Biesse S p A : 31/03/2021 - NOTICE of DEPOSIT of Sustainability Report

SUSTAINABILITY REPORT

Consolidated non-financial statement pursuant to Legislative Decree 254/2016

Group

2020

Contents
Letter to stakeholders ..........................................................................................................................	2
Methodological note............................................................................................................................	4
Biesse Group's identity......................................................................................................................	10
Group overview..........................................................................................................................................	10
Corporate governance................................................................................................................................	16
Business ethics and integrity ......................................................................................................................	19
Risk management.......................................................................................................................................	21
Approach to sustainability..........................................................................................................................	24
Stakeholders and materiality analysis........................................................................................................	28
Economic sustainability ....................................................................................................................	36
Economic performance ..............................................................................................................................	37
Economic value generated and distributed ...............................................................................................	39
Innovation: The pursuit of excellence........................................................................................................	41
The Group at the service of its customers .................................................................................................	46
The supply chain.........................................................................................................................................	50
Social Sustainability..........................................................................................................................	54
Its people....................................................................................................................................................	55
Biesse Group and the communities ...........................................................................................................	69
Environmental Sustainability ...........................................................................................................	73
Approach to environmental management.................................................................................................	74
Energy consumption and emissions...........................................................................................................	75
Materials used and waste management....................................................................................................	79
Management of water resources...............................................................................................................	80
Boundaries and impact of material topics........................................................................................	81
GRI: Content index ...........................................................................................................................	82
Report of the Independent Auditors .................................................................................................	88

1

2020 Sustainability Report

Letter to stakeholders

Dear stakeholders,

we are pleased to present the 2020 consolidated non-financial statement of Biesse Group, which describes the Group's approach to social responsibility and reports the key results achieved in terms of economic, social and environmental sustainability as well as defining future objectives.

This Statement, like last year's, is being published during the global Covid-19 pandemic, which is still having significant health and socio-economic consequences throughout the world. A year ago we were confident in our ability to deliver a resilient business model, capable of supporting local communities, and with an eye on the future thanks to the Group's strategy, organisation, management and financial solidity. We have acted both internally and externally with the aim of protecting people's health, and that of our employees, suppliers, customers and all those who engage with the Group throughout the world, enhancing digital services and continuing to ensure the continuity of our business. As you will read in this document, this year's economic, social and environmental sustainability achievements reflect the efforts of the people that are the Biesse Group and the network of partners and stakeholders who, in various ways, have contributed to ensuring the continuity of the business and the creation of value - tangible and intangible - that derives from it: our deepest and most heartfelt thanks go to all of them.

The attention given to our stakeholders is also consistent with our desire to be both a global Group, attuned to the new trends in digital transformation and sustainability, and a company with its roots firmly planted in the local community, with a history spanning over fifty years and significant growth and international expansion.

We are convinced that the sustainable success of the business is intrinsically linked to the development of our employees, so that they increasingly see Biesse Group as an organisation that acknowledges their merits and guides them in their personal and professional growth; all this in a context that is ready to achieve ISO 45001 certification, something that HSD S.p.A. has already obtained and which will soon involve other Group locations, thus demonstrating the attention paid to health and safety in the workplace.

With well-trained people who are able to perform to the best of their potential, we are confident that we will be able to foster the drive towards product and process innovation that has always distinguished our Group, recognising the needs of our customers, to whom we want to offer solutions that will allow them to perform at their best, or consolidate their market leadership, while respecting their ethical values.

In these difficult times, we remain convinced that the key to a winning business model lies in the ability to co- generate and distribute the value of our business in synergy with customers and suppliers.

We continue to be committed to a responsible approach to the use of natural resources, avoiding waste and implementing energy efficiency initiatives, in addition to the decision to only purchase electricity from renewable sources for the Group's Italian offices. Our environmental decisions are inspired by the ambitious European plans to reduce CO2 emissions and make us informed participants in a supply chain that is increasingly focused on striking a balance between economic and environmental sustainability.

As is evident from the pages of this non-financial statement, again this year we have developed partnerships with the local community, with which we have an ongoing dialogue through trade associations, universities, research centres and many others who, like us, are committed to shared and sustainable development. In this regard, we have launched an open innovation model, Open-I, Biesse Group's innovation lab, a place for cultivating relationships with the academic world, research, accelerators and venture capital to gain access to

2

2020 Sustainability Report

the culture of innovation around the world. We also wanted to contribute to the "Insieme per Marche Nord" (Together for Marche Nord) programme, an initiative that made it possible to purchase the first ventilators and the necessary equipment to set up the intensive care unit of the "Ospedali Riuniti Marche Nord" hospital to deal with the ongoing pandemic.

While thanking you all and hoping you have a good read, I remain committed to continuing our pursuit of excellence and the creation of shared value with a view to the sustainability of the business.

Roberto Selci

Managing Director of Biesse Group

3

2020 Sustainability Report

Methodological note

This document constitutes the 2020 consolidated non-financial statement (hereinafter "NFS" or "Statement"), pursuant to Legislative Decree 254/2016 (implementing Directive 2014/95/EU), of the companies pertaining to the Group consisting of Biesse S.p.A. and its fully consolidated subsidiaries (hereinafter "Biesse Group" or the "Group") and which addresses issues deemed to be significant and as required by Art. 3 of the Decree.

The NFS has been prepared in accordance with the GRI Standards: core option, and is in line with the corporate procedure for the preparation of the NFS. The GRI Content Index has been included as an attachment to the document, together with details of where the content has been addressed in compliance with the GRI. The content addressed by the NFS has been selected based on the results of a materiality analysis, as updated in 2020, that has enabled us to identify topics that are material to the Group and its stakeholders. The materiality matrix resulting from the analysis conducted was approved by the Control and Risks Committee on 30 October 2020 and has been presented in the section of this document headed "Stakeholders and materiality analysis". It should be noted that, on account of the business sector, there have been no significant emissions of pollutants into the atmosphere other than greenhouse gas emissions.

The scope of the 2020 economic, social and environmental data and information is the same as that of Biesse Group's consolidated financial statements for the year ended 31 December 2020. Any changes in the scope have been appropriately indicated in the document. It should also be noted that there have been no significant changes in 2020 in the Group's size, organisational structure, ownership or supply chain. In this regard, it is worth noting Biesse Group's refocusing of its strategy in China, which in 2020 saw a gradual reduction in the activities of Dongguan Korex Machinery Co. LTD based in Dongguan (Guangdong province, China) and, as communicated on 28 January 2021, the signing of an agreement for the sale of the entire company. After the sale, the production facilities and Indian companies will become more involved in meeting the needs of the Chinese market. Also of note is the merger by incorporation of Axxembla S.r.l. into Biesse S.p.A., approved on 9 September 2020: this transaction has not had any significant impact on the NFS for the year ended 31 December 2020.

To enable the comparability of data over time and to evaluate the Group's performance, where possible, prior year comparatives have been provided. Any restatement of previously published comparative amounts has been clearly stated as such.

Moreover, for the purpose of the correct presentation of performance and to ensure the reliability of the data, the use of estimates has been limited as much as possible and, if used, have been based on the best available methodologies and have been appropriately disclosed.

The non-financial statement is published annually. If any further information is required, please use the following email address: [e-mail]. This document is also available on Biesse Group's website www.biessegroup.com. This Statement was submitted for review and assessment by the Control and Risks Committee on 15 March 2021 and, on the same date, was approved by the Board of Directors of Biesse S.p.A.

This document has been subject to procedures performed in a limited assurance engagement in accordance with the criteria indicated by International Standard on Assurance Engagements (ISAE) 3000 (Revised) by the auditors Deloitte & Touche S.p.A. The limited assurance engagement was conducted by performing the procedures indicated in the "Report of the Independent Auditors" presented at the end of this document.

On account of the increasing importance of sustainability issues within the frame of reference, the Group plans to gradually develop a continuous improvement approach therefor. Specifically, Biesse Group has laid the foundations for project planning as follows:

4

2020 Sustainability Report