BIESSE S.P.A. Annual Report 2023
ANNUAL REPORT AS AT 31 DECEMBER 2023
COMPOSITION OF CORPORATE BODIES ........................................................................................................... 11
DIRECTORS' REPORT ON OPERATIONS ................................................................................................................. 12
GENERAL ECONOMIC OVERVIEW ...................................................................................................................... 12
BUSINESS SECTOR REVIEW ............................................................................................................................... 14
2023 TREND ......................................................................................................................................................... 15
CONSOLIDATED NON-FINANCIAL STATEMENT ................................................................................................ 17
2023 MAIN EVENTS ............................................................................................................................................. 17
DIRECTORS' REPORT ON OPERATIONS OF THE BIESSE GROUP ..................................................................... 19
INCOME STATEMENT .......................................................................................................................................... 19
STATEMENT OF FINANCIAL POSITION .............................................................................................................. 22
MAIN RISKS AND UNCERTAINTIES TO WHICH BIESSE S.P.A. AND THE BIESSE GROUP ARE EXPOSED ....... 23
CORPORATE GOVERNANCE ............................................................................................................................... 27
PERSONNEL RELATIONS ................................................................................................................................... 28
RESEARCH AND DEVELOPMENT ACTIVITIES ................................................................................................... 29
RECONCILIATION BETWEEN THE PARENT'S EQUITY AND RESULTS AND CONSOLIDATED EQUITY AND
RESULTS ............................................................................................................................................................. 30
TRANSACTIONS WITH ASSOCIATES, PARENTS AND THE LATTER'S SUBSIDIARIES ....................................... 30
OTHER RELATED-PARTY TRANSACTIONS .......................................................................................................... 31
INFORMATION ON SIGNIFICANT COMPANIES OUTSIDE THE EU ..................................................................... 32
SHARES IN BIESSE AND/OR ITS SUBSIDIARIES, HELD DIRECTLY OR INDIRECTLY BY MEMBERS OF THE BOARD OF DIRECTORS, THE BOARD OF STATUTORY AUDITORS AND THE GENERAL MANAGER, AS WELL AS
BY THEIR RESPECTIVE SPOUSES WHERE NOT LEGALLY SEPARATED AND BY THEIR MINOR CHILDREN ... 33
"ATYPICAL AND/OR UNUSUAL" TRANSACTIONS CARRIED OUT DURING THE YEAR ..................................... 34
SIGNIFICANT EVENTS AFTER THE REPORTING DATE AND OUTLOOK ............................................................. 34
DIRECTORS' REPORT ON OPERATIONS OF BIESSE S.P.A . .............................................................................. 36
RELATED-PARTY TRANSACTIONS ..................................................................................................................... 39
OTHER INFORMATION ........................................................................................................................................ 39
PROPOSALS TO THE ORDINARY SHAREHOLDERS' MEETING ......................................................................... 40
CONSOLIDATED FINANCIAL STATEMENTS AS AT 31 DECEMBER 2023 .............................................................. 42
CONSOLIDATED INCOME STATEMENT ............................................................................................................. 42
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME ........................................................................ 43
CONSOLIDATED STATEMENT OF FINANCIAL POSITION .................................................................................. 44
CONSOLIDATED STATEMENT OF CASH FLOWS ............................................................................................... 45
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ................................................................................... 46
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ................................................................................. 47
1. GENERAL INFORMATION ....................................................................................................................... 47
2. STATEMENT OF COMPLIANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS AND
GENERAL STANDARDS ...................................................................................................................................... 49
3. MEASUREMENT CRITERIA AND USE OF ESTIMATES ............................................................................. 51
4. ACCOUNTING STANDARDS AND MEASUREMENT CRITERIA ADOPTED ............................................. 52
5. ADOPTION OF NEW ACCOUNTING STANDARDS, AMENDMENTS AND IFRS INTERPRETATIONS ...... 64
6. REVENUE AND ANALYSIS BY OPERATING SEGMENT AND GEOGRAPHICAL AREA ........................... 66
7. REVENUE ................................................................................................................................................ 68
8. OTHER INCOME ...................................................................................................................................... 68
9. CONSUMPTION OF RAW MATERIALS, CONSUMABLES, SUPPLIES AND GOODS ............................... 69
10. PERSONNEL EXPENSE .......................................................................................................................... 69
11. AMORTISATION, DEPRECIATION, IMPAIRMENT AND PROVISIONS ..................................................... 70
12. OTHER OPERATING EXPENSE ............................................................................................................... 70
13. FINANCE INCOME AND EXPENSES AND EXCHANGE RATE GAINS AND LOSSES ............................... 71
14. BASIC AND DILUTED EARNINGS PER SHARE ........................................................................................ 72
15. PROPERTY, PLANT AND EQUIPMENT ..................................................................................................... 73
16. RIGHT-OF-USE ASSETS AND LEASE LIABILITIES .................................................................................. 73
17. GOODWILL ............................................................................................................................................. 74
18. INTANGIBLE ASSETS ............................................................................................................................... 77
19. OTHER CURRENT AND NON-CURRENT FINANCIAL ASSETS ............................................................... 78
20. INVENTORIES ......................................................................................................................................... 78
21. TRADE RECEIVABLES ............................................................................................................................ 78
22. OTHER RECEIVABLES ............................................................................................................................ 79
23. CASH AND CASH EQUIVALENTS ........................................................................................................... 80
24. CONSOLIDATED EQUITY ........................................................................................................................ 80
25. FINANCIAL LIABILITIES ........................................................................................................................... 81
26. EMPLOYEE BENEFITS ............................................................................................................................ 84
27. INCOME TAXES ....................................................................................................................................... 85
28. PROVISIONS FOR RISKS AND CHARGES .............................................................................................. 87
29. TRADE PAYABLES .................................................................................................................................. 87
30. CONTRACT LIABILITIES .......................................................................................................................... 88
31. OTHER CURRENT AND NON-CURRENT PAYABLES .............................................................................. 88
32. FINANCIAL ASSETS/LIABILITIES FOR DERIVATIVE INSTRUMENTS ..................................................... 88
33. FINANCIAL RISK MANAGEMENT ........................................................................................................... 89
34. RELATED-PARTY TRANSACTIONS ......................................................................................................... 92
35. OTHER INFORMATION ............................................................................................................................ 95
36. EVENTS AFTER THE REPORTING DATE ................................................................................................. 96
37. ANNEXES ................................................................................................................................................ 97
FINANCIAL STATEMENTS AS AT 31 DECEMBER 2023 ......................................................................................... 101
SEPARATE INCOME STATEMENT AS AT 31 DECEMBER 2023 ......................................................................... 101
SEPARATE STATEMENT OF COMPREHENSIVE INCOME AS AT 31 DECEMBER 2023 .................................... 101
SEPARATE STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2023 ............................................. 102
SEPARATE STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2023 ............................................. 103
SEPARATE STATEMENT OF CASH FLOWS AS AT 31 DECEMBER 2023 .......................................................... 104
SEPARATE STATEMENT OF CHANGES IN EQUITY AS AT 31 DECEMBER 2023 .............................................. 105
NOTES TO THE FINANCIAL STATEMENTS ............................................................................................................ 106
1. OVERVIEW ............................................................................................................................................ 106
2. STATEMENT OF COMPLIANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS ........ 106
3. MEASUREMENT CRITERIA AND USE OF ESTIMATES .......................................................................... 108
4. ACCOUNTING STANDARDS AND MEASUREMENT CRITERIA ADOPTED ........................................... 109
5. ADOPTION OF NEW ACCOUNTING STANDARDS, AMENDMENTS AND IFRS INTERPRETATIONS ..... 118
6. REVENUE FROM SALES AND SERVICES AND OTHER OPERATING INCOME ..................................... 119
7. ANALYSIS BY OPERATING SEGMENT AND GEOGRAPHICAL SEGMENT ............................................ 122
8. CONSUMPTION OF RAW MATERIALS AND CONSUMABLES ............................................................... 122
9. PERSONNEL EXPENSE ......................................................................................................................... 123
10. OTHER OPERATING EXPENSE .............................................................................................................. 124
11. PROVISIONS .......................................................................................................................................... 127
12. IMPAIRMENT LOSSES ........................................................................................................................... 127
13. PROFITS/LOSSES OF RELATED COMPANIES ..................................................................................... 127
14. FINANCE INCOME AND EXPENSE ........................................................................................................ 127
15. DIVIDENDS ............................................................................................................................................ 129
16. TAXES .................................................................................................................................................... 130
17. PROPERTY, PLANT, EQUIPMENT AND OTHER ITEMS OF PROPERTY, PLANT AND EQUIPMENT AND
ASSETS AVAILABLE FOR SALE ......................................................................................................................... 131
18. GOODWILL ............................................................................................................................................ 133
19. OTHER INTANGIBLE ASSETS ................................................................................................................ 135
20. EQUITY INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES .............................................................. 136
21. OTHER NON-CURRENT FINANCIAL ASSETS AND RECEIVABLES ....................................................... 138
22. INVENTORIES ........................................................................................................................................ 139
23. TRADE RECEIVABLES AND CONTRACT ASSETS DUE FROM THIRD PARTIES .................................... 139
24. TRADE RECEIVABLES AND CONTRACT ASSETS DUE FROM RELATED PARTIES ............................... 141
25. OTHER CURRENT ASSETS DUE FROM THIRD PARTIES ....................................................................... 142
26. CURRENT FINANCIAL ASSETS DUE FROM THIRD PARTIES ................................................................ 142
27. CURRENT FINANCIAL ASSETS AND LIABILITIES DUE FROM RELATED PARTIES ............................... 143
28. CASH AND CASH EQUIVALENTS .......................................................................................................... 143
29. SHARE CAPITAL AND TREASURY SHARES ........................................................................................... 144
30. SHARE CAPITAL RESERVES .................................................................................................................. 144
31. OTHER RESERVES AND RETAINED EARNINGS ................................................................................... 144
32. DIVIDENDS ............................................................................................................................................ 145
33. POST-EMPLOYMENT BENEFITS ........................................................................................................... 145
34. DEFERRED TAX ASSETS AND LIABILITIES ........................................................................................... 147
35. BANK OVERDRAFTS AND LOANS ......................................................................................................... 147
36. FINANCE LEASE LIABILITIES ................................................................................................................ 148
37. NET FINANCIAL POSITION .................................................................................................................... 148
38. PROVISIONS FOR RISKS AND CHARGES ............................................................................................. 149
39. TRADE PAYABLES TO THIRD PARTIES ................................................................................................. 150
40. TRADE PAYABLES TO RELATED PARTIES ........................................................................................... 150
41. CONTRACT LIABILITIES DUE TO THIRD PARTIES ................................................................................. 151
42. CONTRACT LIABILITIES DUE TO RELATED PARTIES ............................................................................ 152
43. OTHER LIABILITIES DUE TO THIRD PARTIES ........................................................................................ 152
44. OTHER CURRENT ASSETS AND LIABILITIES DUE FROM/TO RELATED PARTIES ............................... 153
45. INCOME TAX PAYABLES ....................................................................................................................... 153
46. FINANCIAL ASSETS AND LIABILITIES FROM DERIVATIVE INSTRUMENTS ......................................... 154
47. CONTINGENT LIABILITIES, COMMITMENTS AND GUARANTEES ........................................................ 154
48. RISK MANAGEMENT AND CLASSIFICATION OF FINANCIAL INSTRUMENTS ...................................... 155
49. TRANSACTIONS NOT INVOLVING CHANGES IN CASH FLOWS AND RECONCILIATION OF CASH
FLOWS ............................................................................................................................................................... 159
50. ATYPICAL OR UNUSUAL TRANSACTIONS ............................................................................................. 159
51. RELATED-PARTY TRANSACTIONS ....................................................................................................... 160
52. OTHER INFORMATION ........................................................................................................................... 161
53. EVENTS AFTER THE REPORTING DATE ................................................................................................ 162
54. GOVERNMENT GRANTS PURSUANT TO ART. 1, PARAGRAPHS 125-129 OF LAW NO. 124/2017 ........ 162
55. REMUNERATION OF DIRECTORS, GENERAL MANAGERS, MANAGERS WITH STRATEGIC
RESPONSIBILITIES AND MEMBERS OF THE BOARD OF STATUTORY AUDITORS ........................................... 163
56. PROPOSALS TO THE ORDINARY SHAREHOLDERS' MEETING ............................................................ 164
REPORTS ……………………………………………………………………………… . ………………………………… . ………………………………… 172
REPORT ON THE AUDIT ON THE CONSOLIDATED FINANCIAL STATEMENT ……. ……………………………………… . 172
REPORT ON THE AUDIT ON THE FINANCIAL STATEMENT ………………………………… . ………… .. ………………………… 180
REPORT OF THE BOARD OF STATUTORY AUDITORS TO THE SHAREHOLDER'S MEETING ……………… .……… 186
THE BIESSE GROUP BIESSE GROUP STRUCTURE
The following companies belong to the Biesse Group and are included in the scope of consolidation:
Note: The different colours represent the subgroups of the control chain
BIESSE GROUP PROFILE
The Biesse Group is a multinational manufacturer of integrated lines and machines for the processing of wood, glass, stone, plastics and composites. Founded in Italy in 1969 and listed on the Euronext Star segment of the Italian Borsa Italiana stock exchange since June 2001, the Biesse Group supports the business development of its customers in the furniture, housing & construction, automotive and aerospace sectors. Today, about 80% of consolidated revenues are made abroad thanks to a constantly growing worldwide network with 5 production sites and more than 20 showrooms worldwide. Thanks to the expertise of around 4,000 employees, leading companies in their sectors and the most respected names in Italian and international design are inspired to unlock the potential of every material.
With respect to the consolidated financial statements for the year ended 31 December 2022, it should be noted that on 4 July 2023, the process of merging the subsidiary Movetro S.r.l. into Forvet S.p.A. Costruzione Macchine Speciali (its associate, as well as a subsidiary of Biesse S.p.A.) was completed, with accounting and tax effect from 1 January 2023, while on 21 July 2023, the process of merging the subsidiary Montresor & Co. S.r.l. into the parent company Biesse S.p.A. was completed, with accounting and tax effect as of 1 January 2023. It should be noted that the aforementioned merger transactions have no accounting effects on the consolidated financial statements.
Finally, on 10 October 2023, the sale of the shares in the subsidiary Biesservice Scandinavia Aktiebolag was completed.
ALTERNATIVE PERFORMANCE INDICATORS
Management uses some performance indicators, which are not identified as accounting measures under the IFRS (non-GAAP measures), to better assess the Biesse Group's performance. The criterion applied by the Biesse Group to set these indicators might not be the same as that adopted by other groups, and the indicators might not be comparable with those set by the latter. These performance indicators, which were set in compliance with the Guidelines on performance indicators issued by ESMA/2015/1415 and adopted by CONSOB with its communication No. 92543 of 3 December 2015, refer to performance in the accounting period covered by this Annual Report on Operations and the previous year used for comparison.
Performance indicators are to be regarded as complementary to and not a substitute for financial data prepared in accordance with IFRS. Hereafter is a description of the main indicators adopted.
▪ Value Added before non-recurring events: this indicator is defined as the Profit (Loss) for the year before income taxes, finance income and expense, exchange rate gains and losses, amortisation of intangible assets, depreciation of property, plant and equipment, impairment losses on fixed assets, allocations to provisions for risks and charges, costs and revenues arising from transactions that Management considers as non-recurring relative to the Biesse Group's ordinary operations, as well as personnel expense.
▪ Adjusted EBITDA (Adjusted Earnings Before Interest, Taxes, Depreciation and Amortisation): this indicator is defined as the Profit (Loss) for the period before income taxes, finance income and expense, exchange rate gains and losses, amortisation of intangible assets, depreciation of property, plant and equipment, impairment losses on fixed assets, allocations to provisions for risks and charges, as well as costs and revenues arising from transactions that Management considers as non-recurring relative to the Biesse Group's ordinary operations.
▪ Adjusted EBIT (Adjusted Earnings Before Interest and Taxes): this indicator is defined as the Profit (Loss) for the year before income taxes, finance income and expense, exchange rate gains and losses, impairment losses on fixed assets, as well as costs and revenues arising from transactions that Management considers as non-recurring relative to the Biesse Group's ordinary operations.
▪ Operating Profit or EBIT (Earnings Before Interest and Taxes): this indicator is defined as Profit (Loss) for the year before income taxes, financial income and expenses, and foreign exchange losses and gains.
▪ Net Operating Working Capital: this indicator is calculated as the total of Inventories, Trade receivables and Contract assets, net of Trade payables and Contract liabilities.
▪ Net Invested Capital: this indicator represents the total of Current and Non-Current Assets, excluding financial assets, net of Current and Non-Current Liabilities, excluding financial liabilities.
▪ Net financial position: this indicator is calculated in compliance with the provisions contained in
Communication No. 5/21 of 29 April 2021 issued by Consob, which refers to the ESMA Recommendations of 4 March 2021.
FINANCIAL HIGHLIGHTS
Euro 000's | 31 December 2023 % on sales | 31 December 2022 % on salesChange % |
Revenue from sales and services Normalised Added value (1) Ebitda (Gross operating profit) adjusted(1) Ebit adjusted (1) Ebit (1) Profit/Loss for the period | 785,002 100.0% 318,356 40.6% 77,025 9.8% 40,348 5.1% 24,169 3.1% 12,483 1.6% | 100.0% (4.6)% 41.6% (6.9)% 11.0% (14.9)% 5.8% (15.2)% 6.2% (52.4)% 3.7% (58.8)% |
Ebitda margin 15.0% 10.0% 11.0% 9.8% 5.0% 0.0%2022 2023 | Ebit margin 10.0% 8.0% 6.0% 4.0% 5.8% 5.1% 2.0% 0.0% 2022 2023 |
Statement of Financial Position
Euro 000's | 31 December 2023 | 31 December 2022 |
Net invested capital (1) Equity Net financial position (1) Net operating working capital (1) | 168,495 261,448 92,953 41,682 | 144,147 260,793 116,646 7,908 |
Order intake | 282,320 | 384,659 |
(1) The criteria for determining amounts relating to interim results and aggregate equity and financial data are described in the Directors' Report on Operations and the Notes to the Financial Statements.
Net financial indebtedness 150 100 116.6 93.0 50 02022 2023 | Net operating working capital 40 30 20 41.7 10 0 7.9 2022 2023 |
Euro000's
Euro000's
Personnel (*)
31 December 2023 3,924 | 31 December 2022 |
Number of employees 4,200 4,100 4,000 4,164 4,120 4,072 3,900 3,965 3,924 3,80012/22 03/23 06/23 09/23 12/23 | Turnover per employee 200 197.5 200.1 150 100 2022 2023 |
Euro000's
* includes agency workers.
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Biesse S.p.A. published this content on 28 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 March 2024 14:11:02 UTC.
