INTRODUCTION TO THE ANNUAL REPORT Sabaf’s progress towards Integrated Reporting The publication of Sabaf’s Annual Report, in its ninth edition this year, confirms the Group’s commitment, undertaken in 2005, to providing integrated reporting of its economic, social and environmental performance.
understanding of the various strategic strands and greater internal cohesion and the investors community, which can thereby gain a clearer understanding of the link between strategy, governance and company performance.
Confirming the importance of integrated reporting as the new emerging corporate reporting model, work continued on the area at international level. In December 2013, the International Integrated Reporting Council (IIRC) presented the international framework on sustainability reporting, “The International <IR> Framework”, which sets the guidelines to follow in the preparation of an integrated report and its key contents. Integrated Reporting represents a significant development in corporate reporting, which is increasingly focused on promoting cohesion and efficiency in the reporting process and adopting “integrated thinking”.
In 2013, for its commitment to integrated reporting, Sabaf received the prestigious financial communication award, Oscar di Bilancio, in the Small and Medium-Sized Listed Company category. The Jury, chaired by Prof. Andrea Sironi, Rector of Milan’s Bocconi University, explained the reasons why it decided to recognise Sabaf’s financial statements: “This is an integrated report with a section dedicated to sustainability, and a clear commitment to combining the various aspects of financial and other forms of reporting. It has good sections on economic and financial information, management and organisation, and CSR. The document has a strong visual impact, as it uses a variety of graphic designs to summarise the text, and shows Key Performance Indicators and other key aspects. It has an excellent risk management section, which is immediately understandable even for non-experts and the description of staff selection and remuneration processes is very clear”.
Sabaf was one of the first companies at international level to adopt integrated reporting, and intends to continue along this path, guided by the International Framework, in the knowledge that integrated, complete and transparent information can benefit both companies themselves - through a better
Methodology Sections 1 – Business Model and strategic approach, 2 – International operations and core markets and 4 – Social and environmental sustainability comprise the Annual Report at 31 December 2013, prepared in accordance with: - the 2006 Sustainability Reporting Guidelines defined by the GRI/G3, the level of application of which we believe corresponds to A+; - the AA 1000 (AccountAbility 1000) standards issued by AccountAbility, as regards the social reporting process and the dialogue with stakeholders. As in previous years, the process of defining content and determining materiality is based on GRI principles (materiality, inclusivity of stakeholders, sustainability and completeness). From 2013 the Annual Report’s reporting scope includes the subsidiary Sabaf Beyaz Esya Parcalari Sanayi Ve Ticaret Limited Sirteki (Sabaf Turkey), which began production in the last quarter of 2012 and was fully operational in 2013. Unless stated otherwise, comparative figures at 31 December 2012 do not include Sabaf Turkey, as it was not possible to reconstruct the information retrospectively. Section 3 – Governance, Risk Management, Compliance and General Remuneration Policy reports important information regarding the corporate governance structure and the company risk management system. Sections 5 – Report on Operations, 6 – Consolidated Financial Statements and 7
– Financial Statements of Sabaf S.p.A. make up the Annual Financial Report at 31 December 2013. Finally, the Report on Remuneration is provided, prepared pursuant to Article 123-ter of the Consolidated Law on Finance. Once again this year, the “non-financial indicators” include the results of operating and improving intangible fixed assets, the principal drivers that allow monitoring of the business strategy’s ability to create value in the medium to long term.
To ensure that the information contained in the Annual Report is reliable, only directly measurable figures are included, avoiding the use of estimates wherever possible. The calculations are based on the best information available or on sample-based surveys. Where they have been used, estimates are clearly indicated as such. The Annual Report was approved by the Board of Directors on 20 March 2014 and presented to shareholders at the Annual General Meeting held on 29 April 2014.