 December 2023
(73,150)
Free cash flow
12,327
Financial assets
(560)
MEC put option valuation
252
Buy-back of shares
(211)
Distribution of dividends
(8,663)
Financial liabilities IFRS 16
(1,931)
Change in fair value of derivative financial instruments
(679)
Foreign exchange differences and other changes
(1,266)
Net financial debt at 31 December 2024
(73,881)
Shareholders’ equity totalled €173.7 million at 31 December 2024; the ratio between the
net financial debt and the shareholders’ equity was 0.43 and was unchanged compared to
2023.
5
At 31 December 2023, the impact of the net working capital to pro-forma revenue (i.e. including the
contribution of the acquisition of MEC for the whole of 2023) is 28.2%.
6
Free cash flow is the difference between Cash Flows from operations and Net investments.
Sabaf Group | 2024 Report on Operations
6
Economic and financial indicators
2024
2023
pro-forma
7
pro-forma
7
Change in turnover
+19.8%
+14.1%
-6.0%
-13.8%
ROCE (return on capital employed)
7.16%
4.54%
Net debt/EBITDA
1.69
2.47
Net debt/equity ratio
42.5%
42.9%
Market capitalisation (31/12)/equity ratio
1.10
1.30
Risk Factors
As part of its periodic risk assessment process, the Group identified and assessed the
following main risks:
Risks of external context
Risks deriving from the external context in which Sabaf operates, which could have a
negative impact on the economic and financial sustainability of the business in the
medium/long-term. The most significant risks in this category are related to general
economic conditions, trend in demand and product competition.
Strategic risks
Strategic risks that could negatively impact Sabaf's medium-term performance, including,
for example, risks related to low profitability of certain product lines, the risks arising from
the mismatch between market needs and product innovation.
Operational risks
Risks of suffering losses due to inadequate or malfunctioning processes, human resources
and information systems. This category includes financial risks (e.g. losses deriving from
the volatility of the price of raw materials and from fluctuations in exchange rates), risks
related to production processes (e.g. product liability, saturation level of production
capacity), organisational risks (e.g. loss of key staff and expertise and/or the difficulty of
replacing them) and Information Technology risks.
Legal and compliance risks
Risks related to Sabaf's contractual liabilities and compliance with the regulations
applicable to the Group, including: Legislative Decree 231/2001, Law 262/2005, HSE
regulations, regulations applicable to listed companies, tax regulations, labour regulations,
international trade regulations and intellectual property regulations.
7
The change in pro-forma turnover is calculated on a like-for-like basis.
Sabaf Group | 2024 Report on Operations
7
ESG risks
Relevant risks related to environmental, social and governance issues are set out in the
Consolidated Sustainability Statement within this Report, to which we refer.
The main risks are described in detail below as well as the relevant risk management
actions that are currently being implemented.
Performance of the sector
The Group’s financial position, results and cash flows are affected by several factors related
to the performance of the sector, including:
▪ the general macro-economic performance: the household appliance market is
affected by macro-economic factors such as gross domestic product, consumer and
business confidence, interest rate trend, the cost of raw materials, the
unemployment rate and the ease of access to credit;
▪ the concentration of the end markets: as a result of mergers and acquisitions,
customers have acquired bargaining power;
▪ the stagnation of demand in mature markets (i.e. Europe) and the growing
importance of markets in emerging Countries, characterised by different sales
conditions and a more unstable macro-economic environment;
▪ increasing competition and competition from alternative products to gas cooking.
To cope with this situation, the Group aims to retain and reinforce its leadership position
wherever possible through:
▪ the maintenance of high quality and safety standards, which make it possible to
differentiate the product through the use of resources and implementation of
production processes that are not easily sustainable by competitors;
▪ development of new products characterised by superior performance compared
with market standards, and tailored to the needs of the customer;
▪ strengthening of business relations with the main players in the sector;
▪ diversification of commercial investments in growing and emerging markets with
local commercial and productive investments;
▪ entry into new segments / business sectors.
Risks associated with the conflicts in Ukraine and the Middle East
In relation to the conflict between Ukraine and Russia, note that the Group has an
insignificant direct exposure to the markets of Russia, Belarus and Ukraine. However,
these are markets supplied by some of the Sabaf Group's customers, who are exposed to
these markets to varying degrees.
In October 2023, the war that broke out between Israel and Hamas further increased global
geopolitical tensions. With regard to this conflict, the Group does not recognise any
significant risks since it does not operate in the territories involved in the war.
In general, the economic recovery that characterised the early post-pandemic period has
come to an end and the short to medium term outlook remains uncertain and difficult to
assess, with the possibility of a continuation of a weak macroeconomic situation. The
Group continuously monitors the macroeconomic environment and its impact on the
business.
Sabaf Group | 2024 Report on Operations
8
Tariff barriers
The Group's manufacturing footprint, with plants in all major markets, significantly
mitigates potential impacts from the introduction of trade tariffs or export restrictions by
national or supranational bodies. Any tariff or customs barriers could affect international
economic growth.
Instability of Emerging countries in which the Group operates
The Group is exposed to risks related to (political, economic, tax, regulatory) instability in
some emerging countries where it produces or sells. Any embargoes or major political or
economic instability, or changes in the regulatory and/or local law systems, or new tariffs
or taxes imposed could negatively affect a portion of Group turnover and the related
profitability.
Sabaf has taken the following measures to mitigate the above risk factors:
▪ diversifying investments at international level, setting different strategic priorities
that, in addition to business opportunities, also consider the different associated
risk profiles;
▪ monitoring of the economic and social performance of the target countries, also
through a local network of agents and collaborators;
▪ timely assessment of (potential) impacts of any business interruption on the
markets of Emerging countries;
▪ adoption of contractual sales conditions that protect the Group (e.g. insuring
business loans or advance payments).
The presence of Sabaf in Turkey, the country that represents the main production hub of
household appliances at European level, is of particular importance: over the years, local
industry attracted heavy foreign investments and favoured the growth of important
manufacturers. In this context, Sabaf built a factory in Turkey in 2012 for the production
of gas components. In 2018, the Group acquired 100% of Okida Elektronik, a leader in
Turkey in the design, manufacture and sale of electronic control boards for household
appliances. In 2021, Sabaf opened a new plant in Turkey to increase production capacity
for electronic components and, in 2022, the production of hinges for dishwashers for
customers with production sites in Turkey also started. In 2024, Turkey represented
26% of the Group's production and of its total sales. The Turkish domestic market is
estimated to represent around 5% of the final destination of Sabaf components, with the
remainder being exported household appliances. In consideration of the strategic
importance of this Country, the management assessed, in addition to the risks connected
with the macroeconomic situation, the risks that could arise from any
difficulties/impossibilities of operating in Turkey and envisaged actions to mitigate this
risk.
Financial risks
The Sabaf Group is exposed to a series of financial risks, due to:
▪ Commodity price volatility: a significant portion of the Group’s purchase costs
is represented by aluminium, steel and brass, the prices of which can be exposed
to high volatility. Based on market conditions and contractual agreements, the
Group may not be able to pass on changes in raw material prices to customers in a
timely and/or complete manner, with consequent effects on margins.
Sabaf Group | 2024 Report on Operations
9
▪ Increase in energy costs: some of the Group's production processes, such as the
die-casting of aluminium parts and the enamelling of burner covers, use gas as an
energy source. Other production facilities absorb significant electricity
consumption. The Group's profitability might be impacted if it is unable to pass on
to customers any significant increases in energy costs in a timely and/or complete
manner. In order to mitigate this risk, the Group can enter into fixed-price
electricity supply contracts and is constantly evaluating possible actions to contain
energy consumption, including by improving the efficiency of the most energy-
intensive plants.
▪ Exchange rate fluctuation: the Group carries out transactions primarily in euro;
however, transactions also take place in other currencies, such as the U.S. dollar,
the Brazilian real, the Turkish lira, the Chinese renminbi, the Indian rupee. in
particular, since turnover in US dollars accounted for 28.5% of consolidated
turnover, the possible depreciation against the euro, the Turkish lira and the
Brazilian real could lead to a loss in competitiveness on the markets in which sales
are made in that currency (mainly South and North America). Moreover, the net
value of assets and liabilities in foreign subsidiaries constitutes an investment in
foreign currency, which generates a translation difference on consolidation of the
Group, with an impact on the comprehensive income statement and the financial
position. The sales prices of the Turkish subsidiary are exclusively denominated in
euro or US dollars; those of the Brazilian subsidiary are denominated in Brazilian
real for domestic sales and in US dollars for exports.
▪ Trade receivable: the high concentration of turnover on a small number of
customers generates a concentration of the respective trade receivables, with a
resulting increase in the negative impact on economic and financial results in the
event of payment delays or insolvency.
For more information on financial risks and the related management methods, see
Note 37 of the consolidated financial statements as regards disclosure for the
purposes of IFRS 7.
Sabaf Group | 2024 Report on Operations
10
Research and Development
The most important research and development projects carried out in 2024 were as
follows:
Gas parts
▪ design and industrialisation of a new component for countertop hobs
▪ development of a new version of the fixed gas valve
▪ study of new customisations for flame spreaders for the Indian market and burners
▪ design of a new burner
▪ design of customised components for individual customers and markets
Hinges
▪ development of a new hinge for dishwashers
▪ development of a modular hinge design for built-in dishwashers
▪ completion of a new hinge model for dishwashers with an adjustment system
▪ development of a motorised hinge
▪ development of a hinge for large built-in refrigerators
Electronic components
▪ development of a new electronic control platform for ovens
▪ completion of the development of the IOT platform for the electronic control of
household appliances
▪ industrialisation of the first product for the automotive market
Induction
▪ development of new assisted cooking features
▪ certification of product platforms offering many combinations with the aim of
providing a modular and customisable range based on each customer's specific
requirements
The improvement in production processes continued throughout the Group, also in order
to minimise set-up times and make production more flexible. The Group also develops
and manufactures its own machinery, equipment and moulds.
Development costs to the tune of €2,782,000 were capitalised, as all the conditions set by
international accounting standards were met. In other cases, they were charged to the
income statement.
Corporate Governance
For a complete description of the corporate governance system of the Sabaf Group, see
the report on corporate governance and on the ownership structure, available in the
Investor Relations section of the company website.
Personal data protection
Sabaf S.p.A. has an Organisational Model for the management and protection of personal
data consistent with the provisions of European Regulation 2016/679 (General Data
Sabaf Group | 2024 Report on Operations
11
Protection Regulation - GDPR). Specific projects are implemented or are being
implemented for all Group companies for which the GDPR is applicable.
Key intangible resources
The disclosure on key intangible resources is provide in the Consolidated Sustainability
Statement at the paragraph
Enhancement of intangible assets and of its intellectual capital
.
Derivative financial instruments
For the comments on this item, please see Note 37 of the consolidated financial
statements.
Atypical or unusual transactions
Sabaf Group companies did not execute any unusual or atypical transactions in 2024.
Management and coordination
Sabaf S.p.A. is not subject to management and coordination by other companies.
Sabaf S.p.A. exercises management and coordination activities over its Italian subsidiaries,
Faringosi Hinges s.r.l., A.R.C. s.r.l., C.M.I. s.r.l., C.G.D. S.r.l. and P.G.A. s.r.l..
Intra-group transactions and related-party transactions
The relationships between the Group companies, including those with the parent
company, are regulated under market conditions, as well as the relationships with related
parties, defined in accordance with the accounting standard IAS 24. The details of intra-
group transactions and other related-party transactions are given in Note 38 of the
consolidated financial statements and in Note 38 of the separate financial statements of
Sabaf S.p.A.
Business outlook
After three years of widespread weakness in demand, the household appliances market
appears to be heading for a gradual recovery in volumes, partly due to the stimulus in
consumption and residential investment resulting from lower interest rates. There are,
however, some reasons for uncertainty. The first economic policy measures taken by the
new US administration have created international tensions, the effects of which are difficult
to predict. Sabaf’s global production structure, with the direct manufacturing presence in
the United States enabled by the recent acquisition of MEC, mitigates the risks associated
with the introduction of tariffs.
The Group expects sustained growth in 2025 as the benefits of the strategy outlined in the
Business Plan (diversification of the offering, strengthening of the industrial footprint,
development of group synergies and growth through acquisitions) is further materializing.
In particular, an important contribution is expected from sales in North America, even
thanks to the Mexican production plant that is constantly increasing volumes and
expanding its product range. For all divisions, sales of new products - which will be partly
customised for some customers - will begin and should help to strengthen market shares.
The orders received in the first part of the year confirm this trend.
The Group is strengthening its efforts to improve margins through further efficiency
measures, innovative projects and adjustments of price lists.
Sabaf Group | 2024 Report on Operations
12
Business and financial situation of Sabaf S.p.A.
(
€
/000)
2024
2023
Change
% change
Sales revenue
106,228
99,842
6,386
+6.4%
EBITDA
9,219
5,518
3,701
+67.1%
EBIT
1,786
(814)
2,600
+319.4%
Pre-tax profit (EBT)
1,175
1,123
52
+4.6%
Net profit
1,328
3,504
(2,176)
-62.1%
Thanks to the good performance in the European market and Turkey, the 2024 financial
year closed with sales of €106.2 million, 6.8% higher than in 2023.
In 2024, Sabaf S.p.A. recognised dividend income in the amount of €4.2 million from Italian
subsidiaries and write-downs of equity investments of €3.1 million.
The reclassification based on financial criteria is illustrated below:
(
€
/000)
31/12/2024
31/12/2023
Non-current assets
8
184,308
179,655
Non-current financial assets
7,971
16,386
Short-term assets
9
60,926
57,971
Short-term liabilities
10
(34,382)
(34,229)
Working capital
11
26,544
23,742
Provisions for risks and charges, Post-employment benefits,
deferred taxes
(2,185)
(2,420)
Net invested capital
216,638
217,363
Short-term net financial position
(32,120)
(9,108)
Medium/long-term net financial position
(58,117)
(76,313)
Total financial debt
12
(90,237)
(85,421)
Shareholders’ equity
126,401
131,942
8
Excluding Financial assets
9
Sum of Inventories, Trade receivables, Tax receivables and Other current receivables
10
Sum of Trade payables, Tax payables and Other liabilities
11
Difference between short-term assets and short-term liabilities
12
Determined in accordance with Consob Communication of 28 July 2006 (Note 23 of the separate
financial statements)
Sabaf Group | 2024 Report on Operations
13
Cash flows for the financial year are summarised in the table below:
(
€
/000)
2024
2023
Opening liquidity
13,899
2,604
Operating cash flow
4,448
13,437
Cash flow from investments (net of divestments)
(14,561)
(16,890)
Free cash flow
(10,113)
(3,453)
Cash flow from financing activities
(1,747)
14,748
Cash flow for the period
(11,860)
11,295
Closing liquidity
2,039
13,899
At 31 December 2024, working capital stood at €26.5 million compared with €23.7 million
at the end of the previous year: its percentage impact on turnover stood at 24.9% from
23.9% at the end of 2023.
The net financial debt was €90.2 million, compared with €85.4 million at 31 December
2023.
At the end of the year, shareholders' equity amounted to €126.4 million, compared with
€131.9 million in 2023. The ratio between the net financial debt and the shareholders’
equity was 71%; it was 65% at the end of 2023.
Sabaf Group | 2024 Report on Operations
14
Reconciliation between parent company and consolidated shareholders’ equity
and net profit for the period
Pursuant to the CONSOB memorandum of 28 July 2006, a reconciliation statement of the
result of the 2024 financial year and Group shareholders' equity at 31 December 2024 with
the same values of the parent company Sabaf S.p.A. is given below:
31/12/2024
31/12/2023
Description
Profit for
the year
Shareholde
rs’ equity
Profit for
the year
Shareholde
rs’ equity
Profit and shareholders’ equity of parent
company Sabaf S.p.A.
1,328
126,401
3,504
131,942
Equity and consolidated company results
16,422
134,492
13,297
124,424
Derecognition of the carrying value of
consolidated equity investments
3,070
(109,351)
1,000
(103,854)
Monetary revaluation - hyperinflation (IAS 29)
(9,022)
36,794
(7,521)
32,742
Put options on minorities
252
(11,469)
(855)
(11,721)
Intercompany eliminations
(4,271)
(3,068)
(5,962)
(2,975)
Other adjustments
114
(55)
(83)
(170)
Minority interests
(965)
(7,940)
(277)
(8,293)
Profit and shareholders’ equity
attributable to the Group
6,928
165,804
3,103
162,095
Proposal for allocation of 2024 profit
As we thank our employees, the Board of Statutory Auditors, the Independent Auditors
and the supervisory authorities for their invaluable cooperation, we would kindly ask the
shareholders to approve the financial statements ended 31 December 2024 with a profit
for the year of €1,327,683.
The Board of Directors proposes to distribute an ordinary dividend of €0.58 per share to
the shareholders, with the exclusion of the treasury shares on the ex-date, by distributing
€1,272,205 of the profit for 2024 available after setting aside to the legal reserve €55,479
from the profit and, for the residual part, by distributing a portion of the extraordinary
reserve. The dividend is scheduled for payment on 28 May 2025 (ex-date 26 May and
record date 27 May 2025).
Sabaf Group | 2024 Report on Operations
15
Sabaf Group
Consolidated Sustainability Statement 2024
ESRS 2 General Information
[ESRS 2 BP-1] General basis for preparation of Sustainability Statement
The Sabaf Group's Consolidated Sustainability Statement 2024 (hereinafter also referred
to as the "Statement" or "Sustainability Statement") has been drafted in accordance with
Legislative Decree No. 125 of 6 September 2024 and the European Sustainability
Reporting Standards (ESRS).
The Statement includes data from the parent company Sabaf S.p.A. ('Sabaf' or the
'Company') and all subsidiaries (the 'Sabaf Group' or the 'Group') included in Sabaf's
consolidated financial statements. The reporting period, from 1 January to 31 December,
is also the same as the consolidated financial statements. The list of companies included
in the consolidated financial statements and confirmation of the countries in which they
have their registered offices, can be found in Note 45 to the consolidated financial
statements.
This Sustainability Statement covers the upstream and downstream value chain of the
Group, which was considered in the materiality assessment to identify material impacts,
risks and opportunities. Information on policies, actions and objectives related to the
upstream and downstream value chain are presented in the appropriate sections.
The Sabaf Group has not withheld information on intellectual property, know-how or
innovation results.
The Sabaf Group has not availed itself of the option to omit information due to impending
developments or issues in the course of negotiations provided for in Article 29 bis (3) of
Directive 2013/34/EU.
For the purpose of reporting prospective information in accordance with the ESRS,
directors are required to prepare this information on the basis of assumptions, described
in the Consolidated Sustainability Statement, regarding events that may occur in the future
and possible future actions by the Group. Due to the uncertainty associated with the
realisation of any future event, both in terms of the occurrence of the event and the extent
and timing of its occurrence, deviations between actual values and prospective
information could be significant.
This Sustainability Statement was approved by the Board of Directors on 25 March 2025
and subjected to a limited review by the auditing firm EY S.p.A.
[ESRS 2 BP-2] Disclosures in relation to specific circumstances
The short-, medium- and long-term time horizons used in this Sustainability Statement are
defined in line with the provisions set out in ESRS 1. The assessment of Impacts, Risks and
Opportunities (IROs) took into account the time horizon of the 2024-2026 Business Plan,
which was considered adequate for obtaining assessments applicable to the Sabaf Group's
strategic decisions. Short-, medium- and long-term time horizons are defined respectively
Sabaf Group | 2024 Report on Operations
16
as one year or less, two to three years and more than three years. These time horizons are
defined on the basis of the timing dictated by the Group's strategic considerations and
decisions.
Almost all of the quantitative data reported was acquired directly from the Group's
information systems. Where data have been obtained from different sources, estimated or
obtained indirectly, through processing by the actors in the value chain, this is explicitly
indicated alongside individual metrics.
In preparing the Sustainability Statement, the management used assumptions, judgements
and estimates that influence the amounts reported, especially in relation to Scope 3
emissions. The estimates and assumptions are based on historical experience and various
other sources and factors and are considered reasonable under the circumstances. These
estimates and the underlying assumptions are reviewed on an ongoing basis to improve
their accuracy. Actions to improve the accuracy of emissions calculations include
collecting primary data sources from suppliers, where possible, and reducing the use of
assumptions or estimates when more reliable data sources become available. For more
information on the estimates and assumptions applied, please refer to the information
contained in the following sections of this Sustainability Statement.
This Sustainability Statement is the first to be prepared by the Group in compliance with
the ESRS and in application of Legislative Decree No. 125 of 6 September 2024 and the
Corporate Sustainability Reporting Directive (CSRD), therefore no changes in the
preparation and presentation of sustainability information compared to previous reporting
periods can be reported. Similarly, there were no material reporting errors in previous
years.
In order to prepare this Sustainability Statement, the Group used the option of phase-in
provisions and did not report comparative values for previous years.
[ESRS 2 GOV-1] The role of the administrative, management and supervisory
bodies
The Board of Directors is the central body of Sabaf's Corporate Governance system and
directs the Group in the pursuit of sustainable success, understood as the creation of long-
term value for the benefit of the shareholders, while respecting the interests of other
stakeholders. In the pursuit of sustainable success, the board of directors is responsible for
ensuring compliance with the values, rules of conduct and the commitments stated in
Sabaf's code of ethics (the Charter of Values).
The Board of Directors defines the strategic guidelines of the Company and the Group
consistent with the pursuit of the goal of sustainable success. Accordingly, the Board of
Directors periodically:
▪ analyses basic industry and market trends and the evolution of the competitive
scenario;
▪ examines business opportunities and risks, including through SWOT analyses;
▪ analyses sustainable development topics, including those related to climate change
and energy transition.
Moreover, the Board of Directors examines and approves the Group's three-year Business
Plan, which is drawn up in accordance with the strategic guidelines, and periodically
Sabaf Group | 2024 Report on Operations
17
monitors its implementation. In particular, the 2024-2026 Business Plan was reviewed and
approved at the meeting of 19 March 2024. At the same time, the Board of Directors
started a process to draw up a Sustainability Plan to complement the Business Plan.
The analysis of key economic and financial indicators is the responsibility of the Board of
Directors, which compares, on a quarterly basis, actual results against planned results, on
the basis of the annual budget approved by the Board at the end of the previous year.
The Board of Directors of the Parent Company Sabaf S.p.A., appointed by the
shareholders' meeting on 8 May 2024 and in office for 3 financial years, is composed of 9
members, 2 of whom are executive board members (the CEO Pietro Iotti and the CFO
Gianluca Beschi) and 7 are non-executive board members (the Chairman Claudio
Bulgarelli, Cinzia Saleri Alessandro Potestà, Laura Ciambellotti, Francesca Michela
Maurelli, Federica Menichetti and Daniela Toscani), 4 of whom are independent (Laura
Ciambellotti, Francesca Michela Maurelli, Federica Menichetti and Daniela Toscani), i.e.
44%. The Board is predominantly composed of women (5 members, constituting 56% of
the total), while 4 are men (44% of the total). The average ratio of female to male board
members is 125%.
The Board of Statutory Auditors of Sabaf S.p.A., appointed by the shareholders' meeting
on 8 May 2024 and in office for 3 financial years, is composed of 3 members (Alessandra
Tronconi, acting as Chairman, Maria Alessandra Zunino de Pignier and Mauro Giorgio
Vivenzi, standing auditors). The Board of Auditors is predominantly composed of women
(67%) and the average ratio of female to male members is 200%.
On 8 May 2024, with the renewal of the corporate bodies, the Board of Directors
established the Sustainability Committee from within its ranks, composed of directors
Pietro Iotti (Committee Chairman and CEO), Gianluca Beschi (CFO in charge of
Sustainability Statement) and Francesca Michela Maurelli, an independent non-executive
director with relevant experience. The average ratio of female to male Committee
members stands at 50%.
By resolution of 8 May 2024, the Board of Directors set up an internal Control and Risk
Committee composed of three non-executive directors, all of whom are independent
(Federica Menichetti, acting as Chairman, Laura Ciambellotti and Daniela Toscani). The
Audit and Risk Committee is 100% composed of female members.
The current Remuneration and Appointments Committee was established within the
Board by resolution of 8 May 2024. It consists of five non-executive members (Daniela
Toscani, acting as Chairman, Alessandro Potestà, Cinzia Saleri, Laura Ciambellotti and
Francesca Michela Maurelli). The Remuneration and Appointments Committee is
predominantly composed of women (4 members, or 80% of the total) and the average ratio
of female to male members is 400%.
With a view to renewing the corporate bodies, on 20 February 2024, following a suggestion
by the Remuneration and Nomination Committee, the outgoing Board of Directors
approved the "
Indication of the Board of Directors on the quantitative and qualitative
composition of the Board of Directors considered optimal for the three-year period from
2024 to 2026".
The document outlines the qualitative requirements deemed necessary for
the proper performance of its duties, including in terms of educational background and
professional experience (including sustainability skills), age and seniority in office,
availability of time and accumulation of assignments, as well as soft skills. The current
composition of the Board is fully consistent with this indication.
Sabaf Group | 2024 Report on Operations
18
The main qualifications of the directors in office are listed below:
▪ Claudio Bulgarelli, Chairman, has a long experience as an entrepreneur in the
hydraulics sector; he currently holds important positions in other industrial
companies;
▪ Pietro Iotti, who held positions of increasing responsibility in several industrial
companies (Gruppo Fiat, Smeg, Technogym, Interpump Group), has been with
Sabaf since 2017 and holds the position of Chief Executive Officer;
▪ Gianluca Beschi, who has been at Sabaf since 1997, CFO, as well as Investor
Relator;
▪ Alessandro Potestà, was a manager in a leading industrial holding company. Is
currently the Chief Executive Officer at Quaestio Capital Management SGR S.p.A.;
▪ Cinzia Saleri, Chairman of the Board of Directors of Cinzia Saleri S.a.p.A. and
already director of Sabaf S.p.A. in the period from 2012 to 2018;
▪ Laura Ciambellotti, founding partner of Studio C&C, which provides financial
advisory services, has held senior positions in the investment banking sector;
▪ Francesca Michela Maurelli, freelancer at Studio Gatti, provides consultancy to
companies on strategic, governance, organisational and financial matters. Is a
statutory auditor and non-executive director in listed and unlisted companies and
financial institutions;
▪ Federica Menichetti, lawyer, partner of Vega Law, is a member of administration
and supervisory bodies for listed companies;
▪ Daniela Toscani, held positions of responsibility at Borsa Italiana S.p.A., London
Stock Exchange Group and Mittel S.p.A.;
The complete CVs of all the directors are available for examination on the Company’s
website www.sabafgroup.com, under the section “Investors - Corporate Governance”.
The main qualifications of the statutory auditors in office are listed below:
▪ Alessandra Tronconi, Chairman, chartered accountant, has acquired experience in
auditing bodies in multinational companies and industrial groups in the following
areas: Corporate governance, compliance, tax law, ESG, M&A, capital markets;
▪ Mauro Vivenzi, chartered accountant, has acquired experience in the auditing
bodies of corporations and local authorities, in the industrial and utilities sectors;
▪ Alessandra Zunino de Pignier, chartered accountant, has experience in the banking
and financial sectors and as a member of administration and supervisory bodies for
listed companies.
The complete CVs of all the statutory auditors are available for examination on the
Company’s website www.sabafgroup.com, under the section “Investors - Corporate
Governance”.
[ESRS 2 GOV-2] Information provided to and sustainability matters addressed
by the undertaking’s administrative, management and supervisory bodies
In 2024, with the renewal of the corporate bodies, the Board of Directors set up a board
committee, the Sustainability Committee, which provides investigation, proposal and
Sabaf Group | 2024 Report on Operations
19
consultation functions to the Board of Directors for sustainability assessments and
decisions. In particular, the Committee is assigned the following tasks:
▪ supporting the Board of Directors in the analysis of material topics for the Company
and the Group, promoting a policy that integrates sustainability into business
processes in order to ensure the creation of sustainable value over time for
shareholders and all other stakeholders;
▪ drawing up objectives, strategies and plans, including multi-year plans in the area
of sustainability, to be submitted to the Board of Directors and monitoring of their
implementation;
▪ monitoring the evolution of sustainability matters and the reference regulatory
framework, including in the light of international guidelines and principles on the
subject, identifying any adjustment actions that may be appropriate and/or
necessary;
▪ assessing the environmental, economic and social impacts of business activities;
▪ verifying the general approach of the Sustainability Statement and the development
of its contents as well as the completeness and transparency of the information
provided, reporting the outcome of its assessments to the Audit and Risk
Committee;
▪ promoting the dissemination of the culture of sustainability among all stakeholders.
The Sustainability Committee reports to the Board of Directors on its activities at least
every six months. A dedicated committee, which includes the CEO and CFO (unlike the
previous mandate, in which the Sustainability Committee overlapped with the Control and
Risk Committee and was composed exclusively of independent directors), is more
functional for the effective integration and implementation of sustainability in corporate
activities.
Further information on the role and involvement of the administrative, management and
supervisory bodies in sustainability matters is provided in the section
[ESRS 2 IRO-1]
Description of the process to identify and assess material impacts, risks and opportunities
.
Details of the IROs are provided in section
[ESRS 2 SBM-3] Material impacts, risks and
opportunities and their interaction with strategy and business model.
[ESRS 2 GOV-3] Integration of sustainability-related performance in incentive
schemes
On 8 May 2024, the Shareholders' Meeting approved a Long-Term Incentive Plan (LTIP)
for the period 2024-2026 for executive directors (CEO and CFO), executives with strategic
responsibilities and managers identified by the CEO from among those who report directly
to the CEO or who in turn report to the aforementioned managers.
The LTIP governs the requirements for the disbursement of a bonus to beneficiaries upon
the achievement, in whole or in part, of predetermined, measurable financial and
sustainability performance targets linked to the creation of shareholder value over a
medium-term horizon. These targets are based on the Business Plan and approved by the
Board of Directors.
The LTIP provides for the allocation of financial instruments, consisting of shares of the
Company, up to a maximum of 270,000 (two hundred and seventy thousand) share rights.
The Incentive Plan is linked to the achievement of targets for three three-year performance
indicators (KPIs), namely (i) the three-year cumulative adjusted EBITDA; (ii) the average
Sabaf Group | 2024 Report on Operations
20
adjusted ROI over the three-year period; and (iii) sustainability targets. The first two KPIs
are based on the 2024-2026 Business Plan, while the third is based on three separate
targets relating to human resources training, occupational safety and the environment.
The weighting of the individual indicators in terms of the total allocation is 45% for the
three-year cumulative Adjusted EBITDA, 35% for the average Adjusted ROI over the
three-year period and 20% for sustainability indicators (of which 5% for performance KPIs
of human resources training aimed at the social sustainability of the Group's business and
the enhancement of internal skills, 5% for the workplace safety indicator aimed at the
social sustainability of the Group's business and the protection of employees’ health, and
10% refers to the environmental indicator aimed at environmental sustainability with a
view to reducing CO
2
emissions). With regard to ESG objectives, the Board of Directors
determined the following objectives:
▪ 60 hours of average training per capita for Group employees in the three-year
period 2024-2026;
▪ severity index
x
(frequency index
x
0.5) less than 175 as an average value over the
three-year period 2024-2026;
▪ reduction by 2026 of 1,500 tonnes of CO
2eq
(Scope 1 and Scope 2) at the Ospitaletto
site.
Assuming 100% achievement of the planned targets, the long-term variable component
linked to sustainability indicators has an impact of 6.8% on the CEO's total remuneration,
5.8% on the CFO's global remuneration and 5.4% on the total remuneration of other
executives with strategic responsibilities.
[ESRS 2 GOV-4] Statement on due diligence
There follows a mapping of the information provided in this Sustainability Statement with
regard to the due diligence process, in accordance with the European Sustainability
Reporting Standards (ESRS), and in particular GOV-4. The information provided in relation
to due diligence is based on the results of the double materiality assessment, as described
in section
[IRO-1] Description of the processes to identify and assess material impacts,
risks and opportunities
.
CORE ELEMENTS OF DUE DILIGENCE
PARAGRAPHS IN THE SUSTAINABILITY
STATEMENT
a) Embedding due diligence in governance, strategy
and business model
▪ [ESRS 2 GOV-2] Information provided to and
sustainability matters addressed by the
undertaking’s administrative, management and
supervisory bodies
▪ [ESRS 2 GOV-3] Integration of sustainability-related
performance in incentive schemes
▪ [ESRS 2 SBM-3] Material impacts, risks and
opportunities and their interaction with strategy and
business model
▪ [E1-1] Transition plan for climate change mitigation
▪ [E1-2] Policies related to climate change mitigation
and adaptation
▪ [E2-1] Policies related to pollution
▪ [E3-1] Policies related to water
Sabaf Group | 2024 Report on Operations
21
▪ [E5-1] Policies related to resource use and circular
economy
▪ [S1-1] Policies related to own workforce
▪ [S2-1] Policies related to value chain workers
▪ [S3-1] Policies related to affected communities
▪ [S4-1] Policies related to consumers and end-users
▪ [G1-1] Business conduct policies and corporate
culture
b) Engaging with affected stakeholders in all key steps
of the due diligence
▪ [ESRS 2 GOV-2] Information provided to and
sustainability matters addressed by the
undertaking’s administrative, management and
supervisory bodies
▪ [ESRS 2 SBM-2] Interests and views of stakeholders
▪ [ESRS 2 IRO-1] Description of the process to
identify and assess material impacts, risks and
opportunities
▪ [E1-2] Policies related to climate change mitigation
and adaptation
▪ [E2-1] Policies related to pollution
▪ [E3-1] Policies related to water
▪ [E5-1] Policies related to resource use and circular
economy
▪ [S1-1] Policies related to own workforce
▪ [S1-2] Processes for engaging with own workforce
and workers' representatives about impacts
▪ [S2-1] Policies related to value chain workers
▪ [S2-2] Processes for engaging with value chain
workers about impacts
▪ [S3-1] Policies related to affected communities
▪ [S3-2] Processes for engaging with affected
communities about impacts
▪ [S4-1] Policies related to consumers and end-users
▪ [S4-2] Processes for engaging with consumers and
end-users about impacts
▪ [G1-1] Business conduct policies and corporate
culture
c) Identifying and assessing adverse impacts
▪ [ESRS 2 SBM-3] Material impacts, risks and
opportunities and their interaction with strategy and
business model
▪ [ESRS 2 IRO-1] Description of the process to
identify and assess material impacts, risks and
opportunities
▪ [E1 IRO-1] Description of the processes to identify
and assess material climate-related impacts, risks
and opportunities
▪ [E2 IRO-1] Description of the processes to identify
and assess material pollution-related impacts, risks
and opportunities
▪ [E3 IRO-1] Description of the processes to identify
and assess material water-related impacts, risks and
opportunities
▪ [E5 IRO-1] Description of processes to identify and
assess material resource use and circular economy-
related impacts, risks and opportunities
▪ [G1 IRO-1] Description of the processes to identify
and assess material impacts, risks and opportunities
d) Taking actions to address those adverse impacts
▪ [E1-3] Actions and resources in relation to climate
change policies
▪ [E2-2] Actions and resources related to pollution
▪ [E3-2] Water-related actions and resources
▪ [E5-2] Actions and resources related to resource
use and the circular economy
Sabaf Group | 2024 Report on Operations
22
▪ [S1-3] Processes to remediate negative impacts and
channels for own workers to raise concerns
▪ [S1-4] Taking action on material impacts on own
workforce, and approaches to managing material
risks and pursuing material opportunities related to
own workforce, and effectiveness of those actions
▪ [S2-3] Processes to remediate negative impacts and
channels for value chain workers to raise concerns
▪ [S2-4] Taking action on material impacts on value
chain workers, and approaches to managing
material risks and pursuing material opportunities
related to value chain workers, and effectiveness of
those actions
▪ [S4-3] Processes to remediate negative impacts and
channels for consumers and end-users to raise
concerns
▪ [S4-4] Taking action on material impacts on
consumers and end-users, and approaches to
managing material risks and pursuing material
opportunities related to consumers and end- users,
and effectiveness of those actions
▪ [G1-3] Prevention and detection of corruption or
bribery
e) Tracking the effectiveness of these efforts and
communicating
▪ [E1 MDR-T] Tracking the effectiveness of climate
change-related policies and actions
▪ [E1-5] Energy consumption and mix
▪ [E1-6] Gross Scopes 1, 2, 3 and Total GHG
emissions
▪ [E2-3 MDR-T] Tracking the effectiveness of
pollution-related policies and actions
▪ [E2-4] Pollution of air, water and soil
▪ [E2-5] Substances of concern and substances of
very high concern
▪ [E3 MDR-T] Tracking the effectiveness of water-
related policies and actions
▪ [E3-4] Water consumption
▪ [E5 MDR-T] Tracking the effectiveness of circular
economy-related policies and actions
▪ [E5-4] Resource inflows
▪ [E5-5] Resource outflows
▪ [S1-5 MDR-T] Tracking effectiveness of policies
and actions through targets
▪ [S1-6] Characteristics of employees
▪ [S1-7] Characteristics of non-employees in own
workforce
▪ [S1-8] Collective bargaining coverage and social
dialogue
▪ [S1-9] Diversity metrics
▪ [S1-10] Adequate wages
▪ [S1-13] Training and skills development metrics
▪ [S1-14] Health and safety metrics
▪ [S1-15] Work-life balance metrics
▪ [S1-16] Remuneration metrics (pay gap and total
remuneration)
▪ [S1-17] Incidents, complaints and severe human
rights impacts
▪ [S2 MDR-T] Tracking effectiveness of policies and
actions through targets
▪ [S3 MDR-T] Tracking the effectiveness of affected
communities-related policies and actions
Sabaf Group | 2024 Report on Operations
23
▪ [S4 MDR-T] Tracking the effectiveness of end-user-
related policies and actions
▪ [G1 MDR-T] Tracking the effectiveness of business
conduct-related policies and actions
▪ [G1-4] Incidents of corruption or bribery
▪ [G1-6] Payment practices
[ESRS 2 GOV-5] Risk management and internal controls over sustainability
reporting
Risk management and internal controls associated with sustainability reporting is
governed by the Procedure for Consolidated Sustainability Statement, which was revised
and updated during the year and approved by the Board of Directors on 25 February 2025
in order to adapt the process to the entry into force of the Corporate Sustainability
Reporting Directive (CSRD). The Procedure identifies the roles and responsibilities, the
stages of the reporting process, as well as the reference documents and regulations for the
report. The Procedure sets forth provisions for conducting the double materiality
assessment, defining the contents of the Sustainability Statement, and controlling data and
information collection processes.
The data and information collection process, which is overseen by the ESG Reporting
Team, involves "group data owners", who are assigned the task of coordinating and
supervising the data collection process at the Group level and carrying out internal
consistency and coherence checks on the data received from subsidiaries, and also
involves "subsidiary data owners", who are assigned the task of verifying and approving
the qualitative and quantitative information included in the reporting packages of
subsidiaries and providing documentation to support internal controls. The ESG Reporting
Team, headed by the Reporting Officer, is responsible for coordinating the entire reporting
process through appropriate periodic information flows to and from the data owners
for
the Group and its subsidiaries, as well as for carrying out internal consistency checks on
the data collected, requesting, where necessary, additional supporting documentation and
going over the workflow in the event of anomalies.
The Sustainability Committee is responsible for checking the overall structure of the
Sustainability Statement, its contents and the completeness and transparency of the
respective information. Any critical issues are reported to the Risk and Control Committee,
which will assess:
▪ the correct use of the ESRS, after liaising with the Reporting Officer, the Board of
Statutory Auditors and the auditing firm;
▪ the suitability of the sustainability and financial information to correctly represent
the company's business model, strategies, the impact of its activities and the
performance levels that have been reached;
▪ the contents of periodic non-financial information relevant to the internal control
and risk management system;
In the event of any non-compliance with the above-mentioned points, the Audit and Risk
Committee informs the ESG Reporting Team, which is responsible for resolving these in
the collection of data and information and in the preparation of the Statement.
As required by Legislative Decree No. 125 of 6 September 2024, the Board of Directors
and the Reporting Officer certify, by means of an appropriate report, that the Sustainability
Sabaf Group | 2024 Report on Operations
24
Statement included in the Report on Operations has been prepared in compliance with
Legislative Decree No. 125 of 6 September 2024, the reporting standards contained in the
delegated acts issued by the European Commission (ESRS), pursuant to Article 29-ter of
Directive 2013/34/EU, and the specifications adopted pursuant to Article 8(4) of
Regulation (EU) 2020/852 of the European Parliament and of the Council.
During the year, there were no significant risks associated with the reporting process. Any
significant aspects identified during the monitoring and control of the reporting process
are promptly reported to the Board of Directors.
The Internal Audit Function is responsible for verifying the effective application of the
Procedure.
[ESRS 2 SBM-1] Strategy, business model and value chain
Strategic pillars of the Sabaf Group's Business Model
In line with its shared values and mission, Sabaf believes that there is a successful industrial
and cultural model to be consolidated both through organic growth and growth through
acquisitions. The Group considers its business model - which is oriented towards long-
term sustainability and characterised by a high level of verticalization of production and
production facilities close to the main markets - to be adequate to face future challenges
and new scenarios.
The distinctive features of the Sabaf Group's business model are described below.
Innovation
Innovation represents one of the essential elements of Sabaf's industrial model and one of
its main strategic levers. Thanks to continuous innovation, the Group has managed to
achieve excellent results, identifying technological and production solutions that are
among the most advanced and effective currently available and establishing a virtuous
circle of continuous improvement of processes and products, until acquiring technological
competence with characteristics that are difficult to match for competitors. The know-how
acquired over the years in the development and internal production of machinery, tools
and moulds, which is integrated with synergy with the know-how in the development and
production of our products, represents the main critical success factor of the Group. With
the acquisition of Okida and the more recent acquisition of P.G.A., the Sabaf Group has
also acquired a strong electronic know-how that, together with the traditional and strong
mechanical skills, has further expanded business opportunities.
The investments in innovation allowed the Group to become a world leader in a highly
specialised sector. The production sites in Italy and abroad are designed to guarantee
production according to the highest levels of technology available today and represent a
cutting-edge model both for environmental protection and safety of the employees.
Eco-efficiency
Sabaf's product innovation strategy gives priority to the search for improved
environmental performance. Attention to environmental issues is reflected both in
innovative production processes that have a lower energy impact in the manufacture of
products, and for what concerns gas parts, in the design of eco-efficient products during
their daily use. The innovation efforts in this area are focused on the development of
burners that reduce fuel consumption (natural gas or GPL) and emissions (carbon dioxide
Sabaf Group | 2024 Report on Operations
25
and carbon monoxide, in particular) in users. In accordance with energy transition policies,
the Group has been allocating significant resources to the development of electromagnetic
induction cooking components since 2021. Sabaf is also involved in experimental projects
and feasibility studies for the use of hydrogen as an alternative fuel to natural gas and GPL
for domestic and professional cooking appliances
Safety
Safety has always been one of the essential elements of Sabaf's business project. Safety for
Sabaf is not just a matter of complying with existing standards but a management
philosophy oriented towards the continuous improvement of its performance, in order to
guarantee the end user an increasingly safe product. In addition to investing in research
and development of new products, the Group has chosen to play an active role in
disseminating a safety culture: Sabaf has long been promoting the introduction of
regulations worldwide - in the various institutional venues - that make it compulsory to
adopt products with thermoelectric safety devices. Sabaf also promoted the ban on the use
of zamak (zinc and aluminium alloy) for the production of gas valves for cooking, in
consideration of the intrinsic danger. To date, the use of zamak is still permitted in Brazil,
Mexico and other South American countries, limiting business opportunities in the gas
valves segment for Sabaf.
Success on international markets and partnerships with multinational groups
Sabaf pursues its growth through its success in international markets by trying to replicate
its industrial model in emerging countries with due consideration of local culture. In line
with its reference values and mission, the Group operates in emerging countries in full
respect of human rights and the environment and in compliance with the United Nations
Code of Conduct for Transnational Corporations. This choice is driven by the awareness
that only by operating in a socially responsible way it is possible to ensure long-term
development of industrial experience in emerging markets.
The Group also intends to further strengthen its collaboration with customers and its
position as main supplier of a complete range of products in the cooking components
market, also thanks to its ability to adapt production processes to specific customer needs
and provide an increasingly wide range of products. In relations with large household
appliance groups, the reliability of partners along the supply chain is more than ever an
essential requirement. The presence of production facilities in all strategic geographical
areas, the ability to react immediately to sudden changes in macroeconomic scenarios and
financial solidity put the Sabaf Group in a favourable position compared to smaller, less
structured competitors.
Widening the range of components and development through acquisitions
The continuous expansion of the range aims to increase customer loyalty through the
widest satisfaction of market requirements. The possibility of offering a complete range of
components is an additional distinguishing feature for Sabaf compared to its competitors.
In order to sustain a dynamic growth path, the Group is extending its product range to
other components for household appliances, including through growth by acquisitions. For
example, the acquisition of A.R.C. in 2016, a company which operates in the professional
cooking sector, of Okida in 2018 and P.G.A. in 2022, which are active in the design and
Sabaf Group | 2024 Report on Operations
26
production of electronic components for household appliances, the C.M.I. Group in 2019
and MEC in 2023, which design and produce hinges for ovens and dishwashers. The entry
into the induction cooking components sector is another strategically important project
for which Sabaf put together a dedicated development team and which also draws on the
expertise of Okida and P.G.A.
Enhancement of intangible assets and of its intellectual capital
Sabaf carefully monitors and increases the value of its intangible assets: the high technical
and professional competence of the people who work there, the image synonymous with
quality and reliability, the reputation of a company attentive to social and environmental
issues and the requirements of its stakeholders. The promotion of the idea of work and
relations with stakeholders as a passion for a project based on common values in which
everyone can recognise themselves symmetrically represents not only a moral
commitment, but the real guarantee of enhancement of intangible assets.
Products and markets
With 15 production sites globally and more than 1,500 employees, the Sabaf Group is one
of the world's leading manufacturers of components for household gas cooking appliances,
with a market share exceeding 40% in Europe and over 10% worldwide.
The total of more than 1,500 employees is distributed across the different geographical
areas as follows:
Geographical area
Number of employees
Europe (excluding Turkey)
724
Turkey
498
North America
218
South America
108
Asia and Oceania
22
Total
1,570
In recent years, through a policy of organic investments and through acquisitions, the
Group expanded its product range and is now active in the following segments of the
household appliance market:
▪ gas parts;
▪ hinges;
▪ electronic components;
▪ components for induction cooking.
Sabaf Group | 2024 Report on Operations
27
The product range
Gas parts
Hinges
Electronic
components
Induction
Valves: they regulate the
flow of gas to the covered
(of the oven or grill) or
uncovered burners.
Burners: by mixing the gas
with air and burning the
gases used, they produce
one or more flame rings.
Accessories: include spark
plugs, microswitches,
injectors and other
components to complete
the range.
They allow movement
and balancing when
opening and closing the
oven door, washing
machine door or
dishwasher door.
Electronic control
boards, timers and
display and power units
for ovens, refrigerators,
freezers, hoods and
other products.
Complete kits including
all components for hob
operation.
The Sabaf Group's customers are manufacturers of household appliances. The range also
includes products for the professional sector. Most of the active commercial transactions
are characterised by long-standing relations that developed over the years.
Customer relations and sales are managed directly by the Sales teams or with the support
of multi-firm agents. In a business-to-business model, the Sabaf Group has no direct
dealings with end users.
The Group's strategic suppliers are represented by:
▪ suppliers of raw materials, such as steel alloys and non-ferrous metals (mainly
aluminium and brass); these are generally international large groups;
▪ suppliers of electronic components;
▪ suppliers of other components that are assembled into products manufactured by
the Group;
▪ suppliers of machinery and equipment, with whom the Group has strong long-term
relationships;
The Sabaf Group is aware of the strategic relevance of existing relationships so it monitors
information and data on its customers and suppliers, as well as key players in the value
chain. The tools it uses to do this include: direct relations, with a constant dialogue and
regular interaction, as well as stakeholder engagement activities, such as customer
satisfaction analysis.
Revenue by product family
2024
(
€
/000)
%
Gas parts
169,403
59.4%
Hinges
87,364
30.6%
Electronic components
27,850
9.8%
Induction
474
0.2%
Total
285,091
100%
Sabaf Group | 2024 Report on Operations
28
Revenue by geographical area
2024
(
€
/000)
%
Europe (excluding Turkey)
80,246
28.1%
Turkey
76,103
26.7%
North America
60,889
21.4%
South America
35,895
12.6%
Africa and Middle East
15,188
5.3%
Asia and Oceania
16,770
5.9%
Total
285,091
100%
[ESRS 2 SBM-2] Interests and views of stakeholders
Sabaf is committed to constantly strengthening the social value of its business activities
through careful management of relations with stakeholders, whom it considers to be of the
utmost importance in guiding the Group’s strategic decisions. Sabaf has established an
open and transparent dialogue with stakeholders and promotes discussions to identify
their legitimate expectations, increase mutual trust, manage risks and identify new
opportunities.
The Sabaf Group provides engagement activities for all key stakeholders, such as its own
workforce and their representatives, suppliers, customers, lenders and investors, financial
analysts, schools and universities. Involvement initiatives have been established and are
carried out periodically (generally every two or three years): surveys on employee
satisfaction and corporate climate, meetings with employees and trade unions, meetings
with suppliers and customers, periodic meetings with lenders, discussions and
dialogues
with financial analysts, proxy advisors
,
current and potential investors as well as relations
with schools and universities.
These activities generate feedback that the Group considers when defining lines of action,
including with a view to continuous improvement. Specifically, results of surveys on
employee satisfaction and corporate climate influence decisions and the strategic
approach to human capital management, through the receipt and analysis of feedback
from the workforce on the working environment, employee well-being, training, skills
assessment, communication and information. Respect for workers' rights is ensured
Sabaf Group | 2024 Report on Operations
29
through the establishment of a responsible and constructive dialogue with trade unions, in
which principles of fairness and transparency are pursued.
Sabaf is aware that the interests and views of workers in the value chain can be significantly
impacted by the company. For this reason, the Group has a Sustainable Procurement
Policy, the concrete implementation and monitoring of which is aimed at preventing and
mitigating negative impacts and ensuring respect for human rights. Information on the
Sustainable Sourcing Policy can be found in section
[S2-1] Policies related to value chain
workers
.
Similarly, although there is no direct involvement with end users, their interests,
particularly in terms of product safety, are protected through quality management systems.
The Company has always considered the establishment and maintenance of transparent
and continuous communication with all the shareholders and the market to be of the
utmost importance. In this perspective, the Board of Directors has adopted a Policy for the
Management of Dialogue with shareholders.
The involvement of stakeholders is also one of the key stages of the double materiality
assessment, during which the Group's stakeholders (employees, customers, suppliers,
investors and financial analysts, environmental and community representatives) are called
upon to assess the impacts related to sustainability matters. The sample involved for each
stakeholder category is specified below.
Stakeholder category
Sample involved
Employees
▪ Sabaf S.p.A. employee representatives
▪ OHS Officer of Sabaf S.p.A.
▪ 6 employees of Sabaf S.p.A.
▪ 4 employees of Sabaf Turkey
▪ 4 employees of Sabaf Brazil
Customers
▪ 5 Sabaf Group customers
Suppliers
▪ 4 Sabaf Group suppliers
Investors
▪ 3 institutional investors
Financial analysts
▪ 3 financial analysts
Banks
▪ 3 banks
Environmental representatives
▪ Certification Body of the Environmental Management System
Community representatives
▪ Representative of the Municipality of Ospitaletto
▪ Member of the Confindustria Brescia Safety Observatory
The results of the assessment are presented to the Sustainability Committee, the Risk and
Control Committee and the Board of Directors, whose meetings are always attended by
the Board of Auditors.
To date, the results of engagement activities have not revealed the need for significant
changes to the Group's corporate strategy and/or business model.
[ESRS 2 SBM-3] Material impacts, risks and opportunities and their interaction
with strategy and business model
For the purpose of preparing this document, the Sabaf Group conducted a double
materiality assessment to identify material impacts, risks and opportunities (IROs) for the
Group and its value chain and associated ESRS topics. An ESRS topic is considered
material if it emerged as relevant following the assessment of the inside-out (impact
Sabaf Group | 2024 Report on Operations
30
materiality) and/or outside-in (financial materiality) perspective. The result of the analysis
that was conducted provides an overview of the sustainability matters the Group prioritises
in its business strategy, as well as the strategic matters covered by material policies,
objectives and metrics for driving and improving its sustainable growth.
The updating of the double materiality assessment during 2024 has, on the one hand,
confirmed certain priorities that had already been identified by the Group in previous years
and, on the other, highlighted the need for the introduction of new policies, metrics and
objectives, as well as the adoption of updated reporting procedures. The assessment did
not lead to significant changes in the Group's business model, but it has influenced the
adjustment of the corporate strategy with respect to sustainability matters identified as
material. In this regard, please refer to the
SBM-3
sections within the following topical
chapters - where disclosure is required by the standards.
The sustainability matters associated with the topical ESRS identified by ESRS-1, AR 16
and the material impacts, risks and opportunities for the Group and its value chain are
shown in the tables below.
Sabaf Group | 2024 Report on Operations
31
Environmental topics
Impact materiality
Financial
materiality
Value chain
Topical
ESRS
Topic
Sub-topic
IRO description
Negative
impact
Positive
impact
Actual
impact
Potential
impact
Risk
Opportunity
Upstream
Own
operations
Downstream
ESRS E1
Climate
change
Climate
change
mitigation
Contribution to climate change by producing
GHG emissions during business operations.
Contribution to climate change through the
production of GHG emissions along the
upstream value chain.
Offering of products that produce GHG
emissions during their use.
Reduction of greenhouse gas emissions in
the use phase through the dissemination of
low-emission cooking solutions and the
introduction of additional new low-emission
products.
Risks associated with adjusting CO
2
emissions along the supply chain to meet
market requirements and related reporting
and monitoring.
Opportunities for the development of
alternative technologies that could result in
lower emissions in the use phase of the
product, such as induction cooking.
Development of gas firing to replace biomass
in emerging countries.
Reputational benefits related to the
introduction of decarbonisation and energy
efficiency strategies.
Climate
change
adaptation
Risks associated with inability to adapt to
market standards with respect to
sustainability matters (e.g. effective
decarbonisation strategies).
Risks related to the transposition of new
climate regulations.
Sabaf Group | 2024 Report on Operations
32
Energy
Investment in self-generation of energy from
renewable sources, with consequent benefits
of energy independence and reduced
operating costs.
Impact materiality
Financial materiality
Value chain
Topical ESRS
Topic
Sub-topic
IRO description
Negative
impact
Positive
impact
Actual
impact
Potential
impact
Risk
Opportunity
Upstream
Own
operations
Downstrea
m
ESRS E2
Pollution
Pollution of
air
Emission of pollutants into the atmosphere
during business operations.
Emission of pollutants into the atmosphere in
the upstream value chain.
Pollution of
water
Emission of pollutants into water during
business operations.
Emission of pollutants into water in the
upstream value chain.
Pollution of
soil
Emission of pollutants into the soil during
business operations.
Emission of pollutants into the soil in the
upstream value chain.
Substances of
concern
Emission of pollutants into the atmosphere,
water and soil during business operations.
Emission of pollutants into the atmosphere,
water and soil in the upstream value chain.
Substances of
very high
concern
Emission of pollutants into the atmosphere,
water and soil during business operations.
Emission of pollutants into the atmosphere,
water and soil in the upstream value chain.
Sabaf Group | 2024 Report on Operations
33
Impact materiality
Financial materiality
Value chain
Topical ESRS
Topic
Sub-topic
IRO description
Negative
impact
Positive
impact
Actual
impact
Potential
impact
Risk
Opportunity
Upstream
Own
operations
Downstream
ESRS E3
Water and
marine
resources
Water
Water withdrawal and consumption in water-
stressed areas during business operations.
Water withdrawal and consumption in water-
stressed areas along the upstream value chain.
Impact materiality
Financial materiality
Value chain
Topical ESRS
Topic
Sub-topic
IRO description
Negative
impact
Positive
impact
Actual
impact
Potential
impact
Risk
Opportunity
Upstream
Own
operations
Downstream
ESRS E5
Circular
economy
Resources
inflows,
including
resource use
Reduction of waste and the sourcing of virgin
raw materials through recovery, recycling
and/or reuse of waste materials in business
operations and along the upstream value
chain.
Risk related to commodity price volatility and
dependence on non-renewable raw materials,
in own operations and along the value chain.
Resource
outflows
related to
products and
services
Reduction of waste and the sourcing of virgin
raw materials through recovery, recycling
and/or reuse of waste materials in business
operations and along the upstream value
chain.
Waste
Generation of waste during the performance of
business operations and along the value chain.
Sabaf Group | 2024 Report on Operations
34
Social topics
Impact materiality
Financial materiality
Value chain
Topical
ESRS
Topic
Sub-topic
IRO description
Negative
impact
Positive
impact
Actual
impact
Potential
impact
Risk
Opportunity
Upstream
Own
operations
Downstream
ESRS
S1
Own
workforce
Working
conditions
Adequate remuneration through the
application of local national contracts,
supplemented by any better bargaining
agreements.
Dissemination of a corporate culture that
promotes the well-being of employees
and enables work-life balance.
Occurrence of incidents and work-related
ill health
Risks related to security
incidents/accidents.
Dissemination of a corporate culture
based on safety that positively influences
corporate reputation.
Implementation and adoption of
strategies aimed at increasing the
attraction and retention of talent,
including through the provision of stable
employment contracts and satisfactory
working conditions, which improve work
performance and also positively influence
economic performance.
Equal
treatment
and
opportunities
for all
Any incidents of discrimination based on
gender, sexual, religious and/or political
orientation, ethnic origin or social and
personal conditions.
Potential incidents of discrimination
related to gender pay equality.
Improvement of employees’ personal and
professional skills by adopting training
plans and initiatives.
Sabaf Group | 2024 Report on Operations
35
Risk related to the lack of specific
technical skills for Sabaf's business on the
labour market.
Risks associated with the loss of key
resources and related skills.
Utilisation of specialised skills for possible
entry into sectors/markets other than
household appliances, as well as the
search for new professionals to foster the
spread of new and broader skills from
which new business opportunities may
arise.
Impact materiality
Financial materiality
Value chain
Topical
ESRS
Topic
Sub-topic
IRO description
Negative
impact
Positive
impact
Actual
impact
Potential
impact
Risk
Opportunity
Upstream
Own
operations
Downstream
ESRS
S2
Workers in
the value
chain
Working
conditions
Possible impact on the working conditions
of workers in the upstream value chain,
including respect for human rights, health
and safety, and adequate remuneration,
due to the absence of monitoring
provisions.
Reputational and compliance risk related
to the occurrence of contractor accidents.
Impact materiality
Financial materiality
Value chain
Topical
ESRS
Topic
Sub-topic
IRO description
Negative
impact
Positive
impact
Actual
impact
Potential
impact
Risk
Opportunity
Upstream
Own
operations
Downstream
ESRS S3
Affected
communit
ies
Communities
’ economic,
social
and cultural
rights
Creation of jobs and distribute economic
value in the affected areas that have a
positive impact on local communities.
Collaboration with local universities,
institutions and associations, contributing to
the growth of local communities.
Sabaf Group | 2024 Report on Operations
36
Impact materiality
Financial materiality
Value chain
Topical
ESRS
Topic
Sub-topic
IRO description
Negative
impact
Positive
impact
Actual
impact
Potential
impact
Risk
Opportunity
Upstream
Own
operations
Downstream
ESRS S4
Consumers
and end-
users
Personal
safety of
consumers
and/or end-
users
Risks associated with non-compliance
with product quality and safety standards.
Governance topics
Impact materiality
Financial materiality
Value chain
Topical
ESRS
Topic
Sub-topic
IRO description
Negative
impact
Positive
impact
Actual
impact
Potential
impact
Risk
Opportunity
Upstream
Own
operations
Downstream
ESRS G1
Business
conduct
Corporate
culture
Partnerships based on principles of
collaboration and transparency that
contribute to market enrichment and
facilitate the achievement of sustainability
goals.
Management
of
relationships
with
suppliers
including
payment
practices
Potential delays in payments to suppliers
compared to contractually agreed terms.
Corruption
and bribery
Dissemination of corporate policies that
promote and disseminate an ethical and
responsible corporate culture.
Sabaf Group | 2024 Report on Operations
37
The description of the above IROs shows where these occur in the Group's business model, in
its operations and in the upstream and downstream value chain. The reasonably expected time
horizon for the impacts, as well as the time horizon used to conduct the assessments, is the
medium term (Business Plan 2024-2026). Regarding the "Contribution to climate change
through the production of GHG emissions during the course of business operations/value chain"
the time horizon considered is the long term.
The Sabaf Group has identified impacts, risks and/or opportunities associated with the
sustainability matters reported in ESRS 1 - AR 16, while it has not identified entity-specific
IROs
.
The following chapters describe the actions implemented by the Group to mitigate and/or
prevent negative impacts and risks and to pursue the positive impacts and opportunities that
have been identified. For each thematic area, the material impacts are also described, with
details of how these affect people and the environment, whether they derive from the Group's
strategy and business model, and whether they are caused by the Group's own activities or its
business relations.
In addition, the chapters detail the Group's resilient approach, with evidence of the measures
taken to prevent, mitigate and respond to the potential effects of risks and negative impacts. To
date, the Sabaf Group has recorded financial effects from material opportunities relating to
climate change. The company's commitment to the development of induction cooking and the
increase in the share of self-produced energy resulted in capital expenditure (induction and
photovoltaics) and revenue (induction) during the reporting period. Detailed information on the
opportunities mentioned above can be found in section
[E1 IRO-1] Description of the processes
to identify and assess material climate-related impacts, risks and opportunities
.
[ESRS 2 IRO-1] Description of the process to identify and assess material impacts,
risks and opportunities
During 2023, the Sabaf Group initiated a process of alignment with the Corporate Sustainability
Reporting Directive (CSRD), which resulted in the updating of the materiality analysis according
to the requirements of the ESRS standards. In order to comply with the ESRS, the Sabaf Group
conducted a Double Materiality Assessment, which was divided into two main phases: Impact
Materiality Analysis and Financial Materiality Analysis. Details of the analyses performed are
given in the following paragraphs.
Impact Materiality Analysis
The Impact Materiality Analysis was conducted according to the following steps.
1.
Understanding the context of the organisation
In order to identify the Sabaf Group's impacts, risks and opportunities associated with
sustainability matters, the context analysis involved:
▪ an assessment of the Sabaf Group's own operations, including by conducting
interviews with corporate functions, which allowed the mapping of Group processes
and the identification of circumstances deemed particularly critical for the occurrence
of negative impacts;
▪ an in-depth mapping of Sabaf's value chain, which considered both an analysis
of the Group's internal sourcing data and an analysis of international rating platforms
and agencies (S&P, MSCI, ENCORE) that identify priority impacts for each sector.
Sabaf Group | 2024 Report on Operations
38
During this phase, particular attention was paid to areas where the Company believed
it was most likely that impacts, risks and opportunities might arise, based on the
nature of the activities, business relationships, geographical areas and other
contextual factors;
▪ a technical assessment of the Environmental Analysis conducted for the
production plant of Sabaf S.p.A., whose industrial operations and related
environmental impacts are considered representative of the Group's main
manufacturing plants as the processes and technologies adopted are comparable.
This assessment led to the inclusion in the impact analysis of the topics of water and
pollution, that had previously been deemed to be non-material by stakeholders. The
assessment took place with the technical support of the HSE manager;
▪ the Sabaf Group's dependencies in terms of raw materials and procurement,
natural resources, human capital, the regulatory and institutional environment.
2.
Definition of impacts
Starting from the material topics identified in the previous reporting periods, and the
results of the analysis of the company’s internal and external context, which considered
the sectoral scope of reference, a long list was compiled of current or potential positive
and negative impacts, which are potentially material to the Sabaf Group. These are
understood to be the actual or potential effects on the environment and people, including
effects on human rights, as a result of the Group’s activities or business relations. The
impacts, each associated with a sustainability topic or sub-topic identified by ESRS 1 -
AR 16, were defined by taking into consideration the sector of origin, the business
operations and activities along the value chain that impact or may impact people and the
environment, and the outcome of interviews with business functions.
3.
Assessment of impacts
As part of stakeholder engagement, the impacts identified were subject to the assessment
by internal and external stakeholders. Specifically, at this stage, senior managers,
employees, customers, suppliers, investors, lenders and expert financial analysts,
environmental and community representatives are selected on the basis of their
qualifications and relevance as stakeholders and asked to provide an assessment of each
impact related to the topics for which they are responsible. The assessment was carried
out by observing the preliminary guidelines of the ESRS Standards, i.e., by considering
two main criteria:
i. likelihood, i.e., the frequency with which an impact may happen;
ii. severity, i.e, the seriousness of an impact should it happen. The assessment of
the severity also considered:
▪ the scale, i.e., how serious the impact is;
▪ the scope, i.e., how widespread the impact is;
▪ the irremediable character of the impact, i.e., how hard it is to
mitigate or compensate the resulting harm for negative impacts.
For each impact, stakeholders were invited to express, via a specific survey accompanied
by specific guidelines, a score from 1 to 5 relating to the above criteria (likelihood and
severity). The guidelines specified how to make an assessment of likelihood and severity,
including the three criteria mentioned above (scale, scope and irremediable character).
This assessment was conducted at an aggregate level, as disaggregation was not deemed
necessary for a proper understanding of the material impacts. In understanding the
Sabaf Group | 2024 Report on Operations
39
context and defining the impacts, no significant differences emerged in the business
operations of the various Group companies.
The assessment was conducted according to the gross principle, i.e. without considering
the mitigation measures that are in place, and took into account the time horizon of the
2024-2026 Business Plan, a period considered adequate to obtain assessments that are
applicable to the Sabaf Group's strategic decisions.
4.
Drawing up the short list of material impacts and topics
The score obtained for each impact was analysed in order to obtain, starting from the
assessments of individual stakeholders, a score associated with each impact. The topics
were then sorted by score and finally included in the Short List of the Sabaf Group's
impacts and associated topics. In particular, impacts were considered material when the
average score from the assessment of stakeholders was greater than 13 (the minimum
limit of 13 was established as the average between the maximum score, which was 25,
and the minimum score, which was 1).
The short list of material impacts and topics was reviewed by the Risk and Sustainability Control
Committee and subsequently approved by the Board of Directors on 20 February 2024.
Financial Materiality Analysis
The Financial Materiality analysis was carried out with the following steps:
1.
Integration of the corporate risk model with potentially material risks and
opportunities related to sustainability matters
The corporate risk model used in the ERM (Enterprise Risk Management) process was
integrated with the risks and opportunities related to sustainability matters identified by
the ESRS (ref.
ESRS 1, AR 16 - Sustainability matters to be included in the materiality
assessment
). In the identification of risks and opportunities, consideration was given to:
▪ the context analysis conducted for identifying impacts, including all the points
detailed above;
▪ the impacts associated with sustainability matters found to be material for the
Group, in order to explore the interdependence between impact and financial
materiality;
▪ any topics previously raised during interviews with corporate functions for the
purpose of identifying impacts related to sustainability matters;
▪ the assessment of business operations and the value chain that had been carried
out during the Impact Materiality analysis;
▪ the time horizon of the 2024-2026 Business Plan, which was considered adequate
for obtaining assessments applicable to the Sabaf Group's strategic decisions;
▪ the review of the risk assessment carried out in 2023, to capture the
environmental, social and governance topics already identified as significant in
the company's risk model;
▪ the examination of the SWOT analysis conducted by the Sabaf Group for the
preparation of the 2024-2026 Business Plan.
2.
Assessment of risks and opportunities associated with sustainability matters
through the Enterprise Risk Assessment (ERM) process
Risks and opportunities were assessed during the annual risk assessment process, in
which the heads of business functions are required to make an assessment following
individual interviews. Risks and opportunities related to sustainability matters were
Sabaf Group | 2024 Report on Operations
40
assessed according to the principle of inherence, prior to the adoption of mitigation
actions, using the same criteria and assessment scale already established for the risk
assessment process, i.e:
▪ the assessment of the likelihood on a scale of 1 to 4;
▪ the assessment of the impact on a scale of 1 to 4.
The assessment was conducted at the Group level, as disaggregation was not deemed
necessary for a proper understanding of risks and opportunities. In understanding the
context and defining the impacts, no significant differences emerged in the business
operations of the various Group companies.
3.
Identification of material risks and opportunities based on the assessments
obtained
For the identification of material risks and opportunities associated with sustainability
matters, the materiality threshold was based on an inherent risk rating of 8 or higher -
this threshold was identified on the basis of the assessments received and the
methodology adopted in the risk assessment process. Some risks that received a sub-
threshold assessment at the interview were subsequently integrated into the material
risks. This review was conducted by a team supervised by the CFO, in his capacity as
Reporting Officer, with the involvement of the HSE manager and in cooperation with the
consulting firm.
The results of the Double Materiality Assessment were presented and discussed by the
Sustainability Committee at its meeting on 10 December 2024 and approved by the Board of
Directors on 17 December 2024. On an annual basis, the ESG Reporting Team, supported by
senior management, checks whether internal or external events could affect the materiality
assessment. In the absence of substantial changes that could generate new IROs or change the
materiality of existing ones, the Sustainability Statement of subsequent years considers the
results of the most recent Double Materiality Assessment.
[ESRS 2 IRO-2] Disclosure Requirements in ESRS covered by the Sustainability
Statement
Section
[IRO-1] Description of the process to identify and assess material impacts, risks and
opportunities
describes the process by which the Sabaf Group determines the disclosures to be
made in relation to impacts, risks and opportunities assessed as material.
Below are the disclosure requirements the Group has fulfilled in preparing the Sustainability
Statement.
Disclosure Requirement
and related datapoint
Page number
Notes
ESRS 2 General Information
ESRS 2 BP-1 General basis for preparation
of Sustainability Statement
15
ESRS 2 BP-2 Disclosures in relation to
specific circumstances
15-16
ESRS 2 GOV-1 The role of the
administrative, management and
supervisory bodies
16-18
Sabaf Group | 2024 Report on Operations
41
Disclosure Requirement
and related datapoint
Page number
Notes
ESRS 2 GOV-2 Information provided to and
sustainability matters addressed by the
undertaking’s administrative, management
and supervisory bodies
18-19
ESRS 2 GOV-3 Integration of sustainability-
related performance in incentive schemes
19-20
ESRS 2 GOV-4 Statement on due diligence
20-23
ESRS 2 GOV-5 Risk management and
internal controls over Sustainability
Statement
23-24
ESRS 2 SBM-1 Strategy, business model
and value chain
24-28
ESRS 2 SBM-2 Interests and views of
stakeholders
28-29
ESRS 2 SBM-3 Material impacts, risks and
opportunities and their interaction with
strategy and business model
29-37
ESRS 2 IRO-1 Description of the process to
identify and assess material impacts, risks
and opportunities
37-40
ESRS 2 IRO-2 Disclosure Requirements in
ESRS covered by the Sustainability
Statement
40-49
ESRS E1 Climate change
ESRS 2 GOV-3 E1 Integration of
sustainability-related performance in
incentive schemes
62
ESRS E1-1 Transition plan for climate
change mitigation
62-63
ESRS 2 SBM-3 E1 Material impacts, risks
and opportunities and their interaction with
strategy and business model
63-65
ESRS 2 IRO-1 E1 Description of the
processes to identify and assess material
climate-related impacts, risks and
opportunities
65-68
ESRS E1-2 Policies related to climate
change mitigation and adaptation
68-70
ESRS E1-3 Actions and resources in relation
to climate change policies
70-71
ESRS E1-4 Tracking the effectiveness of
climate change-related policies and actions
71-72
ESRS E1-5 Energy consumption and mix
72
ESRS E1-6 Gross Scopes 1, 2, 3 and Total
GHG emissions
73-76
ESRS E1-7 GHG removals and GHG
mitigation projects financed through carbon
credits
Not-material for the Sabaf Group
ESRS E1-8 Internal carbon pricing
Not-material for the Sabaf Group
ESRS E1-9 Anticipated financial effects from
material physical and transition risks and
potential climate-related opportunities
The Sabaf Group used the phase-in
provisions for the first year of reporting
ESRS E2 Pollution
ESRS 2 IRO-1 E2 Description of the
processes to identify and assess material
pollution-related impacts, risks and
opportunities
77-78
ESRS E2-1 Policies related to pollution
78-79
ESRS E2-2 Actions and resources related to
pollution
79-80
ESRS E2-3 Tracking the effectiveness of
pollution-related policies and actions
80
ESRS E2-4 Pollution of air, water and soil
80
ESRS E2-5 Substances of concern and
substances of very high concern
81
Sabaf Group | 2024 Report on Operations
42
Disclosure Requirement
and related datapoint
Page number
Notes
ESRS E2-6 Anticipated financial effects from
pollution-related, risks and opportunities
The Sabaf Group used the phase-in
provisions for the first year of reporting
ESRS E3 Water
ESRS 2 IRO-1 E3 Description of the
processes to identify and assess material
water-related impacts, risks and
opportunities
82
ESRS E3-1 Policies related to water
82-83
ESRS E3-2 Water-related actions and
resources
83-84
ESRS E3 MDR-T Tracking the effectiveness
of water-related policies and actions
84
ESRS E3-4 Water consumption
84-85
ESRS E3-5 Anticipated financial effects from
water and marine resources-related
impacts, risks and opportunities
The Sabaf Group used the phase-in
provisions for the first year of reporting
ESRS E4 Biodiversity and ecosystems
ESRS E4-1 Transition plan and
consideration of biodiversity and
ecosystems in strategy and business model
Not-material for the Sabaf Group
ESRS 2 SBM-3 E4 Material impacts, risks
and opportunities and their interaction with
strategy and business model
ESRS 2 IRO-1 E4 Description of processes
to identify and assess material biodiversity
and ecosystem-related impacts, risks and
opportunities
ESRS E4-2 Policies related to biodiversity
and ecosystems
ESRS E4-3 Actions and resources related to
biodiversity and ecosystems
ESRS E4-4 Targets related to biodiversity
and ecosystems
E4-5 -Impact metrics related to biodiversity
and ecosystems change
E4-6 - Anticipated financial effects from
biodiversity and ecosystem-related risks and
opportunities
ESRS E5 Resource use and circular economy
ESRS 2 IRO-1 E5 Description of processes
to identify and assess material resource use
and circular economy-related impacts, risks
and opportunities
86
ESRS E5-1 Policies related to resource use
and circular economy
86-87
ESRS E5-2 Actions and resources related to
resource use and the circular economy
87-88
ESRS E5 MDR-T Tracking the effectiveness
of circular economy-related policies and
actions
88
ESRS E5-4 Resource inflows
89
ESRS E5-5 Resource outflows
90-91
ESRS E5-6 Anticipated financial effects from
resource use and circular economy-related
impacts, risks and opportunities
The Sabaf Group used the phase-in
provisions for the first year of reporting
ESRS S1 Own workforce
ESRS 2 SBM-2 S1 Interests and views of
stakeholders
28-29
ESRS 2 SBM-3 S1 Material impacts, risks
and opportunities and their interaction with
strategy and business model
92-93
ESRS S1-1 Policies related to own
workforce
93-96
ESRS S1-2 Processes for engaging with own
workforce and workers' representatives
about impacts
96
Sabaf Group | 2024 Report on Operations
43
Disclosure Requirement
and related datapoint
Page number
Notes
ESRS S1-3 Processes to remediate negative
impacts and channels for own workers to
raise concerns
96-97
ESRS S1-4 Taking action on material
impacts on own workforce, and approaches
to managing material risks and pursuing
material opportunities related to own
workforce, and effectiveness of those
actions
97-99
ESRS S1-5 MDR-T Tracking effectiveness of
policies and actions through targets
99
ESRS S1-6 Characteristics of employees
99-101
ESRS S1-7 Characteristics of non-
employees in own workforce
101
ESRS S1-8 Collective bargaining coverage
and social dialogue
102
ESRS S1-9 Diversity metrics
102
ESRS S1-10 Adequate wages
103
ESRS S1-11 Social Protection
The Sabaf Group used the phase-in
provisions for the first year of reporting
ESRS S1-12 Persons with disabilities
Not-material for the Sabaf Group
ESRS S1-13 Training and skills development
metrics
103
ESRS S1-14 Health and safety metrics
103-104
ESRS S1-15 Work-life balance metrics
104
ESRS S1-16 Remuneration metrics (pay gap
and total remuneration)
104-105
ESRS S1-17 Incidents, complaints and
severe human rights impacts
105
ESRS S2 Workers in the value chain
ESRS 2 SBM-2 S2 Interests and views of
stakeholders
106
ESRS 2 SBM-3 S2 Material impacts, risks
and opportunities and their interaction with
strategy and business model
106
ESRS S2-1 Policies related to value chain
workers
106-107
ESRS S2-2 Processes for engaging with
value chain workers about impacts
108
ESRS S2-3 Processes to remediate negative
impacts and channels for value chain
workers to raise concerns
108
ESRS S2-4 Taking action on material
impacts on value chain workers, and
approaches to managing material risks and
pursuing material opportunities related to
value chain workers, and effectiveness of
those actions
108-109
ESRS S2 MDR-T Tracking effectiveness of
policies and actions through targets
109
ESRS S3 Affected communities
ESRS 2 SBM-2 S3 Interests and views of
stakeholders
28-29
ESRS 2 SBM-3 S3 Material impacts, risks
and opportunities and their interaction with
strategy and business model
110
ESRS 2 S3-1 Policies related to affected
communities
110-111
ESRS S3-2 Processes for engaging with
affected communities about impacts
111
ESRS S3-3 Processes to remediate negative
impacts and channels for own workers to
raise concerns
Not-material for the Sabaf Group
ESRS S3-4 Taking action on material
impacts on affected communities, and
approaches to managing material risks and
111-112
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44
Disclosure Requirement
and related datapoint
Page number
Notes
pursuing material opportunities related to
affected communities, and effectiveness of
those actions
ESRS S3 MDR-T Tracking the effectiveness
of affected communities-related policies and
actions
112
ESRS S4 Consumers and end-users
ESRS 2 SBM-2 S4 Interests and views of
stakeholders
28-29
ESRS 2 SBM-3 S4 Material impacts, risks
and opportunities and their interaction with
strategy and business model
113
ESRS S4-1 Policies related to consumers
and end-users
113-114
ESRS S4-2 Processes for engaging with
consumers and end-users about impacts
114
ESRS S4-3 Processes to remediate negative
impacts and channels for consumers and
end-users to raise concerns
114
ESRS S4-4 Taking action on material
impacts on consumers and end-users, and
approaches to managing material risks and
pursuing material opportunities related to
consumers and end- users, and
effectiveness of those actions
114-115
ESRS S4 MDR-T Tracking the effectiveness
of end-user-related policies and actions
115
ESRS G1 Business conduct
ESRS 2 GOV-1 G1 The role of the
administrative, management and
supervisory bodies
116
ESRS 2 IRO-1 G1 Description of the process
to identify and assess material impacts, risks
and opportunities
116
ESRS G1-1 Business conduct policies and
corporate culture
117-119
ESRS G1-2 Management of relationships
with suppliers
119
ESRS G1-3 Prevention and detection of
corruption or bribery
119-120
ESRS G1-4 Incidents of corruption or
bribery
121
ESRS G1-5 Political influence and lobbying
activities
Not-material for the Sabaf Group
ESRS G1-6 Payment Practices
121
Sabaf Group | 2024 Report on Operations
45
Below are the information elements from other EU legislation listed in Appendix B of Annex II
of the CSRD.
Disclosure Requirement
and related datapoint
Obligations from other EU
legislation
13;14;15;16
Page number
ESRS 2 General Information
ESRS 2 GOV-1 Board's gender diversity
paragraph 21(d)
SFDR: Annex I, Table 1, Indicator No. 13
Benchmark Regulation: Commission
Delegated Regulation (EU) 2020/1816 (5),
Annex II
17
ESRS 2 GOV-1 Percentage of board
members who are independent, paragraph
21(e)
Benchmark Regulation: Commission
Delegated Regulation (EU) 2020/1816,
Annex II
17
ESRS 2 GOV-4 Statement on due diligence,
paragraph 30
SFDR: Annex I, Table 3, Indicator No. 10
20-23
ESRS 2 SBM-1 Involvement in activities
related to fossil fuel activities, paragraph
40(d)(i)
SFDR: Annex I, Table 1, Indicator No. 4
Pillar 3: Article 449a of Regulation (EU)
No. 575/2013; Commission Implementing
Regulation (EU) 2022/2453 (6), Table 1 -
Qualitative Information on Environmental
Risk and Table 2 - Qualitative Information
on Social Risk.
Benchmark Regulation: Commission
Delegated Regulation (EU) 2020/1816,
Annex II
26-27
ESRS 2 SBM-1 Involvement in activities
related to chemical production, paragraph
40(d)(ii)
SFDR: Annex I, Table 2, Indicator No. 9
Benchmark Regulation: Commission
Delegated Regulation (EU) 2020/1816,
Annex II
26-27
ESRS 2 SBM-1 Involvement in activities
related to controversial weapons, paragraph
40(d)(iii)
SFDR: Annex I, Table 1, Indicator No. 14
Benchmark Regulation: Article 12(1) of
Delegated Regulation (EU) 2020/1818 (7)
and Annex II of Delegated Regulation (EU)
2020/1816
26-27
ESRS 2 SBM-1 Involvement in activities
related to cultivation and production of
tobacco paragraph 40(d)(iv)
Benchmark Regulation: Article 12(1) of
Delegated Regulation (EU) 2020/1818 and
Annex II of Delegated Regulation (EU)
2020/1816
26-27
ESRS E1 Climate change
ESRS E1-1 Transition plan to reach climate
neutrality by 2050, paragraph 14
EU Climate Law: Article 2(1) of Regulation
(EU) 2021/1119
62-63
ESRS E1-1 Undertakings excluded
from Paris-aligned Benchmarks, paragraph
16(g)
Pillar 3: Article 449a of Regulation (EU) No
575/2013; Commission Implementing
Regulation (EU) 2022/2453, Model 1:
Banking portfolio - Indicators of potential
transition risk related to climate change:
Credit quality of exposures by sector,
issuance and residual maturity
62-63
13
SFDR: Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-
related disclosures in the financial services sector (Sustainable Finance Disclosures Regulation) (OJ L 317, 9.12.2019, p. 1).
14
Pillar 3: Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential
requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (Capital Requirements
Regulation ‘CRR’) (OJ L 176, 27.6.2013, p. 1).
15
Benchmark Regulation: Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices
used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds and
amending Directives 2008/48/ EC and 2014/17/EU and Regulation (EU) No 596/2014 (OJ L 171, 29.6.2016, p. 1).
16
EU Climate Law: Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the
framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 (‘European
Climate Law’) (OJ L 243, 9.7.2021, p. 1).
Sabaf Group | 2024 Report on Operations
46
Disclosure Requirement
and related datapoint
Obligations from other EU
legislation
13;14;15;16
Page number
Benchmark Regulation: Article 12(1)(d) to
(g) and (2) of Delegated Regulation (EU)
2020/1818
ESRS E1-4 GHG emission reduction targets,
paragraph 34
SFDR: Annex I, Table 2, Indicator No. 4
Pillar 3: Article 449a of Regulation (EU) No
575/2013; Commission Implementing
Regulation (EU) 2022/2453, Model 3:
Banking portfolio - Indicators of potential
climate change-related transition risk:
alignment metrics
Benchmark Regulation: Article 6 of
Delegated Regulation (EU) 2020/1818
71-72
ESRS E1-5 Energy consumption from fossil
sources disaggregated by sources (only high
climate impact sectors), paragraph 38
SFDR: Annex I, Table 1, Indicator No. 5
and Annex I, Table 2, Indicator No. 5
72
ESRS E1-5 Energy consumption and mix,
paragraph 37
SFDR: Annex I, Table 1, Indicator No. 5
72
ESRS E1-5 Energy intensity associated with
activities in high climate impact sectors,
paragraphs 40 to 43
SFDR: Annex I, Table 1, Indicator No. 6
72
ESRS E1-6 Gross Scopes 1, 2, 3 and Total
GHG emissions, paragraph 44
SFDR: Annex I, Table 1, Indicators 1 and 2
Pillar 3: Article 449a of Regulation (EU) No
575/2013; Commission Implementing
Regulation (EU) 2022/2453, Model 1:
Banking portfolio - Indicators of potential
transition risk related to climate change:
Credit quality of exposures by sector,
issuance and residual maturity
Benchmark Regulation: Articles 5(1), 6
and 8(1) of Delegated Regulation (EU)
2020/1818
73
ESRS E1-6 Gross GHG emissions intensity,
paragraphs 53 to 55
SFDR: Annex I, Table 1, Indicator No. 3
Pillar 3: Article 449a of Regulation (EU) No
575/2013; Commission Implementing
Regulation (EU) 2022/2453, Model 3:
Banking portfolio - Indicators of potential
climate change-related transition risk:
alignment metrics
Benchmark Regulation: Article 8(1) of
Delegated Regulation (EU) 2020/1818
73
ESRS E1-7 GHG removals and carbon
credits, paragraph 56
EU Climate Law: Article 2(1) of Regulation
(EU) 2021/1119
Non-material for the Sabaf Group
ESRS E1-9 Exposure of the benchmark
portfolio to climate-related physical risks,
paragraph 66
Benchmark Regulation: Annex II of
Delegated Regulation (EU) 2020/1818 and
Annex II of Delegated Regulation (EU)
2020/1816
The Sabaf Group used the option of phase-
in provisions for the first year of reporting
ESRS E1-9 Disaggregation of monetary
amounts by acute and chronic physical risk,
paragraph 66(a)
ESRS E1-9 Location of significant assets at
material physical risk, paragraph 66(c)
Pillar 3: Article 449a of Regulation (EU) No
575/2013; points 46 and 47 of Commission
Implementing Regulation (EU) 2022/2453;
Model 5: Banking portfolio - Indicators of
potential physical risk related to climate
change: exposures subject to physical risk
ESRS E1-9 Breakdown of the carrying value
of its real estate assets by energy-efficiency
classes, paragraph 67(c)
Pillar 3: Article 449a of Regulation (EU) No
575/2013; point 34 of the Implementing
Regulation
(EU) 2022/2453 of the Commission; Model
2: Banking portfolio - Indicators of potential
climate change-related transition risk: loans
secured by real estate - Energy efficiency of
collateral
Sabaf Group | 2024 Report on Operations
47
Disclosure Requirement
and related datapoint
Obligations from other EU
legislation
13;14;15;16
Page number
ESRS E1-9 Degree of exposure of the
portfolio to climate- related opportunities,
paragraph 69
Pillar 3: Annex II of Delegated Regulation
2020/1818
ESRS E2 Pollution
ESRS E2-4 Amount of each pollutant listed
in Annex II of the E-PRTR Regulation
(European Pollutant Release and Transfer
Register) emitted to air, water and soil,
paragraph 28
SFDR: Annex I, Table 1, indicator No 8;
Annex I, Table 2, indicator No 2; Annex 1,
Table 2, indicator No 1; Annex I, Table 2,
indicator No 3
80
ESRS E3 Water and marine resources
ESRS E3-1 Water and marine resources,
paragraph 9
SFDR: Annex I, Table 2, Indicator No. 7
82-83
ESRS E3-1 Dedicated policy, paragraph 13
SFDR: Annex I, Table 2, Indicator No. 8
82-83
ESRS E3-1 Sustainable oceans and seas
paragraph 14
SFDR: Annex I, Table 2, Indicator No. 12
Non-material for the Sabaf Group
ESRS E3-4 Total water recycled and reused,
paragraph 28(c)
SFDR: Annex I, Table 2, Indicator No. 6.2
84-85
ESRS E3-4 Total water consumption in m
3
per net revenue on own operations,
paragraph 29
SFDR: Annex I, Table 2, Indicator No. 6.1
84-85
ESRS E4 Biodiversity and ecosystems
ESRS 2 SBM-3 E4 paragraph 16(a)(i)
SFDR: Annex I, Table 1, Indicator No. 7
Non-material for the Sabaf Group
ESRS 2 SBM-3 E4 paragraph 16(b)
SFDR: Annex I, Table 2, Indicator No. 10
ESRS 2 SBM-3 E4 paragraph 16(c)
SFDR: Annex I, Table 2, Indicator No. 14
ESRS E4-2 Sustainable land/agriculture
practices or policies, paragraph 24(b)
SFDR: Annex I, Table 2, Indicator No. 11
ESRS E4-2 Sustainable oceans/seas
practices or policies, paragraph 24(c)
SFDR: Annex I, Table 2, Indicator No. 12
ESRS E4-2 Policies to address deforestation,
paragraph 24(d)
SFDR: Annex I, Table 2, Indicator No. 15
ESRS E5 Resource use and circular economy
ESRS E5-5 Non-recycled waste, paragraph
37(d)
SFDR: Annex I, Table 2, Indicator No. 13
90
ESRS E5-5 Hazardous waste and
radioactive waste, paragraph 39
SFDR: Annex I, Table 1, Indicator No. 9
90
ESRS S1 Own workforce
ESRS 2 SBM-3 S1 Risk of incidents of forced
labour, paragraph 14(f)
SFDR: Annex I, Table 3, Indicator No. 13
93
ESRS 2 SBM-3 S1 Risk of incidents of child
labour, paragraph 14(g)
SFDR: Annex I, Table 3, Indicator No. 12
93
ESRS S1-1 Human rights policy
commitments, paragraph 20
SFDR: Annex I, Table 3, Indicator No 9 and
Annex I, Table 1, Indicator No 11
93-96
ESRS S1-1 Due diligence policies on issues
addressed by the fundamental International
Labour Organisation Conventions 1 to 8,
paragraph 21
Benchmark Regulation: Commission
Delegated Regulation (EU) 2020/1816,
Annex II
93-96
ESRS S1-1 Processes and measures for
preventing trafficking in human beings,
paragraph 22
SFDR: Annex I, Table 3, Indicator No. 11
93-96
ESRS S1-1 Workplace accident prevention
policy or management system, paragraph
23
SFDR: Annex I, Table 3, Indicator No. 1
93-96
ESRS S1-3 Grievance/complaints handling
mechanisms, paragraph 32(c)
SFDR: Annex I, Table 3, Indicator No. 5
96-97
ESRS S1-14 Number of fatalities and
number and rate of work-related accidents,
paragraph 88 (b) and (c)
SFDR: Annex I, Table 3, Indicator No. 2
Benchmark Regulation: Commission
Delegated Regulation (EU) 2020/1816,
Annex II
103-104
ESRS S1-14 Number of days lost to injuries,
accidents, fatalities or illness, paragraph 88
(e)
SFDR: Annex I, Table 3, Indicator No. 3
103-104
ESRS S1-16 Unadjusted gender pay gap,
paragraph 97(a)
SFDR: Annex I, Table 1, Indicator No. 12
104-105
Sabaf Group | 2024 Report on Operations
48
Disclosure Requirement
and related datapoint
Obligations from other EU
legislation
13;14;15;16
Page number
Benchmark Regulation: Commission
Delegated Regulation (EU) 2020/1816,
Annex II
ESRS S1-16 Excessive CEO pay ratio,
paragraph 97(b)
SFDR: Annex I, Table 3, Indicator No. 8
104-105
ESRS S1-17 Incidents of discrimination,
paragraph 103(a)
SFDR: Annex I, Table 3, Indicator No. 7
105
ESR S1-17 Non-respect of UNGPs on
Business and Human Rights and OECD
Guidelines 104(a)
SFDR: Annex I, Table 1, Indicator No 10
and Annex I, Table 3, Indicator No 14
Benchmark Regulation: Annex II of
Delegated Regulation (EU) 2020/1816 and
Article 12(1) of Delegated Regulation (EU)
2020/1818
105
ESRS S2 Workers in the value chain
ESRS 2 SBM-3 S2 Significant risk of child
labour or forced labour in the value chain,
paragraph 11(b)
SFDR: Annex I, Table 3, Indicators Nos. 12
and 13
106
ESRS S2-1 Human rights policy
commitments, paragraph 17
SFDR: Annex I, Table 3, Indicator No 9 and
Annex I, Table 1, Indicator No 11
106-107
ESRS S2-1 Policies related to value chain
workers, paragraph 18
SFDR: Annex I, Table 3, Indicators Nos. 11
and 4
106-107
ESRS S2-1 Non-respect of UNGPs on
Business and Human Rights principles and
OECD guidelines, paragraph 19
SFDR: Annex I, Table 1, Indicator No. 10
Benchmark Regulation: Annex II of
Delegated Regulation (EU) 2020/1816 and
Article 12(12)
1, of Delegated Regulation (EU) 2020/1818
106-107
ESRS S2-1 Due diligence policies on issues
addressed by the fundamental International
Labour Organisation Conventions 1 to 8,
paragraph 19
Benchmark Regulation: Commission
Delegated Regulation (EU) 2020/1816,
Annex II
106-107
ESRS S2-4 Human rights issues and
incidents connected to its upstream and
downstream value chain, paragraph 36
SFDR: Annex I, Table 3, Indicator No. 14
108
ESRS S3 Communities concerned
ESRS S3-1 Human rights policy
commitments, paragraph 16
SFDR: Annex I, Table 3, Indicator No 9 and
Annex I, Table 1, Indicator No 11
110-111
ESRS S3-1 Non-respect of UNGPs on
Business and Human Rights, ILO principles
or OECD guidelines, paragraph 17
SFDR: Annex I, Table 1, Indicator No. 10
Benchmark Regulation: Annex II of
Delegated Regulation (EU) 2020/1816 and
Article 12(1) of Delegated Regulation (EU)
2020/1818
110-111
ESRS S3-4 Human Rights issues and
incidents, paragraph 36
SFDR: Annex I, Table 3, Indicator No. 14
111-112
ESRS S4 Consumers and end-users
ESRS S4-1 Policies related to consumers
and end-users, paragraph 16
SFDR: Annex I, Table 3, Indicator No 9 and
Annex I, Table 1, Indicator No 11
113-114
ESRS S4-1 Non-respect of UNGPs on
Business and Human Rights and OECD
guidelines, paragraph 17
SFDR: Annex I, Table 1, Indicator No. 10
Benchmark Regulation: Annex II of
Delegated Regulation (EU) 2020/1816 and
Article 12(1) of Delegated Regulation (EU)
2020/1818
113-114
ESRS S4-4 Human rights issues and
incidents, paragraph 35
SFDR: Annex I, Table 3, Indicator No. 14
114-115
ESRS G1 Business conduct
ESRS G1-1 United Nations Convention
against Corruption, paragraph 10(b)
SFDR: Annex I, Table 3, Indicator No. 15
117-119
ESRS G1-1 Protection of whistleblowers,
paragraph 10(d)
SFDR: Annex I, Table 3, Indicator No. 6
117-119
ESRS G1-4 Fines imposed for violations of
laws against corruption and bribery,
paragraph 24(a)
SFDR: Annex I, Table 3, Indicator No. 17
Benchmark Regulation: Annex II of
Delegated Regulation 2020/1816
121
Sabaf Group | 2024 Report on Operations
50
E - Information on environmental aspects
Disclosure pursuant to Article 8 of Regulation (EU) 2020/852 (Taxonomy Regulation)
Regulation (EU) 2020/852 (“EU Taxonomy”) is part of the European Union's initiatives in favour
of sustainable finance and aims to provide investors and the market with a framework of
sustainability metrics. The EU Taxonomy focuses on the identification of environmentally
sustainable economic activities, defined as those economic activities that make a substantial
contribution to at least one of the EU’s climate and environmental objectives, while at the same
time not significantly harming any of these objectives and meeting minimum safeguards. In
particular, the aim of the EU Taxonomy is to steer investments towards sustainable solutions,
also in order to pursue the provisions of the European Green Deal, by identifying six
environmental and climate objectives:
1. Climate change mitigation;
2. Climate change adaptation;
3. Sustainable use and protection of water and marine resources;
4. Transition to a circular economy;
5. Pollution prevention and control;
6. Protection and restoration of biodiversity and ecosystems.
To achieve these objectives, the European Union has identified specific economic activities and
defined their environmental sustainability criteria, through Delegated Regulation 2021/2139
(covering the first two objectives) and Delegated Regulation 2023/2486 (covering the remaining
four objectives).
According to the Taxonomy Regulation, the Group must publish: (i) the proportion of their
turnover derived from products or services associated with economic activities that qualify as
environmentally sustainable under the Taxonomy and the (ii) the proportion of capital
expenditure and the proportion of operating expenditure related to asses or processes
associated with economic activities that qualify as environmentally sustainable under the
Taxonomy. These indicators must be reported for both "Taxonomy-eligible” economic
activities, i.e., "eligible" activities that could potentially contribute to the achievement of
environmental objectives, and "Taxonomy-aligned" economic activities, i.e., the activities
"aligned" to the Taxonomy, which actually contribute to the achievement of taxonomy
objectives. As described in Delegated Regulation (EU) 2021/2178, an economic activity is
Taxonomy-aligned if it complies with the requirements laid down in Article 3 of Regulation
2020/852, i.e., if it gives a substantial contribution to at least one of the above-mentioned
climate and environmental objectives in accordance with the technical screening criteria set by
the Commission, while at the same time does not significantly harm the remaining objectives
and it meets minimum safeguards.
For the taxonomic reporting pertaining to the reference year, the reporting obligation covering
both Taxonomy-eligible and aligned economic activities will be extended to all six objectives of
the Taxonomy.
Eligible activities
In accordance with the Regulation, an analysis of the Group's activities was conducted to
identify those that were eligible and aligned with the six objectives of the Taxonomy. In 2024,
the eligibility and alignment analysis covered the activities specified in Annexes I and II of the
Sabaf Group | 2024 Report on Operations
51
Climate Delegated Act and was also extended to those of the other delegated regulations, i.e.,
the activities contained in Annexes I, II, III and IV of the Environmental Delegated Act and
Delegated Act 2023/2485.
Based on the consultation of the Delegated Acts, Sabaf identified as potentially eligible activity
“3.5. Manufacture of energy efficiency equipment for buildings”. Indeed, Sabaf manufactures
“key components” of household appliances that fall within the scope of the above-mentioned
activity of the climate change mitigation and adaptation objectives. However, after further
investigations into the relevant technical screening criteria and based on the decision to adopt
a prudential approach, the Group opted not to consider this activity as “Taxonomy eligible”.
Indeed, Sabaf manufactures “key components” of household appliances that fall within the
scope of the above-mentioned activity. The criteria set out in the Delegated Acts allow for
alignment (or eligibility, in the case of the adaptation objective) if the key components are
installed on appliances that fall into the two highest energy efficiency classes, in accordance
with Regulation (EU) 2017/1369 of the European Parliament and of the Council. However, to
date, energy labelling is not applicable for certain categories of household appliances (such as
gas hobs), nor can the Group obtain information on the energy class of the appliances for which
its components are intended.
Sabaf also assessed whether the sale of electronic control boards could be included under
activity “1.2 Manufacture of electrical and electronic equipment" as part of the objective of
transition to a circular economy, but concluded that this activity was not eligible.
Based on possible regulatory developments and clarifications to the Regulation, Sabaf reserves
the right to review this analysis in the coming years. The non-identification or reduced
identification of turnover derived from "eligible" economic activities is not an indicator of an
undertaking's environmental performance, as also confirmed by the Platform on Sustainable
Finance, a body established under Article 20 of Regulation (EU) 2020/852 with advisory and
support functions in favour of the European Commission on Taxonomy
17
.
The Group has identified a number of projects that contribute to the energy transition and
towards a circular economy, identifying the activities as outlined in the following sections. The
Sabaf Group will continue to monitor the evolution of energy labelling and European taxonomy
regulations, as the publication of further regulations that are specific to its business may allow it
to enhance its contribution in the future.
Eligible economic activities for the 2024 financial year are outlined below.
17
In the document Platform considerations on voluntary information as part of Taxonomy-eligibility reporting
presented as an annex to the European Commission's FAQs published in December 2021 it is stated that "Eligibility
is not an indicator of environmental performance; it is an indicator that an activity is in scope for testing and has
the potential to be Taxonomy-aligned".
Sabaf Group | 2024 Report on Operations
52
Economic activities
Target
Description
Associated KPI
4.1. Electricity generation
using solar photovoltaic
technology
Climate change mitigation
There is a photovoltaic plant
in operation at the company
C.M.I. s.r.l.
Turnover
7.2. Renovation of existing
buildings
Climate change mitigation
Restructuring activities
conducted at the company
A.R.C. s.r.l.
CapEx
3.2 Renovation of existing
buildings
Transition to a circular
economy
Restructuring activities
conducted at the company
A.R.C. s.r.l.
CapEx
7.4. Installation,
maintenance and repair of
charging stations for electric
vehicles in buildings (and
parking spaces
attached to buildings)
Climate change mitigation
Installation of charging
stations for electric vehicles
at the production plant of
Sabaf S.p.A.
CapEx
7.6. Installation,
maintenance and repair of
renewable energy
technologies
Climate change mitigation
Adaptation works for the
installation of a photovoltaic
system at the production
plant of Sabaf S.p.A.
CapEx
2.2. Production of
alternative water resources
for purposes other than
human consumption
Transition to a circular
economy
Maintenance of rainwater
and stormwater collection
and treatment facilities at
the Sabaf S.p.A. factory.
OpEx
For the activities listed in the table, Sabaf assessed compliance with the criteria in Article 3 of
Regulation (EU) 2020/852 and the associated technical screening criteria in the delegated acts,
concluding that activities 4.1, 7.2, 3.2 and 2.2 are only eligible for the year 2024, since DNSH
criteria are not met for the first activity and for the others the substantial contribution criteria
are not met.
Aligned activities
Below are the aligned economic activities for the 2024 financial year.
Economic activities
Target
Description
Associated KPI
7.4. Installation,
maintenance and repair of
charging stations for electric
vehicles in buildings (and
parking spaces
attached to buildings)
Climate change mitigation
Installation of charging
stations for electric vehicles
at the production plant of
Sabaf S.p.A.
CapEx
7.6. Installation,
maintenance and repair of
renewable energy
technologies
Climate change mitigation
Adaptation works for the
installation of a photovoltaic
system at the production
plant of Sabaf S.p.A.
CapEx
For the above activities, Sabaf assessed compliance with the criteria set out in Article 3 of
Regulation (EU) 2020/852 and the associated substantial contribution criteria set out in the
delegated acts, as well as compliance with the DNSH ('Do No Significant Harm') criteria and the
Minimum Safeguards. The assessment led to these activities being identified as aligned, as
explained in the following paragraphs.
The CapEx indicator associated with activity
7.6
.
Installation, maintenance and repair of
renewable energy technologies
, was found to be aligned as part of a plan to expand economic
Sabaf Group | 2024 Report on Operations
53
activities aligned with the Taxonomy or to enable economic activities eligible for the latter to
align with the Taxonomy ('CapEx plan').
Substantial contribution of aligned activities
Economic activities 7.4. and 7.6. can be considered aligned with the Taxonomy if they meet the
criterion of substantial contribution to the mitigation objective. The analysis conducted on the
Company's specific circumstances concluded that both activities contribute substantially to
climate change mitigation. Specifically:
▪ Activity 7.4. consists of the installation of recharging stations for electric vehicles, thus
encouraging the use of suitable means of transport for the climate transition. Electric
vehicles emit less GHG compared to internal combustion vehicles, as well as being more
efficient in terms of energy consumption. Furthermore, charging infrastructure can be
supplemented with renewable energy sources, further reducing emissions associated
with transport.
▪ Activity 7.6. relates to adaptation works for the installation of a photovoltaic system at
the Sabaf S.p.A. plant as part of a CapEx plan, as defined in Annex I of Delegated
Regulation (EU) 2021/2178. Once installed, this system will enable the production of
electricity using photovoltaic solar technology, contributing substantially to the goal of
climate change mitigation.
Analysis of DNSH criteria
Economic activities 7.4. and 7.6. can be considered to be aligned with the Taxonomy and
consequently contribute to the mitigation target as long as the DNSH criteria for the remaining
taxonomic targets are met, as stated within the Regulation. The DNSH criteria associated with
these activities specifically only require compliance with the criteria set out in Appendix A of
the Commission's Delegated Regulation (EU) 2021/2139, in order to ensure the absence of
significant impact hindering the climate change adaptation objective.
The criteria in Appendix A are met by the climate risk analysis that the Sabaf Group conducted
during the reporting period, as explained in
ESRS E1 Climate Change
of this document.
Specifically, the risks were identified from those listed in the table in Section II of Appendix A
and were subjected to a rigorous assessment in accordance with the procedure outlined in the
delegated acts. For more information on the analysis that was conducted, please refer to sections
[E1 SBM-3] Material impacts, risks and opportunities and their interaction with the strategy and
business model
and
[E1 IRO-1] Description of processes for identifying and assessing material
climate-related impacts, risks and opportunities
.
Analysis of minimum safeguards
Article 18 of the EU Taxonomy Regulation describes minimum safeguards, or “minimum social
safeguards”, as procedures implemented by a company to ensure that its business activities are
conducted in accordance with internationally recognised principles set out in the OECD
Guidelines for multinational enterprises on responsible business conduct and the United Nations
Guiding Principles (UNGPs) on Business and Human Rights. In the analysis, consideration was
also given to the guidelines identified by the Platform on Sustainable Finance in the Final Report
on Minimum Safeguards, published in October 2022. Details of the Sabaf Group's minimum
safeguards are outlined below. Aligned activities are carried out directly by Sabaf Group
Sabaf Group | 2024 Report on Operations
54
companies, as measures to contribute to the energy transition of the companies themselves. The
Group therefore
verified compliance with the DNSH and MSS requirements for Sabaf S.p.A.
alone, as required by the Regulation.
▪ Human rights, including workers' rights. The Sabaf Group has formalised its
commitment to the protection and promotion of human rights in its policies and codes
of conduct. Commitments to human rights are set out in the Group Charter of Values,
as well as in the Social Policy. These commitments are also shared with the Group's
value chain through the dissemination and signing by suppliers of the Sustainable
Procurement Policy, which requires respect for human rights and minimum standards
on social responsibility and working conditions. The aforementioned policies provide
for specific enforcement, verification and monitoring mechanisms, as detailed in
sections
[S1-1] Policies related to own workforce
and
[S2-1] Policies related to value
chain workers
of this document.
▪ Taxation. The Sabaf Group, in line with the principles defined in the Charter of Values,
acts according to the values of honesty, moral integrity, transparency and fairness also
in the management of its tax activity. The Group also believes that the contribution
from taxes paid is an important channel through which it can participate in the
economic and social development of the countries in which it operates. For this reason,
the Sabaf Group pays attention to the compliance with tax regulations and acts
responsibly in the jurisdictions in which it is present. Acting responsibly in terms of tax
is also seen as conduct oriented towards the protection of the company's assets and the
creation of value in the medium-long term. The Administration and Finance
Department of Sabaf S.p.A. is responsible for the management of tax matters, and also
exercises a supervisory, guiding and coordinating function with regard to intercompany
relations. Tax risks are analysed and managed in accordance with the company's
overall Enterprise Risk Management model.
▪ Fair competition. In line with the principles of honesty, moral integrity, transparency
and fairness defined in the Charter of Values, Sabaf’s corporate values include the
promotion of fair competition practices, to the benefit of competitors, market operators,
customers and all stakeholders involved.
▪ Anti-corruption and anti-bribery. Sabaf manages and prevents corruption through
the adoption of formalised procedures and commitments within its Anti-Corruption
Policy. The Policy reiterates the recipients' obligation to comply with the provisions of
the Organisational, Management and Control Models adopted pursuant to Legislative
Decree No. 231/2001, as well as the procedures and internal rules established by each
Group company. The provisions and guidelines contained in the Policy - which were
developed starting from an analysis of at-risk activities - promote the highest ethical
standards in all business dealings, in order to conduct business with loyalty, fairness,
transparency, honesty and integrity, and provide specific rules to prevent, identify and
manage corruption risks. More information on the Anti-Corruption Policy can be found
under
[G1-1] Business conduct policies and corporate culture
.
▪ Convictions. The Sabaf Group has not had any final convictions for unfair competition
practices, tax offences, corruption or bribery, nor has it been involved in human rights
or labour rights violations. In addition, there were no questions from the Business and
Human Rights Resource Centre (BHRRC) and no cases dealt with by the OECD
National Contact Point (NCP).
Sabaf Group | 2024 Report on Operations
55
Template - Proportion of turnover from products or services associated with Taxonomy-aligned economic activities - disclosure covering
year 2024 (
€
/000)
2024 financial year
2024
Substantial contribution criteria
DNSH criteria (“Does not significantly harm”)
Economic activities
Code
Absolute turnover
Proportion of turnover
(2024)
Climate change mitigation
Climate change
adaptation
Water and marine
resources
Circular economy
Pollution
Biodiversity and
ecosystems
Climate change mitigation
Climate change
adaptation
Water and marine
resources
Circular economy
Pollution
Biodiversity and
ecosystems
Minimum safeguards
Taxonomy-
aligned
(A.1.) or
Taxonomy-
eligible
(A.2)
proportion
of turnover
(2023)
Category
(enabling
activity)
Category
(transitional
activity)
€/000
%
Yes;
No;
N/EL
Yes;
No;
N/EL
Yes;
No;
N/EL
Yes;
No;
N/EL
Yes;
No;
N/EL
Yes;
No;
N/EL
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
%
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
Turnover of environmentally sustainable
activities (Taxonomy-aligned) (A.1)
0
0.00%
-
-
-
-
-
-
-
-
-
-
-
-
-
0.0%
of which enabling
0
0.00%
-
-
-
-
-
-
-
-
-
-
-
-
-
0.0%
E
of which transitional
0
0.00%
-
-
-
-
-
-
-
-
0.0%
T
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
Optional
%
Electricity generation using
solar photovoltaic
technology
CCM 4.1.
50
0.02%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0.0%
Turnover of Taxonomy-eligible activities
but not environmentally sustainable
activities (not Taxonomy-aligned
activities) (A.2)
50
0.02%
-
-
-
-
-
-
0.0%
Total (A.1 + A.2)
50
0.02%
-
-
-
-
-
-
0.0%
B. TAXONOMY NON-ELIGIBLE ACTIVITES
Turnover of Taxonomy-non-eligible
activities (B)
295,975
99.98%
Total (A + B)
296,025
100%
Sabaf Group | 2024 Report on Operations
56
Template - Proportion of CapEx from products or services associated with Taxonomy-aligned economic activities - disclosure covering year
2024 (
€
/000)
2024 financial year
2024
Substantial contribution criteria
DNSH criteria (“Does not significantly harm”)
Economic activities
Code
Absolute CapEx
Proportion of CaxEx
(2024)
Climate change
mitigation
Climate change
adaptation
Water and marine
resources
Circular economy
Pollution
Biodiversity and
ecosystems
Climate change
mitigation
Climate change
adaptation
Water and marine
resources
Circular economy
Pollution
Biodiversity and
ecosystems
Minimum safeguards
Taxonomy-
aligned
(A.1) or
Taxonomy-
eligible
proportion
of CapEx
(A.2)
(2023)
Category
(enabling
activity)
Category
(transitional
activity)
€/000
%
Yes;
No;
N/EL
Yes;
No;
N/EL
Yes;
No;
N/EL
Yes;
No;
N/EL
Yes;
No;
N/EL
Yes;
No;
N/EL
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
%
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
Installation, maintenance
and repair of charging
stations for electric
vehicles in buildings (and
parking spaces attached
to buildings)
CCM 7.4.
12
0.07%
Yes
No
N/EL
N/EL
N/EL
N/EL
Yes
Yes
Yes
Yes
Yes
Yes
Yes
0.0%
E
Installation, maintenance
and repair of renewable
energy technologies
CCM 7.6.
251
1.48%
Yes
No
N/EL
N/EL
N/EL
N/EL
Yes
Yes
Yes
Yes
Yes
Yes
Yes
0.0%
E
CapEx of environmentally
sustainable activities (Taxonomy-
aligned) (A.1)
263
1.55%
-
-
-
-
-
-
-
-
-
-
-
-
-
0.0%
of which enabling
263
1.55%
-
-
-
-
-
-
-
-
-
-
-
-
-
0.0%
E
of which transitional
0
0.00%
-
-
-
-
-
-
-
-
0.0%
T
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
Optional
%
Renovation of existing
buildings
CCM 7.2.
CE 3.2.
189
1.12%
EL
N/EL
N/EL
EL
N/EL
N/EL
0.0%
CapEx of Taxonomy-eligible but
not environmentally sustainable
activities (not Taxonomy-aligned
activities) (A.2)
189
1.12%
-
-
-
-
-
-
0.0%
Total (A.1 + A.2)
452
2.67%
-
-
-
-
-
-
0.0%
B. TAXONOMY NON-ELIGIBLE ACTIVITES
CapEx of Taxonomy non-eligible
activities (B)
16,491
97.33%
Total (A + B)
16,943
100%
Sabaf Group | 2024 Report on Operations
57
Template - Proportion of OpEx from products or services associated with Taxonomy-aligned economic activities - disclosure covering year
2024 (
€
/000)
2024 financial year
2024
Substantial contribution criteria
DNSH criteria (“Does not significantly harm”)
Economic activities
Code
Absolute OpEx
Proportion of OpEx
(2024)
Climate change
mitigation
Climate change
adaptation
Water and marine
resources
Circular economy
Pollution
Biodiversity and
ecosystems
Climate change
mitigation
Climate change
adaptation
Water and marine
resources
Circular economy
Pollution
Biodiversity and
ecosystems
Minimum safeguards
Taxonomy-
aligned
(A.1) or
Taxonomy-
eligible
(A.2)
proportion
of OpEx,
2023
Category
(enabling
activity)
Category
(transitional
activity)
€/000
%
Yes;
No;
N/EL
Yes;
No;
N/EL
Yes;
No;
N/EL
Yes;
No;
N/EL
Yes;
No;
N/EL
Yes;
No;
N/EL
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
%
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
Operating expenses of
environmentally sustainable
activities (taxonomy-aligned)
(A.1)
0
0.00%
-
-
-
-
-
-
-
-
-
-
-
-
-
0.0%
of which enabling
0
0.00%
-
-
-
-
-
-
-
-
-
-
-
-
-
0.0%
E
of which transitional
0
0.00%
-
-
-
-
-
-
-
-
0.0%
T
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
Optional
%
Production of alternative
water resources for
purposes other than human
consumption
CE 2.2.
11
0.13%
N/EL
N/EL
N/EL
EL
N/EL
N/EL
0.0%
Operating expenses of Taxonomy-
eligible activities but not
environmentally sustainable
(activities not aligned with the
taxonomy) (A.2)
11
0.13%
-
-
-
-
-
-
0.0%
Total (A.1 + A.2)
11
0.13%
-
-
-
-
-
-
0.0%
B. TAXONOMY NON-ELIGIBLE ACTIVITES
OpEx of Taxonomy non-eligible
activities (B)
8,622
99.87%
Total (A + B)
8,633
100%
Sabaf Group | 2024 Report on Operations
58
Multi-objective template
Proportion of turnover/total turnover
Taxonomy-aligned by objective
Taxonomy-eligible by objective
CCM
0.00%
0.02%
CCA
0.00%
0.00%
WTR
0.00%
0.00%
CE
0.00%
0.00%
PPC
0.00%
0.00%
BIO
0.00%
0.00%
Proportion of CapEx/Total CapEx
Taxonomy-aligned by objective
Taxonomy-eligible by objective
CCM
1.55%
2.67%
CCA
0.00%
0.00%
WTR
0.00%
0.00%
CE
0.00%
1.12%
PPC
0.00%
0.00%
BIO
0.00%
0.00%
Proportion of total OpEx/OpEx
Taxonomy-aligned by objective
Taxonomy-eligible by objective
CCM
0.00%
0.00%
CCA
0.00%
0.00%
WTR
0.00%
0.00%
CE
0.00%
0.13%
PPC
0.00%
0.00%
BIO
0.00%
0.00%
Annex XII of Regulation 2022/1214
Regulation (EU) 2022/1214, which amends Delegated (EU) Regulation 2021/2139, introduces
a template to report on nuclear energy and fossil gas related activities. The Sabaf Group
conducted an audit without identifying any nuclear energy and fossil gas related activities.
Sabaf Group | 2024 Report on Operations
59
Template 1 - Nuclear and fossil gas related activities
Nuclear energy related activities
1.
The undertaking carries out, funds or has exposures to research, development,
demonstration and deployment of innovative electricity generation facilities that
produce energy from nuclear processes with minimal waste from the fuel cycle.
NO
2.
The undertaking carries out, funds or has exposures to construction and safe operation
of new nuclear installations to produce electricity or process heat, including for the
purposes of district heating or industrial processes such as hydrogen production, as well
as their safety upgrades, using best available technologies.
NO
3.
The undertaking carries out, funds or has exposures to safe operation of existing nuclear
installations that produce electricity or process heat, including for the purposes of
district heating or industrial processes such as hydrogen production from nuclear
energy, as well as their safety upgrades.
NO
Fossil gas related activities
4.
The undertaking carries out, funds or has exposures to construction or operation of
electricity generation facilities that produce electricity using fossil gaseous fuels.
NO
5.
The undertaking carries out, funds or has exposures to construction, refurbishment, and
operation of combined heat/cool and power generation facilities using fossil gaseous
fuels.
NO
6.
The undertaking carries out, funds or has exposures to construction, refurbishment and
operation of heat generation facilities that produce heat/cool using fossil gaseous fuels.
NO
European Taxonomy: methodological note
Under the Taxonomy, the Group's Taxonomy-aligned and/or Taxonomy-eligible economic
activities must be presented through three key performance indicators (“KPIs”) in accordance
with the specifications set forth in Article 8 of the Delegated Regulation:
▪ Turnover;
▪ Capital expenditure (“CapEx”);
▪ Operating expenses (“OpEx”).
In preparing the consolidated financial statements, the Group applies the International Financial
Reporting Standards (IFRS) adopted by Regulation (EC) No. 1126/2008. The portion of turnover
Sabaf Group | 2024 Report on Operations
60
deemed eligible derives from net revenues obtained from products or services associated with
economic activities eligible for the Taxonomy. Capital expenditures incurred by the Group
attributed to eligible, environmentally sustainable economic activities include capitalised costs
as defined in section 1.1.2. of Annex I to Delegated Regulation (EU) 2021/2178, while the share
of operational expenditure is calculated as defined in point 1.1.3.2 of Annex I to Delegated
Regulation (EU) 2021/2178.
Revenue
The numerator of the KPI consists of the Taxonomy-eligible and Taxonomy-aligned turnover.
The denominator of the KPI consists of the Group's total net turnover as per the 2024
consolidated income statement and in accordance with IAS 1.82 (a): reference should be made
to the consolidated financial statements included in the Group's Annual Report for more
additional information.
CapEx
Under the EU Taxonomy, capital expenditure (CapEx) is classified as additions to tangible and
intangible assets and right-of-use assets during the financial year, before
amortisation/depreciation, write-downs and write-backs. It also includes additions to tangible
and intangible assets resulting from company mergers.
The numerator of the KPI considers the share of capital expenditure related to eligible activities,
possibly aligned, while the denominator is the total of such expenditure. According to the EU
Taxonomy, CapEx may include:
▪ Capital expenditures related to assets or processes that are associated with Taxonomy-
eligible/aligned economic activities (category as per par. 1.1.2.2. Annex I Delegated Act
Art. 8);
▪ Capital expenditures that are part of a plan to expand Taxonomy-aligned economic
activities or to allow Taxonomy-eligible economic activities to become Taxonomy-
aligned ("CapEx plan") under the conditions set out in the second subparagraph of point
1.1.2.2. of Annex I Delegated Act Art. 8;
▪ Capital expenditure related to the purchase of output from Taxonomy-eligible economic
activities and individual measures enabling the Group's activities to become low-carbon
or to lead to greenhouse gas reductions (Category C as per par. 1.1.2.2. Annex I
Delegated Act Art. 8).
The additions attributable to expenses incurred as part of a CapEx plan referred to in point 1.1.2.
of Annex I of Delegated Regulation (EU) 2021/2178 and expenses recognised in accordance
with IFRS 16 Leases and IAS 40 Investment Property were considered.
Finally, there are no CapEx attributable to IAS 41 Agriculture.
OpEx
Under Regulation (EU) 2021/2178, operating expenses are considered as direct non-capitalised
costs that relate to building renovation measures, research and development, short-term lease
and maintenance and repair. In addition, any other direct expenditures relating to the day-to-
day servicing of assets of property, plant and equipment by the undertaking or third party to
whom activities are outsourced, fall within the same scope. Non-capitalised costs that represent
Sabaf Group | 2024 Report on Operations
61
research that were recognised in the income statement were also identified. The method used
to identify Sabaf Group's operating expenses is based on the analysis of all the accounts
comprising the management accounting system, identifying all items pertaining to the above
categories.
Sabaf Group | 2024 Report on Operations
62
ESRS E1 Climate change
[GOV-3] Integration of sustainability-related performance in incentive schemes
Section
[GOV-3] Integration of sustainability-related performance in incentive schemes
explains in detail how the topic of climate change is incorporated into the remuneration
systems of the members of the administrative, management and supervisory bodies. In
summary, the long-term incentive plan (based on the 2024-2026 Business Plan period)
includes a 10% weighting for the environmental target to reduce CO
2
emissions.
[E1-1] Transition plan for climate change mitigation
The Sabaf Group has not currently adopted a transition plan for climate change mitigation.
Moreover, in order to address stakeholder
requirements and new climate and
sustainability reporting regulations, in 2023 the Group launched a carbon management
and climate change mitigation pathway that includes the identification of specific drivers
of decarbonisation. These specific drivers will form the basis for the future formalisation
of a transition plan, which the Group aims to define by 2025.
Cooking technologies and climate transition
As outlined in the following sections, the Scope 3 emissions analysis shows that the most
significant share of the Group's carbon footprint is related to the use of the products it sells
(burners, components of gas hobs, which generate emissions in the combustion phase of
cooking food). Currently, these emissions cannot be reduced directly since they depend
on existing infrastructure and consumer choices. This represents a challenge for the
definition of a climate transition plan, as the decarbonisation of the Sabaf Group depends
not only on product efficiency, but also on the availability of alternative technologies in
the domestic cooking sector. Therefore, emissions related to the use of the products sold
represent locked-in emissions for the Group.
In this regard, it should be noted that about 30% of the people on our planet, i.e., 2.5 billion
people, rely on solid fuels (wood, coal, dried dung, crop residues) for cooking. This
population is mainly concentrated in Sub-Saharan Africa, where the unavailability of
electricity and fossil fuels for cooking affects 82% of the population. Furthermore, Central
Asia, India, China, South-East Asia and Latin America also have significant percentages.
Pollution from traditional fuels has major consequences for the health of users and
households. The other 5.5 billion people cook using fossil fuels (mainly natural and LPG)
or electricity.
18
There is a widespread perception that the environmental impact of electrical cooking is
lower than that of gas cooking.
Actually, the measurement of environmental impact cannot be separated from the
consideration of the electricity production mix (fossil fuels, renewables, nuclear). An
authoritative study shows that, given the electricity production mix in Italy, the total CO
2
emissions over the life cycle of an induction hob are 1,590 kg, more than 50% higher than
18
Selin Oğuz, Mapped: The Global Reliance on Harmful Cooking Fuels, 7 December 2023.
Sabaf Group | 2024 Report on Operations
63
the total emissions of a gas hob (1,050 kg).
19
The same study also concludes that, in the
future, the shift from fossil fuels to renewable sources will increase the advantages of using
an electricity-consuming product such as the induction hob over the gas hob.
Another in-depth study
20
has recently conducted an impact analysis of different cooking
technologies, according to scientific standards (ReCiPe 2016 and PEF). In a nutshell, the
analysis covered 18 impact categories, which were then reduced to a single point value
(OWDS - Overall Weighted Damage Score). The OWDS was the highest in the case of
coal-fired cooking appliances (118) and the lowest for LPG and natural gas appliances (5
and 5.2 respectively). Electric cooking appliances, with an OWDS of 8.6, have 174% of the
environmental impact of gas hobs.
With respect to sustainable development, reducing the environmental impact of cooking
food will necessarily require a two-pronged strategy:
▪ promote access to lower impact energy sources for the population still using solid
fuels;
▪ favour electric cooking only where and when the energy production mix is
characterised by a predominantly green energy component.
[E1 SBM-3] Material impacts, risks and opportunities and their interaction with
strategy and business model
Although it has not yet adopted a transition plan for climate change mitigation, the Sabaf
Group follows a business development path that aims to reduce the environmental impact
of its own operations and that of its value chain, and gives due consideration to the risks
and opportunities related to climate change. Through the double materiality assessment,
the Group identified negative impacts, such as GHG emissions generated by its operations,
the upstream value chain and product use, as well as positive impacts, such as the
reduction of GHG emissions during the product use phase.
The double materiality assessment identified three transition risks, while no material
physical risks emerged.
The first risk relates to the need to adapt to market expectations regarding sustainability,
e.g. through the implementation of effective decarbonisation strategies. It is becoming
increasingly common for appliance manufacturers to involve their suppliers on
environmental matters, specifically climate change. Companies that develop concrete
plans to reduce their environmental impact can improve their competitiveness,
consolidate their position in their target markets and, more generally, strengthen
stakeholder relations.
19
https://www.sciencedirect.com/science/article/abs/pii/S0959652618308011
Journal of Cleaner production - «Comparative life cycle assessment of cooking appliances in Italian
kitchens», 2018
Claudio Favi
a
, Michele Germani
b
, Daniele Landi
b
, Marco Mengarelli
c
, Marta Rossi
b
a
Università degli Studi of Parma,
b
Università Politecnica of the Marche region,
c
Energy Research Institute,
Nanyang Technological University
20
https://www.itjfs.com/index.php/ijfs/article/view/2170
Italian Journal of Food Science, 2022 - Environmental impact of the main household cooking systems - A
survey, 2022 Alessio Cimini and Mauro Moresi, University of Tuscia
Sabaf Group | 2024 Report on Operations
64
The second risk is the management of CO
2
emissions along the entire production chain,
an increasingly important factor in meeting market demands. Emissions management
facilitates the monitoring of environmental performance and enables comprehensive
communication, in line with customer and investor expectations. Transparent and
accurate reporting makes it possible to concretely demonstrate the company's
commitment to sustainability.
The third risk concerns the adaptation of companies to changing environmental
regulations, such as Carbon Free, RoHS and CBAM regulations. The evolving regulatory
framework requires constant updating and rapid adaptation, both to ensure compliance,
and to seize opportunities for operational efficiency and consolidate market presence.
The assessment of physical risks and transition risks covered the entire consolidated Sabaf
Group.
The scenarios used for the assessment of physical and transition risks are in line with the
projections of the IPCC (Intergovernmental Panel on Climate Change) and the IEA
(International Energy Agency). Scenario projections for the assessment of physical risks
were made with reference to the time horizons of 2030, 2050 and 2080, while projections
for transition risks were assessed in the short term.
The biggest impact in the best-case scenario concerns transition topics, in particular
market and regulatory aspects. This is because stricter regulations, adopted in an
environment where governments and companies act quickly, would result in lower
emissions and the mitigation of temperature increases. Conversely, in a less regulated
scenario, in which measures to mitigate climate change are not actually implemented in
the medium to long term, the physical consequences would be more severe, while the
transition risks would be lower. The overall result of the analysis under all scenarios that
were considered did not identify any assets as being at significant risk.
The resilience analysis, based on the risk assessment that was conducted, showed that, in
the three RCP scenarios (2.6, 4.5 and 8.5) and in the three-time horizons considered (2030,
2050, 2080), no site was exposed to material acute or chronic physical risks. In addition,
in order to minimise the financial impact of such risks, the Sabaf Group has already
adopted mitigation measures, including specific insurance programmes, to cover potential
damage to assets and loss of contribution margins due to business interruption. As far as
transitional climate risks are concerned, in particular the risk of changing consumer needs,
the Group has invested in the development of induction cooking components, the
popularity of which is continuously expanding in the European market.
More detailed information on the scenarios used and the results of the risk analysis are
described in
[E1 IRO-1] Description of the processes to identify and assess material
climate-related impacts, risks and opportunities.
Finally, the double materiality assessment looked at the opportunities of green strategies,
including the take-up of gas cooking in emerging countries, the development of alternative
cooking technologies, energy autonomy and reputational benefits.
The Group systematically monitors and intervenes in production processes to reduce
energy use and its carbon footprint. Using secondary materials as an alternative to virgin
raw materials and optimising waste recovery also contributes to decarbonisation.
Sabaf Group | 2024 Report on Operations
65
In order to reduce its environmental impact, the Group has also initiated concrete actions,
which represent the first steps towards a structured pathway for climate change mitigation,
as detailed in section
[E1-3]
Actions and resources in relation to climate change policies
.
With reference to Scope 3 emissions from the use of the products it sells:
▪ the growing presence on international markets, including through the recent start-
up of a factory for the production of gas cooking components in India, may
contribute to the spread of gas cooking appliances in emerging countries;
▪ equally strategic are the Group's investments to enter the sector of components
for induction cooking, the most efficient form of electric cooking, the spread of
which is constantly growing in the European market;
▪ moreover, the Sabaf Group actively participates in a number of experimental
projects aimed at assessing the feasibility of using hydrogen to replace natural gas
(methane) as a power source for gas cooking appliances. Sabaf has designed
burners capable of operating with 100% hydrogen, and subsequent laboratory
tests and prototypes have confirmed the technical feasibility of such products. The
real possibility of using hydrogen on a large scale as a fuel source still has to
overcome major technological challenges, both in terms of production and
distribution. One solution that may be implemented relatively quickly entails the
use of a mixture of natural gas and hydrogen via the existing distribution network.
[E1 IRO-1] Description of the processes to identify and assess material climate-
related impacts, risks and opportunities
Double materiality assessment
Impacts
The double materiality assessment identified the following negative impacts related to
climate change mitigation: GHG emissions during own operations, in the upstream value
chain and during product use. The Sabaf Group is part of an energy-intensive industry,
both for the processing of raw materials in the upstream value chain and for certain
processes carried out in the Group's production facilities (in particular aluminium die-
casting). However, the vast majority of the Sabaf Group's total emissions fall under Scope
3 Category 11, i.e. emissions related to the use of products sold resulting from the
combustion of methane or LPG in burners.
Sabaf has identified a positive impact related to the reduction of greenhouse gas emissions
in the product use phase (downstream value chain): the technology offered by the Group
can enable the transition of cooking technologies - from solid fuels to gas (methane or
LPG) in emerging countries, from gas to induction cooking in countries where gas is
already the most widely used cooking method.
Risks
The double materiality assessment conducted by the Group revealed three main transition
risks, while no material physical risks were identified.
Sabaf Group | 2024 Report on Operations
66
The first risk relates to the inability to adapt to market expectations in terms of
sustainability, which requires transparency and concrete commitments in the transition to
low-carbon emission models. The risk takes into account the failure to implement effective
decarbonisation strategies, with potential repercussions on competitive positioning and
investor and stakeholder relations.
The second risk is the management of CO
2
emissions along the entire production chain.
Failure to align with standards such as ESRS and CSRD can lead to difficulties in meeting
the expectations of customers, investors and other stakeholders, as well as problems in
monitoring environmental performance and communicating it.
The third risk is related to compliance with new environmental regulations, such as Carbon
Free, RoHS and CBAM regulations. Increasingly stringent regulations require rapid
adaptation to avoid penalties, operational restrictions or increased compliance costs.
Timely compliance with these requirements not only reduces the risk of penalties, but can
also be an opportunity to strengthen competitive advantage.
Opportunities
The Sabaf Group has identified the following opportunities related to climate change:
▪ the spread of gas cooking in place of biomasses in emerging countries
▪ the development of alternative technologies that can result in lower emissions in
the use phase of the product
▪ benefits from increased energy autonomy and related cost-saving associated with
self-generation of energy from renewable sources
▪ reputational benefits from the introduction of effective decarbonisation and
energy efficiency strategies.
Analysis of physical and transitional risks
Aside from the double materiality assessment, in 2024 - in order to identify the risks to
which it is most exposed and adopt a proper mitigation strategy - the Sabaf Group
conducted an analysis of the (acute and chronic) physical risks that may affect each
production site, and the transition risks, by assessing potential developments under
different climate scenarios and time horizons. The assessment of physical risks and
transition risks covered the entire Group scope of consolidation. Risk materiality was
determined on the basis of EBITDA thresholds; the present value of assets and operating
costs were considered when determining the financial impacts of climate risks. The
financial impacts associated with climate risks were found to be non-material. Physical
risks were assessed with respect to site location and using RCP scenarios provided by the
IPCC (Intergovernmental Panel on Climate Change), while transition risks were assessed
qualitatively and, where possible, quantitatively, according to scenarios provided by the
IEA (International Energy Agency).
The scenarios are based on different levels of global temperature increase and the resulting
physical and transitional implications for the planet. To conduct the analysis, three
representative scenarios were identified: best case, intermediate case and worst case.
Scenario projections for the assessment of physical risks were made with reference to the
time horizons of 2030, 2050 and 2080, while projections for transition risks were assessed
Sabaf Group | 2024 Report on Operations
67
in the short term. The reference scenarios used for the assessment of physical and
transitional risks are detailed below.
Scenario 1, best case - Net Zero Scenario (NZS): this model implies a strong
commitment by all governments to increase ambition and effort to achieve the Net Zero
goal of limiting temperature increase as required by the Paris Agreement. The IPCC's 2018
Special Report on Global Warming of 1.5°C (SR1.5) pointed out that more ambitious
emission trajectories than RCP2.6 - such as those outlined in the new SSP1-1.9 (Shared
Socioeconomic Pathways) scenarios - are needed to have a high probability of limiting
global warming to 1.5°C. In this context, whilst it is consistent with the Paris Agreement,
the RCP2.6 (Representative Concentration Pathway) scenario is used as a reference in the
physical risk assessment to keep the average temperature increase below 2°C.
Scenario 2, intermediate projection - Announced Pledges Scenario (APS): this
model represents a pathway that takes into account official commitments announced by
governments and international organisations to reduce greenhouse gas emissions. For the
assessment of physical risks, the intermediate projection is equivalent to the RCP 4.5
scenario, which predicts a temperature increase of between 2 and 3°C by 2100 and is
based on a carbon concentration that would generate an average global warming of 4.5
watts per square metre on the earth's surface.
Scenario 3, worst case - Stated Policies Scenario (STEPS): this model represents a
pathway that takes into account policies and measures currently in place or already
established by governments and organisations; it reflects the expected impact of existing
policies on GHG emissions and climate change trends over time without taking into
account future policy changes or new measures that may be adopted in response to
evolving scientific knowledge or socioeconomic conditions. For the physical risk
assessment, the worst case corresponds to the RCP 8.5 scenario, which represents a
'business-as-usual' pathway and refers to a carbon concentration that produces global
warming averaging 8.5 watts per square metre across the planet.
The conclusions of the analyses that were carried out are summarised below.
▪ Acute physical climate risks: Sudden extreme weather events, such as storms,
floods, fires and heat waves, could directly affect business operations and the
supply chain, putting the supply of goods, services and energy at risk. Potential
consequences include production interruptions, damage to infrastructure and
strategic assets, delays in delivery and the risk of incurring contractual penalties,
as well as increased costs for repairs and replacements. Analyses were carried out
according to the three RCP scenarios (2.6, 4.5 and 8.5) over three different time
horizons (2030, 2050, 2080). According to a financial impact metric, the sites at
greatest risk - in the worst-case scenario and the 2030 time horizon - are Sabaf
China and Sabaf India. At a Group level, the risk is non-material.
▪ Chronic physical climate risks: climate change causes chronic weather events,
such as rising temperatures, rising sea levels and water shortages. These events
could cause slowdowns or disruptions in business operations, forcing a review of
strategies, resource allocation and distribution of activities and production across
the Group's various sites. If not properly managed, these changes could
compromise operational efficiency, cause business disruption and damage
strategic assets. Based on the analyses carried out according to the three RCP
Sabaf Group | 2024 Report on Operations
68
scenarios (2.6,4.5 and 8.5) across the three time horizons (2030, 2050, 2080), no
site was found to be at material risk.
▪ Market risk (raw materials): rising raw material and energy commodity prices
could affect expected results from the production and sale of some products,
especially carbon-intensive ones. The impact could be exacerbated by recent
legislation, such as CBAM and EU ETS2.
The assessment for the introduction of the ETS2 system was conducted
qualitatively, while the specific risk analysis for the introduction of CBAM also
involved a quantitative assessment. The scenarios considered, with a 2034 time
horizon, were as follows:
▪ Stated Policies Scenario (STEPS)
▪ Announced Pledges Scenario (APS)
▪ NET ZERO 'NZE' scenario by 2050
The specific emissions considered in this forecast were determined using the
emission factors per tonne of product provided by the European Commission. The
results of the analysis show that the greatest financial impact will result from the
NET ZERO scenario, which will see the most stringent regulatory mechanisms
and an operating environment characterised by rapid regulatory adaptation by
countries and companies. However, this impact is not expected to be material for
the Group in economic terms.
▪ Market risk (consumer needs): Should the Sabaf Group be unable to maintain
its innovation capacity, including by reducing the environmental impact of its
products, it could lose some of its competitive advantage. Any inability to adapt
to changes in consumer demand towards potentially more environmentally
friendly and technologically advanced solutions, such as induction cooking, could
result in a loss of market share. The assessment was conducted qualitatively over
a short- to medium-term time horizon.
▪ Reputational risk: an inadequate decarbonisation strategy and insufficient
communication on ESG topics could damage corporate reputation. The
assessment was conducted qualitatively over a short- to medium-term time
horizon.
[E1-2] Policies related to climate change mitigation and adaptation
In line with the principles outlined in its Charter of Values, the Sabaf Group has adopted
an Environmental Policy that promotes the prevention and mitigation of environmental
impacts and risks by defining commitments in the areas of climate change, pollution, water
and the circular economy.
The Environmental Policy is based on the values set out in the Sabaf Group's Charter of
Values, which in turn are inspired by:
▪ The United Nations’ Charter of Rights, the European Union’s Charter of Rights, the
Italian Constitution;
▪ The core labour standards included in the ILO conventions;
Sabaf Group | 2024 Report on Operations
69
▪ The OECD Guidelines for Multinational Enterprises;
▪ The UN Global Compact, which Sabaf participates in.
The Environmental Policy also refers to the Integrated Health and Safety, Environment
and Energy Management System Manual of Sabaf S.p.A., which complies with ISO 45001,
ISO 14001 and ISO 50001 standards, as well as the provisions of the Organisation,
Management and Control Model pursuant to Legislative Decree No. 231/2001 (in the
applicable Group Companies).
Specifically, the Sabaf Group is committed to pursuing targets for climate change
mitigation and adaptation, as well as energy efficiency and the use of energy from
renewable sources, through the following actions (as defined in the Group's Environmental
Policy):
▪ rationalising and making efficient use of energy resources;
▪ investing in the supply and self-production of energy from renewable energy
sources;
▪ measuring performance indicators related to greenhouse gas (GHG) emissions, in
own operations and along the value chain, and monitoring the respective progress;
▪ defining GHG emission reduction targets and identifying respective
decarbonisation levers, in own operations and along the value chain;
▪ pursuing maximum energy efficiency in its products; promoting and implementing
cooking solutions that reduce GHG emissions during the product use phase;
▪ adapting its activities and decision-making processes to maintain full compliance
with current climate change legislation, and proactively using its processes as a
means of continuous surveillance;
▪ pre-emptively assessing climate change aspects in the planning and design of
investments, industrial operations and raw material selection;
▪ complying with climate change adaptation principles when planning investments
related to the construction and maintenance of production facilities and sites.
The commitments outlined in the Environmental Policy aim to mitigate and/or prevent
the negative impacts and material risks, while pursuing the positive impacts and
opportunities associated with the topic of climate change (see section
[SBM-3] Material
impacts, risks and opportunities and their interaction with strategy and business model)
.
The Environmental Policy applies to members of the company's governing and
supervisory bodies, employees and any third parties who collaborate with or work for and
on behalf of the Sabaf Group, regardless of the legal status of the relationship. The
Environmental Policy is made available to recipients and all stakeholders of the Sabaf
Group on the corporate website www.sabafgroup.com, in the section “Sustainability –
Environment”.
The Environmental Policy applies to the entire Sabaf Group, with no exceptions and/or
exclusions in the conduct of business and professional activities by geographical area,
country and/or stakeholder groups involved. In addition, the Sabaf Group expects the
entire value chain to agree with and act in accordance with the principles outlined in its
Environmental Policy.
Sabaf Group | 2024 Report on Operations
70
The Parent Company's Board of Directors is responsible for the approval, implementation
and periodic review of the Group's Environmental Policy. The Company may arrange for
checks through the Internal Audit function to verify the application of the Policy. Using the
applicable channels for individual Group companies, any Sabaf Group stakeholder may
also report cases of alleged non-compliance with the Policy by sending a written and non-
anonymous description of the alleged incident. Where no channel is provided,
stakeholders may use the whistleblowing channel adopted by Sabaf S.p.A., through the
dedicated tool available on the company website.
Sabaf S.p.A. has an Integrated Management System of Health and Safety which is ISO
45001, ISO 14001 and ISO 50001 certified. Sabaf Turkey and C.M.I. s.r.l. have an ISO
14001-certified Environmental Management System. In any case, the ISO 14001, ISO
45001 and ISO 50001 standards are sources of reference and inspiration for the entire
Group.
Finally, the Sabaf Group has adopted a Sustainable Procurement Policy that requires
suppliers to make efficient use of energy resources, and to progressively reduce the use of
energy from fossil fuels. Details on the implementation, monitoring and enforcement of
the Sustainable Procurement Policy can be found in section
[S2-1] Policies related to value
chain workers
.
[E1-3] Actions and resources in relation to climate change policies
In the area of climate change, the Sabaf Group pursues the commitments outlined in its
Environmental Policy through:
▪ the implementation of a carbon management pathway aimed at identifying specific
drivers of decarbonisation and developing reduction targets, according to the main
international initiatives and standards;
▪ energy efficiency activities and investments for the self-generation of energy from
renewable sources;
▪ periodic measurement and monitoring of Gross Scopes 1, 2 and 3 emissions,
conducted annually.
In 2024 the Sabaf Group conducted and/or planned the following actions in order to
pursue its climate change policy commitments:
▪ installation of a photovoltaic system at the Ospitaletto plant (Sabaf S.p.A.), which
will allow the self-production of an estimated 10% of the site's current consumption.
For this activity, which started in 2024, Sabaf has already incurred capital
expenditure (CapEx) of €251 thousand. This amount was aligned within the scope
of Regulation (EU) 202/852 (Taxonomy Regulation) for FY 2024 and reported in
this Sustainability Statement according to the applicable provisions. The Group
expects to complete the work by the end of 2025, for a total CapEx amount of
approximately €2.3 million;
▪ development of the induction cooking business segment, with the aim of
contributing to the reduction of indirect emissions associated with product use in
Sabaf Group | 2024 Report on Operations
71
the downstream value chain, as well as the pursuit of associated business
opportunities. In 2024, Sabaf invested €2.3 million in capital expenditure (CapEx)
and €0.5 million in operating expenses. For 2025, planned capital expenditure will
amount to about €3 million, with operating expenditure (OpEx) of €1 million.
▪ installation, at the Sabaf S.p.A. Production plant, of charging stations for electric
vehicles, with associated capital expenditure (CapEx) of about €12 thousand. This
amount was aligned within the Taxonomy Regulation and reported in this
Sustainability Statement according to the applicable provisions.
▪ energy efficiency measures, aimed at reducing energy consumption associated with
operational processes. In 2024, Sabaf replaced two compressors at the Ospitaletto
plant with new, more energy-efficient equipment, incurring capital expenditure
(CapEx) of €118 thousand. Sabaf also plans to replace the current die-casting waste
treatment system (electric evaporator) with a chemical-physical treatment system
by 2025, which will significantly reduce the associated energy consumption. Also
planned for 2025 is the replacement of two dosing furnaces in the die-casting
department with more efficient furnaces. Capital expenditure (CapEx) of €450
thousand is expected to be incurred for the implementation of these measures.
The Sabaf Group intends to meet these investments through self-financing.
The periodic measurement and monitoring of Gross Scopes 1, 2 and 3 emissions are part
of the recurring operating costs.
Since it has not formalised a transition plan, as defined by ESRS E1-1, the Sabaf Group has
not identified specific decarbonisation drivers associated with the above actions, and has
not quantified actual or prospective GHG emission reductions.
[E1-4 MDR-T] Tracking the effectiveness of climate change-related policies and
actions
Sabaf monitors progress on climate change commitments in its Environmental Policy
through both regular implementation activities and the monitoring of its environmental
management systems and through the measurement of specific performance indicators.
In general, the Sabaf Group ensures the monitoring of environmental impacts (including
impacts related to GHG emissions) by constantly assessing compliance with current
regulations in all the production plants in which it operates, through the adoption of
management systems that provide for periodic checks, internal audits and audits by
independent bodies according to the principles set out in the ISO 14001 standard. Sabaf
S.p.A. applies an Integrated Environment and Energy management system which is ISO
14001 and ISO 50001 certified.
The Sabaf Group measures performance indicators related to Scope 1, 2 and 3 greenhouse
gas (GHG) emissions and monitors the respective trends annually. All Scope 3 categories
are reviewed and measured on annual basis, according to the methodology reported in
[E1-6] Gross Scopes 1, 2, 3 and Total GHG emissions.
The Group does not have measurable, results-oriented targets relating to the effects of
climate change, except as part of its Long-Term Incentive Plan (LTIP), as described in
Sabaf Group | 2024 Report on Operations
72
[GOV-3] Integration of sustainability-related performance in incentive schemes
. The level
of ambition that Sabaf has set itself to date corresponds to compliance with applicable
regulations. The path related to Carbon Management and climate change mitigation,
which the Group embarked on in 2023, will be of assistance in defining a decarbonisation
strategy and the associated monitoring activities, i.e. a superior level of climate ambition.
[E1-5] Energy consumption and mix
The following table shows the Group's overall energy consumption:
Energy consumption and mix
2024
1) Fuel consumption from coal and coal products (MWh)
0
2) Fuel consumption from crude oil and petroleum products (MWh)
1,475
3) Fuel consumption from natural gas (MWh)
53,674
4) Fuel consumption from other fossil sources (MWh)
0
5) Consumption of purchased or acquired electricity, heat, steam, and cooling from fossil
sources (MWh)
31,089
6) Total fossil energy consumption (MWh)
(calculated as the sum of lines 1 to 5)
86,238
Share of fossil sources in total energy consumption (%)
89%
7) Consumption from nuclear sources (MWh)
1,272
Share of consumption from nuclear sources in total energy consumption (%)
1%
8) Fuel consumption for renewable sources including biomass (also comprising industrial
and municipal waste of biological origin, biogas, renewable hydrogen, etc.) (MWh)
11
9) Consumption of purchased or acquired electricity, heat, steam and cooling from
renewable sources (MWh)
9,168
10) The consumption of self-generated non-fuel renewable energy (MWh)
126
11) Total renewable energy consumption (MWh)
(calculated as the sum of lines 8 to 10)
9,305
Share of renewable sources in total energy consumption (%)
10%
Total energy consumption (MWh)
(calculated as the sum of lines 6, 7 and 11)
96,815
Energy intensity based on net revenue
2024
Total energy consumption from activities in high climate impact sectors per net revenue
from activities in high climate impact sectors (MWh/€m)
0.34
The Sabaf Group uses Renewable Energy Certificates (RECs), an internationally
recognised tool to certify the purchase and use of renewable energy.
All Group companies operate in the manufacturing sector, which is identified as a high
climate impact sector by the ESRS. Energy intensity was therefore calculated by relating
'Total energy consumption' to the Group's net revenue.
Sabaf Group | 2024 Report on Operations
73
[E1-6] Gross Scopes 1, 2, 3 and Total GHG emissions
2024
Scope 1 GHG emissions
Gross Scope 1 GHG emissions (tCO
2eq
)
11,312
Percentage of Scope 1 GHG emissions from regulated emission trading schemes
(%)
0%
Scope 2 GHG emissions
Gross location-based Scope 2 GHG emissions (tCO
2eq
)
12,074
Gross market-based Scope 2 GHG emissions (tCO
2eq
)
15,618
Significant Scope 3 GHG emissions
Total gross indirect (Scope 3) GHG emissions (tCO
2eq
)
25,563,260
Percentage of gross indirect Scope 3 emissions
99.9%
1. Purchased goods and services (tCO
2eq
)
183,850
2. Capital goods (tCO
2eq
)
4,383
3. Fuel and energy-related activities (not included in Scope 1 or Scope 2) (tCO
2eq
)
4,133
4. Upstream transportation and distribution (tCO
2eq
)
11,509
5. Waste generated in operations (tCO
2eq
)
1,607
6. Business travel (tCO
2eq
)
1,170
7. Employee commuting (tCO
2eq
)
2,015
9. Downstream transportation (tCO
2eq
)
2,004
11. Use of sold products (tCO
2eq
)
25,352,041
12. End-of-life treatment of sold products (tCO
2eq
)
454
13. Downstream leased assets (tCO
2eq
)
94
Total GHG emissions
Total GHG emissions (location-based) (tCO
2eq
)
25,586,646
Total GHG emissions (market-based) (tCO
2eq
)
25,590,191
Methodological note
This methodological note illustrates the methodology adopted to calculate greenhouse gas
(GHG) emissions by referring, as required by current legislation, to the principles of the
GHG Protocol. Specifically, the Group applied the recommendations of the Standards &
Guidance | GHG Protocol for general reporting and Corporate Value Chain (Scope 3)
Standard | GHG Protocol for Scope 3 emissions.
The data collected refer to the entire year 2024 and the reporting scope covers the entire
Sabaf Group.
The Group also calculated the biogenic emissions for Scope 1, Scope 2 and Scope 3 to be
zero.
SABAF calculated its total market-based and location-based emission intensity as 0.09 and
0.09 tCO
2eq
/euro, respectively.
Emission intensity was calculated by dividing total emissions, (market-based and location-
based) by the Group's net revenue, which amounted to €285,091 thousand.
Sabaf Group | 2024 Report on Operations
74
Scope 1
The calculation of emissions from the Group's activities was carried out following the
guidelines of the GHG Protocol, taking into account the different emission categories
(stationary combustion, mobile combustion and refrigerant gas leakage). Fuel data for each
of these activities were collected with the reference unit of measurement (using activity-
based methodology) and multiplied by the respective emission factors, taken from the
Department for Environment, Food & Rural Affairs (2024 DEFRA).
Scope 2
The calculation of Scope 2 emissions was carried out following the GHG Protocol
guidelines considering both the location-based and market-based approaches.
For the location-based methodology, which reflects the indirect emissions from purchased
energy based on the composition of the local electricity grid, the emission factors of the
electricity distribution grid of the country where the energy is consumed were applied, as
reported in the 2024 IEA Database 2024.
The market-based methodology considers the contribution of specific emission factors
related to the contractual forms for purchase adopted by the organisation for its electricity
consumption. An emission factor of 0 was only applied for supplies of electricity from
renewable sources as certified by Guarantees of Origin or Renewable Energy Certificates,
and for the portion of electricity covered by these instruments. In particular, energy from
certified renewable sources was purchased through I-REC, which accounted for 22% of
the total electricity consumption from the grid. The emission factors used follow the
market-based methodology (using AIB 2023 for the residual mix) and the location-based
methodology for countries outside the European Union, where the residual mix could not
be obtained.
Scope 3
Information on GHG Scope 3 emissions is inherently more limited than Scope 1 and 2
information, due to the limited availability and accuracy of both quantitative and
qualitative information, and because of the need to rely on data, information and evidence
provided by third parties.
Unless otherwise specified, reporting of indirect emissions from the value chain refers to
Group-wide data and covers the following GHG Protocol categories:
▪
Category 1 Purchased goods and services:
in accordance with the Greenhouse Gas
Protocol (GHGP), the average-data method was adopted to estimate emissions
from the purchase of goods, using the conversion databases of Ecoinvent 3.11 and
where present, Environmental Product Declarations.
▪
Category 2 Capital goods:
A spend-based methodology was adopted to estimate
emissions from the purchase of capital equipment in the reporting year. Investment
amounts, expressed in monetary terms, were converted into emissions using the
reference EEIO emission factors for the type of purchase, classified on the basis of
NACE codes.
Sabaf Group | 2024 Report on Operations
75
▪
Category 3 Fuel and energy-related activities (not included in Scope 1 or Scope 2):
the fuel consumption and electricity purchase data, used for the calculation of
Scope 1 and Scope 2 emissions, were multiplied by the respective emission factors.
These factors include the impact generated by the production of the energy carrier
and the losses associated with transport and distribution. For fuels, the 2024
DEFRA database was used, while the emission factors from the 2024 IEA database
were used for non-renewable electrical energy.
▪
Category 4 Upstream transportation and distribution:
emissions from transport and
upstream, intra-group and downstream distribution activities borne by the Group
were calculated using the distance-based methodology. The kilometres travelled
were multiplied by the relevant emission factor from the 2024 DEFRA database,
taking into account the weight transported, the transport methodology performed
and considering both the Tank-to-Wheel (TTW) and Well-to-Tank (WTT)
contribution.
▪
Category 5
Waste generated in operations:
The Average Data Method was used to
calculate emissions, whereby collected data was converted into emissions using
the 2024 DEFRA database. The conversion was made according to the type of
waste treatment, distinguishing between recycling, incineration and landfilling.
▪
Category 6 Business travel:
a distance-based methodology was used to calculate
emissions from staff business travel. The kilometres travelled for each type of
transport vehicle were considered, and the data collected were multiplied by the
relevant emission factors from the 2024 DEFRA database. These factors include
both the Tank-to-Wheel (TTW) and the Well-to-Tank (WTT) components. When
the distance methodology could not be used, the spend-based methodology was
considered through the EEIO emission factors classified on the basis of NACE
codes.
▪
Category 7 Employee commuting:
emissions from home-to-work commuting were
calculated on the basis of the results of questionnaires administered to employees
in 2021, compared to the number of employees in 2024.
▪
Category 9 Downstream transportation:
emissions from transport and downstream
distribution activities not borne by the Group were calculated using the distance-
based methodology. The kilometres travelled were multiplied by the relevant
emission factor from the 2024 DEFRA database, taking into account the weight
transported, the transport methodology performed and considering both the Tank-
to-Wheel (TTW) and Well-to-Tank (WTT) contribution.
▪
Category 11 Use of sold products:
specific attention was paid to category 11 (Use
of sold products), which required specific investigations in order to assess the
impact of these emissions along the value chain. The Group manufactures
components (intermediate products) for installation in domestic appliances,
including burners for gas cooking appliances. The finished product (the hob or free-
standing cooker) generates emissions during use by the end user by burning natural
gas or LPG to produce the heat needed for cooking. Emissions are calculated based
on a number of factors, including burner design, hob shape, grill shape and height,
pan type, gas type, etc., which are largely beyond the Group's control. As a result
Sabaf Group | 2024 Report on Operations
76
of the investigations carried out
21
, the Group decided to report the emissions
relating to the use of sold products (category 11) based on the use of cooking
appliances on which Sabaf burners are installed. The methodology adopted to
calculate the direct emissions associated with the use phase of Sabaf's products was
based on an analysis covering the estimated useful life of the devices with fuel
consumption and, consequently, emission impact. The energy impact was
calculated by estimating a useful life cycle of 20 years for the products and
considering the average fuel consumption during their use (for each product macro
category). This consumption was then multiplied by the corresponding fuel
emission factor derived from the 2024 DEFRA database.
▪
Category 12 End-of-life treatment of sold products:
to calculate emissions from the
end-of-life treatment of products sold by the Group, the average data method was
adopted. The analysis was based on the 2024 DEFRA database, assuming an
average emission factor considering the three main disposal methods, weighted
according to the percentage of treatment applied to products sold within and
outside the EU.
▪
Category 13 Downstream leased assets:
emissions generated by downstream
leased assets in the value chain were calculated using the CURB tables to estimate
electrical energy consumption and gas for heating. Consumption was then
multiplied by the respective emission factors: for gas, the reference is the 2024
DEFRA, and for electricity it is the 2024 IEA.
The analysis excludes the following categories, which are not applicable to the Sabaf
Group:
▪
Category 8 Upstream leased assets:
the Group has no leased assets upstream in the
value chain.
▪
Category 10 Processing of sold products:
Group products do not undergo post-sale
processing.
▪
Category 14 Franchises:
the Group has no franchising activities.
▪
Category 15 Investments:
the Group does not engage in investment activities.
21
Corporate Value Chain (Scope 3) Accounting and Reporting Standard
, Supplement to the GHG Protocol
Corporate Accounting and Reporting Standard.
Technical Guidance for Calculating Scope 3 Emissions
, Supplement to the Corporate Value Chain (Scope 3)
Accounting & Reporting Standard.
Sabaf Group | 2024 Report on Operations
77
ESRS E2 Pollution
[E2 IRO-1] Description of the processes to identify and assess material pollution-
related impacts, risks and opportunities
As part of the double materiality assessment, the Technical Office of the Municipality of
Ospitaletto, the HSE Officer of Confindustria Brescia and the certifying body of the
environmental management system, representing the affected communities, were asked
to give an assessment of the pollution-related impacts.
Consideration was also given to the results of the environmental analysis carried out for
the Sabaf S.p.A. plant, part of the ISO:14001 certified environmental management system.
As clarified within
[E2-3 MDR-T] Tracking the effectiveness of pollution-related policies
and actions
, the Group monitors environmental impacts in accordance with the relevant
regulations of the individual countries in which it operates. For this reason, and where
there are no applicable local regulations, the industrial operations and related
environmental impacts of the Sabaf S.p.A. production plant are considered representative
of the Group's other main production plants, as can be inferred from the description of the
production processes in this section, including in terms of dimensions and importance for
production. This approach applies to all Group entities for pollutants in soil and water
(except for the gas division in Turkey, as explained in
[E3-2] Actions and resources related
to water and marine resources
referred to) and the Brazilian plant for pollutants in air.
The Group adopts homogeneous technologies to minimise pollution-related impacts in the
various plants in which it operates.
Finally, to identify possible impacts, risks and opportunities in the value chain:
▪ an analysis was conducted of the Group's purchases, with a focus on the main
materials purchased (steel and aluminium);
▪ consideration was given to priority impacts noted by international rating agencies
(S&P and MSCI) for representative sectors of the downstream value chain
("household durables" and "household appliances").
At the end of the process, the Sabaf Group identified negative impacts related to the
emission of pollutants to air, water and soil in its own operations (potential impact) and
along the upstream value chain (actual impact), while no material risks or opportunities
were identified. These negative impacts, whose effects can affect both the environment
and people, are inherent to the Group's business model, as the processing of materials in
the upstream value chain, as well as the company's own production processes, are
potentially responsible for the production of polluting emissions. It is worth emphasising
the potential nature of the negative pollution-related impacts in own operations.
Specifically, three production processes are carried out at Sabaf S.p.A:
▪ The production of the components that make up the burners (nozzle holder sumps
and flame spreaders) involves the casting and subsequent die-casting of the
aluminium alloy, sandblasting of the pieces, a series of mechanical processes with
removal of material, washing of some components, assembly and testing. This
production process results in the emission of negligible amounts of oily mists, as
well as dust and carbon dioxide;
Sabaf Group | 2024 Report on Operations
78
▪ The production of burner covers, where steel is used as raw material, which is
submitted to blanking and minting. The semi-finished covers are then used for
washing, sandblasting, application and firing of enamel, a process that generates
the emission of dust;
▪ The production of valves and thermostats, in which mainly aluminium alloy, brass
bars and moulded bodies and, to a much lesser extent, steel bars are used as raw
materials. The production cycle is divided into the following phases: mechanical
machining with removal of material, washing of semi-finished products and
components obtained in this way, finishing of the coupling surface of bodies and
masks with a diamond tool, assembly and final inspection of the finished product.
This process generates negligible oily mists.
The entire burner production process is carried out at Sabaf Brazil, Sabaf Turkey and Sabaf
Mexico.
In Faringosi Hinges s.r.l., in the companies of the C.M.I. Group, MEC and Sabaf Turkey,
steel is used as the main raw material for the production of hinges, and is subjected to a
series of mechanical processing and assembly.
At A.R.C., professional burners are produced through mechanical processing and
assembly.
Sabaf India and Sabaf China carry out mechanical processing and burner assembly
operations.
Electronic components (boards, timers, etc.) are assembled in Sabaf Turkey and P.G.A.
The production activity generates negligible emissions.
[E2-1] Policies related to pollution
The Sabaf Group adopts internal policies and procedures to prevent and mitigate impacts
related to air, water and soil pollution, and promptly manage any emergency situations.
The Group's Environmental Policy outlines the commitments that Sabaf intends to pursue
in relation to pollution, such as:
▪ constant monitoring and ensuring compliance of the company's facilities and
operations with regulatory requirements on pollution;
▪ taking preventive measures to reduce air, water and soil pollution by installing
water filtration and treatment systems and containment and isolation facilities;
▪ ensuring the efficiency of the above systems and facilities through their regular
maintenance;
▪ ensuring the efficient and timely management of emergencies relating to possible
contamination of soil, water and/or air pollution through the adoption of
appropriate procedures and information flows;
▪ ensuring and continuously monitoring the compliance of products and raw
materials with regulatory requirements concerning substances of concern and
substances of very high concern.
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79
The commitments outlined in the Environmental Policy aim to mitigate and/or prevent
negative impacts related to pollution (see section
[SBM-3] Material impacts, risks and
opportunities and their interaction with strategy and business model)
.
Group companies have procedures in place to ensure the effective management of
pollution prevention and mitigation, as well as compliance with legal requirements.
For details on the implementation, monitoring and enforcement of the Environmental
Policy, please refer to section
[E1-2] Policies related to climate change mitigation and
adaptation.
The Sabaf Group is also committed to minimising the use of substances of concern and
substances of very high concern through regular monitoring of the compliance of its
products and raw materials with regulatory requirements and the adoption of internal
control systems and procedures.
Sabaf products fully comply with the requirements of Directive 2011/65/EU (RoHS
Directive), which tends to limit the use of hazardous substances in the production of
electrical and electronic equipment, and the requirements of Directive 2000/53/EC (End
of Life Vehicles), i.e. the content of heavy metals (lead, mercury, cadmium, hexavalent
chromium) is below the limits set by the Directive and/or any exemptions.
Within the scope of the REACH Regulation (Regulation no. 1907/2006 of 18 December
2006), Sabaf is a downstream user of substances and preparations. The products supplied
by Sabaf are classified as articles that do not give rise to the intentional emission of
substances during normal use, therefore there is no registration of the substances
contained in them. Through its Sustainable Procurement Policy, Sabaf requires its
suppliers to avoid the use of hazardous substances where technically possible or,
conversely, to manage them in accordance with applicable regulations (see further details
on the implementation, monitoring and enforcement of the Sustainable Procurement
Policy in section
[S2-1] Policies related to value chain workers
).
[E2-2] Actions and resources related to pollution
Since 2003, the Environmental Management System of the Ospitaletto production site has
been certified according to ISO 14001. Sabaf Turkey's production sites were certified ISO
14001 compliant in 2022 (gas and hinge division production plants) and in 2023
(electronics division production plant). C.M.I. s.r.l.’s production site was ISO 14001
certified in 2023. These management systems provide for the prevention and mitigation
of environmental impacts within the company's operations, as well as the definition of
improvement pathways aimed at increasing its environmental performance. The level of
ambition is defined by the principle of continuous improvement in line with the main
international environmental standards, and regularly monitored as outlined in section
[E2-
3 MDR-T] Tracking the effectiveness of pollution-related policies and actions.
The management of pollution-related impacts is ensured through the constant monitoring
of emissions of pollutants, substances of concern and substances of very high concern in
accordance with relevant regulations, as detailed below. These monitoring and prevention
activities, together with the implementation of management systems, do not entail
significant operating expenses (OpEx) and/or capital expenditures (CapEx) specifically
Sabaf Group | 2024 Report on Operations
80
earmarked for their implementation and are part of the recurring operating costs of Group
companies.
[E2-3 MDR-T] Tracking the effectiveness of pollution-related policies and
actions
It should be noted that, at the time the 2024-2026 Business Plan was drafted, Sabaf had
not yet identified the materiality of pollution-related impacts, risks and/or opportunities.
Therefore, the Plan does not include any targets associated with this topic. However, the
Group ensures that monitoring processes are in place to verify the effectiveness of the
commitments outlined in its Policies.
The monitoring of environmental impacts (including the monitoring of pollutant
emissions) is conducted in accordance with the relevant regulations of the individual
countries in which the Sabaf Group operates. In accordance with local regulations, Group
companies regularly check the concentration of pollutants, monitor the timing and expiry
dates of existing authorisations, and verify the conformity of abatement plants and their
periodic maintenance.
In the certified Group companies, monitoring is based on management systems involving
periodic checks, internal audits and audits by independent bodies, according to the
principles laid down in the ISO 14001 standard.
Sabaf also involved the suppliers to ensure they fully comply with the REACH Regulation
and ensure compliance with pre-registration and registration obligations for the substances
or preparations they use. The data collected were used to complete the SCIP (Substances
of Concern In Products) database as per the provisions of the ECHA agency.
[E2-4] Pollution of air, water and soil
Pursuant to Annex II of Regulation (EC) No 166/2006 of the European Parliament and of
the Council (E-PRTR), the Sabaf Group is required to declare the quantities of pollutants
exceeding the applicable threshold value. No pollutant emissions above the threshold
value were recorded during the reporting period and, therefore, as required by paragraph
29 of the ESRS
E2-4 Pollution of air, water and soil
, the figure is not reported.
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81
[E2-5] Substances of concern and substances of very high concern
2024
Substances
of concern
Substances of
very high
concern
Total quantities of substances of concern purchased per
hazard class (t)
28
33
Danger to human health (hazard class code H3xx) (t)
28
0
Danger to human health and the environment (hazard class code
H3xx & H4xx) (t)
0
33
Total quantities of substances of concern leaving production
facilities as part of products broken down by hazard classes
(t)
28
33
Danger to human health (hazard class code H3xx) (t)
28
0
Danger to human health and the environment (hazard class code
H3xx & H4xx) (t)
0
33
The quantities of substances of concern (SoC) and substances of very high concern (SVHC)
that were purchased were estimated on the basis of the nature and quantity of the materials
purchased and the certifications received from suppliers indicating their chemical
composition. As required by the Reach and RoHS Directives, consideration was only given
to elements present with a concentration above 0.1%. It is estimated that the output
quantities as part of products are equal to the total purchased quantities.
The hazard classes are those listed in the individual substance sheets on the ECHA
website.
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82
ESRS E3 Water
[E3 IRO-1] Description of processes to identify and assess material water-related
impacts, risks and opportunities
As part of the double materiality assessment, the Technical Office of the Municipality of
Ospitaletto, the HSE Officer of Confindustria Brescia and the certifying body of the
environmental management system, representing the affected communities, were asked
to give an assessment of the water-related impacts.
Consideration was also given to the results of the environmental analysis carried out for
the Sabaf S.p.A. plant, part of the ISO:14001 certified environmental management system.
The industrial operations and related environmental impacts of the Sabaf S.p.A. plant are
representative of the Group's other main production plants, as can be inferred from the
description of production processes in paragraph
[E2 IRO-1] Description of the processes
to identify and assess material pollution-related impacts, risks and opportunities
.
The Group adopts homogeneous technologies for water management in the various plants
where water is used in production processes.
Documents published by rating agencies and international organisations (S&P, MSCI,
World Resources Institute) were also consulted.
The Group has identified as material the current negative impacts related to water
withdrawal and consumption in water-stressed areas in business operations and along the
upstream value chain. With regard to own operations, this issue emerges in relation to
die-casting and enamelling processes, as well as in the washing of semi-finished products.
Along the upstream value chain, water stress is a significant issue for the steel and
aluminium sectors (the main materials supplied by the Sabaf Group) due to the use of water
for cooling and washing in metalworking processes.
Some of the Group's production sites are located in water-stressed areas according to the
Water Risk Atlas of the World Resources Institute.
[E3-1] Policies related to water
As part of its commitment to the environment, the Sabaf Group adopts internal policies
and procedures that are designed to prevent and mitigate the impacts of water use.
Through its Environmental Policy, the Sabaf Group is committed to:
▪ constant monitoring and ensuring compliance of the company's facilities and
operations with regulatory requirements on water resources;
▪ rationalising and making efficient use of water resources through the adoption of
systems for recovering industrial water and collecting rainwater for use in business
operations;
▪ conducting constant monitoring of areas at water risk in the geographical areas
where the Group operates, while ensuring the dissemination of the principles of
rationalisation and efficiency in the use of water resources;
Sabaf Group | 2024 Report on Operations
83
▪ ensuring that wastewater treatment activities are carried out in accordance with
the principles of transparency and fairness and in compliance with applicable
regulations;
▪ limiting and preventing the discharge of pollutants, favouring re-use systems;
▪ ensuring the efficient and timely management of emergencies by defining
intervention procedures in the event of a fault, anomaly or disruption, including
interventions for restoring normal conditions.
The commitments outlined in the Environmental Policy aim to mitigate and/or prevent
negative impacts related to water (see section
[SBM-3] Material impacts, risks and
opportunities and their interaction with strategy and business model)
.
Group companies have procedures in place to ensure the effective management of the
prevention and mitigation of impacts relating to the consumption of water resources, as
well as compliance with legal requirements.
For details on the implementation, monitoring and enforcement of the Environmental
Policy, please refer to section
[E1-2] Policies related to climate change mitigation and
adaptation.
Based on its awareness of the negative impacts related to water resources along its value
chain, the Sabaf Group has integrated this topic into its Sustainable Procurement Policy,
in which suppliers are required to design products and processes that minimise water
consumption. Details on the implementation, monitoring and enforcement of the
Sustainable Procurement Policy can be found in section
[S2-1] Policies related to value
chain workers
.
[E3-2] Water-related actions and resources
The Environmental Management Systems of the production sites in Ospitaletto, Sabaf
Turkey (Manisa plants) and C.M.I. are certified according to ISO 14001. These systems
provide for the prevention and mitigation of environmental impacts within the company's
operations, as well as the definition of improvement pathways aimed at increasing its
environmental performance. The level of ambition is defined by the principle of continuous
improvement in line with the main international environmental standards, and regularly
monitored as outlined in section
[E3 MDR-T] Tracking the effectiveness of water-related
policies and actions.
The Sabaf Group manages the negative impacts associated with water withdrawals in
water-stressed areas through the adoption of water collection, treatment and recovery
systems. All the water used in the production processes by Group companies is destined
for disposal or internal recycling for reuse in company processes, with the exception of the
production plant of the gas division in Turkey. In this plant, after pre-treatment, effluents
are routed to a collection and treatment system in the industrial area. Downstream from
the production processes, water used in die-casting and enamelling processes at the plant
in Ospitaletto is treated in concentration plants, and thanks to its subsequent recovery and
use, there is a significant reduction in both quantities of water required and waste
produced. Concentration plants are also in operation at the production sites in Brazil and
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84
Turkey. At the Ospitaletto plant, there is also a plant for the collection of rainwater
intended for use in industrial activities.
The Group did not carry out remedial actions.
In 2024, the Sabaf Group recorded operating expenses (OpEx) of €11 thousand for the
maintenance of the rainwater collection plant which is destined for industrial reuse at the
Sabaf S.p.A. plant. This amount was found to be eligible within the framework of
Regulation (EU) 202/852 (Taxonomy Regulation) and reported in this Sustainability
Statement according to the provisions. It should be noted that, in general, treatment and
recovery activities, as well as monitoring and prevention activities (as detailed in
[E3 MDR-
T] Tracking the effectiveness of water-related policies and actions
), contribute to the
recurring operating costs of Group companies.
[E3 MDR-T] Tracking the effectiveness of water-related policies and actions
At the time of drafting the 2024-2026 Business Plan, the Sabaf Group had not yet identified
the materiality of water and marine resources-related impacts, risks and/or opportunities,
with the resulting absence of measurable targets or guidance for this topic going forwards.
However, the Group is committed to ensuring the responsible and sustainable use of water
resources through constant monitoring of the implementation of the commitments
outlined in its Policies.
The Sabaf Group monitors environmental impacts, including water-related indicators, in
accordance with applicable legal requirements at all its plants. Monitoring is based on
management systems that include periodic checks, internal audits and audits by
independent bodies in line with the ISO 14001 standard, whose principles guide
monitoring activities and are a source of inspiration for the entire Group.
On an annual basis Sabaf records the volumes of water withdrawn from aqueducts, wells
and storm water. Furthermore, through its participation in the CDP Water Security
programme, Sabaf is committed to measuring, monitoring and disclosing its performance
in the area of water resources.
[E3-4] Water consumption
2024
Total water consumption (m
3
)
35,837
of which in areas at water risk, including areas of high-water stress (m
3
)
33,020
Total water recycled and reused (m
3
)
5,570
Total water stored (m
3
)
32,777
Water consumption was calculated as the difference between withdrawals and discharges.
Withdrawals are derived from direct measurements
22
, while discharges were estimated.
Areas at water risk, including those with high water stress, were determined according to
the Aqueduct Water Risk Atlas tool that maps and analyses current and future water risks
22
Measured withdrawals for all Group companies, except C.G.D. s.r.l. and Sabaf India.
Sabaf Group | 2024 Report on Operations
85
in all locations. Aqueduct is a data platform operated by the World Resources Institute
(WRI), a non-profit environmental research organisation.
The volume of water stored has remained constant throughout the year, so there is no
change.
2024
Water intensity - Total water consumption in own operations (m
3
per million
EUR net revenue)
126
The metrics reported in this paragraph are not validated by external bodies.
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86
ESRS E5 Resource use and circular economy
[E5 IRO-1] Description of processes to identify and assess material resource use
and circular economy-related impacts, risks and opportunities
As part of the double materiality assessment, the certifying body of the environmental
management system, representing the affected communities, was asked to give an
assessment of the impacts related to resource use and the circular economy.
Moreover, to identify possible impacts, risks and opportunities in the value chain:
▪ an analysis was conducted of the Group's purchases, with a focus on the main
materials purchased (steel and aluminium);
▪ consideration was given to priority impacts identified by international rating
agencies (S&P and MSCI).
The Group identified:
▪ a negative impact (on the environment and people) related to the generation of
waste during the performance of business operations and along the value chain;
▪ a positive impact relating to the sourcing of raw materials through recovery,
recycling and/or reuse of waste materials in business operations and along the
upstream value chain.
The double materiality assessment also identified a risk connected to commodity price
volatility and dependence on non-renewable raw materials in own operations and along
the value chain.
[E5-1] Policies related to resource use and circular economy
The principle of eco-efficiency, which is central to the Sabaf Group's business model, is
demonstrated primarily in the optimisation of resource use. To this end, the Environmental
Policy, Sustainable Procurement Policy and internal procedures of the individual Group
companies set out the commitments aimed at promoting an increasingly circular business
model.
The Environmental Policy outlines the following actions:
▪ continuously monitor and ensure compliance of waste management and disposal
activities with current legislation;
▪ reduce the amount of waste generated during business operations and improve its
quality in terms of hazardousness and recoverability;
▪ minimise the amount of waste destined for disposal through proper separation of
collection streams and, where applicable, by directing suitable industrial waste to
reclamation and recycling operations;
▪ ensure the responsible management and disposal of hazardous waste, in
accordance with regulatory requirements;
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87
▪ adopt principles optimising the use of resources during business operations;
▪ limit the procurement of virgin raw materials by purchasing, where possible,
recycled secondary raw materials;
▪ adopt principles of sustainable sourcing and use of renewable raw materials used
for packaging;
▪ promote policies of responsible waste management and efficient use of resources
in the value chain.
The commitments defined in the Environmental Policy aim to mitigate and/or prevent the
negative impacts and material risks, while pursuing the positive impacts and opportunities
associated with the topic of the circular economy (see section
[SBM-3] Material impacts,
risks and opportunities and their interaction with strategy and business model)
.
Group companies have procedures in place to ensure effective management of the
prevention and mitigation of impacts related to resource use and waste disposal, as well
as compliance with legal requirements.
For details on the implementation, monitoring and enforcement of the Environmental
Policy, please refer to section
[E1-2] Policies related to climate change mitigation and
adaptation.
With the Sustainable Procurement Policy, the Sabaf Group requires suppliers to:
▪ commit to optimising the use of natural resources;
▪ suggest the adoption of alternative products and processes with a reduced
environmental impact along their life cycle such as, for example, secondary raw
materials (i.e. recycled raw materials) based on circular economy principles;
▪ manage the treatment and disposal of waste appropriately and in accordance with
current regulations, minimising the generation of waste for disposal.
Details on the implementation, monitoring and enforcement of the Sustainable
Procurement Policy can be found in section
[S2-1] Policies related to value chain workers
.
[E5-2] Actions and resources related to resource use and circular economy
The Environmental Management Systems of the production sites in Ospitaletto, Sabaf
Turkey (Manisa plants) and C.M.I. are certified according to ISO 14001. These
management systems provide for the prevention and mitigation of environmental impacts
within the company's operations, as well as the definition of improvement pathways aimed
at increasing its environmental performance. The level of ambition is defined by the
principle of continuous improvement in line with ISO standards for Group companies
whose management systems are certified and regularly monitored, as outlined in
[E5
MDR-T] Tracking the effectiveness of circular economy-related policies and actions
.
The efficient use of resources is the basis for decisions determining product development
and optimisation of production processes. Trimmings and waste from the production
process are identified and collected separately for recycling or disposal. All risers deriving
from aluminium die-casting are intended for direct internal reuse.
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88
Sabaf S.p.A. has planned an investment of €80,000 (CapEx) for the year 2025 for the
modification of the storage tanks for the special liquid waste produced by the enamelling
department, with the aim of reducing the annual waste production.
The monitoring and implementation of management systems are part of the recurring
operating costs of Group companies.
In relation to resource inflows, when this is technically possible and economically viable,
he Sabaf Group favours the purchase of secondary raw materials that have been reclaimed
or recycled, as outlined in section
[E5-4] Resource inflows
.
[E5 MDR-T] Tracking the effectiveness of circular economy-related policies and
actions
The Sabaf Group verifies the effectiveness of its policies and, in particular, the
commitments set out in the Environmental Policy and detailed in section
[E5-1] Policies
related to resource use and circular economy
through the constant monitoring of resource
inflows and outflows, as well as waste streams from operations. The Sabaf Group also
monitors incoming resources through the identification of circularity-related performance
indicators, such as percentages of secondary raw materials and shares of renewable and
non-renewable resources. In addition, on an annual basis Sabaf monitors the waste
generated by its production processes, as well as its composition and destination, with
particular regard to quantities sent for recovery and/or reuse.
In general, the Sabaf Group ensures the monitoring of environmental impacts (including
waste-related impacts) by constantly assessing compliance with current regulations in all
the production plants in which it operates, through the adoption of management systems
that provide for periodic checks, internal audits and audits by independent bodies
according to the principles set out in the ISO 14001 standard.
The Sabaf Group has not set any measurable, results-oriented targets in relation to
resource use and the circular economy, nor has it issued guidance for this topic going
forwards.
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The metrics reported in the following sections are not validated by external bodies.
[E5-4] Resource inflows
2024
Resource inflows (t)
Used
of which from recycled
Raw materials
32,021
17,352
43.0%
Steel
21,607
7,944
19.7%
Aluminium alloys
9,877
8,893
22.0%
Brass
527
515
1.3%
Other
10
-
0.0%
Semi-finished goods or purchased components
5,281
333
0.8%
Iron and steel components
3,962
2
0%
Enamel
353
-
0%
Cast iron components
285
157
0.4%
Electrical and electronic components
208
-
0%
Brass components
181
171
0.4%
Thermoelectric safety components
146
-
0%
Plastic Components
86
-
0%
Components in mixed materials
36
-
0%
Aluminium alloy components
24
3
0%
Associated process materials
654
-
0.0%
Lubricants/Oils
312
-
0.0%
Release agent for foundry
202
-
0.0%
Blasting grit
100
-
0.0%
Solvents/Detergents
32
-
0.0%
Other
8
-
0.0%
Packaging
2,425
1,117
2.8%
Wood
1,073
15
0.0%
Cardboard
956
749
1.9%
Plastic
396
353
0.9%
Total
40,381
18,802
46.6%
It should be noted that from the end of 2023, Sabaf S.p.A. introduced the use of organic
oils to replace mineral oils in metalworking lathes (54 tonnes in 2024, representing 17% of
the category 'Lubricants/Oils' and 0.13% of the total).
The figure for material quantities is obtained directly from the management systems: for
components and raw materials the weight of the material consumed is indicated, while for
packaging and associated process materials the weight of the material purchased is
indicated.
The recycled content of individual materials is determined according to the following
approach: the preferred source is a third-party certification or a self-declaration by the
supplier. Where such documents are not available, the Group estimates the recycled
content on the basis of the material's similarity to others for which data is available. The
Group is working to have third-party certificates or self-declarations from as many
suppliers as possible in the future in order to minimise the use of estimated data.
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[E5-5] Resource outflows
Products and materials
Expected durability of products
The Sabaf Group produces components (gas components, hinges, electronic components,
induction cooking components) for installation in domestic appliances. To date, there is
no agreed benchmark to determine the durability of a household appliance and thus its
components.
Repairability of products
There is no system for assessing the reparability of components produced by the Sabaf
Group.
Product recyclability
All raw materials used by the Sabaf Group in the production of components are considered
100% recyclable. However, the assessment of the recyclable content rate cannot disregard
multiple factors that significantly influence the actual recyclability of products, such as the
separability of components from the final product, end-of-life management by the user, the
availability of efficient collection systems and effective recycling technologies in the
geographical areas where products are disposed of. The same applies to materials used in
packaging (wood, cardboard and plastic).
Waste
2024
Total amount of waste generated (t)
12,989
Hazardous waste diverted from disposal (t)
459
preparation for reuse (t)
0
recycling (t)
0
other recovery operations (t)
459
Non-hazardous waste diverted from disposal (t)
9,539
preparation for reuse (t)
98
recycling (t)
3,019
other recovery operations (t)
6,422
Hazardous waste directed to disposal
2,514
incineration (t)
0
landfill (t)
235
other disposal operations (t)
2,279
Non-hazardous waste directed to disposal (t)
477
incineration (t)
0
landfill (t)
150
other disposal operations (t)
327
Non-recycled waste (t)
2,991
Percentage of non-recycled waste (t)
23%
Hazardous waste (t)
2,973
Radioactive waste (t)
0
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The most significant waste streams for the Sabaf Group's production sites are waste from
metal processing (metal waste, emulsions, sludge and dusty waste) and packaging
materials. 77% of the waste produced in 2024 is destined for recovery.
Data are obtained from direct measurements, such as waste transfer documents.
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S - Information on social aspects
ESRS S1 Own workforce
[S1 SBM-3] Material impacts, risks and opportunities and their interaction with
strategy and business model
As part of its double materiality assessment, the Sabaf Group has identified negative
impacts, positive impacts, risks and opportunities associated with its own workforce, as
outlined in section
[SBM-3] Material impacts, risks and opportunities and their interaction
with strategy and business model
. All identified impacts derive from the Group's business
model and, at the same time, guide its strategic decisions, in particular in terms of the
pursuit of positive impacts and the prevention and/or mitigation of negative ones. The
impacts identified consider the entire workforce of the Group, i.e. employees who have an
employment relationship with Group companies and non-employee workers, such as self-
employed workers and temporary workers provided by third-party companies engaged in
recruitment, selection and staffing activities.
Material negative impacts refer to the occurrence of occupational injuries and illnesses in
the course of business operations (actual impact), potential incidents of discrimination
related to gender, sexual, religious and/or political orientation, ethnic origin or social and
personal conditions, as well as potential incidents of discrimination related to gender pay
equality (potential impacts). These negative impacts are not systemic, and are instead
limited to the occurrence of individual events.
Positive impacts include adequate remuneration through the application of local national
contracts supplemented by any better bargaining agreements. The Sabaf Group
guarantees the right to a fair wage and offers supplementary agreements that contribute
to the improvement of the economic conditions of its workforce. Another positive impact
relates to the dissemination of a corporate culture that promotes the wellbeing of workers
and enables a work-life balance, through monitoring and acknowledging feedback within
the scope of employee satisfaction surveys and the analysis of corporate climate, as well
as maintaining a constant dialogue with trade union organisations. Finally, Sabaf has
identified among the positive impacts the improvement of employees' personal and
professional skills through the adoption of training plans and initiatives. In the Sabaf Group,
the professional growth of employees is supported by continuous training. After consulting
the relevant managers and taken note of training needs, the Group's Human Resources
Department draws up annual training plans for the scheduling of professional training
courses. The positive impacts described benefit the Group’s entire workforce.
With regard to financial materiality, the Group has identified an inherent risk related to
security incidents/accidents. The Group also identifies inherent risks connected with the
loss of key resources and the lack of the specific technical skills required for its business in
the labour market. The risks related to the loss of know-how derive from a business model
based on the importance of having the specialised technical expertise required to
implement the Group’s strategies.
The Group has identified an opportunity related to the utilisation of specialised skills for
potential entry into sectors/markets other than household appliances and the creation of
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93
new professional roles to facilitate the spread of new and broader skills. Another
opportunity that has been identified relates to the adoption of strategies aimed at
increasing the attraction and retention of talent, including through the provision of stable
employment contracts and satisfactory working conditions, which improve work
performance and positively influence economic performance. Finally, the Sabaf Group has
identified an opportunity related to the dissemination of a safety culture that contributes
to its corporate reputation.
Sabaf has not identified specific groups of workers who might be more vulnerable to risks
and/or benefit from the material opportunities it has identified.
As part of the double materiality assessment, Sabaf did not identify any impacts on its own
workforce that may result from transition plans to reduce negative environmental impacts
and/or implement greener or climate-neutral operations. Finally, Sabaf has not identified
any activities with a significant risk of child, forced or compulsory labour within its
operations.
[S1-1] Policies related to own workforce
The Sabaf Group considers the development of individuals as a founding element of its
business model. From the perspective of sustainable and socially responsible growth, the
Group has developed and adopted a governance system that guarantees and promotes
appropriate working conditions, including adequate remuneration, health and safety at
work, respect for human rights, equality and non-discrimination, professional growth and
the well-being of its workforce.
The Sabaf Group’s Charter of Values sets out the values, rules of conduct and
commitments in relations with stakeholders, including the Sabaf workforce. In relation to
its employees, meaning everyone with a relationship of subordination or collaboration with
the Group, the Charter of Values pursues the development of human capital through
opportunities for professional growth, continuous learning and an inclusive, fair and
discrimination-free working environment. The Charter promotes respect for human rights
and has a significant focus on health and safety at work, through minimising risks and
maintaining a safe working environment for all. The Group is also committed to
maintaining transparency in communication, promoting a dialogue with and involving
employees in decision-making processes, while complying with current labour, safety and
data protection regulations.
The Charter of Values was prepared and published the Charter of Values, prepared in
accordance with the existing national and international regulatory principles, guidelines
and documents with regard to human rights of corporate social responsibility and
corporate governance. Specifically, the Charter refers to:
▪ the United Nations’ Charter of Rights, the European Union’s Charter of Rights, the
Italian Constitution;
▪ the core labour standards included in the ILO conventions;
▪ the OECD Guidelines for Multinational Enterprises;
▪ the UN Global Compact, which Sabaf participates in.
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94
The Parent Company's Board of Directors is responsible for promoting the dissemination
and knowledge of the Charter of Values within the Group, and for approving its review.
Dissemination of and compliance with the Charter of Values is verified by the
administration and supervisory bodies of the parent company, inter alia, through the
periodic reports by the Head of Internal Audit and the Supervisory Board. Where deemed
necessary or in the event of suspected breached of the contents and duties laid down in
the Charter, they may involve the Internal Audit function to conduct relevant
investigations. Any stakeholder of the Sabaf Group is also required to report cases of
alleged non-compliance with the Charter by sending a written, non-anonymous
description to Sabaf S.p.A.’s Internal Audit department.
The Sabaf Group has also adopted a Social Policy based on the values and principles of
the Charter of Values, and the main national and international regulations, guidelines and
documents on human rights, corporate social responsibility and corporate governance.
The Parent Company's Board of Directors is responsible for the approval, implementation
and periodic review of the Sabaf Group's Social Policy. Within its workforce - covering
both employees and non-employee workers - through the Policy, Sabaf is committed to
the following objectives:
▪ guaranteeing secure employment, adequate working hours and competitive
remuneration, through the signing of local national contracts supplemented by any
more favourable bargaining agreements in all Group companies and by
implementing remuneration providing workers with economic and professional
satisfaction;
▪ guaranteeing freedom of association and promoting workers' rights to information,
consultation and participation through a dialogue with trade union representatives;
▪ ensuring a healthy and safe working environment, through the adoption of
procedures and management systems to prevent and minimise occupational
accidents and illnesses, and promoting and disseminating a work culture based on
health and safety in all Group companies;
▪ guaranteeing and promoting respect for human rights, as defined in the principles
set out in the United Nations Global Compact, the Code of Conduct of APPLiA
Europe (the European Home Appliances Association) and the "core labour
standards" of the ILO conventions, including the absence of child labour
23
, forced
or compulsory labour and human trafficking in all companies in which the Group
operates;
▪ not tolerating any form of discrimination or harassment on the grounds of racial or
ethnic origin, colour, sex, sexual orientation, gender identity, disability, age,
religion, political opinion, national ancestry or social background, as well as any
other form of discrimination covered by EU law and the national law of the
countries in which the Group operates;
▪ adopting criteria of merit and competence in employment relationships, based also
on the achievement of collective and personal objectives;
23
Unless local legislation establishes a higher age limit, no person younger than the age for completing
compulsory schooling or younger than 15 may be employed.
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95
▪ promoting and guaranteeing equal pay and the absence of favouritism linked to
gender and any other form of diversity or minority;
▪ promoting participation in training and empowerment initiatives in all areas useful
for the professional growth and development of workers' skills;
▪ promoting initiatives and working conditions aimed at respecting the balance
between personal and working life;
▪ providing communication channels that allow reporting any form of violation of the
above principles, guaranteeing the anonymity of the reporting party and the taking
of the necessary remedial action;
▪ enhancing the contribution of human capital in decision-making processes, through
constant dialogue with employees and by conducting periodic surveys such as the
company climate analysis.
The commitments outlined in the Charter of Values and the Social Policy aim to prevent
and/or mitigate negative impacts and material risks while pursuing positive impacts and
opportunities associated with the topic of own workforce (see section
[SBM-3] Material
impacts, risks and opportunities and their interaction with strategy and business model
).
The Charter of Values and the Social Policy apply to the entire Sabaf Group, with no
exceptions and/or exclusions in the conduct of business and professional activities by
geographical area, country and/or stakeholder groups involved. In addition, the Sabaf
Group expects the entire value chain to agree with and act in accordance with the
applicable principles.
The recipients of the Charter of Values and the Social Policy are members of the
company's governing and supervisory bodies, internal employees/collaborators and any
third parties who collaborate with or work for and on behalf of the Sabaf Group, regardless
of the legal status of the relationship.
The Charter of Values and Social Policy are made available to all stakeholders of the Sabaf
Group on the corporate website (www.sabafgroup.com) in the section “Sustainability”. The
values, rules of conduct and commitments set out in the Charter of Values and Social
Policy are communicated to employees during their recruitment and integrated into the
corporate culture. The implementation of the requirements contained in the Charter of
Values and the Social Policy is periodically audited by the Internal Audit function.
In addition to the health and safety provisions set forth in the Charter of Values and the
Social Policy, Sabaf S.p.A. has adopted and maintains in place an integrated Health and
Safety, Environment and Energy management system certified in accordance with ISO
45001, ISO 14001 and ISO 50001. Sabaf S.p.A., Faringosi Hinges s.r.l., C.M.I. s.r.l. and
C.G.D. s.r.l. adopt a health and safety management system that has been certified
according to ISO 45001 since 2017, 2021, 2022 and 2020, respectively. The management
systems of the other Group companies are not certified. Nevertheless, the coordination at
central level directs all companies towards a shared approach and methodology.
Through the implementation of its policies, the Sabaf Group ensures compliance with the
labour laws in the various countries in which it operates, and the conventions of
International Labour Organisation (ILO) on Workers' Rights (freedom of association and
collective bargaining, consultation, right to strike, etc.), while systematically promoting
dialogue between the parties and sharing of company strategies by the personnel. In the
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96
event of a violation of these principles, including those outlined in the Charter of Values
and the Social Policy, the competent functions holding disciplinary power are responsible
for implementing the appropriate disciplinary measures.
Sabaf S.p.A. has personnel management procedures and protocols, which were drafted by
the Group's Human Resources Director and apply to employees and non-employee
workers, that ensure the fulfilment of the commitments set out in the Social Policy and the
Charter of Values relating to non-discrimination, fairness in remuneration, management of
working time and workers' remuneration.
[S1-2] Processes for engaging with own workforce and workers' representatives
about impacts
As already introduced in section
[SBM-2] Interests and views of stakeholders
, the Sabaf
Group periodically conducts engagement activities with employees and their
representatives to gather perspectives and opinions to guide the business model in its
relationship with stakeholders. These processes also provide a better understanding of the
perspectives of own workers who may be particularly vulnerable (e.g. women, migrants,
people with disabilities). Specifically, the Group’s own workforce is involved through:
▪ surveys analysing corporate climate, which are addressed to workers and
conducted every three years. The implementation and analysis of the results is
delegated to the Group Human Resources Department. In 2024, the corporate
climate analysis was carried out involving all Sabaf Brazil employees;
▪ the constant dialogue with trade union representatives, which is continuously
managed by the Human Resources Department;
▪ stakeholder engagement activities conducted as part of the double materiality
assessment, in which a sample of the Group's employees (including their
representatives) are involved in assessing the impacts on the Group’s own
workforce and corporate governance. Involvement is initiated by Sabaf S.p.A.
management and coordinated by the Reporting Officer;
▪ the sharing of the Sustainability Statement with workers and their representatives,
on an annual basis, by the management of Sabaf S.p.A.
In some Group companies, there are also channels for workers to provide input and
suggestions aimed at improving certain aspects of the organisation of the business, which
are systematically analysed by the respective departments.
[S1-3] Processes to remediate negative impacts and channels for own workers
to raise concerns
Sabaf identified the occurrence of occupational injuries and illnesses as a major actual
impact on its workforce. The health and safety management systems adopted by individual
Group companies define prevention and remedial actions, including the maintenance of
adequate operating procedures and instructions for carrying out company activities,
regular training updates, and the use of prevention systems.
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97
In order to monitor and remedy the potential occurrence of other negative impacts on its
workforce, in particular those related to incidents of discrimination (as reported in section
[SBM-3] Material impacts, risks and opportunities and their interaction with strategy and
business model
), the Sabaf Group provides various channels to communicate concerns
and/or critical issues. Some Italian companies (Sabaf S.p.A, C.M.I. and C.G.D.) adopt a
Whistleblowing Reporting Procedure through a dedicated channel accessible by
employees with specific training on the subject. This Procedure guarantees the
confidentiality of the identity of whistleblowers, and persons involved in and/or
mentioned in reports. Further information on the application of the Procedure and the
handling of reports can be found in section
[G1-1] Business conduct policies and corporate
culture
.
It should be noted that a serious accident occurred at C.G.D. s.r.l. in 2024, resulting in the
loss of an employee's left hand. The causes of this accident are still being investigated by
the competent authorities. In view of the seriousness of the accident, the Board of
Directors of C.G.D. resolved to update its 231 Model and relevant implementation
protocols (procedures and operating instructions), and resolved that all personnel,
especially plant personnel, must undergo new 231 training cycles and new verification
tests. The Board of Directors of C.G.D. also recommended strengthening further the
internal reporting system by encouraging employees to report any
anomalies/irregularities. The actions taken by C.G.D. are in line with the policies adopted
by the Sabaf Group, which has always retained the utmost focus on full compliance with
health and safety regulations.
[S1-4] Taking action on material impacts on own workforce, and approaches to
managing material risks and pursuing material opportunities related to own
workforce, and effectiveness of those actions
Mitigation and prevention of risks and material negative impacts
In order to mitigate risks, and prevent and/or remedy material negative impacts on its
own workforce, Sabaf adopts a series of internal controls, policies and procedures
involving all relevant stakeholders. Specifically, the Group applies and disseminates
specific provisions relating to working conditions, health and safety, equality and non-
discrimination, as described in section
[S1-1] Policies related to own workforce
. The
safeguards in place, including the health and safety management systems adopted by
Group companies, provide for specific corrective actions to be taken in the event of
violations and/or the occurrence of negative impacts on its workforce. Conduct that could
cause risks to the health and safety of the workforce is punished in accordance with the
provisions in force.
With reference to the risk of loss of key resources and related skills, it should be noted that
in 2024 Sabaf Turkey once again obtained the Great Place to Work® certification, which
recognises the company as having an excellent working environment, that is attentive to
people's well-being and able to attract talent, increase employee motivation and improve
employer branding.
As outlined above, the management of the material impacts and risks associated with its
own workforce is part of the Sabaf Group's recurring operating expenses (OpEx).
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98
Pursuit of opportunities and material positive impacts
Opportunities related to own workforce are pursued through business benefits, employee
incentives and further specific initiatives.
As part of the achievement of the positive impacts associated with remuneration, Sabaf
S.p.A. provides a variable performance bonus for all employees based on quality and
productivity indices, the benefits of which may also be accessed as company welfare.
Similar awards are in place at other Group companies.
The constant improvement of the skills of its own workforce - which has been identified
as a material positive impact - is pursued through the Group’s numerous training activities.
In 2024, specific training projects covered cybersecurity and whistleblowing.
As of 2024, Sabaf S.p.A. also initiated a competence assessment system.
The initiatives enabling the achievement of opportunities related to the dissemination of a
corporate culture based on health and safety, include Sabaf S.p.A.'s participation in the "
Le
persone: prima!” (People: first!)
project, promoted by Confindustria Brescia and designed
to strengthen the province’s health and safety culture. This project aims to empower as
many actors as possible, by promoting a widespread sense of responsibility on the issue.
In this context, Sabaf took on the role of Safety Ambassador by conducting health and
safety communication and awareness campaigns. The project also provides for an
operational focus on training and refresher courses related to safety, Diversity & Inclusion
policies, corporate welfare and work-life balance initiatives, as well as proposals for safety-
related technological innovation and virtuous corporate management systems.
In order to pursue the opportunities associated with the attraction and retention of talent,
in 2024 Sabaf participated in the first edition of "
Domani Lavoro
” (Work tomorrow), an
employment trade fair in Brescia, where the company had the opportunity to meet
numerous candidates. During the year, initiatives continued to promote professional
growth through opportunities for intra-group experience, including international
experience.
The Sabaf Group has put in place the '
Cresciamo inseme’ (let’s grow together)
training
project, dedicated to the professional development of young talent.
The actions described in this section do not envisage a specific time horizon as they are of
an ongoing nature do not entail significant operating expenses (OpEx) and/or capital
expenditures (CapEx) specifically earmarked for their implementation and are part of the
recurring operating costs of Group companies.
The effectiveness of the above actions is periodically assessed through employee
satisfaction surveys and the corporate climate analysis illustrated in section
[S1-2]
Processes for engaging with own workforce
, as well as through the monitoring of training
and health and safety targets and objectives associated with the LTI plan and illustrated
in section
[GOV-3] Integration of sustainability-related performance in incentive schemes.
These tools make it possible to collect feedback on the working environment, employee
well-being, training, skills assessment, and internal communication.
The monitoring of the effectiveness of actions and policies on own workforce is also made
possible through a constant dialogue with workers.
Through the adoption of procedures and management systems, in compliance with
applicable laws, Sabaf regularly monitors trends for occupational injuries and illnesses.
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99
Finally, Sabaf monitors and manages the reports it receives through the whistleblowing
system.
[S1-5 MDR-T] Tracking effectiveness of policies and actions through targets
A Long-Term Incentive Plan (LTIP) is in place for the period 2024-2026 for executive
directors (CEO and CFO), executives with strategic responsibilities and managers
identified by the CEO from among those who report directly to the CEO or who in turn
report to the aforementioned managers.
The LTIP governs the requirements for the disbursement of a bonus to beneficiaries upon
the achievement, in whole or in part, of predetermined, measurable financial and
sustainability performance targets linked to the creation of shareholder value over a
medium-term horizon.
The Incentive Plan is linked to the achievement of targets for three-year performance
indicators (KPIs), including sustainability targets. With reference to the Group’s own
workforce, the targets concern human resources training (hours provided per capita) and
occupational safety (accident indicator considering severity and frequency).
The features of the Long-Term Incentive Plan (LTIP) are discussed in more detail in the
section
[ESRS 2 GOV-3] Integration of sustainability-related performance in incentive
schemes
.
The Group has not set any other measurable, results-oriented targets for its own
workforce, or guidance for this topic going forwards.
To date, the level of ambition that Sabaf sets itself corresponds, to compliance with current
regulations and international standards on health and safety, working conditions, adequate
wages, and respect for workers' rights and human rights, which the form the basis for the
principles of conduct and commitments outlined in its policies.
The metrics reported in the following sections were acquired directly from the Group's
information systems and not validated by external bodies.
[S1-6] Characteristics of employees
Number of employees by gender
2024
Gender
Number of employees (head count)
Male
947
Female
623
Other
24
0
Not disclosed
0
Total employees
1,570
24
Gender as specified by the employees themselves.
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100
The methodology used to calculate the number of employees is the headcount at the end
of the reporting period (31 December 2024).
Number of employees in countries where the Group has at least 50 employees
representing at least 10 % of the total number of employees
2024
Country
Number of employees (head count)
Italy
665
Turkey
498
USA
152
Number of employees by contract type, broken down by gender
2024
Female
Male
Other
Not disclosed
Total
Number of employees
(head count)
623
947
0
0
1,570
Number of permanent employees
(head count)
606
933
0
0
1,539
Number of temporary employees
(head count)
17
14
0
0
31
Number of non-guaranteed hours employees
(head count)
0
0
0
0
0
Number of full-time employees
(head count)
561
932
0
0
1,493
Number of part-time employees
(head count)
62
15
0
0
77
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101
Number of employees by contract type, broken down by country
2024
Italy
Turkey
USA
Brazil
Mexico
Poland
India
China
Total
Number of employees
(number of people)
665
498
152
108
66
59
15
7
1,570
Number of permanent employees
(number of people)
660
498
152
108
66
33
15
7
1,539
Number of fixed-term employees
(number of people)
5
0
0
0
0
26
0
0
31
Number of variable-hour employees
(number of people)
0
0
0
0
0
0
0
0
0
Number of full-time employees
(number of people)
605
498
135
108
66
59
15
7
1,493
Number of part-time employees
(number of people)
60
0
17
0
0
0
0
0
77
Total number of employees who left the Group during the reporting period and turnover
rate
The following table shows the number of employees terminated voluntarily or
involuntarily.
2024
Number of terminated employees (head count)
518
Number of employees (head count)
1,570
Turnover rate
33%
Turnover is calculated as the number of employees who voluntarily or involuntarily left
the Sabaf Group during 2024 out of the total number of employees as at 31 December
2024.
In Note 28 to the Consolidated Financial Statements, the personnel costs for the year 2024
are detailed.
[S1-7] Characteristics of non-employees in own workforce
2024
Number of non-employee workers (head count)
149
of which self-employed
2
of which workers provided by employment agencies
147
The methodology used to calculate the number of non-employee workers is the headcount
as at 31 December 2024.
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[S1-8] Collective bargaining coverage and social dialogue
2024
Collective bargaining coverage
Social dialogue
Coverage rate
Employees - EEA (for countries with >
50 employees representing > 10 % of
total employees)
Workplace representation (EEA only)
(for countries with > 50 employees
representing > 10 % of total
employees)
0-19%
20-39%
40-59%
60-79%
80-100%
Italy
Italy
Coverage rate
100%
98%
The Group uses the phase-in option for this metric and therefore does not report
information for employees outside the European Economic Area.
[S1-9] Diversity metrics
Gender distribution at top management level
2024
Gender
Number
%
Female
2
7%
Male
28
93%
Other
0
0%
Not disclosed
0
0%
Total top management
30
100%
All first levels of reporting to the administrative bodies are considered 'top management'.
Distribution of employees by age group and gender
2024
< 30 years old
30-50 years old
> 50 years old
Total
Number
%
Number
%
Number
%
Number
%
Female
113
7%
384
25%
126
8%
623
40%
Male
194
12%
562
36%
191
12%
947
60%
Other
0
0%
0
0%
0
0%
0
0%
Not disclosed
0
0%
0
0%
0
0%
0
0%
Total
employees
307
19%
946
61%
317
20%
1,570
100%
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[S1-10] Adequate wages
All Sabaf Group employees receive an adequate salary, in line with the applicable
benchmarks.
Within the European Economic Area (EEA), the definition of an adequate wage refers to
the minimum wage established in accordance with Directive (EU) 2022/2041 of the
European Parliament and of the Council on adequate minimum wages in the European
Union.
Outside the EEA, the benchmark corresponds to the different wage levels established by
existing international, national or sub-national legislation, official regulations or collective
agreements.
[S1-13] Training and skills development metrics
Periodic review of performance and career development
In 2024, the Sabaf Group started to implement a structured system for the assessment of
performance and competences. Analyses and evaluations are conducted on transversal
competences (communication and listening, flexibility to change, teamwork, continuous
improvement and proactivity, planning and organisation, result orientation), managerial
competences (for managerial roles only: coaching, decision-making skills, delegation,
leadership and team management) and technical competences (specific to each role).
The Group made use of the phase-in option with regard to this metric.
Average number of training hours per employee and by gender
2024
Employees
Non-employee
Number of
training hours
Average number
of training hours
Number of
training hours
Average number
of training hours
Female
11,563
19
1,843
29
Male
24,765
26
5,438
64
Other
0
0
0
0
Not disclosed
0
0
0
0
Total
36,328
23
7,281
49
[S1-14] Health and safety metrics
2024
Employees
Non-
employees
Total
Percentage of own workers covered by a health and
safety management system according to legal
requirements and/or recognised standards or guidelines
100%
100%
100%
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Number of fatalities as a result of work-related injuries
and work-related ill health
0
0
0
Number of recordable work-related accidents
25
26
2
28
Hours worked
2,798,344
246,438
3,044,782
Rate of recordable work-related accidents
9
8
9
Number of cases of recordable work-related ill health
subject to legal restrictions on data collection
0
0
0
Number of days lost to work-related injuries and
fatalities from work-related accidents, work-related ill
health and fatalities from ill health
756
76
832
[S1-15] Work-life balance metrics
2024
Female
Male
Other
Not disclosed
Total
Percentage of
employees entitled to
family-related leave
98%
98%
0%
0%
98%
Percentage of entitled
employees who took
family-related leave
12%
10%
0%
0%
11%
[S1-16] Remuneration metrics (pay gap and total remuneration)
2024
Gender pay gap
24%
Annual total remuneration ratio of the highest paid individual to the median
annual total remuneration for all employees (excluding the highest-paid
individual)
48
25
Recordable work-related injury: work-related injury that results in any of the following:
i. death, days away from work, restricted work or transfer to another job, medical treatment beyond first aid,
or loss of consciousness; or
ii. significant injury, even if it does not result in death, days away from work, restricted work or job transfer,
medical treatment beyond first aid, or loss of consciousness.
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The calculation of the remuneration metrics includes all employees in force as at 31
December 2024 (for part-time employees, full-time equivalent pay rates were used and for
employees hired during the year, the amounts were annualised).
The gender pay gap, defined as the difference between the average pay levels paid to
female and male workers, is expressed as a percentage of the average pay level of male
workers.
The remuneration used as a reference for the calculation of the ratio between the total
annual remuneration of the highest paid individual and the total annual median
remuneration of all employees (excluding the highest paid individual) is that of the CEO of
Sabaf S.p.A. and includes the gross fixed component and the gross variable short-term and
long-term components.
[S1-17] Incidents, complaints and severe human rights impacts
During 2024, there were no incidents of discrimination, complaints and serious human
rights incidents (e.g. forced labour, human trafficking or child labour).
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ESRS S2 Workers in the value chain
[S2 SBM-2] Interests and views of stakeholders
The ways in which the Group takes into account the interests and opinions of employees
in the value chain are set out in section
[ESRS 2 SBM-2] Interests and views of
stakeholders.
[S2 SBM-3] Material impacts, risks and opportunities and their interaction with
strategy and business model
The double materiality assessment identified a potential negative impact associated with
the working conditions of workers in the upstream value chain, including respect for
human rights, health and safety and adequate remuneration. The impact is related to the
nature of upstream sectors, such as steel and aluminium production (from the extraction
of raw materials to their processing), where these topics are considered material.
The double materiality assessment also revealed an inherent risk related to the occurrence
of accidents at Group sites involving contractors, whose health and safety Sabaf could be
responsible for.
The Group's strategic decisions have always been geared towards the prevention of the
risk associated with the social responsibility of suppliers, especially in geographical areas
where the regulations in force do not establish the minimum requirements applied by
Sabaf. In such circumstances, the Group conducts periodic audits in order to verify
compliance with the principles outlined in its Charter of Values and Sustainable
Procurement Policy (for more details on the Charter of Values and Sustainable Sourcing
Policy, please refer to section
[S2-1] Policies related to value chain workers
).
To date, the Sabaf Group has not identified any geographical areas and/or products within
its value chain with a significant risk of child, forced or compulsory labour. This should be
seen as a generalised impact for the entire upstream supply chain and one not related to
specific incidents and/or groups of workers.
[S2-1] Policies related to value chain workers
As stated in its Charter of Values, the Sabaf Group is committed to favouring suppliers who
adopt socially responsible behaviour in the conduct of business. Sabaf has recently
introduced a Sustainable Procurement Policy, based on the principles in the Charter of
Values, and inspired by the UN and EU Charter of Rights, the core labour standards of the
ILO conventions, the OECD Guidelines for Multinational Enterprises and the UN Global
Compact.
Specifically, the Sustainable Procurement Policy provides the labour, human rights, and
health and safety requirements that Sabaf Group suppliers are expected to comply with
during the course of their relationship. Sabaf requires suppliers to:
▪ not use child labour and not use any form of forced labour;
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▪ oppose all forms of human trafficking and modern slavery;
▪ recognise, respect and fully guarantee the right to work and free association of its
employees in all production facilities and apply forms of collective bargaining
where local regulations so provide;
▪ not tolerate any form of harassment and/or discrimination based on gender,
minority membership, political opinion, religious belief, age, ethnicity, marital
status, family status, disability and any other personal condition and promote the
positive value of diversity;
▪ comply with the applicable working time regulations;
▪ pay wages and benefits in accordance with applicable local regulations and take
into account the cost of meeting the needs of its workers, while promoting their
material well-being;
▪ adopt occupational health and safety management systems inspired by the ISO
45001 standard or otherwise aligned with benchmark best practices;
▪ undertake to disseminate and consolidate a safety culture that promotes
responsible behaviour on the part of workers.
The commitments outlined in the Sustainable Procurement Policy - which are approved,
implemented and periodically reviewed by the Parent Company's Board of Directors - are
intended to prevent and/or mitigate negative impacts and material risks associated with
the topic of workers in the value chain (see section
[SBM-3] Material impacts, risks and
opportunities and their interaction with strategy and business model
).
The Policy is applicable to all suppliers of goods and services to the Sabaf Group, in all
countries in which it operates, without any exclusion in terms of business and professional
activities and/or stakeholder groups involved.
The involvement of the Sabaf Group's suppliers is pursued by sending them the Policy and
having them sign it for acceptance. In addition, Sabaf encourages all suppliers to
disseminate the contents of the Sustainable Procurement Policy through appropriate
training of their employees and suppliers. The Policy is publicly available to all
stakeholders through the corporate website (www.sabafgroup.com) under the section
"Sustainability - Suppliers".
Suppliers have an obligation to promptly report to Sabaf any violations of the policy by
their employees. Suppliers are required to report any behaviour by Sabaf employees that
is contrary to the Policy within the scope of the supply relationship, using the email address
internal.audit@sabaf.it. Sabaf guarantees the confidentiality of the identity of persons
making such reports. The Policy does not provide for anonymous reporting.
Suppliers' compliance with the provisions laid down in relation to human rights, labour
rights and the health and safety of workers is verified through on-site audits by Sabaf
personnel. If a breach of the provisions is discovered, Sabaf shall promptly notify the
supplier in writing and set a reasonable period for the supplier to prepare and implement
appropriate corrective actions. If this does not happen in the relevant timeframe or the
corrective actions do not resolve the breach, Sabaf reserves the right to terminate the
business relationship in accordance with the contractually agreed terms.
In 2024, the Group received no reports of non-compliance.
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[S2-2] Processes for engaging with value chain workers about impacts
The Sabaf Group has not, to date, adopted a formal process for involving workers in the
value chain in the management of actual and potential impacts, nor has it issued guidance
for this topic going forwards. Furthermore, as part of the double materiality assessment,
selected suppliers were involved in the assessment of actual and potential impacts on
workers in the value chain.
[S2-3] Processes to remediate negative impacts and channels for value chain
workers to raise concerns
As detailed in section
[S2-1] Policies related to value chain workers
, the Sustainable
Procurement Policy requires suppliers to promptly report any violations of provisions
related to respect for human and labour rights, working conditions and health and safety.
[S2-4] Taking action on material impacts on value chain workers, and
approaches to managing material risks and pursuing material opportunities
related to value chain workers, and effectiveness of those actions
The prevention and mitigation of material impacts associated with workers in the value
chain, as outlined in
[SBM-3] Material impacts, risks and opportunities and their interaction
with strategy and business model
, is managed through the adoption of procurement
policies and controls to verify their application. Specifically, the Sabaf Group has
introduced a Sustainable Procurement Policy aimed at preventing and mitigating potential
negative impacts on workers in the value chain in terms of human rights, labour rights,
working conditions and health and safety. The commitments defined by the Policy are
outlined in section
[S2-1] Policies related to value chain workers.
Where current legal regulations do not establish minimum requirements applied by Sabaf,
compliance is verified by conducting periodic audits to identify the necessary and suitable
actions following the occurrence of any negative impacts. The audits verify whether a
certified management system has been adopted for social responsibility and occupational
health and safety, whether the working environment is safe and healthy and whether
appropriate measures are in place for accident prevention; they also verify the right to
collective bargaining, the absence of discrimination and the adequacy of working hours. If
a breach is discovered, Sabaf promptly notifies the supplier in writing and sets a reasonable
period for the preparation and implementation by the supplier of appropriate corrective
actions. If this does not happen in the relevant timeframe or the corrective actions do not
resolve the breach, Sabaf reserves the right to terminate the business relationship in
accordance with the contractually agreed terms. Aside from verifying the implementation
of the Sustainable Procurement Policy and the Group's minimum social responsibility
standards, audits allow Sabaf to help remedy any negative impacts on workers in the value
chain.
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Sabaf did not identify any actual negative impacts on value chain workers or human rights
incidents related to its upstream and downstream value chain. Therefore, no specific
remedial actions are reported.
In terms of risks, Sabaf has identified an inherent risk related to the occurrence of
contractor accidents. In addition to applying the health and safety standards of Group
companies, risk mitigation is pursued through the adoption of specific procedures. For
example, where external personnel access Group sites based on contractual obligations,
checks are conducted on technical-professional requirements, training certificates and the
lawfulness of employment relationships.
As outlined above, the management of material impacts and risks associated with value
chain workers is part of the Sabaf Group's recurring operating expenses (OpEx).
[S2 MDR-T] Tracking effectiveness of policies and actions through targets
The Sabaf Group constantly monitors the effectiveness of its policies and initiatives in the
context of the impacts and risks identified in terms of the social responsibility of its
suppliers and, specifically, respect for human rights and labour rights and working
conditions along the value chain.
To ensure effective management of IROs, the level of supplier compliance with quality,
environmental and social responsibility parameters is determined through a risk
assessment that considers the type of process, the product or service supplied, as well as
the supplier’s geographical location. In cases where applicable local regulations are
deemed insufficient for mitigating potential reputational or compliance risks for the Group,
periodic audits are conducted to ensure compliance with the required minimum standards.
In relation to working conditions, Sabaf is also committed to making suppliers aware of
the principles of the Code of Conduct of APPLiA Europe, the Association of Home
Appliance Manufacturers, which it is a member of. Furthermore, in order to ensure
continuous monitoring of environmental and social impacts along the value chain, Sabaf
favours suppliers with certified quality and environmental management systems.
The Sabaf Group has not set any measurable, results-oriented targets in relation to value
chain management, nor has it issued guidance for this topic going forwards.
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ESRS S3 Affected communities
[S3 SBM-3] Material impacts, risks and opportunities and their interaction with
strategy and business model
From the double materiality assessment, the Sabaf Group identified two material positive
impacts related to affected communities:
▪ job creation and distribution of economic value in the respective areas;
▪ collaboration with local universities, institutions and associations, contributing to
the growth of communities.
These impacts refer to local communities living or working near the operational sites, as
the community is an important stakeholder for business development. The opinions,
interests and rights of local communities are taken into account to guide corporate
strategy, and are heard through constant consultation and dialogue with community
representatives, such as public institutions and local associations.
The contribution to the growth of local communities is pursued by building and
maintaining relations with industrial associations, universities and students, by carrying
out charitable initiatives in cooperation with local entities, and by supporting humanitarian
projects in the territories where the Group operates.
As part of the double materiality assessment, Sabaf did not identify any material negative
impacts, risks and/or opportunities associated with affected communities. The Group has
a Social Policy in place involving affected communities. The respective commitments,
scope, verification and monitoring of which are outlined in the following sections.
[S3-1] Policies related to affected communities
Sabaf is committed to constantly strengthening the social value of its business activities
through careful management of relations with stakeholders and local communities.
The relationship with communities is governed by the Charter of Values, which outlines
the Group's commitments to society. Sabaf is committed to operating in local communities
in a socially responsible manner, by contributing to the improvement of the quality of life
in the communities in which the Group operates through social, cultural and educational
initiatives, as well as through safe products with a lower environmental impact (especially
in emerging countries, where it is contributing to the promotion of gas cooking as an
alternative to solid fuels such as wood and coal).
With its Social Policy, within the scope of its relationship with society, Sabaf undertakes
to:
▪ promote respect for human rights in the communities in which Group companies
operate, as defined by the UN Global Compact, the UN Charter of Rights and the
EU Charter of Rights and the OECD Guidelines for Multinational Enterprises;
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▪ take measures to promote dialogue with affected communities and their
representatives and ensure that communication channels are in place to receive
any complaints and take remedial action;
▪ contribute to the growth and protection of affected communities through the
establishment of partnerships with universities and local authorities;
▪ carry out charitable initiatives with a social and humanitarian value.
The above commitments are intended to pursue the positive impacts associated with the
issue of affected communities (see section
[SBM-3] Material impacts, risks and
opportunities and their interaction with strategy and business model)
.
For details on the implementation, monitoring and application of the Charter of Values
and Social Policy, please refer to section
[S1-1] Policies related to own workforce.
[S3-2] Processes for engaging with affected communities about impacts
Based on the findings of the context analysis and the double materiality assessment, to
date, the Sabaf Group does not see the need to adopt a process to involve affected
communities in the management of actual and potential impacts.
It should be noted that a representative of the local communities was involved in the
assessment of the Sabaf Group's impacts, in order to incorporate the views of affected
communities.
[S3-4] Taking action on material impacts on affected communities, and
approaches to managing material risks and pursuing material opportunities
related to affected communities, and effectiveness of those actions
The Sabaf Group has always been involved in activities supporting and developing local
communities, charitable initiatives and humanitarian projects, with the aim of achieving
the commitments outlined in its policies.
In 2022, Sabaf joined the project to co-finance for six years the Chair of Associate Professor
of Anaesthesiology in the new School of Specialisation in Medicine and Palliative Care at
the University of Brescia (contribution of €50,000 per year). Sabaf is thus supporting an
important postgraduate training programme in the city of Brescia, which is of great value
to the entire community. The School of Specialisation in Palliative Care opened in
November 2022 and is one of the first such institutions in Italy. The aim is to promote the
culture of palliative care among young people and expand into the paediatric field,
developing a reference centre in eastern Lombardy. The School of Specialisation in
Palliative Care involves students and specialists from all medical areas and offers a wide
range of care, to both adults and children, and includes pain therapy and home care.
In 2024, Sabaf made a donation to the GNAO1 APS Families Association, which provides
support to families with relatives affected by the rare genetic disease GNAO1 including
through a community support network. The Association also aims to inform and raise
awareness of this genetic disease and support scientific research projects to shed light on
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the mechanisms underlying the disease to identify effective treatments. Sabaf's donation
specifically supports a scientific research project at the Department of Biology and
Biotechnology of the Sapienza University of Rome.
Also in 2024, Sabaf financed a scholarship for the International Summer School in
Economics, organised by Istituto I.S.E.O (Institute of Economic and Employment Studies)
- ETS, a non-profit cultural organisation based in Iseo (Brescia) near Sabaf’s headquarters.
The Summer School is for graduate students from all over the world.
The Group's ongoing humanitarian initiatives include:
▪ support for the ANT Foundation, which provides free specialist medical home-care
to cancer patients and cancer prevention activities;
▪ support for the
Associazione Volontari per il Servizio Internazionale
(AVSI), a non-
profit, non-governmental organisation engaged in international development aid
projects. The donations are used to provide long-distance support to twenty
children living in various countries around the world.
Since the Sabaf Group’s double materiality assessment and materiality and risk
assessments conducted in previous years did not reveal any negative impacts and/or
material risks related to the affected communities, no specific actions have been identified
to prevent and/or mitigate these. Moreover, the Group engages in an ongoing dialogue
with affected communities and relevant institutions, through which it can learn of and
monitor any negative impacts and/or risks associated with communities and, where
appropriate, define necessary mitigation actions.
Sabaf operates in compliance with applicable regulations, conducting, where necessary,
specific consultations with local community representatives. Furthermore, the Group acts
in compliance with national and international human rights standards of affected
communities, as set out in its social responsibility policies.
[MDR-T] Tracking the effectiveness of affected communities-related policies and
actions
Sabaf constantly monitors the effectiveness of its policies and actions for managing its
impacts, risks and opportunities on local communities, and is focused in particular on the
creation of shared value in the territories in which it operates.
In each of the geographical areas where it operates, the Group maintains an open dialogue
with local authorities to foster responsible development and positive impacts on the
communities it serves. In line with its Charter of Values, Sabaf adopts principles of honesty,
integrity and transparency, while contributing to socio-economic welfare including
through tax compliance and job generation in the local area.
The Sabaf Group has not set measurable, results-oriented targets for the management of
its impacts on local communities, nor has it issued guidance for this topic going forwards.
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ESRS S4 Consumers and end-users
[S4 SBM-3] Material impacts, risks and opportunities and their interaction with
strategy and business model
The Sabaf Group double materiality assessment identified an inherent risk associated with
potential non-compliance with product quality and safety standards. The risk identified is
inherent in the Group's business model, as some components produced by Sabaf and
installed on household appliances have an inherent risk that could arise during the use of
the products, which is also dependent on external factors. By way of example, gas leaks,
inefficient combustion or overheating could result in domestic accidents, for which the
Group could be liable.
The identified risk involves all users of the appliances in which the components supplied
by the Group are installed. Sabaf has not identified any specific groups of consumers
and/or consumers with certain characteristics that are particularly exposed to this risk.
[S4-1] Policies related to consumers and end-users
The health and safety of end users is a priority for the Sabaf Group's business model and
is to be understood not merely as compliance with existing standards, but rather as a
management philosophy oriented towards continuous improvement of performance,
including with the aim of ensuring increasingly safe products for end users.
The Charter of Values sets forth the Sabaf Group's commitments to customers - as
intermediaries in the relationship with end users - to ensure high quality standards for the
products it offers, as well as clear and transparent communication regarding potential risks
associated with the use of its products. Details on the implementation, monitoring and
enforcement of the Charter of Values can be found in section
[S1-1] Policies related to own
workforce
.
The Social Policy further defines the Sabaf Group's commitments to end-user protection,
including:
▪ guaranteeing respect for the human rights of end users within the scope of the
activities in which Group companies operate, as defined by the UN Global
Compact, the UN Charter of Rights and the EU Charter of Rights and the OECD
Guidelines for Multinational Enterprises;
▪ guaranteeing the protection of end users by ensuring compliance with local and
international product safety regulations, by adopting dedicated procedures and
conducting appropriate checks;
▪ effectively and promptly handling customer complaints and implement corrective
actions to resolve these and preventing or limiting their recurrence;
▪ guaranteeing the highest standards of quality and safety of the products offered,
including through the adoption of certified management systems and cooperation
with client companies;
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▪ communicating information about products and services in a clear and transparent
manner, as well as informing corporate customers about potential risks related to
the use of products and their environmental impact;
▪ acknowledging the needs of end users through a dialogue with customer
businesses, while constantly monitor customer satisfaction and any complaints.
The commitments outlined in the Social Policy above are intended to mitigate and/or
prevent the material risks associated with the topic of consumers and end-users (see
section
[SBM-3] Material impacts, risks and opportunities and their interaction with
strategy and business model
).
During the reporting period, no violations of the principles of the UN Global Compact and
the OECD Guidelines for Multinational Enterprises affecting Consumers and/or End-Users
were found in the downstream value chain.
For details on the implementation, monitoring and enforcement of the Social Policy, please
refer to section
[S1-1] Policies related to own workforce.
[S4-2] Processes for engaging with consumers and end-users about impacts
The Sabaf Group has not identified any material positive and/or negative impacts on end
users within the scope of the double materiality assessment, also in consideration of the
fact that historically it has never recorded any incidents against end users involving liability
linked to the defectiveness of Sabaf components. To date it has not therefore adopted a
process to manage actual and potential impacts involving end-users. In a business-to-
business model, the Group’s customers are household appliance manufacturers, therefore
the Sabaf Group has no direct dealings with end users. Constant dialogue with customers
and customer satisfaction surveys are useful tools for identifying and monitoring the needs
of the market, including end users.
[S4-3] Processes to remediate negative impacts and channels for consumers and
end-users to raise concerns
The Sabaf Group has not identified any material positive and/or negative impacts on end
users as part of the double materiality assessment. However, it has no direct relationship
with end-users and, therefore, no channels for end-users to raise concerns.
[S4-4] Taking action on material impacts on consumers and end-users, and
approaches to managing material risks and pursuing material opportunities
related to consumers and end- users, and effectiveness of those actions
The Sabaf Group has not identified any material positive and/or negative impacts on end
users as part of the double materiality assessment. The Group has never recorded any
incidents involving damage to end-users for which liability was established in connection
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with the defectiveness of Sabaf components and, therefore, there has never been any need
for specific actions aimed at remedying actual negative impacts on end-users.
Sabaf has identified an inherent risk related to potential non-compliance with product
quality and safety standards. This risk is managed and mitigated through:
▪ compliance with the stringent safety requirements established by current
legislation;
▪ the high degree of automation in production processes and related testing;
▪ the achievement and maintenance of quality management system certifications
involving rigorous procedures and controls;
▪ the transfer of the risk of damage from civil liability resulting from the
malfunctioning of Sabaf products through insurance policies;
▪ introduction of specific product design prescriptions (especially for components
purchased from third parties) and on testing activities during product acceptance;
▪ staff training and renewal of machinery;
More information on the management and control systems and procedures applied in this
area can be found in the section
[S4 MDR-T] Tracking effectiveness of policies and actions
through targets
.
[S4 MDR-T] Tracking the effectiveness of end-user-related policies and actions
The Sabaf Group constantly monitors the effectiveness of its policies and actions aimed at
the quality and safety of its products, including by measuring the level of customer
satisfaction.
The planning of Sabaf's Quality Management System is carried out following the risk-based
approach in accordance with the UNI EN ISO 9001:2015 standard, which allows the
identification of the main risk categories and the adoption of appropriate management
strategies for product quality and safety. A.R.C. s.r.l., MEC and Sabaf China do not have a
certified quality management system; however, they do have a strict quality policy and are
systematically audited by major customers.
Moreover, Sabaf guarantees high safety standards through rigorous controls on the
materials that are used, which are compliant with the REACH Regulation and the RoHS
Directive. In general, Sabaf constantly monitors the compliance of its products with the
relevant end-user health and safety regulations. In order to monitor customer satisfaction,
the Group conducts customer satisfaction surveys every two years, by collecting feedback
on strengths and areas for improvement, in order to identify any critical issues that could
affect final consumers.
With these tools, Sabaf ensures that its products are safe, compliant with applicable
national and international directives and meet consumer needs, while reinforcing its
commitment to quality and transparency.
The 2024-2026 Business Plan does not include formal objectives in the areas of quality,
safety and customer satisfaction; therefore, the Sabaf Group has not set any measurable,
results-oriented objectives with regard to managing the risks identified in this area.
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G - Information on governance aspects
ESRS G1 Business conduct
[GOV-1] The role of the administrative, management and supervisory bodies
The role of administrative, management and supervisory bodies is described in ESRS 2
[GOV-1] The role of the administrative, management and supervisory bodies
. In particular,
in relation to business conduct, in addition to its responsibilities under the regulations, and
as already described in ESRS 2, the Board of Directors is responsible for assessing and
monitoring ethical risks and promoting the dissemination and awareness of the Charter of
Values within the Group.
[G1 IRO-1] Description of the process to identify and assess material impacts,
risks and opportunities
The double materiality assessment carried out by the Group made it possible to identify
the material impacts with reference to business conduct. The process is described in ESRS
2
[IRO-1] Description of the process to identify and assess material impacts, risks and
opportunities.
As specified therein, the analysis that was conducted considered the internal
and external context of the company, emphasising, among other things, its operating
sector, the company's operations and the activities impacting the upstream and
downstream value chain.
Sabaf has assessed as material the positive (current) impact that established partnerships
- which are based on principles of collaboration and transparency - help to create, by
enriching the market and facilitating the achievement of sustainability goals. This impact
is connected to the Group's activities and the operations carried out by the upstream and
downstream value chain, and, in general, to all the collaboration and partnership relations
established with Group's stakeholders.
Another (current) material positive impact related to corporate conduct and, more
specifically, to the topic of active and passive bribery, is the dissemination of corporate
policies that promote an ethical and responsible corporate culture (corporate culture
policies are discussed in more detail in section
[G1-1] Business conduct policies and
corporate culture
). In this case, the impact is generated exclusively by the Group's own
operations.
Finally, in analysing the management of relations with its suppliers, the Group has
identified the (potential) negative impact that could arise from delays in payments to
suppliers beyond agreed dates. The impact identified is therefore upstream in the value
chain.
As part of the double materiality assessment, the Sabaf Group did not identify any risks
and/or opportunities in relation to the conduct of business.
Sabaf Group | 2024 Report on Operations
117
[G1-1] Business conduct policies and corporate culture
For the Sabaf Group, respect for business ethics and socially responsible behaviour are
among the fundamental elements of its business model. The main policies and procedures
through which the Group disseminates and ensures compliance with its values and ethical
conduct are: the Charter of Values (introduced in the section
[S1-1] Policies related to own
workforce
), the Anti-Corruption Policy, the Whistleblowing Management Procedure and
the Corporate Governance Manual.
Charter of Values
The Charter of Values is the governance tool by which the Sabaf Group pursues its mission
in respect of the value of individuals, from which it derives the principles of conduct
described in the document. The principles must inspire the behaviour and decisions of the
Group's employees in their internal and external relations; furthermore, the Group hopes
that all the stakeholders with whom it has relations also adopt principles of:
▪ Honesty
▪ Integrity
▪ Fairness and impartiality
▪ Transparency and Fairness
▪ Efficiency and Effectiveness
▪ Fair competition
▪ Dialogue
Each Sabaf Group company is required to adopt and disseminate the Charter of Values,
and communicate any reported/confirmed violations thereof via the Whistleblowing
channel.
The Anti-Corruption Policy
The prevention of corrupt practices is among Sabaf’s guiding principles and is committed
to fighting corruption.
The Group has an Anti-corruption Policy in place, the implementation and enforcement of
which is entrusted to the Board of Directors, which consolidates its commitment to
combating illegal conduct. The Policy applies globally to Sabaf S.p.A., the Group's
subsidiaries and all their personnel, including directors, managers, employees and all other
persons acting for and/or on behalf of Sabaf Group companies, in each country where the
Group operates. The Policy reiterates the recipients' obligation to comply with the
provisions of the Organisational, Management and Control Models (adopted Sabaf S.p.A
e Faringosi Hinges s.r.l.) pursuant to Legislative Decree No. 231/2001, as well as the
procedures and internal rules established by each Group company. The following areas
have been assessed as potentially exposed to corruption risks:
▪ Relations with representatives of public institutions
▪ Trade relations with intermediaries and agents
▪ Trade relations with customers, suppliers and other third parties
▪ Relations with trade unions and political organisations
Sabaf Group | 2024 Report on Operations
118
▪ Human resource management
▪ Management of gifts and presents, entertainment expenses, donations and
sponsorships
▪ Accounting and financial procedures and controls.
The provisions and guidelines contained in the Policy - which were developed by analysing
at risk activities - promote the highest ethical standards in all business dealings, in order
to conduct business with loyalty, fairness, transparency, honesty and integrity, and provide
specific rules to prevent, identify and manage corruption risks.
All Sabaf Group companies must promote and ensure adequate awareness of the
provisions set out in the Anti-Corruption Policy. To this end, Sabaf S.p.A.'s Human
Resources Department is responsible for coordinating the training and awareness
programmes implemented locally by each Group company. It should be noted that the
Policy does not regulate business conduct training. The Anti-Corruption Policy is made
available through publication on the corporate website www.sabafgroup.com in the
section “Sustainability – Anti-corruption”.
Whistleblowing management procedure
In accordance with the European legislation on whistleblowing (EU Directive 2019/1937),
implemented in Italy by Legislative Decree 24/2023, Sabaf has set up a platform for the
management of reports of unlawful conduct which has come to its attention in the context
of its work environment and which has been committed in violation of the Charter of
Values, laws or regulations or provisions of the authorities, internal regulations or is, in any
case, likely to cause damage or harm of the Company, even if only in terms of its image.
The platform (https://areariservata.mygovernance.it/#!/WB/sabaf) allows
whistleblowers to choose whether to submit anonymous or identifiable reports, either in
writing or verbally. In any case, the platform guarantees the confidentiality and privacy of
both the whistleblower and the content of the report.
The Whistleblowing Management Procedure, approved by the Board of Directors and
whose implementation is coordinated by Sabaf S.p.A.'s Human Resources Department,
governs the process of receiving, analysing and processing whistleblowing reports sent or
forwarded by Sabaf personnel or third parties. The Procedure, which complies with the
requirements of Model 231, is disclosed both internally, including through training
activities, and externally through publication on the website www.sabafgroup.com under
the section "Investors - Corporate Governance".
In its ongoing commitment to ensure maximum transparency and the proper handling of
reports, Sabaf has set up a suitably trained dedicated independent committee for the
management of the reporting channel, comprising the Head of the Human Resources
Function, the Head of the Internal Audit Function and the Chairman of the Supervisory
Board. Within 7 days of the date of receipt, the Committee informs the whistleblower it
has received the report and may contact him/her to acquire any further information
deemed useful to ensure the report is diligently followed up. The Procedure regulates in
detail the stages of investigation, assessment, filing and reporting to the Administrative
and Control Bodies. The Company guarantees the confidentiality of the identity of
whistleblowers, persons involved and persons mentioned, as well as the content of the
report and the relevant documentation. In particular, the identity of whistleblowers and
any other information from which their identity can be inferred, either directly or indirectly,
Sabaf Group | 2024 Report on Operations
119
is not disclosed to persons other than those responsible for receiving or following up
reports, without the express consent of the whistleblowers themselves.
Corporate Governance Manual
The Corporate Governance Manual, approved by the Board of Directors of Sabaf S.p.A.,
sets forth suitable principles, rules and operating methods for the Company to implement
the recommendations of the Corporate Governance Code. The Manual includes some
operating guidelines, also approved by the Board of Directors, prepared for the purposes
of duly performing the activities pertaining to Sabaf's management and control bodies.
The Manual is addressed to members of Sabaf's corporate bodies and employees. It is the
responsibility of Sabaf's Board of Directors to keep its content up-to-date and to make
changes or additions of a substantial nature.
The Corporate Governance Manual is published on the corporate website
www.sabafgroup.com under the section "Investors - Corporate Governance".
[G1-2] Management of relationships with suppliers
All Group comply with the rules of conduct defined in the Charter of Values (introduced
in section
[S1-1] Policies related to own workforce
) and in the Sustainable Sourcing Policy
(introduced in section
[S2-1] Policies related to value chain workers
), for the management
of relations with suppliers, by ensuring the adoption of consistent procedures and
practices. The two documents, and the commitments outlined therein, allow the Group to
address the impacts identified in relation to the ethical and transparent conduct of
business.
The social and environmental criteria with which Sabaf selects its suppliers cover the
following topics: Ethics and Human Rights, Occupational health and safety, Environmental
protection, Management of environmentally and socially critical materials, Information
security, Training and awareness raising.
Relations with suppliers are based on long-term collaboration and on fairness in
negotiations, integrity and contractual fairness and the sharing of growth strategies. The
double materiality assessment revealed a potential negative impact related from delays in
payments to suppliers beyond agreed dates. The Charter of Values firmly states the
Group's commitment to pay suppliers on time and in the agreed manner. Very short
payment terms are agreed for artisan and less structured suppliers.
[G1-3] Prevention and detection of corruption or bribery
The Sabaf Group, aware of the negative effects of corrupt practices in business
management, is committed to preventing and combating the occurrence of offences in the
carrying-out of its activities.
The Internal Audit Department, which reports directly to the Board of Directors, may
conduct periodic audits to verify (i) compliance with Group guidelines (ii) that measures
Sabaf Group | 2024 Report on Operations
120
to prevent corruption risks are adequately designed and function effectively (iii) reports of
non-compliance it receives.
In line with the provisions of the Charter of Values, any Sabaf Group stakeholder may
report a violation of the Anti-Corruption Policy by sending a signed, non-anonymous
report to the Internal Audit Department:
▪ in a printed form to Sabaf S.p.A. - Via dei Carpini, 1 - Ospitaletto (BS) - for the
attention of the Internal Audit function;
▪ by email to: internal.audit@sabaf.it.
Any violations of the Anti-Corruption Policy by Sabaf Group recipients will result in the
adoption of appropriate and proportionate disciplinary measures, based also on the
criminal relevance of the related conduct. If necessary, Sabaf will cooperate fully with the
competent authorities.
Violations of the Anti-Corruption policy by third parties will be examined to assess the
need for countermeasures, such as unilateral termination of contracts.
The Anti-Corruption policy is amended and supplemented where necessary to ensure its
full effectiveness and to make potential improvements, based on evolving best practices,
new risk assessment results or recommendations from audits.
The section
[G1-1] Business conduct policies and corporate culture
sets out how the Group
ensures the accessibility of the Anti-Corruption Policy to all stakeholders.
Training activities on the Anti-Corruption Policy are considered essential to ensure the
correct application of the company's provisions. For further details see section
[G1-1]
Business conduct policies and corporate culture.
[G1 MDR-T] Tracking the effectiveness of business conduct-related policies and
actions
The Sabaf Group did not identify any material negative impacts on business conduct,
including anti-corruption, during its double materiality assessment. The Sabaf Group
constantly monitors the effectiveness of its policies and actions in this regard.
In particular, this monitoring takes place mainly through internal verification processes
and periodic audits, which include checking regulatory compliance and the measures in
place to prevent corruption risks. For more details on the prevention of corruption, see
section
[G1-3] Prevention and detection of corruption or bribery
.
Training provided on the Anti-Corruption Policy is aimed at effectively preventing and
countering any incidents of corruption or bribery, and ensuring respect for corporate
values. For further details on the Policy, see section
[G1-1] Business conduct policies and
corporate culture.
The Group has not set measurable, results-oriented targets in relation to business conduct,
as the 2024-2026 Business Plan does not provide for the formalisation of such targets.
Sabaf Group | 2024 Report on Operations
121
[G1-4] Incidents of corruption or bribery
During the reporting period, no incidents of bribery or corruption occurred in the Sabaf
Group, nor did any Group company receive any convictions or fines relating to the
violation of laws on bribery or corruption. No corrective actions were implemented.
[G1-6] Payment practices
In 2024, the Group's average payment terms were 88 days from the date of purchase or
service.
The payment terms of the Group's suppliers vary according to the specific business
relationship, negotiation and country. The payment terms are outlined in the following
table:
up to 30 days
32%
31-60 days
24%
61-90 days
32%
91-120 days
12%
more than 120 days
0%
The percentages were determined on the basis of an analysis of the payment terms of all
suppliers for Group companies adopting the SAP management system (this sample
accounts for 80% of total purchases). The values are weighted on the basis of the 2024
turnover of individual suppliers.
It is the Group's practice to grant artisan and less structured suppliers reduced payment
terms (normally 30 days).
Suppliers are paid by the agreed deadlines or within a few days of these.
There are no pending complaints or ongoing criminal proceedings for late payments.
Sabaf Group | 2024 Report on Operations
122
Certification of Sustainability Statement pursuant to Article 81-ter, paragraph 1,
of Consob Regulation No. 11971 of 14 May 1999 and subsequent amendments
and additions
Pietro Iotti, the Chief Executive Officer, and Gianluca Beschi, the Financial Reporting
Officer for Sabaf S.p.A., hereby certify, pursuant to Article 154-bis, paragraph 5-ter, of
Legislative Decree No. 58 of 24 February 1998, that the Sustainability Statement included
in the report on operations has been drafted:
(a) in accordance with the applicable reporting standards pursuant to Directive
2013/34/EU of the European Parliament and of the Council of 26 June 2013 and
Legislative Decree No. 125 of 6 September 2024;
(b) with the specifications adopted pursuant to Article 8(4) of Regulation (EU)
2020/852 of the European Parliament and of the Council of 18 June 2020.
Ospitaletto, 25 March 2025
Chief Executive Officer
Pietro Iotti
The Financial Reporting Officer
Gianluca Beschi
Sabaf Group | 2024 Report on Operations
123
Annexes to the Report on Operations
Sabaf Group | 2024 Report on Operations
124
Reconciliation of the consolidated income statement at 31 December 2024
(
€
/000)
2024
IAS29 effect
Normalised
2024
INCOME STATEMENT COMPONENTS
OPERATING REVENUE AND INCOME
Revenue
285,091
(8,126)
276,965
Other income
10,934
(195)
10,739
Total operating revenue and income
296,025
(8,321)
287,704
OPERATING COSTS
Materials
(137,010)
3,274
(133,736)
Change in inventories
4,659
(314)
4,345
Services
(50,943)
826
(50,117)
Personnel costs
(70,402)
1,177
(69,225)
Other operating costs
(1,750)
52
(1,698)
Costs for capitalised in-house work
3,125
-
3,125
Total operating costs
(252,321)
5,015
(247,306)
OPERATING PROFIT BEFORE DEPRECIATION
AND AMORTISATION, CAPITAL
GAINS/LOSSES, AND WRITE-DOWNS/WRITE-
BACKS OF NON-CURRENT ASSETS
43,704
(3,306)
40,398
Amortisation
(22,932)
3,843
(19,089)
Capital gains on disposals of non-current assets
(118)
119
1
Value adjustments of non-current assets
(2,915)
2,809
(106)
EBIT
17,739
3,465
21,204
Financial income
2,480
(103)
2,377
Financial expenses
(4,658)
3
(4,655)
Net income/(charges) from hyperinflation
(4,215)
4,215
-
Exchange rate gains and losses
1,471
(120)
1,351
Profits and losses from equity investments
(8)
-
(8)
PROFIT BEFORE TAXES
12,809
7,460
20,269
Income taxes
(4,916)
1,562
(3,354)
PROFIT FOR THE YEAR
7,893
9,022
16,915
of which:
Minority interests
965
-
965
PROFIT ATTRIBUTABLE TO THE GROUP
6,928
9,022
15,950
Sabaf Group | 2024 Report on Operations
125
Reconciliation of the consolidated income statement at 31 December 2023
(
€
/000)
2023
IAS29
effect
Start-up
effect
Normalised
2023
INCOME STATEMENT COMPONENTS
OPERATING REVENUE AND INCOME
Revenue
237,949
1,160
(23)
239,086
Other income
9,056
19
(39)
9,036
Total operating revenue and income
247,005
1,179
(62)
248,122
OPERATING COSTS
Materials
(112,684)
122
83
(112,479)
Change in inventories
(3,433)
(102)
6
(3,529)
Services
(44,923)
(204)
2,081
(43,046)
Personnel costs
(58,160)
(188)
539
(57,809)
Other operating costs
(1,735)
(21)
2
(1,754)
Costs for capitalised in-house work
3,542
-
-
3,542
Total operating costs
(217,393)
(393)
2,711
(215,075)
OPERATING PROFIT BEFORE
DEPRECIATION AND AMORTISATION,
CAPITAL GAINS/LOSSES, AND WRITE-
DOWNS/WRITE-BACKS OF NON-
CURRENT ASSETS
29,612
786
2,649
33,047
Amortisation
(20,066)
1,920
1,075
(17,071)
Capital gains on disposals of non-current assets
1,516
4
-
1,520
Value adjustments of non-current assets
-
-
-
-
EBIT
11,062
2,710
3,724
17,496
Financial income
1,815
110
-
1,925
Financial expenses
(5,248)
(11)
-
(5,259)
Net income/(charges) from hyperinflation
(5,276)
5,276
-
-
Exchange rate gains and losses
(2,359)
190
-
(2,169)
Profits and losses from equity investments
-
-
-
-
PROFIT BEFORE TAXES
(6)
8,275
3,724
11,993
Income taxes
3,386
(754)
(194)
2,438
PROFIT FOR THE YEAR
3,380
7,521
3,530
14,431
of which:
Minority interests
277
-
-
277
PROFIT ATTRIBUTABLE TO THE GROUP
3,103
7,521
3,530
14,154
Sabaf Group | Consolidated financial statements at 31 December 2024
126
CONSOLIDATED FINANCIAL
STATEMENTS
AT 31 DECEMBER 2024
Via dei Carpini, 1 – OSPITALETTO (BS) Italy
Share capital €12,686,795 fully paid in
www.sabafgroup.com
Sabaf Group | Consolidated financial statements at 31 December 2024
127
GROUP STRUCTURE AND CORPORATE BODIES
Group structure
Parent company
SABAF S.p.A.
Subsidiaries and equity interest pertaining to the Group
Companies consolidated on a line-by-line basis
Faringosi Hinges S.r.l.
100%
Sabaf do Brasil Ltda. (Sabaf Brazil)
100%
Sabaf Beyaz Esya Parcalari Sanayi Ve Ticaret Limited Sirketi (Sabaf
Turkey)
100%
Sabaf Appliance Components (Kunshan) Co., Ltd. (Sabaf China)
100%
Sabaf US Corp. (Sabaf US)
100%
A.R.C. S.r.l.
100%
Sabaf India Private Limited (Sabaf India)
100%
Sabaf Mexico Appliance Components S.A. de c.v. (Sabaf Mexico)
100%
C.M.I. S.r.l.
100%
C.G.D. S.r.l.
100%
P.G.A S.r.l.
100%
Sabaf America Inc. (Sabaf America)
100%
Mansfield Engineered Components LLC (MEC)
51%
Board of Directors
Chairman
Claudio Bulgarelli
Chief Executive Officer
Pietro Iotti
Director
Gianluca Beschi
Director
Alessandro Potestà
Director
Cinzia Saleri
Director (*)
Laura Ciambellotti
Director (*)
Francesca Michela Maurelli
Director (*)
Federica Menichetti
Director (*)
Daniela Toscani
(*) independent directors
Board of Statutory Auditors
Chairman
Alessandra Tronconi
Statutory Auditor
Maria Alessandra Zunino de Pignier
Statutory Auditor
Mauro Vivenzi
Independent Auditors
EY S.p.A.
Sabaf Group | Consolidated financial statements at 31 December 2024
128
Consolidated statement of financial position
Notes
31/12/2024
31/12/2023
(
€
/000)
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment
1
Investment property
2
Intangible assets
3
Equity investments
4
Non-current receivables
5
Deferred tax assets
22
Total non-current assets
CURRENT ASSETS
Inventories
6
Trade receivables
7
Tax receivables
8
Other current receivables
9
Current financial assets
10
Cash and cash equivalents
11
Total current assets
ASSETS HELD FOR SALE
TOTAL ASSETS
SHAREHOLDERS' EQUITY AND LIABILITIES
SHAREHOLDERS’ EQUITY
Share capital
12
Retained earnings, Other reserves
13
IAS 29 reserve
Profit for the year
Total equity interest of the Group
Minority interests
Total shareholders’ equity
NON-CURRENT LIABILITIES
Loans
14
Other financial liabilities
15
Post-employment benefit and retirement provisions
16
Provisions for risks and charges
17
Deferred tax liabilities
22
Other non-current payables
18
Total non-current liabilities
CURRENT LIABILITIES
Loans
14
Other financial liabilities
15
Trade payables
19
Tax payables
20
Other payables
21
Total current liabilities
LIABILITIES HELD FOR SALE
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
Sabaf Group | Consolidated financial statements at 31 December 2024
129
Consolidated income statement
Notes
2024
2023
(
€
/000)
INCOME STATEMENT COMPONENTS
OPERATING REVENUE AND INCOME
Revenue
24
Other income
25
Total operating revenue and income
OPERATING COSTS
Materials
26
(137,010 )
(112,684 )
Change in inventories
(3,433 )
Services
27
(50,943 )
(44,923 )
Personnel costs
28
(70,402 )
(58,160 )
Other operating costs
29
(1,750 )
(1,735 )
Costs for capitalised in-house work
Total operating costs
(252,321 )
(217,393 )
OPERATING PROFIT BEFORE DEPRECIATION AND
AMORTISATION, CAPITAL GAINS/LOSSES, AND
WRITE-DOWNS/WRITE-BACKS OF NON-CURRENT
ASSETS
Amortisation
1, 2, 3
(22,932 )
(20,066 )
Capital gains on disposals of non-current assets
(118 )
Value adjustments of non-current assets
(2,915 )
EBIT
Financial income
30
Financial expenses
31
(4,658 )
(5,248 )
Net income/(charges) from hyperinflation
31
(4,215 )
(5,276 )
Exchange rate gains and losses
32
(2,359 )
Profits and losses from equity investments
(8 )
PROFIT BEFORE TAXES
(6 )
Income taxes
33
(4,916 )
PROFIT FOR THE YEAR
of which:
Minority interests
PROFIT ATTRIBUTABLE TO THE GROUP
EARNINGS PER SHARE (EPS)
34
Base (€)
Diluted (€)
Sabaf Group | Consolidated financial statements at 31 December 2024
130
Consolidated statement of comprehensive income
2024
2023
(
€
/000)
PROFIT FOR THE YEAR
Total profits/losses that will not be subsequently
reclassified under profit (loss) for the year
Actuarial evaluation of post-employment benefit
(48 )
Tax effect
(37 )
Total profits/losses that will be subsequently
reclassified under profit (loss) for the year
Forex differences due to translation of financial statements in foreign currencies
(12,146 )
(25,713 )
Hedge accounting for derivative financial instruments
(139 )
TOTAL PROFIT
(4,391 )
(22,294 )
of which:
Net profit for the period attributable to minority interests
Forex differences due to translation of financial statements
in foreign currencies - attributable to minority interests
Total profit attributable to minority interests
TOTAL PROFIT ATTRIBUTABLE TO THE GROUP
(5,925 )
(22,571 )
Sabaf Group | Consolidated financial statements at 31 December 2024
131
Statement of changes in consolidated shareholders’ equity
(
€
/000)
Share
capital
Share
premium
reserve
Legal
reserve
Treasury
shares
Translatio
n reserve
IAS 29
reserve
Post-
employme
nt benefit
reserve
Other
reserves
Profit for the
year
Group
shareholde
rs' equity
Minority
interests
Sharehold
ers’ equity
Balance at 31 December 2022
(3,221 )
(54,715 )
(328 )
Allocation of 2022 profit
- carried forward
(15,249 )
Share capital increase
IFRS 2 measurement Stock Grant
Treasury share transactions
(462 )
(462 )
(462 )
Change in the scope of consolidation
Put options on
minorities
(10,866 )
(10,866 )
(10,866 )
Hyperinflation (IAS 29)
Other changes
(1 )
(1 )
(1 )
Change in translation reserve
(25,713 )
(25,713 )
(25,713 )
Other components of the total result
(37 )
Total profit at 31 December 2023
(25,713 )
(37 )
(22,571 )
(22,294 )
Balance at 31 December 2023
(3,683 )
(80,428 )
(365 )
Allocation of 2023 profit
- carried forward
(175 )
- dividends
(3,848 )
(2,928 )
(6,776 )
(1,887 )
(8,663 )
IFRS 2 measurement Stock Grant
(1,479 )
Treasury share transactions
(211 )
(211 )
(211 )
Hyperinflation (IAS 29)
Other changes
(7 )
(7 )
(7 )
Change in translation reserve
(12,715 )
(12,715 )
(12,146 )
Other components of the total result
(139 )
Total profit at 31 December 2024
(12,715 )
(139 )
(5,925 )
(4,391 )
Balance at 31 December 2024
(2,320 )
(93,143 )
(364 )
Sabaf Group | Consolidated financial statements at 31 December 2024
132
Consolidated
statement of cash flows
2024
2023
Cash and cash equivalents at beginning of year
Profit for the year
Adjustments for:
- Depreciations and amortisation
- Write-downs of non-current assets
- Realised gains/losses
(1,516 )
- Valuation of the stock grant plan
- Profits and losses from equity investments
- Monetary revaluation IAS 29
- Net financial income and expenses
(6,055 )
- Income tax
(3,386 )
- Non-monetary foreign exchange differences
Change in post-employment benefit
Change in risk provisions
(33 )
(204 )
Change in trade receivables
(9,745 )
Change in inventories
(3,520 )
Change in trade payables
(484 )
Change in net working capital
(13,749 )
Change in other receivables and payables, deferred taxes
Payment of taxes
(1,960 )
(3,763 )
Payment of financial expenses
(3,813 )
(3,405 )
Collection of financial income
Cash flows from operations
Investments in non-current assets
- intangible
(3,030 )
(2,714 )
- tangible
(12,132 )
(16,802 )
- financial
Disposal of non-current assets
Cash flow absorbed by investments
(14,706 )
(16,942 )
Free cash flow
Repayment of loans
(27,469 )
(33,671 )
Raising of loans
Short-term financial assets
(6,089 )
Purchase/sale of treasury shares
(211 )
(462 )
Payment of dividends
(8,663 )
Cash flow absorbed by financing activities
(16,773 )
(14,670 )
Mansfield (MEC) acquisition
(8,325 )
Acquisition of P.G.A.
(783 )
Share capital increase
Foreign exchange differences
(1,266 )
(1,014 )
Net cash flows for the year
(5,712 )
Cash and cash equivalents at end of year (Note 11)
Sabaf Group | Consolidated financial statements at 31 December 2024
133
Sabaf Group | Consolidated financial statements at 31 December 2024
134
Sabaf Group | Consolidated financial statements at 31 December 2024
135
Sabaf Group | Consolidated financial statements at 31 December 2024
136
Sabaf Group | Consolidated financial statements at 31 December 2024
137
Sabaf Group | Consolidated financial statements at 31 December 2024
138
Sabaf Group | Consolidated financial statements at 31 December 2024
139
Sabaf Group | Consolidated financial statements at 31 December 2024
140
Sabaf Group | Consolidated financial statements at 31 December 2024
141
Sabaf Group | Consolidated financial statements at 31 December 2024
142
Sabaf Group | Consolidated financial statements at 31 December 2024
143
Sabaf Group | Consolidated financial statements at 31 December 2024
144
Sabaf Group | Consolidated financial statements at 31 December 2024
145
Sabaf Group | Consolidated financial statements at 31 December 2024
146
Sabaf Group | Consolidated financial statements at 31 December 2024
147
Sabaf Group | Consolidated financial statements at 31 December 2024
148
Sabaf Group | Consolidated financial statements at 31 December 2024
149
Sabaf Group | Consolidated financial statements at 31 December 2024
150
Sabaf Group | Consolidated financial statements at 31 December 2024
151
Sabaf Group | Consolidated financial statements at 31 December 2024
152
Comments on significant balance sheet items
Sabaf Group | Consolidated financial statements at 31 December 2024
153
Sabaf Group | Consolidated financial statements at 31 December 2024
154
Sabaf Group | Consolidated financial statements at 31 December 2024
155
Sabaf Group | Consolidated financial statements at 31 December 2024
156
Sabaf Group | Consolidated financial statements at 31 December 2024
157
Sabaf Group | Consolidated financial statements at 31 December 2024
158
Sabaf Group | Consolidated financial statements at 31 December 2024
159
Sabaf Group | Consolidated financial statements at 31 December 2024
160
Sabaf Group | Consolidated financial statements at 31 December 2024
161
Sabaf Group | Consolidated financial statements at 31 December 2024
162
Sabaf Group | Consolidated financial statements at 31 December 2024
163
Sabaf Group | Consolidated financial statements at 31 December 2024
164
Sabaf Group | Consolidated financial statements at 31 December 2024
165
Sabaf Group | Consolidated financial statements at 31 December 2024
166
Sabaf Group | Consolidated financial statements at 31 December 2024
167
Sabaf Group | Consolidated financial statements at 31 December 2024
168
22. DEFERRED TAX ASSETS AND LIABILITIES
31/12/2024
31/12/2023
Change
Deferred tax assets
10,460
13,315
(2,855)
Deferred tax liabilities
(3,807)
(5,136)
1,329
Net position
6,653
8,179
(1,526)
The table below analyses the nature of the temporary differences that determine the
recognition of deferred tax liabilities and assets and their changes during the year and the
previous year.
Non-
current
tangible
and
intangible
assets
Provisions,
value
adjustments
Fair value
of
derivative
instruments
Goodwill
Tax
incentives
Tax
losses
Actuarial
evaluation
of post-
employment
benefit
effect
Other
temporary
differences
Total
31/12/2023
(140)
1,395
(222)
709
3,281
467
121
1,533
1,035
8,179
Through profit
or loss
(325)
850
121
(177)
1,513
(248)
-
(2,799)
193
(872)
In
shareholders'
equity
-
-
9
-
-
-
1
-
-
10
Reclassification
from tax
receivables
(390)
-
-
-
-
609
-
390
-
609
Forex
differences
(399)
(19)
-
-
(365)
(31)
-
(432)
(27)
(1,273)
31/12/2024
(1,254)
2,226
(92)
532
4,429
797
122
(1,308)
1,201
6,653
Sabaf Group | Consolidated financial statements at 31 December 2024
169
Sabaf Group | Consolidated financial statements at 31 December 2024
170
Sabaf Group | Consolidated financial statements at 31 December 2024
171
Sabaf Group | Consolidated financial statements at 31 December 2024
172
Sabaf Group | Consolidated financial statements at 31 December 2024
173
Sabaf Group | Consolidated financial statements at 31 December 2024
174
Sabaf Group | Consolidated financial statements at 31 December 2024
175
Sabaf Group | Consolidated financial statements at 31 December 2024
176
Sabaf Group | Consolidated financial statements at 31 December 2024
177
Sabaf Group | Consolidated financial statements at 31 December 2024
178
Sabaf Group | Consolidated financial statements at 31 December 2024
179
Sabaf Group | Consolidated financial statements at 31 December 2024
180
Sabaf Group | Consolidated financial statements at 31 December 2024
181
Sabaf Group | Consolidated financial statements at 31 December 2024
182
Sabaf Group | Consolidated financial statements at 31 December 2024
183
Sabaf Group | Consolidated financial statements at 31 December 2024
184
Sabaf Group | Consolidated financial statements at 31 December 2024
185
Sabaf Group | Consolidated financial statements at 31 December 2024
186
Name of the parent company: Sabaf S.p.A.
Contacts: Tel: +39 030 - 6843001
Fax: +39 030 - 6848249
Email: info@sabaf.it
Website: www.sabafgroup.com
Tax information: REA Brescia 347512
Tax code 03244470179
VAT number 01786910982
Sabaf Group | Consolidated financial statements at 31 December 2024
187
Sabaf Group | Consolidated financial statements at 31 December 2024
188
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
189
SABAF S.p.A.
SEPARATE FINANCIAL
STATEMENTS
AT 31 DECEMBER 2024
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
190
CORPORATE BODIES
Board of Directors
Chairman
Claudio Bulgarelli
Chief Executive Officer
Pietro Iotti
Director
Gianluca Beschi
Director
Alessandro Potestà
Director
Cinzia Saleri
Director (*)
Laura Ciambellotti
Director (*)
Francesca Michela Maurelli
Director (*)
Federica Menichetti
Director (*)
Daniela Toscani
(*) Independent directors
Board of Statutory Auditors
Chairman
Alessandra Tronconi
Statutory Auditor
Maria Alessandra Zunino de Pignier
Statutory Auditor
Mauro Vivenzi
Independent Auditors
EY S.p.A.
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
191
Statement of financial position
(in
€
)
NOTES
31/12/2024
31/12/2023
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment
1
41,411,044
43,641,088
Investment property
2
536,584
691,201
Intangible assets
3
8,300,878
6,584,238
Equity investments
4
130,922,447
126,074,562
Non-current financial assets
5
7,294,122
15,734,371
- of which from related parties
38
7,294,122
15,734,371
Non-current receivables
6
676,733
651,913
Deferred tax assets
22
3,137,496
2,664,226
Total non-current assets
192,279,305
196,041,599
CURRENT ASSETS
Inventories
7
23,870,264
21,836,419
Trade receivables
8
30,793,497
28,705,680
- of which from related parties
38
12,476,174
15,393,271
Tax receivables
9
4,748,643
6,030,934
- of which from related parties
38
400,798
241,331
Other current receivables
10
1,514,010
1,398,665
Current financial assets
11
375,526
859,797
Cash and cash equivalents
12
2,039,118
13,899,318
Total current assets
63,341,057
72,730,813
TOTAL ASSETS
255,620,362
268,772,412
SHAREHOLDERS' EQUITY AND LIABILITIES
SHAREHOLDERS’ EQUITY
Share capital
13
12,686,795
12,686,795
Retained earnings, Other reserves
112,386,335
115,751,085
Profit for the year
1,327,683
3,503,797
Total shareholders’ equity
126,400,813
131,941,677
NON-CURRENT LIABILITIES
Loans
15
58,117,675
76,312,511
Post-employment benefit and retirement provisions
17
1,481,739
1,574,371
Provisions for risks and charges
18
262,604
297,248
Deferred tax liabilities
22
440,753
549,721
Total non-current liabilities
60,302,771
78,733,851
CURRENT LIABILITIES
Loans
15
34,525,653
23,692,542
- of which from related parties
38
3,000,000
3,000,000
Other financial liabilities
16
9,600
175,000
Trade payables
19
21,626,206
22,605,272
- of which from related parties
38
1,333,329
1,185,573
Tax payables
20
1,819,400
1,484,669
- of which from related parties
38
50,674
132,816
Other payables
21
10,935,920
10,139,401
Total current liabilities
68,916,778
58,096,884
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
255,620,362
268,772,412
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
192
Income statement
NOTES
2024
2023
(in
€
)
INCOME STATEMENT COMPONENTS
OPERATING REVENUE AND INCOME
Revenue
24
106,227,726
99,841,748
- of which from related parties
38
21,466,025
19,892,042
Other income
25
6,890,868
6,860,349
- of which from related parties
38
2,878,829
3,206,776
Total operating revenue and income
113,118,594
106,702,097
OPERATING COSTS
Materials
26
(50,960,776)
(45,935,312)
- of which from related parties
38
(2,221,821)
(3,095,049)
Change in inventories
2,033,845
(5,074,801)
Services
27
(24,605,982)
(22,123,910)
- of which to related parties
38
(322,630)
(447,295)
Personnel costs
28
(32,175,450)
(30,072,064)
Other operating costs
29
(799,802)
(1,102,203)
Costs for capitalised in-house work
2,608,193
3,123,763
Total operating costs
(103,899,973)
(101,184,527)
OPERATING PROFIT BEFORE DEPRECIATION
AND AMORTISATION,
CAPITAL GAINS/LOSSES, WRITE-
DOWNS/WRITE-BACKS
OF NON-CURRENT ASSETS
9,218,621
5,517,571
Amortisation
1,2,3
(8,117,441)
(8,198,888)
Capital gains/(losses) on disposals of non-current assets
685,223
1,867,189
- of which to related parties
38
643,810
336,097
EBIT
1,786,403
(814,128)
Financial income
30
943,995
574,700
- of which to related parties
38
694,171
415,764
Financial expenses
31
(3,479,369)
(3,466,228)
- of which to related parties
(138,299)
(113,428)
Exchange rate gains and losses
32
824,669
(170,993)
Profits and losses from equity investments
33
1,098,982
5,000,000
- of which to related parties
1,107,220
5,000,000
PROFIT BEFORE TAXES
1,174,686
1,123,351
Income taxes
34
152,998
2,380,446
PROFIT FOR THE YEAR
1,327,683
3,503,797
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
193
Comprehensive income statement
2024
2023
(in €)
PROFIT FOR THE YEAR
1,327,683
3,503,797
Total profits/losses that will not be subsequently
reclassified under profit (loss) for the year
Actuarial evaluation of post-employment benefit
31,729
9,705
Tax effect
(7,615)
(2,329)
24,114
7,376
Total profits/losses that will not be subsequently
reclassified under profit (loss) for the year
Hedge accounting for derivative financial instruments
0
13,596
Total other profits/(losses) net of taxes for the year
24,114
20,972
TOTAL PROFIT
1,351,797
3,524,769
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
194
Statement of changes in shareholders' equity
(€/000)
Capital
Social
Share premium
reserve
Legal reserve
Reserve
Treasury
shares
Actuarial
valuation of
Post-
employment
benefit reserve
Other
reserves
Profit
for the year
Total
shareholders’
equity
Balance at 31 December 2022
11,533
10,002
2,307
(3,222)
(399)
88,557
2,247
111,025
Allocation of 2022 profit:
to the extraordinary reserve
2,247
(2,247)
0
Share capital increase
1,154
16,158
17,312
Stock grant plan (IFRS 2)
543
543
Treasury share transactions
(462)
(462)
Total profit at 31/12/2023
7
13
3,504
3,524
Balance at 31 December 2023
12,687
26,160
2,307
(3,684)
(392)
91,360
3,504
131,942
Allocation of 2023 profit:
- To legal reserve
175
(175)
0
- Payment of dividends
(3,447)
(3,329)
(6,776)
Purchase/sale of treasury shares
(211)
(211)
Stock grant plan (IFRS 2)
1,573
(1,479)
94
Treasury share transactions
Total profit at 31/12/2024
24
1,328
1,352
Balance at 31 December 2024
12,687
26,160
2,482
(2,322)
(368)
86,434
1,328
126,401
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
195
Statement of Cash Flows
(
€
/000)
2024 FY
2023 FY
Cash and cash equivalents at beginning of year
13,899
2,604
Profit for the year
1,328
3,504
Adjustments for:
- Depreciations and amortisation
8,117
8,199
- Realised gains
(685)
(1,867)
- Profits and losses from equity investments
(1,099)
(5,000)
- Valuation of the stock grant plan
94
542
- Net financial income and expenses
2,535
2,891
- Non-monetary foreign exchange differences
(393)
(286)
- Income tax
(153)
(2,380)
Change in post-employment benefit
(68)
(6)
Change in risk provisions
(35)
(57)
Change in trade receivables
(2,088)
(391)
Change in inventories
(2,034)
5,075
Change in trade payables
(979)
1,438
Change in net working capital
(5,101)
6,122
Change in other receivables and payables, deferred taxes
1,957
3,926
Payment of financial expenses
(2,907)
(2,725)
Collection of financial income
857
575
Cash flows from operations
4,448
13,437
Investments in non-current assets
- intangible
(6,618)
(2,367)
- tangible
(2,833)
(6,433)
- financial
(8,214)
(14,569)
Disposal of non-current assets
3,104
6,479
Cash flow absorbed by investments
(14,561)
(16,890)
Free cash flow
(10,113)
(3,453)
Repayment of loans
(22,759)
(30,415)
Raising of loans
14,988
26,087
Change in financial assets
8,833
(3,774)
Purchase/Sale of treasury shares
(211)
(462)
Payment of dividends
(6,776)
0
Share capital increase
0
17,312
Collection of dividends
4,177
6,000
Cash flow absorbed by financing activities
(1,747)
(14,748)
Total cash flows
(11,860)
(11,295)
Cash and cash equivalents at end of year (Note 12)
2,039
13,899
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
196
EXPLANATORY NOTES
ACCOUNTING STANDARDS
Statement of compliance and basis of presentation
The separate financial statements of Sabaf S.p.A. for the financial year 2024 have been
prepared in compliance with the International Financial Reporting Standards (IFRS) issued
by the International Accounting Standards Board (IASB) and adopted by the European
Union. Reference to IFRS also includes all current International Accounting Standards (IAS).
The separate financial statements are drawn up in euro, which is the currency in the
economy in which the Company operates. The income statement, the comprehensive
income statement and the statement of financial position schedules are prepared in euro,
while the statement of cash flows, the statement of changes in shareholders’ equity and
the values reported in the explanatory notes are in thousands of euro.
The financial statements have been prepared on a historical cost basis except for some
revaluations of property, plant and equipment undertaken in previous years, and are
considered a going concern. With reference to this assumption, the Company assessed
that it is a going concern (as defined by paragraphs 25 and 26 of IAS 1), also due to the
strong competitive position, high profitability of the Sabaf Group and solidity of the
financial structure.
Sabaf S.p.A., as the Parent Company, also prepared the consolidated financial statements
of the Sabaf Group at 31 December 2024.
Financial statements
The Company adopted the following formats:
• current and non-current assets and current and non-current liabilities are stated
separately in the statement of the financial position;
• an income statement that expresses costs using a classification based on the nature
of each item;
• a comprehensive income statement that expresses revenue and expense items not
recognised in profit for the year as required or permitted by IFRS;
• a statement of cash flows that presents cash flows originating from operating
activity, using the indirect method.
Use of these formats permits the most meaningful representation of the Company’s capital,
business and financial status.
Starting with these Separate Financial Statements, for the purpose of a better presentation
of the economic performance of the Company, write-downs of equity investments are
classified under 'Gains and losses from equity investments'. Previously, write-downs of
equity investments were recorded under 'Gains and Losses on disposal of non-current
assets', income from royalties was reclassified under Revenues, as part of the company's
ordinary operations.
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
197
For the sake of consistency of comparison, this classification was also adopted in the 2023
income statement, which is presented for comparative purposes in these separate financial
statements.
Accounting policies
The accounting standards and policies applied for the preparation of the separate financial
statements at 31 December 2024, unchanged versus the previous year, are shown below:
Property, plant and equipment
These are recognised at purchase or manufacturing cost. The cost includes directly
chargeable ancillary costs. These costs also include revaluations undertaken in the past
based on monetary revaluation rules or pursuant to company mergers.
Depreciation is calculated according to rates deemed appropriate to spread the carrying
value of tangible assets over their useful working life. Estimated useful working life in years,
unchanged compared to previous financial years, is as follows:
Buildings
33
Light constructions
10
General plant
10
Specific plant and machinery
6 – 10
Equipment
4
Furniture
8
Electronic equipment
5
Vehicles and other transport means
5
Ordinary maintenance costs are expensed in the year in which they are incurred; costs
that increase the asset value or useful working life are capitalised and depreciated
according to the residual possibility of utilisation of the assets to which they refer.
Land is not depreciated.
Leased assets
The Company assesses at the time of signing an agreement whether it is, or contains, a
lease, or if the contract gives the right to control the use of an identified asset for a period
of time in exchange for a consideration.
The Company adopts a single recognition and measurement model for all leases according
to which the assets acquired relating to the right of use are shown under assets at purchase
value less depreciation, any impairment losses and adjusted for any re-measurement of
lease liabilities.
Assets are depreciated on a straight-line basis from the starting date of the agreement until
the end of the useful life of the asset or the end of the lease agreement, whichever comes
first. Set against recognition of such assets, the amounts payable to the lessor, are posted
among short- and medium-/long-term payables, by measuring them at the present value
of the lease payments not yet made. Moreover, financial charges pertaining to the period
are charged to the income statement.
Adoption of the accounting standard IFRS 16 “Leases”
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
198
The Company applied IFRS 16 from 1 January 2019 by using the amended retrospective
approach.
In adopting IFRS 16, the Company made use of the exemption granted in paragraph 5 a)
in relation to leases with a duration of less than 12 months (known as short-term leases)
and the exemption granted in paragraph 5 b) in relation to lease agreements whose
underlying asset is a low-value asset. For these agreements, lease payments are recognised
in the income statement on a straight-line basis for the duration of the respective
agreements.
When evaluating the lease liabilities, Sabaf S.p.A. discounted the payments due for the
lease using the incremental borrowing rate, the weighted average of which was 2.63% on
31 December 2024 and 1.78% on 31 December 2023.
The lease term is calculated based on the non-cancellable period of the lease, including
the periods covered by the option to extend or to terminate the lease if it is reasonably
certain that those options will be exercised or not exercised, taking account of all relevant
factors that create an economic incentive relating to those decisions.
Assets held for sale
Investment property
Investment property is valued at cost, including revaluations undertaken in the past based
on monetary revaluation rules or pursuant to company mergers.
The depreciation is calculated based on the estimated useful life, considered to be 33 years.
If the recoverable amount of the investment property – determined based on the market
value of the properties – is estimated to be lower than its carrying value, the asset’s
carrying value is reduced to the lower recoverable amount, recognising impairment in the
income statement.
When there is no longer any reason for a write-down to be maintained, the carrying value
of the asset (or cash generating unit) is increased to the new value stemming from the
estimate of its recoverable amount – but not beyond the net carrying value that the asset
would have had if it had not been written down for impairment. Reversal of impairment
loss is recognised in the income statement.
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
199
Intangible assets
As established by IAS 38, intangible assets acquired or internally produced are recognised
as assets when it is probable that use of the asset will generate future economic benefits
and when asset cost can be measured reliably. If it is considered that these future economic
benefits will not be generated, the development costs are written down in the year in which
this is ascertained.
Such assets are measured at purchase or production cost and - if the assets concerned
have a finite useful life - are amortised on a straight-line basis over their estimated useful
life.
The useful life of projects for which development costs are capitalised is estimated to be
10 years.
The SAP management system is amortised over five years.
Equity investments
Equity investments in subsidiaries, associates and joint-ventures are stated in the accounts
at cost. In accordance with IAS 36, the value recognised in the financial statements is
subject to an impairment test if there are indications of possible impairment.
Equity investments in companies other than subsidiaries, associates and joint ventures are
classified as financial assets measured at fair value, which normally corresponds to the
transaction price including directly attributable transaction costs. Subsequent changes in
fair value are recognised in the Income statement (FVPL) or, if the option is exercised in
accordance with the standard, in the Statement of comprehensive income (FVOCI) under
the heading “Instrument reserve at FVOCI”.
Impairment
At each end of the reporting period, Sabaf S.p.A. reviews the carrying value of its property,
plant and equipment, intangible assets and equity investments to determine whether there
are signs of impairment of these assets. If there is any such indication, the recoverable
amount of said assets is estimated so as to determine the total of the write-down. If it is
not possible to estimate the recoverable amount individually, the Company estimates the
recoverable amount of the cash generating unit (CGU) to which the asset belongs. In
particular, the recoverable amount of the cash generating units (which generally coincide
with the legal entity to which the capitalised assets refer) is verified by determining the
value of use. The recoverable amount is the higher of the net selling price and value of use.
In measuring the value of use, future cash flows net of taxes, estimated based on past
experience, are discounted to their present value using a pre-tax rate that reflects current
market valuations of the present cost of money and specific asset risk. The main
assumptions used for calculating the value of use concern the discount rate, growth rate,
expected changes in selling prices and cost trends during the period used for the
calculation. The growth rates adopted are based on future market expectations in the
relevant sector. Changes in the sales prices are based on past experience and on the
expected future changes in the market. The Company prepares operating cash flow
forecasts based on the most recent budgets approved by the Boards of Directors of the
investees, draws up four-year forecasts and determines the terminal value (current value
of perpetual income), which expresses the medium- and long-term operating flows in the
specific sector.
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
200
Furthermore, the Company checks the recoverable amount of its investees at least once a
year when the separate financial statements are prepared.
If the recoverable amount of an asset (or CGU) is estimated to be lower than its carrying
value, the asset’s carrying value is reduced to the lower recoverable amount, recognising
impairment of value in the income statement.
When there is no longer any reason for a write-down to be maintained, the carrying value
of the asset (or cash generating unit) is increased to the new value stemming from the
estimate of its recoverable amount – but not beyond the net carrying value that the asset
would have had if it had not been written down for impairment. Reversal of impairment
loss is recognised in the income statement.
Inventories
Inventories are measured at the lower of purchase or production cost – determined using
the weighted average cost method – and the corresponding fair value represented by the
replacement cost for purchased materials and by the presumed realisable value for finished
and semi-processed products – calculated taking into account any manufacturing costs
and direct selling costs yet to be incurred. Inventory cost includes accessory costs and the
portion of direct and indirect manufacturing costs that can reasonably be assigned to
inventory items. Inventories subject to obsolescence and low turnover are written down
in relation to their possibility of use or realisation. Inventory write-downs are derecognised
in subsequent years if the reasons for such write-downs cease to exist.
Trade receivables and other financial assets
Initial recognition
Upon initial recognition, financial assets are classified, as the case may be, on the basis of
subsequent measurement methods, i.e. at amortised cost, at fair value recognised in other
comprehensive income (OCI) and at fair value recognised in the income statement.
The classification of financial assets at initial recognition depends on the characteristics of
the contractual cash flows of the financial assets and on the business model that the
Company uses to manage them.
Trade receivables that do not contain a significant financing component are valued at the
transaction price determined in accordance with IFRS 15. See the “Revenue from
Contracts with Customers” paragraph.
Other financial assets are recognised at fair value plus, in the case of a financial asset not
at fair value recognised in the income statement, transaction costs.
For a financial asset to be classified and measured at amortised cost or at fair value
recognised in OCI, it must generate cash flows that depend solely on the principal and
interest on the amount of principal to be repaid (known as ‘solely payments of principal
and interest (SPPI)’). This measurement is referred to as the SPPI test and is carried out at
the instrument level.
Subsequent measurement
- The measurement of financial liabilities depends on their classification, as
described below.
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
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Financial assets at amortised cost (debt instruments)
This category is the most important for the Company. The Company measures the
financial assets at amortised cost if both of the following requirements are met:
• the financial asset is held as part of a business model whose objective is to hold
financial assets for the purpose of collecting contractual cash flows
- and
• the contractual terms of the financial asset envisage, at certain dates, cash flows
represented solely by payments of principal and interest on the amount of principal
to be repaid.
Financial assets at amortised cost are subsequently measured using the effective interest
method and are subject to impairment.
Gains and losses are recognised in the income
statement when the asset is derecognised, modified or revalued.
Financial assets at amortised cost of the Company include trade receivables.
Financial assets at fair value through profit or loss
This category includes all assets held for trading, assets designated at initial recognition as
financial assets measured at fair value with changes recognised in the income statement,
or financial assets that must be measured at fair value. Assets held for trading are all those
assets acquired for sale or repurchase in the short term. Derivatives, separated or
otherwise, are classified as financial instruments held for trading, unless they are
designated as effective hedging instruments. Financial assets with cash flows that are not
represented solely by principal and interest payments are classified and measured at fair
value through profit or loss, regardless of the business model. Financial instruments at fair
value with changes recognised in the income statement are recognised in the statement of
financial position at fair value and net changes in fair value are recognised in the income
statement. This category includes derivative instruments.
The Company does not hold financial assets as financial assets at fair value through profit
or loss with reclassification of cumulative gains and losses or financial assets as financial
assets at fair value through profit or loss without reversal of cumulative gains and losses
upon derecognition.
Cancellation
A financial asset (or, if applicable, part of a financial asset or part of a group of similar
financial assets) is firstly written off (e.g. removed from the statement of financial position
of the Company) when:
the rights to receive cash flows from the asset are extinguished, or
the Company transferred to a third party the right to receive financial flows from the
asset or has taken on the contractual obligation to pay them fully and without delay
and (a) transferred substantially all the risks and benefits of the ownership of the
financial asset or (b) did not substantially transfer or retain all the risks and benefits
of the asset, but transferred their control.
If the Company has transferred the rights to receive financial flows from an asset or has
signed an agreement on the basis of which it retains the contractual rights to receive the
cash flows of the financial asset, but assumes a contractual obligation to pay the financial
flows to one or more beneficiaries (pass-through), it considers whether or to what extent
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
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it has retained the risks and benefits concerning the ownership. If it has not substantially
transferred or retained all the risks and benefits or has not lost control over it, the asset
continued to be recognised in the financial statements of the Company to the extent of its
residual involvement in the asset itself. In this case, the company also recognises an
associated liability. The transferred asset and the associated liability are measured in such
a way as to reflect the rights and obligations that pertain to the Company. When the
residual involvement of the entity is a guarantee in the transferred asset, the involvement
is measured based on the amount of the asset or the maximum amount of the
consideration received that the entity could be obliged to pay, whichever lower.
Provisions for risks and charges
Provisions for risks and charges are provisioned to cover losses and debts, the existence
of which is certain or probable, but whose amount or date of occurrence cannot be
determined at the end of the year. Provisions are stated in the statement of financial
position only when a legal or implicit obligation exists that determines the use of resources
with an impact on profit and loss to meet that obligation and the amount can be reliably
estimated. If the effect is significant, the provisions are calculated by updating future cash
flows estimated at a rate including taxes such as to reflect current market valuations of the
current value of the cash and specific risks associated with the liability.
Post-employment benefit
The post-employment benefit is provisioned to cover the entire liability accruing vis-à-vis
employees in compliance with current legislation and with national and supplementary
company collective labour contracts. This liability is subject to revaluation via application
of indices fixed by current regulations. Up to 31 December 2006, post-employment
benefits were considered defined-benefit plans and accounted for in compliance with IAS
19, using the projected unit-credit method. The regulations of this fund were amended by
Italian Law no. 296 of 27 December 2006 and subsequent Decrees and Regulations issued
during the first months of 2007. In the light of these changes, and, in particular, for
companies with at least 50 employees, post-employment benefits must now be considered
a defined-benefit plan only for the portions accruing before 1 January 2007 (and not yet
paid as at the end of the reporting period). Conversely, portions accruing after that date
are treated as defined-contribution plans.
Actuarial gains or losses are recognised immediately under “Other total profits/(losses)”.
Trade payables and other financial liabilities
Initial recognition
All financial liabilities are initially recognised at fair value, in addition to directly
attributable transaction costs in case of mortgages, loans and payables.
The Company's financial liabilities include trade payables and other payables, mortgages
and loans, including current account overdrafts and derivative financial instruments.
Subsequent measurement
- The measurement of financial liabilities depends on their classification, as
described below.
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
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Financial liabilities at fair value through profit or loss
Financial liabilities at fair value with changes recognised in the income statement include
liabilities held for trading and financial liabilities initially recognised at fair value, with
changes recognised in the income statement. Liabilities held for trading are those liabilities
acquired in order to discharge or transfer them in the short term. This category also
includes derivative financial instruments subscribed by the Company and not designated
as hedging instruments in a hedging relationship pursuant to IFRS 9. Embedded
derivatives, separated from the main contract, are classified as financial instruments held
for trading, unless they are designated as effective hedging instruments. Gains or losses on
liabilities held for trading are recognised in the income statement. Financial liabilities are
designated at fair value with changes recognised in the income statement from the date of
initial recognition, only if the criteria of IFRS 9 are met.
Loans and payables
This is the most important category for the Company and includes interest-bearing
payables and loans. After initial statement, loans are valued using the amortised cost
approach, applying the effective interest rate method. Gains and losses are recognised in
the income statement when the liability is discharged, as well as through the amortisation
process. Amortised cost is calculated by recognising the discount or premium on the
acquisition and the fees or costs that are an integral part of the effective interest rate.
Amortisation at the effective interest rate is included in financial expenses in the income
statement.
Cancellation
A financial liability is derecognised when the obligation underlying the liability is
discharged, cancelled or fulfilled. If an existing financial liability is replaced by another
from the same lender, at substantially different conditions, or if the conditions of an
existing liability are substantially changed, this replacement or change is treated as a
derecognition of the original liability accompanied by the recognition of a new liability,
with any differences between the carrying values recognised in the income statement.
Policy for conversion of foreign currency items
Receivables and payables originally expressed in foreign currencies are converted into
euro at the exchange rates in force on the date of the transactions originating them. Forex
differences realised upon collection of receivables and payment of payables in foreign
currency are posted in the income statement. Income and costs relating to foreign-
currency transactions are converted at the rate in force on the transaction date.
At year-end, assets and liabilities expressed in foreign currencies are posted at the spot
exchange rate in force at the end of the reporting period and related foreign exchange
gains and losses are posted in the income statement. If conversion generates a net gain,
this value constitutes a non-distributable reserve until it is effectively realised.
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
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Derivative instruments and hedge accounting
The Company’s business is exposed to financial risks relating to changes in exchange rates,
commodity prices and interest rates. The Company may decide to use derivative financial
instruments to hedge these risks.
Derivatives are initially recognised at cost and are then adjusted to fair value on
subsequent closing dates.
Changes in the fair value of derivatives designated and recognised as effective for hedging
future cash flows relating to the Company’s contractual commitments and planned
transactions are recognised directly in shareholders' equity, while the ineffective portion
is immediately posted in the income statement. If the contractual commitments or planned
transactions materialise in the recognition of assets or liabilities, when such assets or
liabilities are recognised, the gains or losses on the derivative that were directly recognised
in equity are factored back into the initial valuation of the cost of acquisition or carrying
value of the asset or liability. For cash flow hedges that do not lead to recognition of assets
or liabilities, the amounts that were directly recognised in equity are included in the income
statement in the same period when the contractual commitment or planned transaction
hedged impacts profit and loss – for example, when a planned sale actually takes place.
For effective hedges of exposure to changes in fair value, the item hedged is adjusted for
the changes in fair value attributable to the risk hedged and recognised in the income
statement. Gains and losses stemming from the derivative’s valuation are also posted in
the income statement.
Changes in the fair value of derivatives not designated as hedging instruments are
recognised in the income statement in the period when they occur.
Hedge accounting is discontinued when the hedging instrument expires, is sold or is
exercised, or when it no longer qualifies as a hedge. At this time, the cumulative gains or
losses of the hedging instrument recognised in equity are kept in the latter until the planned
transaction actually takes place. If the transaction hedged is not expected to take place,
cumulative gains or losses recognised directly in equity are transferred to the year’s
income statement.
Embedded derivatives included in other financial instruments or contracts are treated as
separate derivatives when their risks and characteristics are not strictly related to those of
their host contracts and the latter are not measured at fair value with posting of related
gains and losses in the income statement.
Revenue recognition
Revenue is recognised net of return sales, discounts, allowances and bonuses, as well as
of the taxes directly associated with sale of goods and rendering of services.
Sales revenue is recognised when the company has transferred the significant risks and
benefits associated with ownership of the goods and the amount of revenue can be reliably
measured.
Revenues of a financial nature are recognised on an accrual basis.
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
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Financial income
Finance income includes interest receivable on funds invested and income from financial
instruments, when not offset as part of hedging transactions. Interest income is recognised
in the income statement at the time of vesting, taking effective output into consideration.
Financial expenses
Financial expenses include interest payable on financial debt calculated using the effective
interest method and bank expenses. All the other financial expenses are recognised as
costs for the year in which they are incurred.
Income taxes for the year
Income taxes include all taxes calculated on the Company’s taxable income. Income taxes
are directly recognised in the income statement, with the exception of those concerning
items directly debited or credited to shareholders’ equity, in which case the tax effect is
recognised directly in shareholders’ equity. Other taxes not relating to income, such as
property taxes, are included among operating expenses. Deferred taxes are provisioned in
accordance with the global liability provisioning method. They are calculated on all
temporary differences that emerge from the taxable base of an asset or liability and its
carrying value. Current and deferred tax assets and liabilities are offset when income taxes
are levied by the same tax authority and when there is a legal right to settle on a net basis.
Deferred tax assets and liabilities are measured using the tax rates that are expected to be
applicable in the years when temporary differences will be realised or settled.
Dividends
Dividends are posted on an accrual basis when the right to receive them materialises, i.e.
when shareholders approve dividend distribution.
Treasury shares
Treasury shares are booked as a reduction of shareholders’ equity. The carrying value of
treasury shares and revenues from any subsequent sales are recognised in the form of
changes in shareholders’ equity.
Equity-settled transactions
Some of the Company employees receive part of the remuneration in the form of share-
based payments, therefore employees provide services in exchange for shares (“equity-
settled transactions”). The cost of equity-settled transactions is determined by the fair
value at the date on which the assignment is made using an appropriate measurement
method, as explained in more detail in Note 45.
This cost, together with the corresponding increase in shareholders' equity, is recognised
under personnel costs (Note 28) over the period in which the conditions relating to the
achievement of objectives and/or the provision of the service are met. The cumulative
costs recognised for such transactions at the end of each reporting period up to the vesting
date are commensurate with the expiry of the vesting period and the best estimate of the
number of equity instruments that will actually vest.
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
206
Service or performance conditions are not taken into account when defining the fair value
of the plan at the assignment date. However, the probability of these conditions being met
is taken into account when defining the best estimate of the number of equity instruments
that will vest. Market conditions are reflected in the fair value at the assignment date. Any
other condition related to the plan that does not involve a service obligation is not
considered to be a vesting condition. Non-vesting conditions are reflected in the fair value
of the plan and result in the immediate recognition of the cost of the plan, unless there are
also service or performance conditions.
No cost is recognised for rights that do not vest in that the performance and/or service
conditions are not met. When the rights include a market condition or a non-vesting
condition, these are treated as if they had vested regardless of whether the market
conditions or other non-vesting conditions to which they are subject are met or not, it
being understood that all other performance and/or service conditions must be met.
If the conditions of the plan are changed, the minimum cost to be recognised is the fair
value at the assignment date in the absence of the change in the plan itself, on the
assumption that the original conditions of the plan are met. Moreover, a cost is recognised
for each change that results in an increase in total fair value of the payment plan, or that
is in any case favourable for employees; this cost is measured with reference to the date
of change. When a plan is cancelled, any remaining element of the plan's fair value is
immediately expensed to the income statement.
Use of estimates
Preparation of the separate financial statements in accordance with IFRS requires
management to make estimates and assumptions that affect the carrying values of assets
and liabilities and the disclosures on contingent assets and liabilities at the end of the
reporting period. Actual results might differ from these estimates. Estimates are used to
measure tangible and intangible assets and investments subject to impairment testing, as
described earlier, as well as to measure the ability to recover prepaid tax assets, provisions
for bad debts, for inventory obsolescence, depreciation and amortisation, asset write-
downs, employee benefits, taxes, other provisions. Specifically:
Recoverability of value of tangible and intangible assets and investments
The procedure for determining impairment losses of tangible and intangible assets
described in “Impairment” implies – in estimating the value of use – the use of the Business
Plans of investees, which are based on a series of assumptions relating to future events
and actions of the investees’ management bodies, which may not necessarily come about.
In estimating market value, however, assumptions are made on the expected trend in
trading between third parties based on historical trends, which may not actually be
repeated.
Provisions for bad debts
Receivables are adjusted by the related bad debt provision to take into account their
recoverable amount. To determine the size of the write-downs, management must make
subjective assessments based on the documentation and information available regarding,
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
207
among other things, the customer’s solvency, as well as experience and historical payment
trends.
Provisions for inventory obsolescence and inventory write-downs at their expected sale
value
Inventories subject to obsolescence and slow turnover are systematically measured and
written down if their recoverable value is less than their carrying value. Write-downs are
calculated based on management assumptions and estimates, resulting from experience
and historical results.
If the expected sale value is less than the purchase or production cost, inventories of
finished goods are written down to market value, estimated on the basis of current selling
prices.
Employee benefits
The current value of liabilities for employee benefits depends on a series of factors
determined using actuarial techniques based on certain assumptions. Assumptions
concern the discount rate, estimates of future salary increases, and mortality and
resignation rates. Any change in the above-mentioned assumptions might have an effect
on liabilities for pension benefits.
Share-based payments
Estimating the fair value of share-based payments requires the determination of the most
appropriate valuation model, which depends on the terms and conditions under which
these instruments are granted. This also requires the identification of data to feed into the
valuation model, including assumptions about the exercise period of the options, volatility
and dividend yield. The Company uses a binomial model for the initial measurement of
the fair value of share-based payments with employees.
Income taxes
Determining liabilities for Company taxes requires the use of management valuations in
relation to transactions whose tax implications are not certain at the end of the reporting
period. Furthermore, the valuation of deferred taxes is based on income expectations for
future years; the valuation of expected income depends on factors that might change over
time and have a significant effect on the valuation of deferred tax assets.
Other provisions
When estimating the risk of potential liabilities from disputes, the Directors rely on
communications regarding the status of recovery procedures and disputes from the
lawyers who represent the Company in litigation. These estimates are determined taking
into account the gradual development of the disputes, considering existing exemptions.
Climate change
With reference to the potential impact of climate change and energy transition on the
Company's activities, the Management carries out targeted analyses to identify and
manage the main risks and uncertainties to which the Company is exposed, adapting the
corporate strategy accordingly.
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
208
To date, climate-related matters have not had a significant impact on the opinions and
estimates used in preparing these Separate Financial Statements.
Estimates and assumptions are regularly reviewed and the effects of each change
immediately reflected in the income statement.
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
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New accounting standards
Amendments to IFRS 16 “Financial Instruments”
In September 2022, the IASB issued an amendment to IFRS 16 that provides specific
measurement requirements for lease liabilities that may include variable lease payments
arising from a sale and leaseback transaction. The objective is to ensure that the selling
lessor does not recognise any gain or loss in respect of the right of use it retains. These
amendments have not had an impact on the Company’s separate financial statements.
Amendments to IAS 1 “Presentation of Financial Statements”
The amendments to IAS 1 specify the requirements for classifying liabilities as current or
non-current. In particular, the amendments clarify (a) what is meant by the right to
postpone an expiry; (b) that the right to postpone must exist at the end of the reporting
period; (c) that the classification is not affected by the likelihood that the entity will exercise
its right to postpone (d) that only if a derivative embedded in a convertible liability is itself
an equity instrument does the maturity of the liability have no impact on classification.
Finally, a requirement has been introduced to disclose when a liability arising from a loan
agreement is classified as non-current and the entity's right to postpone is conditional on
compliance with covenants within twelve months. These amendments did not have an
impact on the Company's separate financial statements.
Amendments to IAS 7 “Statement of Cash Flows” and to IFRS 7 “Financial
instruments”
The amendments clarify the characteristics of supply chain financing agreements (
Supply
finance arrangements
) and introduce certain specific disclosure requirements to help users
of financial statements understand the impact of such transactions on liabilities, cash flows
and exposure to liquidity risk. These amendments did not have an impact on the
Company's separate financial statements.
Standards issued but not yet in force
IFRS18 'Financial Statement presentation and disclosure'
In April 2024, the IASB issued IFRS 18, which replaces IAS 1 'Presentation of financial
statements'. The main changes introduced by the standard concern:
a) new requirements for the presentation of the income statement, such as specific
totals/subtotals and the classification of expenses and revenues within four
categories (operating activities, investing activities, financing activities, income
taxes and discontinued operations);
b) reporting on the basis of the new definition of management-defined performance
measures (MPMs);
c) new provisions for the aggregation and disaggregation of financial information
based on the identified roles of the Primary Financial Statements (PFS) and notes;
d) using the subtotal of operating profit as the starting point for the indirect method
of reporting cash flows from operating activities.
IFRS 18 and subsequent amendments to other standards are effective for financial years
beginning on or after 1 January 2027, but early application is permitted subject to
disclosure. IFRS 18 will apply retrospectively. The Company is currently assessing the
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
210
impact the changes will have on its financial statements and notes to the financial
statements.
Amendments to IAS 21 “The Effects of Changes in Foreign Exchange Rates: Lack
of exchangeability”
On 15 August 2023, the IASB issued amendments to IAS 21 that specify how an entity
should assess whether a currency is exchangeable and how it should determine a spot
exchange rate when exchangeability is lacking. When an entity estimates a spot exchange
rate because a currency is not exchangeable into another currency, it provides information
that enables users of its financial statements to understand how the currency that is not
exchangeable into the other currency affects, or is expected to affect, the entity's financial
result, financial position and cash flows. The amendments will be effective for financial
years beginning on or after 1 January 2025. Early application is permitted and disclosure
of this fact is required. No significant impact on the Group's consolidated financial
statements is expected.
Amendments to IFRS 9 and IFRS 7 “Classification and Measurement of Financial
Instruments”
On 30 May 2024, the IASB issued amendments to the classification and measurement of
financial instruments. It clarifies when a financial liability is derecognised on the
'settlement date' and introduces an accounting policy option to derecognise financial
liabilities settled through an electronic payment system before the settlement date if
certain conditions are met. Clarification was provided on how to measure the contractual
cash flow characteristics of financial assets that include ESG and similar characteristics. In
addition, the amendments clarify the treatment of non-recourse financial assets and
contractually-bound instruments. The amendment to IFRS 7 requires additional disclosure
for financial assets and liabilities with contractual terms that refer to a contingent event
(including those that are linked to ESG factors) and for equity instruments classified at fair
value and recognised in other components of the comprehensive income statement. The
amendments will become effective for annual periods beginning on or after 1 January
2026, and entities may adopt the changes in the classification of financial assets and related
disclosures early. No significant impact on the Group's consolidated financial statements
is expected.
IFRS19 “Subsidiaries without Public Accountability: Disclosures”.
In May 2024, the IASB issued IFRS 19, which allows subsidiaries that meet certain
eligibility criteria to elect to apply reduced disclosure requirements compared to the
disclosure requirements of IFRS Accounting Standards when complying with the
recognition, measurement and presentation requirements of IFRS Accounting Standards.
The eligibility criteria require an entity to be a subsidiary as defined in IFRS 19, not to be
publicly accountable, and have an ultimate or intermediate parent entity that prepares
consolidated financial statements which are available to the public and drafted in
accordance with IFRS accounting standards.
IFRS 19 will become effective for financial years beginning on or after 1 January 2027,
with the possibility of early adoption. The Company is not a controlled entity and is
therefore excluded from the scope of application of this standard.
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
211
Comments on the main items of the statement of financial position
1. PROPERTY, PLANT AND EQUIPMENT
Property
Plant and
equipment
Other assets
Assets under
construction
Total
Cost
At 31 December 2022
44,753
180,039
40,732
3,093
268,617
Increases
97
3,443
1,408
2,196
7,144
Disposals
-
(5,903)
(1,307)
-
(7,210)
Reclassification
29
1,332
474
(1,939)
(104)
At 31 December 2023
44,879
178,911
41,307
3,350
268,447
Increases
91
2,808
2,019
2,126
7,044
Disposals
(52)
(6,673)
(470)
-
(7,195)
Reclassification
34
1,755
1,070
(2,878)
(19)
At 31 December 2024
44,952
176,801
43,926
2,598
268,277
Amortisation
depreciations
At 31 December 2022
22,184
161,573
37,238
-
220,995
Depreciations for the
year
1,190
4,604
1,410
-
7,204
Derecognition due to
disposal
-
(2,998)
(408)
-
(3,406)
Reclassification
13
-
-
-
13
At 31 December 2023
23,387
163,179
38,240
-
224,806
Depreciations for the
year
1,184
4,164
1,585
-
6,933
Derecognition due to
disposal
(52)
(4,638)
(183)
-
(4,873)
Reclassification
-
-
-
-
-
At 31 December 2024
24,519
162,705
39,642
-
226,866
Net carrying value
At 31 December 2023
21,492
15,732
3,067
3,350
43,641
At 31 December 2024
20,433
14,096
4,284
2,598
41,411
The breakdown of the net carrying value of Property was as follows:
31/12/2024
31/12/2023
Change
Land
5,404
5,404
-
Industrial buildings
15,029
16,088
(1,059)
Total
20,433
21,492
(1,059)
Changes in property, plant and equipment resulting from the application of IFRS 16 are
shown below:
Property
Plant and
equipment
Other assets
Total
1 January 2024
80
-
632
712
Increases
46
-
426
430
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
212
Decreases
-
-
(9)
(9)
Amortisation/depreciation
(43)
-
(237)
(280)
At 31 December 2024
83
-
812
895
The main investments during the year were aimed at keeping the production equipment
up to date and fully operational.
Decreases mainly relate to the disposal of machinery to other companies of the Sabaf
Group. Overall, the disposals for the year generated a net capital gain of €644 thousand.
Assets under construction include machinery under construction and advance payments
to suppliers of capital equipment.
At 31 December 2024, the Company found no endogenous or exogenous indicators of
impairment of its property, plant and equipment. As a result, the value of property, plant
and equipment was not submitted to impairment testing.
2. INVESTMENT PROPERTY
Cost
At 31 December 2022
2,265
Increases
117
Disposals
(583)
Reclassifications
(28)
At 31 December 2023
1,771
Increases
-
Disposals
(165)
Reclassifications
-
At 31 December 2024
1,606
Accumulated amortisation
At 31 December 2022
1,282
Depreciations for the year
105
Derecognition due to disposal
(307)
At 31 December 2023
1,080
Depreciations for the year
90
Derecognition due to disposal
(101)
At 31 December 2024
1,069
Net carrying value
At 31 December 2023
691
At 31 December 2024
537
Changes in investment property resulting from the application of IFRS 16 are shown
below:
Investment
property
1 January 2024
80
Increase
-
Decrease
-
Depreciation
(40)
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
213
At 31 December 2024
40
The item Investment property includes non-operating buildings owned by the Company:
these are mainly properties for residential use, held for rental. Disposals during the period,
amounting to a net book value of €64 thousand, resulted in capital gains totalling €31
thousand.
At 31 December 2024, the Company found no endogenous or exogenous indicators of
impairment of its investment property. As a result, the value of investment property was
not submitted to impairment testing.
3. INTANGIBLE ASSETS
Patents,
know-how and
software
Development
costs
Other
intangible
assets
Total
Cost
At 31 December 2022
7,581
9,477
658
17,716
Increases
146
2,213
9
2,368
Decreases
147
(345)
-
(198)
Reclassifications
(84)
(42)
-
(126)
At 31 December 2023
7,790
11,303
667
19,760
Increases
25
2,780
27
2,832
Decreases
(38)
-
(5)
(43)
Reclassifications
19
-
-
19
At 31 December 2024
7,796
14,083
689
22,568
Amortisation and
write-downs
At 31 December 2022
7,027
4,712
547
12,286
Amortisation
245
643
2
890
Decreases
-
-
-
-
At 31 December 2023
7,272
5,355
549
13,176
Amortisation
208
881
4
1,093
Decreases
(2)
-
-
(2)
At 31 December 2024
7,478
6,236
553
14,267
Net carrying value
At 31 December 2023
518
5,948
118
6,584
At 31 December 2024
318
7,847
136
8,301
Intangible assets have a finite useful life and, as a result, are amortised throughout their
life.
Development costs mainly refer to the development of new products to extend the range
and features offered within the induction cooking sector. To this end, it is worth
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
214
remembering that a dedicated project team was set up to develop the project know-how
in-house, with patents, proprietary software and hardware.
Increases in development costs include projects in progress and therefore not subject to
amortisation.
At 31 December 2024, the Company found no endogenous or exogenous indicators of
impairment of its intangible assets. As a result, the value of property, plant and equipment
was not submitted to impairment testing.
4. EQUITY INVESTMENTS
31/12/2024
31/12/2023
Change
In subsidiaries
130,847
125,991
4,856
Other equity
investments
75
83
(8)
Total
130,922
126,074
4,848
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
215
The change in equity investments in subsidiaries is broken down in the table below:
Historical
cost
31/12/2023
Purchases
Value
adjustments
Share
capital
increase
Historical
cost
31/12/2024
Provision
for write-
downs
31/12/2023
2024
changes
Provision
for write-
downs
31/12/2024
Sabaf do Brasil
13,161
-
-
-
13,161
0
0
Sabaf Turkey
40,889
-
-
24
40,913
0
-
0
Sabaf Appliance Components (China)
8,900
-
-
-
8,900
(8,408)
(25)
(8,433)
Sabaf India
8,570
-
-
2,000
10,570
0
(3,045)
(3,045)
Sabaf Mexico
12,789
-
-
6,190
18,979
0
-
0
Sabaf U.S.
139
-
-
-
139
0
0
Sabaf America
3,565
-
-
-
3,565
0
-
0
Faringosi Hinges
10,329
-
-
-
10,329
0
0
A.R.C.
6,450
-
-
-
6,450
0
-
0
C.M.I.
21,044
-
-
-
21,044
0
-
0
P.G.A.
8,563
-
(288)
-
8,275
0
-
0
Total
134,399
-
(288)
8,214
142,325
(8,408)
(3,070)
(11,478)
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
216
Net book
value
31/12/2023
Portion of
shareholders’
equity
31/12/2023
Difference
between
shareholders’
equity and
carrying
value
31/12/2023
Net book value
31/12/2024
Portion of
shareholders’
equity 31/12/2024
Difference
between
shareholders’
equity and
carrying value
31/12/2024
Sabaf do Brasil
13,161
19,757
6,596
13,161
18,913
5,752
Sabaf Turkey
40,889
62,712*
21,823
40,913
78,507*
37,594
Sabaf Appliance Components (China)
492
493
1
467
467
0
Sabaf India
8,570
6,319
(2,251)
7,525
7,525
0
Sabaf Mexico
12,789
12,037
(752)
18,979
13,771
(5,208)
Sabaf U.S.
139
167
28
139
4
(135)
Sabaf America
3,565
3,619
54
3,565
5,216
1,651
Faringosi Hinges
10,329
8,071
(2,258)
10,329
8,388
(1,941)
A.R.C.
6,450
6,389
(61)
6,450
6,883
433
C.M.I.
21,044
21,736
692
21,044
22,764
1,720
P.G.A.
8,563
3,756
(4,807)
8,275
3,948
(4,327)
Total
125,991
145,056
19,065
130,847
166,386
35,539
* values determined in accordance with IAS 29 - Financial Reporting in Hyperinflationary Economies, applied to companies in Turkey as from 1 April 2022
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
217
Sabaf do Brasil
In 2024, Sabaf do Brasil achieved positive results. At 31 December 2023, Shareholders’
equity (converted into euros at the end-of-year exchange rate) is significantly higher than
the carrying amount of the equity investment.
Sabaf Turkey
In 2024, Sabaf Turkey achieved positive results. At 31 December 2023, Shareholders’
equity (converted into euros at the end-of-year exchange rate) is significantly higher than
the carrying amount of the equity investment.
Sabaf Appliance Components (China)
Sabaf Appliance Components (Kunshan) Co., Ltd. has been producing burners for the
Chinese market since 2015. Furthermore, the company has performed the function as
distributor on the Chinese market of Sabaf products manufactured in Italy and Turkey.
Given the loss in the financial year, the equity investment was written down by €25
thousand to bring the value in line with shareholders' equity.
Sabaf India
Sabaf India started production of gas components for the local market in 2022, where
strong growth is expected in the medium to long term, given that to date only a small
proportion of the population uses gas as a fuel source for cooking food.
During the year, the Company made a share capital increase of €2 million to support the
investments required to complete the verticalisation of production in the subsidiary.
The specific characteristics of the local market means there is uncertainty over the
recoverability of the start-up costs and recognised losses, therefore, at 31 December 2024,
the carrying value of the investment was adjusted to the shareholders’ equity using the
year-end exchange rate, with the recording of a write-down of €3,045 thousand.
Sabaf Mexico
In 2024 Sabaf Mexico started production of components for the North American market
in San Luis Potosi (Mexico).
During the year, the Company made share capital increases of €6.2 million, mainly to
finance the working capital of the subsidiary.
The difference between the carrying value of the equity investment and shareholders’
equity converted at the year-end exchange rate is mainly due to the start-up costs and can
be recovered in the coming years with the achievement of positive income results, as also
foreseen in the 2025 budget given expectations of a significant growth in revenues and a
related improvement in margins.
Sabaf U.S.
Sabaf U.S. operates as a commercial support for North America.
Sabaf America
The company was established in 2023 as part of the acquisition of 51% of MEC, in which
it directly holds an equity investment.
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
218
P.G.A.
During the year, the value of the equity investment was reduced by €288 thousand, of
which €113 thousand was for the recognition by the former shareholders of a
compensation relating to the obsolescence of the products included in the inventories and
€175 thousand for the price adjustment following the finalisation of the acquisition, linked
to contractually-determined (“earn-out”) objectives.
As at 31 December 2024, with the support of independent experts, the book values of the
Company’s equity investments in Faringosi Hinges, A.R.C., C.M.I., P.G.A. and Sabaf
America (of which the 51% interest in MEC is the only asset) were subject to impairment
tests, to determining their recoverable value, which was verified by measuring the value
in use by discounting expected cash flows.
The main assumptions used to determine the value in use of the various equity investments
are related to a) cash flows from the company's business plans, b) the discount rate and c)
the long-term growth rate.
Determining cash flows
The management has defined a single plan for each investee, with reference to the period
from 2025 to 2027, which represents the best estimate of the business outlook, based on
the company's strategies and the growth indicators of its sector and reference markets. In
particular, the forecasts for the first year of the forecast plan (2025) were developed on the
basis of the 2025 budgets approved by the Boards of Directors of the investees and Sabaf
S.p.A. in December 2024; the forecasts for the next two years (2026 and 2027) were
determined analytically as part of the process of updating the Group's 2025 - 2027 Business
Plan. The multi-year plans of the individual investees were submitted for approval by the
respective Boards of Directors of the Group companies and the Board of Directors of Sabaf
S.p.A. at the same time as the approval of the impairment tests.
Revenues were estimated on the basis of information obtained from customers and on the
basis of management's expectations regarding the trend of the reference market, which
anticipate a moderate recovery from the weak phase that characterised 2024. The
contribution of revenues from new products already developed, weighted by their
probability of success, was also estimated. The plans were prepared on the assumption
that raw material prices will remain broadly unchanged, in consideration of the proven
historical ability of the investees to pass on changes in the cost of materials to sales prices.
Estimates of revenues and profitability incorporate elements of caution reflecting
geopolitical and macroeconomic uncertainty. It should be noted that investees are not
exposed to significant transitional climate risks, that energy costs are extremely low in
relation to the industrial cost of the products and that the related production processes do
not directly use fossil fuels (gas) as an energy source.
The business plans consider only real growth, do not take into account expected inflation
and have been prepared in Euro, i.e. in the currency in which - with the exception of MEC
- the sales prices and main operating costs of the investees are expressed. The business
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
219
plan of MEC, which operates in dollars, was prepared on the assumption of a stable
euro/dollar exchange rate.
Finally, cash flows for the period from 2025 to 2027 were augmented by the terminal value,
which expresses the operating flows that each investee is expected to generate from the
fourth year to infinity and determined based on the perpetual income.
Discount rate
As in the previous year, the discount rate used to discount the expected future cash flows
was determined for each investee, and is represented by the weighted average cost of
capital employed (WACC), which reflects the current market valuation of the time value
of money for the period in question and the specific risks of the investees and their sectors.
Compared to the previous year, it was deemed appropriate to update the panel of
comparables in order to better represent the systematic risk of the Group's core businesses,
including in accordance with the evolution of the Group's strategy and scope. The discount
rates used last year are shown below for comparison, and it should be noted that the
updating of the panel of comparables did not have any significant effects.
Long-term growth rate
In addition to the flows expected for the period from 2025 to 2027, which are explicitly
forecast, there is the Perpetuity flow, which is representative of the Terminal Value. This
was determined, according to the same logic adopted in the previous year, using a long-
term growth rate (g-rate), specific to each investee, which reflects the growth potential of
the reference area.
The table below shows the key assumptions used in the impairment test.
Discount rate
(WACC) %
Long-term growth rate
(g-rate)
Cash
flow
horizon
Terminal Value
Calculation
Method
2024
2023
2024
2023
Faringosi Hinges
9.70%
11.84%
2.00%
2.00%
3 years
old
Perpetual
instalment
A.R.C.
9.27%
11.09%
2.00%
2.00%
3 years
old
Perpetual
instalment
C.M.I.
9.34%
11.45%
2.00%
2.00%
3 years
old
Perpetual
instalment
P.G.A.
9.78%
10.94%
2.50%
2.50%
3 years
old
Perpetual
instalment
MEC
9.38%
10.99%
2.00%
2.00%
3 years
old
Perpetual
instalment
The changes in discount rates, compared to those used in the preparation of the separate
financial statements as at 31 December 2023, are mainly due to the reduction in the cost
of debt and the risk-free rate.
The impairment tests carried out in the manner described above and approved by the
Board of Directors on 25 February 2025, with the opinion of the Control and Risk
Committee, did not reveal any impairment, as the recoverable amount of the equity
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
220
investments at 31 December 2024 was higher than the corresponding net invested capital
(carrying amount).
The following activities were carried out to complete the analysis:
▪ a sensitivity analysis to test the recoverability of equity investments against
changes in the basic assumptions used to determine the discounted flows. In
particular, the table below shows the WACC, g-rate and EBITDA that would result
in an impairment if all other basic assumptions remained unchanged:
Break-even values in a “steady case” situation
Sensitivity analysis
WACC
g-rate*
EBITDA
Faringosi Hinges
40.5%
-
-71.7%
A.R.C.
30%
-
-60.7%
C.M.I.
45.5%
-
-64.91%
P.G.A.
9.79%
2.48%
-0.2%
MEC
12.82%
-
-22.2%
*With reference to the break-even values of the g-rate, it should be noted that, with
the exception of the investment in P.G.A., even if the g-rate were 0, no impairment
loss would occur.
▪ recoverability check of equity investments against possible increases and decreases
of 50 bps in the WACC and 25 bps in the g-rate;
▪ recoverability check of equity investments against possible decreases of 10% and
20% of EBITDA.
With reference to the equity investment in P.G.A., sensitivity analyses show a delta
between the recoverable amount and the carrying value of the equity investment ranging
from +€2.2 million to -€2.2 million. For the other equity investments tested for impairment,
none of the scenarios included in the sensitivity analysis resulted in a recoverable amount
below the carrying value.
5. NON-CURRENT FINANCIAL ASSETS
31/12/2024
31/12/2023
Change
Financial receivables from
subsidiaries
7,294
15,734
8,440
Total
7,294
15,734
8,440
At 31 December 2024, financial receivables from subsidiaries consist of:
▪ a residual interest-bearing loan of €2 million to the subsidiary Sabaf Turkey, as part
of the Group's financial management coordination, maturing in May 2027. During
2024 the subsidiary repaid €6.5 million.
▪ a residual interest-bearing loan of USD 5.5 million (€5.294 million at the end-of-
year exchange rate), granted to the subsidiary Sabaf America as part of the
acquisition of the equity investment in MEC, maturing in July 2033. During 2024
the subsidiary repaid USD 994 thousand.
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
221
In addition, during the year, the subsidiary Sabaf do Brasil fully repaid loans of USD 1.5
million.
6. NON-CURRENT RECEIVABLES
31/12/2024
31/12/2023
Change
Receivables from former P.G.A.
shareholders
645
620
25
Guarantees
32
32
-
Total
677
652
25
Receivables from former P.G.A. shareholders, already agreed upon between the parties,
refer to compensation obligations envisaged upon the occurrence of certain events
(liabilities incurred by P.G.A.) regulated by the acquisition agreement.
7. INVENTORIES
31/12/2024
31/12/2023
Change
Raw Materials
12,327
10,311
2,016
Semi-processed goods
6,403
6,077
326
Finished products
6,847
7,221
(374)
Provision for inventory write-
downs
(1,707)
(1,773)
66
Total
23,870
21,836
2,034
The value of final inventories at 31 December 2024 increased compared to the previous
year to meet the higher volumes of activity.
The provision for write-downs is mainly allocated for hedging the obsolescence risk,
quantified on the basis of specific analyses carried out at the end of the year on slow-
moving and non-moving products, and refers to raw materials for €697 thousand, semi-
finished products for €273 thousand and finished products for €737 thousand. The
following table shows the changes in the Provision for inventory write-downs during the
current financial year:
31/12/2023
1,773
Provisions
68
Utilisation
(134)
31/12/2024
1,707
8. TRADE RECEIVABLES
31/12/2024
31/12/2023
Change
Trade receivables from third
parties
18,599
13,913
4,686
Trade receivables from subsidiaries
12,794
15,393
(2,599)
Bad debt provision
(600)
(600)
0
Net total
30,793
28,706
2,087
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
222
At 31 December 2024, trade receivables included balances totalling USD 7,759 thousand,
booked at the EUR/USD exchange rate in effect on 31 December 2024, equal to 1.0389.
The amount of trade receivables recognised in the financial statements includes
approximately €12 million in insured receivables (€12 million at 31 December 2023).
Trade receivables from third parties at 31 December 2024 were higher that at the end of
2023 subsequent to higher sales.
There were no significant changes in average payment terms agreed with customers.
The following table shows the breakdown of receivables from third parties by maturity
date:
31/12/2024
31/12/2023
Change
Current receivables (not
past due)
13,800
10,410
3,390
Outstanding up to 30 days
2,559
1,753
806
Outstanding from 30 to 60
days
597
435
162
Outstanding from 60 to 90
days
500
364
136
Outstanding for more than
90 days
1,143
951
192
Total
18,599
13,913
4,686
The bad debt provision was adjusted to the better estimate of the credit risk and expected
loss
expected losses at the end of the reporting period,
also carried out by analysing each
expired item.
Changes during the year were as follows:
31/12/2023
Provisions
Utilisation
31/12/2024
Bad debt provision
600
50
(50)
600
9. TAX RECEIVABLES
31/12/2024
31/12/2023
Change
For income tax
4,268
5,568
(1,300)
for VAT
481
462
19
Total
4,749
6,030
(1,281)
In the 2020 financial year, the Company has been part of the national tax consolidation
scheme pursuant to Articles 117/129 of the Unified Income Tax Law.
At 31 December 2024, income tax receivables include:
▪ the receivable from the subsidiary Faringosi Hinges s.r.l amounting to €443
thousand
▪ the receivable from the subsidiary A.R.C. s.r.l. amounting to €401 thousand
▪ the receivable from the subsidiary CMI s.r.l. amounting to €721 thousand
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
223
relating to the balance of the 2024 income taxes transferred by the subsidiaries to the
consolidating company Sabaf S.p.A., in accordance with the provisions of the tax
regulations relating to the national tax consolidation and the tax consolidation contracts
entered into between the parties.
Income tax receivables also include:
▪ €1.189 million of receivables for investments in capital equipment referred to
Decree Law 160/2019, Budget Law 178/2020 and Budget Law 234/2021;
▪ €635 thousand tax credit for “Patent Box” for the years 2020 and 2021, following
the prior agreement signed with the Tax Authorities during 2023;
▪ tax advances paid in previous years in the amount of €634 thousand.
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
224
10. OTHER CURRENT RECEIVABLES
31/12/2024
31/12/2023
Change
Credits to be received from suppliers
919
904
15
Advances to suppliers
57
101
(44)
Other
538
393
145
Total
1,514
1,398
116
Credits to be received from suppliers mainly refer to bonuses paid to the Company for the
attainment of purchasing objectives.
11. CURRENT FINANCIAL ASSETS
31/12/2023
31/12/2023
Change
Interest rate derivatives
376
860
(484)
Total
376
860
(484)
At 31 December 2024, the Company has in place four interest rate swap (IRS) contracts
for amounts and maturities coinciding with six unsecured loans that are being amortised,
whose residual value at 31 December 2024 is €10,290 thousand. The contracts have not
been designated as capital flow hedges and are therefore at their fair value through profit
and loss, and recognised in the items “Fair Value through profit or loss”, with “Financial
income” as a balancing entry.
12. CASH AND CASH EQUIVALENTS
The item Cash and cash equivalents, equal to €2,039 thousand at 31 December 2024
(€13,899 thousand at 31 December 2023), refers almost exclusively to bank current
account balances. Please refer to the Statement of Cash Flows for an analysis of changes
in liquidity during the year.
13. SHARE CAPITAL
The share capital consists of 12,686,795 shares with a par value of € 1.00 each. The share
capital paid in and subscribed did not change during the year.
At 31 December 2024, the structure of the share capital is shown in the table below.
No. of shares
% of share
capital
Rights and
obligations
Ordinary shares
7,034,278
55.45%
--
Ordinary shares with
increased vote
5,652,517
44.55%
Two voting
rights per share
TOTAL
12,686,795
100%
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
225
With the exception of the right to increased vote, there are no rights, privileges or
restrictions on the Company. The availability of reserves is indicated in a table at the end
of these Explanatory Notes.
14. TREASURY SHARES AND OTHER RESERVES
Treasury shares
With regard to the 2021 - 2023 Stock Grant Plan, following the expiry of the three-year
vesting period, during the financial year, 103,349 ordinary shares of the Company were
allocated and transferred to the beneficiaries, through the use of shares already available
to the issuer. To implement the shareholders' meeting resolution of 8 May 2024, a buyback
plan was initiated during the year, under which 14,692 treasury shares were purchased at
an average price of €14.36 per share. No treasury shares were sold in 2024.
At 31 December 2024, Sabaf S.p.A. held 153,306 treasury shares (1.208% of the share
capital), reported in the financial statements as an adjustment to shareholders’ equity at a
weighted average unit value of €15.14 (the closing stock market price of the Share at 31
December 2024 was €15.15). There were 12,533,489 outstanding shares at 31 December
2024.
Stock grant reserve
Items “Retained earnings, other reserves” of €88,528 thousand included, at 31 December
2024, the stock grant reserve of €394 thousand, which included the measurement at 31
December 2024 of the fair value of rights assigned to receive shares of the Company
relating to the new 2024 – 2026 Stock Grant Plan, medium- and long-term incentive plan
for directors and employees of the Sabaf Group, for the details of which reference is made
to Note 45. During the 2024 financial year, the portion related to the 2021 - 2023 Stock
Grant Plan, which ended in May 2024, was released, with the allocation of the accrued
shares to the beneficiaries.
15. LOANS
31/12/2024
31/12/2023
Current
Non-current
Total
Current
Non-current
Total
Bond issue
-
29,755
29,755
-
29,720
29,720
Unsecured loans
18,122
27,418
45,540
20,032
45,534
65,566
Leases
482
945
1,427
460
1,059
1,519
Short-term bank
loans
12,702
-
12,702
-
-
-
Short-term loans
from subsidiaries
3,000
-
3,000
3,000
-
3,000
Accruals for
financial expenses
219
-
219
200
-
200
Total
34,525
58,118
92,643
23,692
76,313
100,005
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
226
In December 2021, Sabaf S.p.A. issued a €30 million bond fully subscribed by PRICOA
with a maturity of 10 years, an average life of 8 years and a fixed coupon of 1.85% per
year. The loan has the following covenants, defined with reference to the Group
consolidated figures widely complied with at 31 December 2024 and for which, according
to the Group's business plan, compliance is also expected in subsequent years:
▪ commitment to maintain a ratio of net financial debt to shareholders’ equity of
less than or equal to 1.5;
▪ commitment to maintain a ratio of net financial debt to EBITDA of less than or
equal to 3;
▪ commitment to maintain a ratio of EBITDA to net financial position of more than
4.
The Company did not take out any new unsecured loans during the year.
Some of the outstanding unsecured loans have covenants, defined with reference to the
consolidated financial statements at the end of the reporting period, as specified below:
▪ commitment to maintain a ratio of net financial debt to shareholders’ equity of
less than or equal to 1 (residual amount of the loans at 31 December 2024 equal
to €33.2 million);
▪ commitment to maintain a ratio of net financial debt to EBITDA of less than or
equal to 3 (residual amount of the loans at 31 December 2024 equal to €41.7
million);
complied with at 31 December 2024 and for which, according to the Group's business plan,
compliance is also expected in subsequent years.
All bank loans are denominated in euro.
Short-term loans from subsidiaries were granted at market conditions as part of the
optimisation of the Group's liquidity management.
To manage interest rate risk, some unsecured loans (with a total residual value of €22,569
thousand at 31 December 2024) are either fixed-rate or hedged by IRS. On the other hand,
the residual value of unsecured loans taken out at a variable rate and not covered by the
IRS was €22,974 thousand.
The following table shows the changes in lease liabilities during the year:
Lease liabilities at 1 January 2023
1,682
New agreements signed during 2023
485
Repayments during 2023
(648)
Lease liabilities at 31 December 2023
1,519
New agreements signed during 2024
446
Repayments during 2024
(538)
Lease liabilities at 31 December 2024
1,427
Note 37 provides information on financial risks, pursuant to IFRS 7.
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
227
16. OTHER FINANCIAL LIABILITIES
31/12/2023
31/12/2023
Current
Non-current
Current
Non-current
Payables to former PGA
shareholders
-
-
-
175
Other
10
-
Total
10
-
-
175
As at 31 December 2023 the payable to former P.G.A. shareholders referred to price
adjustments following the completion of the acquisition, linked to contractually-
determined (“earn-out”) objectives. Since the objectives were not achieved, the liability
was eliminated in the current financial year.
17. Post-employment benefit
At 31 December 2023
1,574
Financial expenses
49
Payments made
(109)
Tax effect
(32)
At 31 December 2023
1,482
Actuarial gains or losses are recognised immediately in the comprehensive income
statement (“Other comprehensive income”) under the item “Actuarial income and losses”.
Post-employment benefits are calculated as follows:
Financial assumptions
31/12/2024
31/12/2023
Discount rate
3.28%
3.2%
Inflation
2.5%
2.5%
Demographic theory
31/12/2024
31/12/2023
Mortality rate
IPS55 ANIA
IPS55 ANIA
Disability rate
INPS 2000
INPS 2000
Staff turnover
5%
5%
Advance payouts
1.00% per year
1.00% per year
Retirement age
pursuant to legislation in
force on 31 December 2024
pursuant to legislation in
force on 31 December 2023
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
228
18. PROVISIONS FOR RISKS AND CHARGES
31/12/2023
Provisions
Utilisation
31/12/2024
Provision for agents’
indemnities
191
1
(7)
185
Product guarantee
fund
60
-
(29)
31
Provision for legal
risks
46
-
-
46
Total
297
1
(36)
262
The provision for agents’ indemnities covers amounts payable to agents if the Company
terminates the agency relationship.
The product guarantee fund covers the risk of returns or charges by customers for products
already sold.
The provisions for risks, which represent the estimate of future payments made based on
historical experience, have not been discounted because the effect is considered negligible.
19. TRADE PAYABLES
31/12/2024
31/12/2023
Change
Total
21,626
22,605
(979)
Average payment terms did not change versus the previous year.
At 31 December 2024, there were no overdue payables of a significant amount and the
Company did not receive any injunctions for overdue payables.
In 2024 Sabaf S.p.A. introduced a Sustainable Procurement Policy as part of its internal
procedures, which integrates environmental considerations into the management of
purchases, transport and energy supplies, as described in detail in the Sustainability
Statement.
20. TAX PAYABLES
31/12/2024
31/12/2023
Change
To inland revenue for income tax
1,117
904
213
To subsidiaries for income tax
51
133
(82)
To inland revenue for IRPEF tax
deductions
651
447
204
Total
1,819
1,484
335
Payables to inland revenue for income tax are related to IRES for €1,104 thousand and
IRAP for €13 thousand.
In the 2020 financial year, the Company has been part of the national tax consolidation
scheme pursuant to Articles 117/129 of the Unified Income Tax Law. At 31 December
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
229
2024, payables to subsidiaries for income taxes refer to tax advances received from the
subsidiary CGD s.r.l.
Payables for IRPEF tax deductions, relating to employment and self-employment, were
duly paid at maturity.
21. OTHER CURRENT PAYABLES
31/12/2024
31/12/2023
Change
To employees
4,489
4,335
154
To social security institutions
2,290
2,211
79
Advances from customers
527
69
458
To agents
123
105
18
Other current payables
3,507
3,419
88
Total
10,936
10,139
1,633
At the beginning of 2025, payables due to employees and social security institutions were
paid in accordance with the scheduled expiry dates.
Other current payables include accrued liabilities and deferred income, of which €1,729
thousand refer to the accrual basis of accounting of tax benefits driving from investments
in capital goods referred to Decree Law 160/2019, Budget Law 178/2020 and Budget Law
234/2021.
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
230
22. DEFERRED TAX ASSETS AND LIABILITIES
31/12/2024
31/12/2023
Change
Deferred tax assets
3,138
2,664
474
Deferred tax liabilities
(441)
(550)
109
Net position
2,697
2,114
583
The table below analyses the nature of the temporary differences that determine the recognition of deferred tax liabilities and assets and their
changes during the year and the previous year.
Amortisation and
leasing
Provisions and
value
adjustments
Fair
value of
derivative
instruments
Goodwill
Tax
loss
Actuarial
evaluation of post-
employment
benefit
Other
temporary
differences
Total
At 31 December 2022
465
1,056
(383)
886
-
134
169
2,327
Through profit or loss
(82)
(243)
178
(177)
-
-
114
(210)
In shareholders' equity
-
-
(1)
-
-
(2)
-
(3)
At 31 December 2023
383
813
(206)
709
-
132
283
2,114
Through profit or loss
(23)
36
116
(177)
-
-
29
(19)
In shareholders' equity
-
-
-
-
-
(7)
-
(7)
Reclassification
-
-
609
At 31 December 2024
360
849
(90)
532
609
125
312
2,697
Deferred tax assets relating to goodwill refer to the exemption of the value of the investment in Faringosi Hinges s.r.l. made in 2011 pursuant
to Italian law Decree 98/2011, deductible in ten instalments starting in 2018.
The line “reclassification from tax receivables” relates to taxes on tax losses that cannot be immediately offset under the national tax
consolidation scheme.
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
231
23. TOTAL FINANCIAL DEBT
As required by the CONSOB memorandum of 28 July 2006, we disclose that the Company’s net
financial debt is as follows:
31/12/2024
31/12/2023
Change
A.
Cash
2,039
13,900
(11,861)
B.
Cash equivalents
-
-
-
C.
Other current financial assets
376
859
(483)
D.
Liquidity (A+B+C)
2,415
14,759
(12,344)
E.
Current financial payable
16,413
3,375
13,038
F.
Current portion of non-current financial debt
18,122
20,492
(2,370)
G.
Current financial debt (E+F)
34,535
23,867
10,668
H.
Net current financial debt (G-D)
32,120
9,108
23,012
I.
Non-current financial payable
28,363
46,593
(18,230)
J.
Debt instruments
29,755
29,720
35
K.
Trade payables and other non-current payables
-
-
-
L.
Non-current financial debt (I+J+K)
58,118
76,313
(18,195)
M.
Total financial debt (H+L)
90,238
85,421
4,817
The statement of cash flows, which shows the changes in cash and cash equivalents (sum of
letters A. and B. of this statement), describes in detail the cash flows that led to the change in
the net financial debt.
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
232
Comments on key income statement items
24. REVENUE
In 2024, sales revenue amounted to €106,228 thousand, 6.4% higher than the €99,842 thousand
in 2023.
Revenue by geographical area
2024
%
2023
%
% change
Europe (excluding Turkey)
32,536
28.8%
28,672
28.8%
13.5%
Turkey
32,780
31.2%
31,224
31.2%
5%
North America
6,001
6.7%
6,649
6.7%
-9.8%
South America
12,936
9.8%
9,940
9.8%
27.1%
Africa and Middle East
12,276
14.5%
14,431
14.5%
-14.9%
Asia and Oceania
9,996
9.0%
8,926
9.0%
12%
Total
106,228
100%
99,842
100%
6.4%
Revenue by product family
2024
%
2023
%
% change
Valves and thermostats
44,325
41.7%
40,216
40.4%
10.2%
Burners
47,887
45.1%
45,398
45.5%
5.5%
Accessories and other revenues
13,194
12.5%
14,228
14.3%
-4.8%
Electronic components
352
0.3%
-
-
-
Induction
470
0.4%
-
-
-
Total
106,228
100%
99,842
100%
6.4%
25. OTHER INCOME
2024
2023
Change
Sale of trimmings
2,177
2,062
115
Services to subsidiaries
2,163
2,232
(69)
Contingent income
287
644
(357)
Rental income
66
78
(12)
Use of provisions for risks and charges
36
130
(94)
Other income
2,162
1,714
448
Total
6,891
6,860
31
Services to subsidiaries refer to administrative, commercial and technical services provided
within the scope of the Group.
In 2024, other income mainly includes:
▪ €1,161 thousand in charges of various kinds to customers, including partnerships in
investments for dedicated products;
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
233
▪ €568 thousand of benefits granted as tax credits for investments made in 2024 and in
previous years (Law 160/2019 paragraphs 184 to 196, Law 178/2020 and Law
234/2021);
▪ €312 thousand for insurance compensation related to damages from weather events.
Beginning with these financial statements, income from royalties has been reclassified under
Revenues, as part of the company's ordinary operations.
26. PURCHASES OF MATERIALS
2024
2023
Change
Commodities and outsourced
components
46,771
41,568
5,203
Consumables
4,190
4,367
(177)
Total
50,961
45,935
(5,026)
The increase in purchases is correlated to the growth in business volumes. During 2024, the
effective purchase prices of the main raw materials (aluminium alloys, steel and brass) were on
average lower than in 2023, with a positive impact of 1.3% of sales.
27. COSTS FOR SERVICES
2024
2023
Change
Outsourced processing
6,931
5,577
1,354
Electricity and natural gas
5,171
3,879
1,292
Maintenance
3,729
3,212
517
Advisory services
1,696
2,866
(1,170)
Transport and export expenses
1,596
1,435
161
Directors’ fees
471
407
64
Insurance
659
607
52
Commissions
479
488
(9)
Travel expenses and allowances
606
607
(1)
Waste disposal
471
390
81
Canteen
335
307
28
Temporary agency workers
311
293
18
Other costs
2,151
2,056
95
Total
24,606
22,124
2,482
The main outsourced processing carried out by the Company include hot moulding of brass and
some mechanical processing and assembly.
Other costs included expenses for the registration of patents, waste disposal, cleaning, leasing
third-party assets and other minor charges.
28. PERSONNEL COSTS
2024
2023
Change
Salaries and wages
20,773
18,975
1,798
Social Security costs
6,688
6,091
597
Temporary agency workers
3,055
2,518
537
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
234
Post-employment benefit and
other costs
1,566
1,946
(380)
Stock grant plan (Note 45)
94
542
(448)
Total
32,176
30,072
2,104
Average of the Company headcount at 31 December 2024 totalled 454 employees (310 blue-
collars, 130 white-collars and supervisors, 14 managers), unchanged since 2023 (311 blue-
collars, 128 white-collars and supervisors, 15 managers). The number of temporary staff with
temporary work contract was 66 at 31 December 2024 (56 at the end of 2023).
29. OTHER OPERATING COSTS
2024
2023
Change
Non-income related taxes and
duties
291
356
(65)
Losses and write-downs of trade
receivables
-
30
(30)
Contingent liabilities
205
379
(174)
Other provisions
1
103
(102)
Other operating expenses
303
234
69
Total
800
1,102
(302)
Non-income taxes mainly include IMU, TASI and the tax for the disposal of urban solid waste.
Other provisions refer to the allocations to provisions for risks described in Note 18.
Other operating expenses include donations of €132 thousand, 0.1% of turnover 2024, for
community support activities,
30. FINANCIAL INCOME
2024
2023
Change
Interests receivable from banks
134
125
9
Interests receivable from loans
723
450
273
IRS spreads receivable
87
-
87
Total
944
575
369
31. FINANCIAL EXPENSES
2024
2023
Change
Interest paid to banks
3,117
2,952
165
Banking expenses
125
164
39
IRS spreads payable
-
80
(80)
Other financial expense
151
270
(119)
Total
3,393
3,466
(73)
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
235
32. EXCHANGE RATE GAINS AND LOSSES
In 2024, the Company reported net foreign exchange profit of €825 thousand (net loss of €171
thousand in 2023) thanks to the due to the appreciation of the dollar against the euro.
33. PROFITS AND LOSSES FROM EQUITY INVESTMENTS
2024
2023
Change
Dividends received from Faringosi Hinges
s.r.l.
1,156
3,000
(1,844)
Dividends received from A.R.C. s.r.l.
755
3,000
(2,245)
Dividends received from C.M.I. s.r.l.
2,266
-
2,266
Write-down of equity investments
(3,078)
(1,000)
(2,078)
Total
1,099
5,000
3,901
In 2024, the 'Write-down of equity investments' relates to Sabaf India in the amount of €3,045
thousand and Sabaf China in the amount of €25 thousand. See Note 4 for more details.
Starting with these Separate Financial Statements, for the purpose of a better presentation of
the Income Statement, write-downs of equity investments are classified under 'Gains and losses
from equity investments'. Previously, write-downs of equity investments were accounted for
under 'Gains and losses on disposal of non-current assets'. For the sake of consistency of
comparison, this classification was also adopted in the 2023 income statement, which is
presented for comparative purposes in these separate financial statements.
34. INCOME TAXES
2024
2023
Change
Current taxes
(219)
(1,782)
1,561
Deferred tax assets and liabilities
19
210
827
Taxes related to previous financial
years
47
(808)
(161)
Total
(153)
(2,380)
2,227
The tax income related to the tax loss for the 2024 tax year is recognised in current taxes for
2024.
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
236
Reconciliation between the tax burden booked in the financial statements and the theoretical
tax burden calculated according to the statutory tax rates currently in force in Italy is shown in
the following table:
2024
2023
Theoretical income tax
282
270
Taxes related to previous financial years
89
(73)
Tax effect of dividends from investee companies
(952)
(1,368)
“Iper and Superammortamento” tax benefit
(381)
(558)
Permanent tax differences
755
194
Tax effect on tax credit for energy-intensive and gas-intensive companies
-
(153)
“Patent box” tax benefit
(32)
(635)
IRES (current and deferred)
(239)
(2,323)
IRAP (current and deferred)
86
(57)
Total
(153)
(2,380)
Theoretical taxes were calculated applying the current corporate income tax (IRES) rate, i.e.
24%, to the pre-tax result. IRAP is not taken into account for the purpose of reconciliation
because, as it is a tax with a different assessment basis from pre-tax profit, it would generate
distorting effects.
35. DIVIDENDS
On 29 May 2024, shareholders were paid an ordinary dividend of €0.54 per share (total dividends
of €6,776 thousand) in implementation of the shareholders' resolution of 08 May 2024.
The Directors have recommended payment of a dividend of €0.58 per share this year, subject
to approval of shareholders in the annual Shareholders’ Meeting and therefore not included
under liabilities in these financial statements. The dividend proposed is scheduled for payment
on 28 May 2025 (ex-date 26 May and record date 27 May).
36. SEGMENT REPORTING
Information by business segment for 2024 is provided below
Gas parts
Electronic
components
Components for
induction
cooking.
Unallocated
costs
Total
Sales
105,402
352
474
-
106,228
Operating profit
7,152
7
(717)
(4,656)
1,786
Unallocated revenues and costs refer to auxiliary or common activities, such as overhead costs,
which cannot be allocated to individual business segments.
37. INFORMATION ON FINANCIAL RISK
Categories of financial instruments
In accordance with IFRS 7, a breakdown of the financial instruments is shown below, among
the categories set forth in IFRS 9.
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
237
31/12/2024
31/12/2023
Financial assets
Amortised cost
Cash and cash equivalents
2,039
13,900
Trade receivables and other receivables
32,308
30,104
Non-current loans
7,295
15,734
Fair Value through profit or loss
Derivatives cash flow hedges (on interest rates)
376
860
Financial liabilities
Amortised cost
Loans
92,653
100,005
Other financial liabilities
10
175
Trade payables
21,626
22,605
The Company is exposed to financial risks related to its operations, mainly:
▪ credit risk, with special reference to normal trade relations with customers;
▪ market risk, relating to the volatility of prices of commodities, foreign exchange and
interest rates;
▪ liquidity risk, which can be expressed by the inability to find financial resources necessary
to ensure Company operations.
It is part of Sabaf's policies to hedge exposure to changes in prices and in fluctuations in
exchange and interest rates via derivative financial instruments. Hedging is done using forward
contracts, options or combinations of these instruments. Generally speaking, the maximum
duration covered by such hedging does not exceed 18 months. The Company does not enter
into speculative transactions. When the derivatives used for hedging purposes meet the
necessary requisites, hedge accounting rules are followed.
Credit risk management
Trade receivables involve producers of domestic appliances, multinational groups and smaller
manufacturers in a few or single markets. The Company assesses the creditworthiness of all its
customers at the start of supply and systemically at least on an annual basis. The credit
management procedure includes, among other things:
▪ assigning a specific credit limit to each customer;
▪ checking, on a weekly basis, receivables past due;
▪ sending payment reminders on a monthly basis;
▪ defining a time limit after which deliveries are blocked (impossibility of making deliveries
and confirming new orders).
The Company factors receivables with factoring companies based on without recourse
agreements, thereby transferring the related risk.
A credit insurance policy is in place, which guarantees cover for approximately 39% of trade
receivables.
Credit risk relating to customers operating in emerging economies is generally attenuated by
the expectation of revenue through letters of credit.
Forex risk management
The main exchange rate to which the Company is exposed is the euro/USD in relation to sales
made in dollars (mainly in North America) and, to a lesser extent, to some purchases (mainly
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
238
from Asian manufacturers). Sales in US dollars represented 13.6% of total turnover in 2024,
while purchases in dollars represented 5.8% of total turnover.
Sensitivity analysis
With reference to financial assets and liabilities in US dollars at 31 December 2024, a
hypothetical and immediate appreciation of 10% of euro against the dollar would have led to a
loss of €1,216 thousand.
Interest rate risk management
Considering the IRS in place, at the end of 2024 almost 73% of the Company's gross financial
debt was at a fixed rate. At 31 December 2024, IRS totalling €10.3 million were in place, mirrored
in mortgages with the same residual debt, through which the Company transformed the floating
rate of the mortgages into fixed rate. The derivative contracts were not designated as a cash
flow hedge and were therefore recognised using the “fair value through profit or loss” method.
The following table shows the characteristics of the derivative financial instruments described
in the previous paragraph.
Company
Counterparty
Instrument
Maturity
Value
date
Notional
Fair value
hierarchy
Sabaf S.p.A.
Crédit Agricole
IRS
30/06/25
EUR
1,800,000
2
Mediobanca
28/04/27
8,490,000
Sensitivity analysis
With reference to financial liabilities at variable rate at 31 December 2024, a hypothetical and
immediate increase of 1% of interest rates would have led to a loss of €335 thousand.
Commodity price risk management
A significant portion of the Company’s purchase costs is represented by aluminium, steel and
brass. Based on market conditions and contractual agreements, the Company may not be able
to pass on changes in raw material prices to customers in a timely and/or complete manner,
with consequent effects on margins. The Company also protects itself from the risk of changes
in the price of aluminium, steel and brass with supply contracts signed with suppliers for delivery
up to twelve months in advance or, alternatively, with derivative financial instruments. In 2024
and 2023, the Company did not use financial derivatives on commodities.
Liquidity risk management
The management of liquidity and financial debt is coordinated at Group level. The Group
operates with a debt ratio considered physiological (net financial debt/shareholders' equity at
31 December 2024 of 42%, net financial debt/EBITDA of 1.69) and has unused short-term lines
of credit. To minimise the risk of liquidity, the Administration and Finance Department:
- maintains a correct balance of net financial debt, financing investments with capital and with
medium to long-term debt;
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
239
- verifies systematically that the short-term accrued cash flows (amounts received from
customers and other income) are expected to accommodate the deferred cash flows (short-
term financial debt, payments to suppliers and other outgoings);
- regularly assesses expected financial needs in order to promptly take any corrective
measures.
An analysis by expiry date of financial payables at 31 December 2024 and 31 December 2023 is
shown below:
At 31 December 2024
Carrying
value
Contractual
cash flows
Within 3
months
From 3
months to 1
year
From 1 to 5
years
More than 5
years
Unsecured loans and leases
45,540
47,839
2,562
16,770
28,507
-
Bond issue
29,755
32,775
-
555
19,887
12,333
Finance leases
1,427
1,504
131
383
909
81
Short-term loans
15,921
15,921
219
15,702
-
-
Total financial payables
92,643
98,039
2,912
33,410
49,303
12,414
Trade payables
21,626
21,626
19,889
1,737
-
-
Total
114,269
119,665
22,801
35,147
49,303
12,414
At 31 December 2023
Carrying
value
Contractual
cash flows
Within 3
months
From 3
months to 1
year
From 1 to 5
years
More than 5
years
Unsecured loans and leases
65,566
70,780
2,270
20,019
48,490
-
Bond issue
29,720
34,680
-
780
14,964
18,936
Finance leases
1,519
1,561
128
357
1,042
34
Short-term bank loans
3,200
3,000
200
3,000
-
-
Payables to C.M.I.
shareholders
175
175
-
-
175
-
Total financial payables
100,180
110,196
2,598
24,156
64,671
18,970
Trade payables
22,605
22,605
19,373
3,232
-
-
Total
122,785
133,001
21,971
27,388
64,671
18,970
The various due dates are based on the period between the end of the reporting period and the
contractual expiry date of the commitments, the values indicated in the table correspond to non-
discounted cash flows. Cash flows include the shares of principal and interest; for floating rate
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
240
liabilities, the shares of interest are determined based on the value of the reference parameter
at the end of the reporting period and increased by the spread set forth in each contract.
Hierarchical levels of fair value assessment
The revised IFRS 7 requires that financial instruments reported in the statement of financial
position at fair value be classified based on a hierarchy that reflects the significance of the input
used in determining the fair value. IFRS 7 makes a distinction between the following levels:
• Level 1 – quotations found on an active market for assets or liabilities subject to
assessment;
• Level 2 - input other than prices listed in the previous point, which can be observed
directly (prices) or indirectly (derived from prices) on the market;
• Level 3 – input based on observable market data.
The following table shows the assets and liabilities measured at fair value at 31 December 2024,
by hierarchical level of fair value assessment.
Level 1
Level 2
Level 3
Total
Other financial assets (derivatives on interest rates)
-
376
-
376
Total assets and liabilities at fair value
-
376
-
376
38. RELATIONS BETWEEN GROUP COMPANIES AND WITH RELATED PARTIES
The table below illustrates the impact of all transactions between Sabaf S.p.A. and other related
parties on the balance sheet and income statement items and related parties, with the exception
of the directors' fees, auditors and key management personnel which is stated in the Report on
Remuneration.
Impact of related-party transactions or positions on statement of financial position items
Total
2024
Subsidiaries
Other
related
parties
Total
related
parties
Impact
on the total
Non-current financial assets
7,294
7,294
-
7,294
100%
Trade receivables
30,793
12,476
-
12,476
40.52%
Tax receivables
4,749
401
-
401
8.44%
Short-term financial payables
34,526
3,000
-
3,000
8.69%
Trade payables
21,626
1,333
-
1,333
6.16%
Tax payables
1,918
51
-
51
2.66%
Total
2023
Subsidiaries
Other
related
parties
Total
related
parties
Impact
on the total
Non-current financial assets
15,734
15,734
-
15,734
100%
Trade receivables
28,706
15,393
-
15,393
53.62%
Tax receivables
6,031
241
-
241
4.00%
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
241
Short-term financial payables
23,692
3,000
-
3,000
12.66%
Trade payables
22,605
1,186
5
1,192
5.27%
Tax payables
1,485
133
-
133
8.96%
Impact of related-party transactions on income statement items
Total
2024
Subsidiaries
Other
related
parties
Total related
parties
Impact
on the total
Revenue
106,228
21,466
-
21,466
20.21%
Other income
6,891
2,879
-
2,879
41.78%
Materials
50,961
2,222
-
2,222
4.36%
Services
24,606
323
-
323
1.31%
Capital gains on non-current assets
685
644
-
644
94.01%
Financial income
944
694
-
694
73.52%
Financial expenses
3,479
138
-
138
3.97%
Profits and losses from equity
investments
1,099
1,107
-
1,107
100.73%
Total
2023
Subsidiaries
Other
related
parties
Total related
parties
Impact
on the total
Revenue
99,482
19,892
-
19,892
20.00%
Other income
7,220
3,207
-
3,207
44.42%
Materials
45,935
3,095
-
3,095
6.74%
Services
22,124
447
21
468
2.12%
Capital gains on non-current assets
1,867
336
-
336
18%
Financial income
575
416
-
416
72.35%
Financial expenses
3,466
113
-
113
3.26%
Profits and losses from equity
investments
5,000
5,000
-
5,000
100%
Relations with subsidiaries mainly consist of:
• trade relations, relating to the purchase and sale of semi-processed goods or finished
products;
• sales of machinery, which generated the capital gains highlighted;
• charging for the provision of intra-group technical, commercial and administrative
services;
• charging for intra-group royalties;
• intra-group loans;
• tax consolidation scheme.
39. SIGNIFICANT NON-RECURRING EVENTS AND TRANSACTIONS
Pursuant to the Consob memorandum of 28 July 2006, the Group declares that no significant
non-recurring events or transactions, as defined by the memorandum, took place in 2024.
40. SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD
There were no important events after the 2024 reporting period.
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
242
41. ATYPICAL AND/OR UNUSUAL TRANSACTIONS
Pursuant to CONSOB memorandum of 28 July 2006, the Company declares that no atypical
and/or unusual transactions as defined by the CONSOB memorandum were carried out during
2024.
42. SECONDARY OFFICES AND LOCAL UNITS
The Company has another active local unit in Busto Arsizio (Varese), in addition to the
registered office in Ospitaletto (Brescia).
43. COMMITMENTS
Guarantees issued
Sabaf S.p.A. also issued sureties to guarantee mortgage loans granted by banks to employees
for a total of €1,688 thousand (€2,293 thousand at 31 December 2023).
44. FEES TO DIRECTORS, STATUTORY AUDITORS AND EXECUTIVES WITH
STRATEGIC RESPONSIBILITIES
Fees to directors, statutory auditors and executives with strategic responsibilities are described
in the Report on Remuneration that will be presented to the shareholders' meeting called to
approve these separate financial statements.
45. SHARE-BASED PAYMENTS
2021 – 2023 Stock Grant Plan
In May 2024, with the allocation of the accrued shares to the beneficiaries, the plan for the free
allocation of shares, approved by the Shareholders' Meeting of 6 May 2021 for the period from
2021 to 2023, the Regulations of which had been approved by the Board of Directors on 13 May
2021, came to an end. During the first half of 2024, as a reduction of €300 thousand in staff costs,
the Fair value of the rights granted to the beneficiaries for the relevant period was recognised
(Note 28) and the related reserve that had been recognised in the shareholders' equity was
released (Note 13).
2024 – 2026 Stock Grant Plan
A plan for the free allocation of shares, approved by the Shareholders' Meeting of 8 May 2024,
is in place. The related Regulations were approved by the Board of Directors on 18 June 2024.
The main features of this Plan are summarised below.
Purpose
The Plan aims to promote and pursue the involvement of the beneficiaries whose activities are
considered relevant for the implementation of the contents and the achievement of the
objectives set out in the Business Plan, foster loyalty development and motivation of managers,
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
243
by increasing their entrepreneurial approach as well as align the interests of management with
those of the Company's shareholders more closely, with a view to encouraging the achievement
of significant results in the economic and asset growth and sustainability of the Company and
of the Group.
Subject matter
The subject-matter of the Plan is the free allocation to the Beneficiaries of a maximum of 270,000
Options, each of which entitles them to receive free of charge, under the terms and conditions
provided for by the Regulations of the relevant Plan, 1 Sabaf S.p.A. Share.
The free allocation of Sabaf S.p.A. shares is conditional on the achievement, in whole or in part,
with progressiveness, of the business targets related to the ROI and EBITDA and social and
environmental targets.
Beneficiaries
The Plan is intended for persons who hold or will hold key positions in the Company and/or its
Subsidiaries, with reference to the implementation of the contents and the achievement of the
objectives of the 2024 - 2026 Business Plan. A total of 258,000 Rights were allocated to the
Beneficiaries.
Deadline
The 2024 - 2026 Plan expires on 31 December 2027.
Accounting impacts and Fair Value measurement methods
In connection with this Plan, €394 thousand (Note 28) were recognised in personnel costs during
the year, an equity reserve of the same amount (Note 13) was recognised as a balancing entry.
In line with the date on which the beneficiaries became aware of the assignment of the rights
and terms of the plan, the grant date was set at 1 July 2024.
The main assumptions made at the beginning of the vesting period and the methods for
determining the fair value at the end of the reporting period are illustrated below. The following
economic and financial parameters were taken into account in determining the fair value per
share at the start of the vesting period:
Share price on grant date adjusted for dividends
€16.60
Dividend yield
2.90%
Expected volatility per year
31.30%
Interest rate per year
3.10%
Based on the exercise right at the different dates established by the Plan Regulations and on the
estimate of the expected probability of achieving the objectives for each reference period, the
unitary fair value at 31 December 2024 was determined as follows:
Rights relating to objectives
measured on ROI
Total value on ROI
9.80
Fair Value
3.43
Rights on ROI
35%
Rights relating to objectives
Total value on EBITDA
6.33
Fair Value
2.85
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
244
measured on EBITDA
Rights on EBITDA
45%
Rights relating to ESG objectives
measured on personal training
Total value on "Personnel
training”
14.02
Fair Value
0.70
Rights on "Personnel
training”
5%
Rights relating to ESG objectives
measured on safety indicator
Total value on "Safety
indicator”
10.17
Fair Value
0.51
Rights on "Safety
indicator”
5%
Rights relating to ESG objectives
measured on reduction of
emissions.
Total value on "Reduction
of emissions”
13.73
Fair Value
1.37
Rights on "Reduction of
emissions”
10%
Fair Value per share
8.86
Summary of public grants pursuant to Article 1, paragraphs 125-129, Italian Law
no. 124/2017
In compliance with the requirements of transparency and publicity envisaged pursuant to Italian
Law no. 124 of 4 August 2017, article 1, paragraphs 125-129, which imposed on companies the
obligation to indicate in the explanatory notes “grants, contributions, and in any case economic
advantages of any kind”, the following are the details of the relative amounts, accounted for “on
a cash basis”, in addition to what has already been published in the National State Aid Register
- transparency of individual aid.
Statutory References
Contribution value
Disbursing Subject
Super/Iper ammortamento (Super/Hyper
amortisation)
1,162
Italian State
R&D Tax credit
164
Italian State
Total
1,326
Iperammortamento
(Hyper amortisation): it allows an over-estimation for tax purposes of
capital equipment to which “Industry 4.0” benefits are applicable, which differs according to the
year of acquisition. The reference regulations are included in the Budget Laws from the year
2017 to the year 2020, 2021 Budget Law, Law 178/2020.
Superammortamento
(Super amortisation): it allows an over-estimation for tax purposes of
130% or 140% of investments in new capital equipment; the reference regulations are contained
in Italian Law no. 205 of 27 December 2017.
Research and development activities: Contribution accessible with reference to Article 1,
paragraphs 198-209 of Law no. 160 of 27 December 2019 and the Implementing Decree of the
Ministry of Economic Development of 26 May 2020 (“Transition 4.0” Decree).
Sabaf Group | Sabaf S.p.A. Separate Financial Statements at 31 December 2024
245
LIST OF EQUITY INVESTMENTS IN SUBSIDIARIES
26
Company name
Registered offices
Share capital at 31
December 2024
Shareholders
% of
ownership
Shareholders’ equity
at 31 December 2024
2024 profit (loss)
Faringosi Hinges S.r.l.
Ospitaletto (BS)
EUR 90,000
Sabaf S.p.A.
100%
EUR 8,387,691
EUR 1,543,694
Sabaf do Brasil Ltda
Jundiaì (Brazil)
BRL 53,348,061
Sabaf S.p.A.
100%
BRL 121,520,788
BRL 15,586,321
Sabaf US Corp.
Plainfield (USA)
USD 200,000
Sabaf S.p.A.
100%
USD 4,039
USD -180,783
Sabaf Appliance Components
(Kunshan) Co., Ltd.
Kunshan (China)
CNY 69,951,149
Sabaf S.p.A.
100%
CNY 4,419,713
CNY -1,196,567
Sabaf Beyaz Esya Parcalari
Sanayi Ve Ticaret Limited
Sirketi
Manisa (Turkey)
TRY 1,306,029,421
Sabaf S.p.A.
100%
TRY 1,985,074,420
TRY 96,020,065
A.R.C. S.r.l.
Campodarsego (PD)
EUR 45,000
Sabaf S.p.A.
100%
EUR 6,933,514
EUR 1,219,214
Sabaf Mexico Appliance
Components
San Louis Potosì
(Mexico)
PESOS 141,003,832
Sabaf S.p.A.
100%
PESOS 296,021,470
PESOS -52,363,414
C.M.I s.r.l.
Valsamoggia (BO)
EUR 1,000,000
Sabaf S.p.A.
100%
EUR 22,840,567
EUR 3,366,656
C.G.D. S.r.l.
Valsamoggia (BO)
EUR 26,000
C.M.I. S.r.l.
100%
EUR 1,528,618
EUR -21,393
Sabaf India Private Limited
Bangalore (India)
INR 311,666,338
Sabaf S.p.A.
100%
INR 565,225,897*
INR -110,397,976*
P.G.A S.r.l.
Fabriano (AN)
EUR 100,000
Sabaf S.p.A.
100%
EUR 3,948,114
EUR 193,504
Sabaf America Inc.
Delaware (USA)
USD 4,000,000
Sabaf S.p.A.
100%
USD 5,419,077
USD 1,417,826
Mansfield Engineered
Components LLC(MEC)
Mansfield (USA)
USD 2,823,248
Sabaf America
51%
USD 15,171,544
USD 2,368,423
‘* The values shown for Sabaf India Private Limited refer to 31 March 2024, the local reporting date
OTHER SIGNIFICANT EQUITY INVESTMENTS
None
26
Values taken from the separate financial statements of subsidiaries, prepared in accordance with locally applicable accounting standards
Sabaf Group | Sabaf S.p.A. separate financial statements at 31 December 2024
246
ORIGIN, POSSIBILITY OF UTILISATION AND AVAILABILITY OF RESERVES
Description
Amount
Possibility
of
utilisation
Available
share
Amount subject
to taxation
for the
company in the
case of
distribution
Capital reserves:
Share premium reserve
26,160
A, B, C
26,160
0
Revaluation reserve, Law 413/91
42
A, B, C
42
42
Revaluation reserve, Law 342/00
1,592
A, B, C
1,592
1,592
Retained earnings:
Legal reserve
2,482
B
0
0
Other retained earnings
77,209
A, B, C
75,943
0
Revaluation reserve, Law Decree of
Legislative Decree 104/20
4,873
A, B
4,873
4,727
Valuation reserve:
Post-employment benefit actuarial
provision
(366)
0
0
Reserve for stock grant plan
394
0
0
Total
112,386
108,610
6,361
Key:
A. for share capital increase
B. to hedge losses
C. for distribution to shareholders
Sabaf Group | Sabaf S.p.A. separate financial statements at 31 December 2024
247
STATEMENT OF REVALUATIONS
OF EQUITY ASSETS AT 31 December 2024
Gross value
Cumulative
depreciation
Net value
Non-current assets
held for sale
Law 342/2000
2,870
(2,870)
0
2,870
(2,870)
0
Plant and
equipment
Law 576/75
180
(180)
0
Law 72/1983
2,180
(2,180)
0
1989 merger
6,140
(6,140)
0
1994 merger
6,820
(6,820)
0
15,320
(15,320)
0
Industrial and
commercial
equipment
Law 72/1983
161
(161)
0
Other assets
Law 72/1983
50
(50)
0
TOTAL
18,356
(18,356)
0
GENERAL INFORMATION
Sabaf S.p.A. is a company organised under the legal system of the Republic of Italy.
Registered and administrative office: Via dei Carpini, 1
25035 Ospitaletto (Brescia)
Contacts: Tel: +39 030 - 6843001
Fax: +39 030 - 6848249
E-mail: info@sabaf.it
Web site: http://www.sabaf.it
Tax information: REA Brescia 347512
Tax code 03244470179
VAT NUMBER 01786910982
Sabaf Group | Sabaf S.p.A. separate financial statements at 31 December 2024
248
Appendix
Information as required by Article 149-duodecies of the CONSOB Issuers’
Regulation
The following table, prepared pursuant to Art. 149-duodecies of the CONSOB Issuers’
Regulation, shows fees relating to 2024 for auditing services and for services other than
auditing provided by the Independent Auditors. No services were provided by entities
belonging to the network.
(€/000)
Party providing
the service
Fees pertaining to the 2024
financial year
Audit
EY S.p.A.
47
Certification services
EY S.p.A
---
Other audit services
EY S.p.A
24.5 (1)
Total
71.5
1. Agreed auditing procedures for interim management statements and review of the Statement of Expenditure on Research
and Development.
Sabaf Group | Sabaf S.p.A. separate financial statements at 31 December 2024
249
Certification of Separate financial statements pursuant to Article 154-bis of
Legislative Decree of Legislative Decree 58/98
Pietro Iotti, the Chief Executive Officer, and Gianluca Beschi, the Financial Reporting Officer of
Sabaf S.p.A., have taken into account the requirements of Article 154-bis, paragraphs 3 and 4,
of Legislative Decree 58 of 24 February 1998 and can certify:
• the adequacy, in relation to the business characteristics and
• the actual application
of the administrative and accounting procedures for the formation of the separate financial
statements during the 2024 financial year.
They also certify that:
• the separate financial statements:
- were prepared in accordance with the international accounting policies
recognised in the European Community in accordance with EC regulation
1606/2002 of the European Parliament and Council of 19 July 2002 and with
the measures issued in implementation of Article 9 of Legislative Decree
38/2005;
- are consistent with accounting books and records;
- provide a true and fair view of the financial position and performance of the
issuer;
• the report on operations contains a reliable analysis of the performance and results of
operations and the situation at the issuer, along with a description of the key risks and
uncertainties to which it is exposed.
Ospitaletto, 25 March 2025
Chief Executive Officer
Pietro Iotti
The Financial Reporting Officer
Gianluca Beschi