Interpump S p A : Consolidated non-financial statements for the year 2020 » Download (7,027 Kb)

Interpump Group

Consolidated

Non-Financial Statement

at 31 December 2020

pursuant to Decree 254/2016

2020 | Consolidated Non-Financial Statement	Interpump Group

Contents

03 Letter to Stakeholders

04 Key social, environmental and economic indicators

05 Impact of the Covid-19 pandemic on the Interpump Group

07 The Interpump Group

1. Structure of the Interpump Group

1. Interpump Group value chain

1. Note on methodology
2. Scope and standard of reporting

1. Methods of calculation
2. Corporate Governance

1. Quali-quantitativedescription of risks and policies for their management
2. Stakeholder engagement and materiality matrix

1. Analysis of materiality

1. Risks

1. Risk management

1. Performance indicators

1. Environmental area
2. Material topics

34 Risks

1. Risk management
2. Performance indicators

1. Socio-Economicarea
2. Material topics

52 Risks

52 Risk management

52 Performance indicators

1. Personnel-relatedarea
2. Material topics

58 Risks

1. Risk management
2. Performance indicators

1. Area related to respect for human rights
2. Material topics

78 Risks

78 Risk management

78 Performance indicators

1. Area concerning anti- corruption activities (active and passive)
2. Material topics

82 Risks

82 Risk management

82 Performance indicators

85 GRI Content Index

90 Independent auditors' report

2

2020 | Consolidated Non-Financial Statement

Interpump Group

Letter to Stakeholders

Stakeholders,

Given the events of this past year, I can only begin my letter accompanying the fourth edition of our Non- Financial Statement by highlighting how arrival of the Covid-19 virus, with its major impact on the lives of people and businesses, has spotlight once again the need for increased focus on "sustainability". Against this adverse background, I believe it even more important to stress the renewed commitment made by the Interpump Group to social responsibility and sustainability.

Interpump has always dedicated special attention to social and environmental matters, recognizing the great value of people in all decisions made in pursuit of our various business strategies. The success of Interpump is closely tied to our 8,000 plus employees, located in more than 30 countries, who strive every day to manufacture products of the highest technical quality and provide an appropriate level of service.

The diversity of the contexts, cultures and territories in which we operate is, for us, a distinctive characteristic and a unique strength. In view of this and with the dual objective of safeguarding the value created for our clients and the health of all our collaborators, from the very start of the emergency we adopted all necessary measures to comply with the instructions issued by the Authorities in the countries where we operate, in order to resist the spread of the Coronavirus (Covid-19). In practice, we have seen how the investments made have enabled us, even under emergency conditions, to manage all our productive processes without any relaxation of our qualitative standards. Teams dedicated to managing the emergency were established at various organizational levels, ensuring the continuity of operations in all productive departments and of all client service activities. We notified our employees of the healthcare and conduct rules established by the Authorities, explaining them appropriately. Consistent with the specific nature of the manufacturing sector, we also arranged to activate remote working. All our locations took extra precautions to strengthen the hygiene measures adopted. Despite the exceptional circumstances, we continue to work every day with one goal in mind: growth.

Interpump promotes a culture based on training, diversity, inclusion and safety for all employees. The training and development paths of personnel, investment in the prevention of workplace injuries and broad share ownership are tangible examples of our commitment and drive to involve, develop and protect our people. We strive to optimize the use of natural resources and reduce our environmental impact throughout the entire value chain, from production to distribution. In this light, the optimization of energy and water consumption, lower waste and scrap generation, with enhanced recycling, all play a fundamental role.

Interpump is also concerned about the sustainability of the products sold. Here, I would like to draw attention to (among others) two new clean tech initiatives. In the Water Jetting division, we have added Bertoli Evo-Green homogenizers that lower the consumption of water, electricity and oil. In the Hydraulic division, Walvoil has developed the Adaptive Load Sensing system that, by reducing energy dispersion and consumption, lowers annual CO₂ emissions by an average of 1,315 kg for each machine on which it is installed. Care about territorial impact, respect for traditions as they evolve and adapt, constant dialog with stakeholders and the creation of value shared with collaborators, vendors, institutions and local communities are all fundamental aspects of our business model.

Our responsible approach is strengthened by the Code of Ethics of the Group, which is applied in every country where we operate and in all situations. A constant search for excellence and an unceasing drive to evolve and improve, while remaining true to our principles and values, remain hallmarks of Interpump activity over time. Thanks to all this and despite the recent difficulties and uncertainties to be overcome, we have been able to lay the solid foundations on which the success of the Group is built.

Chairman and Chief Executive Officer

Fulvio Montipò

3	Letter to Stakeholders

2020 | Consolidated Non-Financial Statement

Interpump Group

Key social, environmental and economic indicators

108	77%
Entities Worlwide	of waste produced in
2020 is recovered
1,294 €
-7%
Mln
Net Revenues	of waste generated
compared to 2019

1,186 Mln€

Total Economic value distributed

8,254

Employees and temporary workers

+3p.p.

waste recovered on waste generated compared to 2019

-13.7%

Water withdrawal intensity (trend for the three-year period 2018-2020)

+5%	-25.2%
staff increase compared to 2018	Water discharges (trend for the
	three-year period 2018-2020)

4	Key social, environmental and economic indicators

2020 | Consolidated Non-Financial Statement

Interpump Group

Impact of the Covid-19 pandemic on the Interpump Group

The Covid-19 pandemic broke out in early 2020, with major effects on all world economies due to the shutdown by governments of many activities, including those in the manufacturing sector. Those businesses that remained open continued at a slower pace, both to ensure maximum compliance with the safety instructions and due to the shutdown, in turn, of their principal clients and vendors. The pandemic originated in China, where activities were essentially shut down for the entire first quarter of the year. In the Rest of the World, the months of March and especially April were worst hit, with major suspensions of activities in almost every country in which the Group

is active. The timing of the restart varied, depending on the country concerned. While activity is showing signs of recovery at the end of 2020, it has not yet reached pre- COVID levels.

In this context and with a view to safeguarding the value created for clients and the health of all collaborators, from the very start of the emergency the Interpump Group adopted all necessary measures to comply with the instructions issued by the Authorities - in each country where it operates - in order to resist the spread of the Coronavirus (Covid-19).

Despite the emergency conditions, this action made it possible to manage all productive processes without disregarding the various regulations issued from time to time throughout 2020.

From an organizational standpoint, teams dedicated to managing the emergency were established to ensure the continuity of operations in all productive departments and of all client service activities.

Each group company informed its employees of the healthcare and conduct rules established by the relevant Authorities, explaining them appropriately. In addition, where possible, the Group activated remote working and all locations took extra precautions to strengthen the hygiene measures adopted.

Overall, the business model of the Interpump Group has proved resilient to the effects generated by the pandemic. The fundamentals of the group have been shown to be sound and well able to absorb the adverse consequences inherent in the exceptional nature of the pandemic.

Despite the contraction in Revenues of about 12.6% at unchanged perimeter and exchange rates, the resilience of the Interpump Group is confirmed by the financial performance achieved in 2020, which closed with an EBITDA margin that was essentially unchanged (down from 23.2% to 22.7%), consolidated net profit of Euro

1. million and an exceptional free cash flow of Euro

1. million. Looking ahead, the Group believes that the Covid-19 pandemic has not compromised in any way its ability to create value over the long term.

5	Impact of the Covid-19 pandemic on the Interpump Group