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Technology to feed a growing world 2012 ANNUAL REPORT


Pavan Group - Annual Report 2012

Introduction

This document describes the process of economic, social and environmental reporting that Pavan has adopted in recent years. Its publication stems from management’s desire to make the company’s activity transparent, by analysing not only the economic aspects, but also the social and environmental consequences.

All this is part of a corporate philosophy oriented towards sustainability and the integrated type of management system adopted: quality, safety, environment and social responsibility. This sixth edition contains data and information relating to the entire Pavan Group* updated to December 2012. *Pavan s.r.l., Golfetto Sangati s.r.l., V.AL.IN. s.r.l., Pizeta s.r.l., Tecnel s.r.l.


Pavan Group - Annual Report 2012

INDEX

CEO’s message

5

Case histories

16

Human resources

50

Corporate profile

6

Ipack-ima 2012

39

Corporate social responsibility

52

Key figures

8

Open Day 2012

41

Study, sport, culture

54

Installations

10

Food Tech Master

42

Sustainability

56

Technical innovation

13

Organisation chart

44

Clean energy

60

Technological Innovation

14

Financial results

46

Directors and auditors

62

Added value

48


Pavan Group - Annual Report 2012

A strategy based on three key factors and results up by 15%

4


Pavan Group - Annual Report 2012

Growth based on solid foundations The Pavan Group posted sales of 136 million Euro in 2012, up by 11% with respect to the previous year. EBITDA climbed 15% to 22 million Euro and, for the first time, net profit exceeded 10 million Euro. With its export-oriented approach, the Pavan Group aims to penetrate the fastest-growing markets featuring positive population growth trends and an expanding food-processing sector. Some 75% of the turnover was generated in non-EU markets, enabling the Group to grow by more than 50% over the past 5 years. Such a marked internationalisation stems from balanced internal growth, well-pondered acquisitions and the Group's self-financing policies. This approach has reduced the Group's exposure to uncertainties which, in recent times, have rarely afforded opportunities for success. The future strategy focuses on three key areas: cost control, customer service and product innovation. Firstly, attention will be devoted to the operational management of manufacturing plants and the steady improvement of efficiency over time, a commitment reflected in the Group's internal organisation geared towards reducing all costs

that do not generate tangible value for customers. In tune with this approach, a photovoltaic system was installed in 2012 capable of making the Golfetto Sangati production facility in Quinto di Treviso energy-independent , with consequent financial savings combined with reduced CO2 emissions. Proper maintenance coupled with regular upgrading ensure that plants installed by the Pavan Group are able to operate in a fully efficient manner for decades. This is why a timely and effective after-sales service is strategic for maintaining lasting relationships and loyalty of customers. Consequently, the Group continues to invest in this area, in terms of human resources, equipment and operating methods. The food-processing sector is often regarded as highly traditional but, in actual fact, product innovations have revolutionised the appearance and nature of products found in shops nowadays, compared to 15 years ago. The evolution has involved food products as well as packaging technologies, a segment that grew by more than 20% in 2012.

Product innovation is also a driving force in the Snacks division, the turnover of which rose by 20%. This division tackles an industry with a high propensity for experimentation in the quest for new and healthy products. Golfetto Sangati, the latest addition to the Pavan Group, contributed to growth with an increase in turnover of almost 20%, deriving from the manufacture of important plants combining milling and pasta-production processes. The forecasts indicate a mediumterm growth, thus the Group looks forward with confidence to achieving its ambitious annual turnover target of 150 million Euro within the next two years.

Dr. Andrea Cavagnis Chief Executive Officer Pavan Group 5


Pavan Group - Annual Report 2012

Corporate profile

The Pavan Group is among the world leaders in the design and engineering of technologies and integrated product lines for cereal-based food.

Today, these companies can operate either individually or jointly under an interlacing strategy covering all production processes.

Our strong and solid organisation operates in the food industry as a global supplier of industrial solutions, from the handling of raw materials to final packaging.

The Group implements a full-service strategy that extends from research and the development of new products, to the design and engineering of manufacturing plants, after-sales training and client services.

We operate in this business through eight prestigious brands: Golfetto Sangati, Pavan, Mapimpianti, Montoni, Toresani, Stiavelli, Dizma and Pizeta, all leading Italian brands in the food processing industry. These brands have become part of the Group due to a far-sighted growth and development strategy, which seeks to broaden both the range of services offered and the product portfolio.

6

Over the years, the Pavan Group has strengthened its positioning and brand image thanks to its outstanding quality standards and product performance.


Pavan Group - Annual Report 2012

Dry Pasta PHP press. Production plant, Galliera Veneta (Italy).

7


Pavan Group - Annual Report 2012

Key figures mlnâ‚Ź

2010

2011

Turnover

83

107

123

+ 10

136

EBITDA

11

17

19

+ 15

22

Assets

30

36

40

+ 23

49

9

15

16

+ 25

20

95%

95%

95%

95%

1831

850

5315

3168

563

597

603

609

Cash flow Export quota Training hours Employees

8

2012

2009

% increase


Pavan Group - Annual Report 2012

BUSINESS UNITS Grain processing

Unloading systems, handling and cereal milling plants

Food processing

Manufacturing plants for pasta, extruded products, convenience food

Packaging

Packaging of food & non-food products

Storage

Storage systems for raw materials and finished products

SALES BY DIVISION

SALES BY CONTINENT

4 5

3

1

4 1 3

2

2 1.

Food processing

58% 22%

1. 2.

America Europe

46% 24%

2.

Grain processing

3.

Packaging systems

16%

3.

Asia

10%

4.

Storage systems

4%

4. 5.

Oceania Africa

2% 18% 9


Pavan Group - Annual Report 2012

One year of major projects completed: great satisfaction and new potentiality for our customers, all over the world.

NOR

SOUTH

10

TH ATLANTIC OCEA N

SO

PAC

IFI

C O CE AN

ATLANTIC OCEAN H T U


Pavan Group - Annual Report 2012

NO

RT

H

PA

CI

FI

C

O

D IN

CEAN IAN O

2012 INSTALLATIONS Flour Mills, Dry and Fresh Pasta lines, Snack Pellet lines, Handling and Packaging systems.

>10

5-10

1-4

CE

A


Pavan Group - Annual Report 2012

Systems that simplify sharing of information within the team

12


Pavan Group - Annual Report 2012

TECHNICAL INNOVATION

Design and product management: evolving systems The gradual implementation and adoption of the CAD 3D and PDM (Product Data Management) system in the technical area enabled applications to be extended to various functional areas during 2012. Following the recent developments, the system now enables the designers to share all project data with the team responsible for programming the machine tools used in the production departments. 3D models for removing slugs and 2D profiles for drilling are already available and directly accessible from the system, without any need for further processing. In the spare parts and manuals sector, besides the presentational advantages offered by 3D imaging, the new links developed between the ERP, PDM and CAD 3D systems allow for rapidly and associatively obtaining exploded views, parts lists and other resources directly from the technical area database, thereby reducing response times and ensuring greater accuracy.

Dynamic balancing of rotating parts The data provided by the 3D model was processed using the laws of dynamics to develop a balancing procedure for rotors used in the processing of food products. This technique allows for reducing the size of the balancing weights to be attached to finished parts, as well as the time required for the balancing process in the factory. Finite elements and computational fluid dynamics for optimising airflow within dryers The engineering team within the technical department uses professional software for effecting finite element calculations in the structural field, both from a thermal and fluid dynamics perspective. Intensive use of these tools allowed for engineering and optimising various applications, from the loadbearing structures of presses to the study of airflow within dryers. Thanks

to these analyses, it was possible to improve the quality and performance of the machines, while keeping costs under control. Energy efficiency Various analyses and field trials were carried out in order to map the energy consumption of the dried pasta lines. The collected data was used to start in-depth studies of the related thermo-dynamic processes geared towards reducing energy requirements and improving both the drying process and product technology. Research has also led to the development of innovative systems for energy recovery to be implemented on production lines.

13


Pavan Group - Annual Report 2012

TECHNOLOGICAL INNOVATION

Corn Flakes Tempering: a specific innovation involving the most traditional of breakfast cereals The Pavan plants for corn flakes production have always differed from the alternatives available on the market due to an exclusive pre-treatment process that steams the humidified product within the mixing tank before it passes through the extruder. This significantly reduces the cooking phase during extrusion subject to heavy mechanical stress, thus improving the colour, taste and resistance of the corn flakes when immersed in milk. In 2012, Pavan's R&D department completed the development of the so-called “Corn Flakes Tempering� technology, which marks a further step forward in the quest for

14

maximising the quality of the extruded product. The new process consists in subjecting the product to a second heat treatment process for about one hour after extrusion, under relatively high temperature and humidity conditions. This innovation has a direct impact on the finished product: the taste, colour, blistering and resistance to milk of the resulting flakes - are even closer to those of corn flakes obtained with the batch cooking process. The industrialisation of the process was made possible thanks to Pavan Group's acquired experience in pasta drying under high temperature and humidity conditions. The Group's know-how and practical experience

with dryers was transferred and adapted to corn flakes; in particular, the application of panelling and air curtains both up- and down-stream of the machine allowed for obtaining high temperatures while also keeping the humidity level high. In 2012, the research results materialised with the installation and start-up of the first corn flakes machine implementing the tempering technology, with a production capacity of 700 kg/h.


Pavan Group - Annual Report 2012

“

The market rewards the innovation of those who can guarantee reliable and competitive machines

�

15


Pavan Group - Annual Report 2012

CASE HISTORY: GRANDI MOLINI ITALIANI

16


Pavan Group - Annual Report 2012

“

This facility located in the industrial port of Livorno (Italy) is used for the storage of cereals received via sea and land.

�

Grains unloaded from ships are conveyed to the cleaning house at the rate of 600 tph. 17


Pavan Group - Annual Report 2012

Shipunloader operator on ship deck using wireless remote control. 18


Pavan Group - Annual Report 2012

Unloading chain elevator under operation on a ship hatch.

19


Pavan Group - Annual Report 2012

20


Pavan Group - Annual Report 2012

View of the 600 tph mechanical unloader, cleaning house and 67.000 tons storage silos.

21


Pavan Group - Annual Report 2012

CASE HISTORY: 8,000 kg/h OF LONG-CUT DRY PASTA

Watch the video

22


Pavan Group - Annual Report 2012

This major multinational producer of pasta has commissioned to Pavan the project and installation of the long cut pasta section. The requirement of a very high capacity line which in the meantime can assure the full respect of stringent quality standards, suggested them to choose Pavan not only as machinery supplier, but also as

technical partner. Pavan installed here two automatic continuous presses (PHP 240/2/2500) with maximum capacity of 4 tons/hour each. The dough formation, obtained with low rotation speed and low temperature, is completely under vacuum. The drying stage is entrusted to two 3-stages dryers with TAS technology.

By the automation system developed by Pavan, the operators can supervise and manage the entire lines directly in the control room: from mixing to extrusion, from drying to final cutting. This results is a fully automated process, that assures one of the most appreciated industrial pasta in the world.


Pavan Group - Annual Report 2012

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Pavan Group - Annual Report 2012

Mixing tank in stainless steel, having a structure made of steel plate and two shafts with paddles; vacuum-tight execution. Low rotation speed and low temperature. The high quality of the dough is assured by the elevated mixing time. In the background: the control room.

25


Pavan Group - Annual Report 2012

Dosing and pre-mixing: volumetric type flour doser with bucket-type rotary airlock (capsulism device) driven by gearmotor with speed variation by frequency converter; capsulism type device to feed the product coming from the scrap return system; vacuum-tight execution.

26

Distribution tank in stainless steel and vacuum-tight execution, complete with shaft and paddles in stainless steel.


Pavan Group - Annual Report 2012

Compression group composed of: - Two asynchronous three-phase motors with speed variation by frequency converter, coupled to parallel axis reducers complete with thrust bearing; - Two compression screws in chromium plated carbon steel, diameter 240 mm; - Two cylinders in carbon steel complete with stainless steel jacket. 2500 mm rectangular headpiece with temperature regulation system and automatic drawer-type die changing device. 27


Pavan Group - Annual Report 2012

28

Predryer with 7 different areas with independent temperature and humidity control; Thermo Active System Dryer with 3 separate tiers and air treatment units.


Pavan Group - Annual Report 2012

TAS Dryer, internal view.

Storage section: 8 + 11 overimposed tiers with independent drive; internal air circulation system; Storing capacity of 12 production hours. 29


Pavan Group - Annual Report 2012

30


Pavan Group - Annual Report 2012

Stripping and cutting devices: 3 pair of rotary discs made of HSS tool steel, pasta pushing device, scraps regrinding units. Cutting capacity of 6,500 kg/h. 31


Pavan Group - Annual Report 2012

CASE HISTORY: TRESS GMBH, EXTREME CUSTOMIZATION FOR TOP-QUALITY PASTA

Watch the video

Nest machine: tubes with compressed air blow for forming pasta nests. 32


Pavan Group - Annual Report 2012

Tress GmbH (Germany) was established in 1969, aiming since the very beginning to create a top quality dry pasta. They manufactured it as more similar as possible to the homemade pasta traditionally made by housewives. In 1979 the company was transferred to Münsingen and continued growing year after year. In 2005 the capacity was full, and the management decided to invest in new processing lines to start the production of nest-shaped and short-cut pasta. The two new lines were commissioned to Pavan.

“We wanted to have very flexible machines, able to quickly switch from one shape to the other easily adapting recipes and dies. We wanted our pasta to have the best taste, color and texture. We were willing to grow and invest, but we had to be sure to do it right: for a small company like we are, it is very important to do the right things since the beginning. So we decided to trust on a big market player. We chose Pavan to implement our 2 new lines because they engineered the best customized solution to install the machines in

our narrow space, keeping in mind all the requirements we asked. And they actually translated our expectations on our final product into state of the art equipment. Now we have the technology we need, and we produce the pasta we imagined!” Markus Tress CEO, Tress GmbH

33


Pavan Group - Annual Report 2012

34

Press for extruding the nest pasta with 750 kg/h capacity: 2400 mm long rectangular head. The process occurs under vacuum from the dosing to the extrusion stage.


Pavan Group - Annual Report 2012

Nest Machine: to fill the rectangular containers a robot has been installed to insert the nests in two distinct sequential phases, just after the nests forming.

Pre-mixer and dough resting tank with dough level controlled by radar probe. The resting of the dough allows for improving product quality thanks to the reduced mechanical work.

Paddle shafts for extracting the dough from the resting tank to the compression screw. The system is removable to facilitate cleaning and ensure maximum sanitisation.

35


Pavan Group - Annual Report 2012

“

The Nidomatic line is customized on the basis of the space available and of the peculiar kind of packaging. Nests travel for all the drying process on bars, each one equipped with 8 rectangular containers and pre-weighing system. The line utilizes energy coming from a cogeneration system and recovers the thermic energy not utilized by the machinery.

�

8-floor/2-zone upper dryer with TAS technology and heat exchange and energy recovery system. Inflatable seals for improved tightness and elimination of heat losses through the doors. 36


Pavan Group - Annual Report 2012

Bar with 8 rectangular containers, width 2 m, leaving the cooler. The containers move directly to the automatic packing section where the product is packed in pre-weighed 250 g and 500 g trays. 37


Pavan Group - Annual Report 2012

“

Advanced solutions and integrated technologies on a large display stand

�

38


Pavan Group - Annual Report 2012

Ipack-ima 2012

At the 2012 edition of IPACK IMA, held in Milan from 28 February to 3 March, the Pavan Group welcomed visitors to a stand encompassing all the main company sectors: namely the Dry Pasta, Fresh Pasta and Snack divisions, Packaging by Stiavelli and Dizma, milling technology from Golfetto Sangati- and storage, mixing and transport- solutions offered by Pizeta. An integrated approach for highlighting the Group's new structure: advanced integrated technological solutions offering a complete range of installations covering the entire supply chain, from the unloading of raw materials from ships to finished products ready for retail sale. Each division had its own area within the stand to showcase the latest upgrades to the Group's technology. IPACK IMA offered an important occasion to significantly refresh the Group's image. The Pavan Group's mission is summarised in the pay-off accompanying the new logo: Technology to feed a growing world.

“Being one of the leading players in the global food-processing industry requires acknowledging the full implications of this role. It is not possible to pursue a sales policy exclusively geared towards generating positive margins and profit for the company and its stakeholders: the fact that the Group's companies support their clients daily as technological partners demands Pavan's active contribution to the overall growth, through increasingly efficient and rational solutions capable of expanding consumption of food products manufactured by our clients.” The words of Andrea Cavagnis, CEO of the Pavan Group, sum up the value of technology as a cornerstone of the Group's philosophy: “Technology to feed a growing world: technology as the combination of manufacturing know-how and experience in assessing the quality of the finished product. Technology stemming from the integration and cooperation of a Group of companies that work closely together in a synergic manner to cover the entire supply chain, from the unloading of raw materials to the packaged

product ready for retail sale. Technology that allows for tailoring the production systems on the specific needs of our client, through close cooperation. Technology that allows for feeding a constantly evolving world." The flood of visitors and buyers, mostly from Europe, but also from the emerging countries, was a tangible response to the investment made for participating in IPACK-IMA.

39


Pavan Group - Annual Report 2012

Open Day 2012 Fresh Pasta Division Galliera Veneta

40


Pavan Group - Annual Report 2012

Open Day 2012

An event open to all fresh pasta producers for presenting the new forming and heat-treatment lines. An opportunity for meeting and exchanging views promoted by the Group in December 2012, to discuss market trends and share the most interesting innovations in the sector. Operators from all over Italy and Europe were able to get a close look at the new machines on display in the Group's showroom, and learn about their technological and mechanical innovations. The new generation designed and manufactured by Pavan's Fresh Pasta Division offers immediate and tangible advantages in terms of energy efficiency and simplified washing and sanitising operations. The opening conference covered key topics concerning microbiology and food safety (Luciano Mondardini, R&D Director), as well as the innovative differentiating characteristics of the machines on display (Fabio Bisarello and Simone Bertoncello, Technical Design Dept.). In the closing session, Paolo Carossa, Sales Manager of the

Fresh Pasta Division, illustrated the tangible savings obtainable from the adoption of the new lines, through a simulation of the actual operating conditions. After the conference, Sandro Rasera, Technical Director, led the participants on a tour through the factory to the display area, where the guests were able to explore the machines by following an ideal production process, assisted by the Group's engineers and technicians.

The items presented for the heat-treatment and cooking process were the 7-metre long immersion cooker, the immersion cooler, the 14-metre pasteuriser/cooker and the pre-dryer (6 metres, 3 tiers). The display was completed by the latest models of the main accessories, such as the system for automatic distribution of dough in modules, washable conveyors and the lobe pump for forming machines to dose fillings.

For the forming stage, the Group presented two automatic, double tank mixers (1,100 and 1,700 kg/h capacity), and the new completely washable kneader-sheeters: the single-sheet model SPW630 (sheet width 630 mm, capacity 700 kg/h) and double-sheet model SPT540 (production of 2 sheets with 540 mm width, capacity 1,000 kg/h). Fully washable forming machines for cappelletti and ravioli (150 strokes/ min., 650 kg/h), for traditional tortellini, pinched pasta and doublesheet ravioli (170 strokes/min., 850kg/h).

41


Pavan Group - Annual Report 2012

Sharing knowledge FOOD TECH MASTER

The Pavan School of Technology successfully hosted at the headquarters in Galliera Veneta, three editions of its specialisation courses in 2012. Designed with the aim of sharing the most advanced food processing skills and technologies, each year the ”Food Tech Masters” train dozens of professionals from all over the world, by providing in-depth technological know-how on the production of snack pellets, dry pasta, fresh pasta and ready meals. Pavan offered participants a unique training experience, comprising both theory and practical sessions

that tackled the proposed topics extensively and thoroughly. The theory lessons, held by academic experts and by Pavan Group's own process engineers, comprise practical exercises implemented on pilot plants and organoleptic and sensory assessment tests. This essential combination allows students to familiarise with the products and apply the theoretical knowledge gained during the lessons. The three editions of the 2012 “Snack Pellet Training Course”, “Fresh Pasta and Ready Meals Training Course” and “Dry Pasta Training Course” were attended by about 120 students from

Central and South America, Asia, Africa and Europe. The ability to involve students outside of the training activities is one of the strong points of the Food Tech Master, which acts as a hub for establishing relations and creating networks of contacts that enrich the school-based experience and benefit the future careers of all participants.

• D.I.S.T.A.M. (Department of Food Science and Microbiology) of the University of Milan. • Experimental Institute for Grain Growth of Rome. • National Institute for Research of Food Products and nutrition of Rome. • University of Molise (DISTAAM Department of Food Technology).

• TecnoAlimenti of which Pavan is co-founder. • U.C.M.A. (Union of Manufacturers for the Food Industry), within which Pavan has promoted the definition of ”European Standards” for the safety of systems for the production of fresh pasta.

ACADEMIC WORLD

Constant research by Pavan is supported by several relationships with Universities and the academic world. Specific projects and research activities are carried out with: • University of Udine (Department of Food Science) • University of Calabria (Department of Modelling for Engineering) 42


Pavan Group - Annual Report 2012

43


Pavan Group - Annual Report 2012

PAVAN GROUP HEADQUARTERS

PAVAN GROUP ORGANISATION CHART

ADMINISTRATION

CORPORATE MARKETING

PURCHASING

MANAGEMENT CONTROL

IT

FINANCE

QUALITY

PAVAN

TORESANI

MAPIMPIANTI

Dry pasta

Fresh pasta

Extruded products

Sales area

Sales area

Sales area

Technical area

Technical area

Technical area

MONTONI

44

COMPANY SECRETARY’S OFFICE

DIZMA & STIAVELLI

Die cutting systems

Packaging division

Sales area

Sales area

Technical area

Technical area


Pavan Group - Annual Report 2012

Flour milling & grain handling

V.AL.IN.

PIZETA

Innovative food products

Food industry equipment

Sales area

Sales area

Sales area

Technical area

Technical area

Technical area

Purchasing

Quality

Purchasing

GOLFETTO SANGATI

Administration

TECNEL

Finance

Systems for automation

Sales area Technical area Purchasing

45


Pavan Group - Annual Report 2012

Financial results

2012 k€

2011 k€

2010 k€

2009 k€

136,111

122,756

107,114

83,438

EBITDA (operating results before interest, taxes, depreciation and amortisation)

21,719

19,464

17,238

10,636

Operating income

14,600

12,659

11,593

3,743

EBT (operating results before taxes)

16,758

12,282

10,342

4,265

Net profit

10,107

6,548

6,038

1,933

Cash flow

19,619

15,908

14,906

9,502

Net financial liquidity

19,653

2,680

20,221

17,252

Shareholders’ equity

49,492

40,250

35,992

30,343

TOTAL SALES REVENUE

46


Pavan Group - Annual Report 2012

EBITDA up 15%: solidity and prospects

47


Pavan Group - Annual Report 2012

The creation of added value Overall net added value is a clear expression of the results generated by the Pavan Group, providing an appreciation of the resources distributed to all the stakeholders.

The added value distribution statement presented below describes in detail how this wealth has been distributed between the parties who have actively contributed to generating it.

Added value determination statement A

2012 k€

2011 k€

2010 k€

2009 k€

TOTAL OPERATING INCOME

138,353

125,618

112,467

84,822

Sales revenue

136,111

122,756

107,114

83,438

955

1.463

1.953

(271)

0

49

2.074

747

1,287

1,350

1,326

908

(85,043)

(75,914)

(68,628)

(51,364)

(798)

1,560

657

(261)

Purchases of raw materials, supplies, consumables and goods

(65,378)

(61,857)

(51,781)

(36,795)

Services

(17,742)

(14,937)

(16,058)

(13,689)

Leases and rentals

(140)

(82)

(98)

(57)

Provisions for risks

(154)

(84)

(164)

0

Write-downs and depreciation

(395)

(191)

(901)

(269)

Other operating costs

(436)

(323)

(283)

(293)

GROSS ADDED VALUE

53,310

49,704

43,839

33,458

Change in inventories of finished products Internal work and other capitalised costs Other revenues and income B

PRODUCTION COSTS Change in inventories of raw materials, supplies, consumables and goods

48


C

2012 k€

2011 k€

2010 k€

2009 k€

Net other income and expense

225

(30)

(134)

(108)

Other income

755

637

273

355

Other expense

(530)

(667)

(407)

(463)

Net non-recurring income and expense

1,082

249

181

15

Non-recurring income

1,082

341

182

292

0

(92)

(1)

(277)

OVERALL GROSS ADDED VALUE

54,617

49,923

43,886

33,365

Depreciation and amortisation

(6,570)

(7,211)

(6,042)

(5,978)

OVERALL NET ADDED VALUE

48,047

42,712

37,844

27,387

2012 k€

2011 k€

2010 k€

2009 k€

31,289

30,431

27,502 23,122

21,761

20,747

18,765 15,929

8,664

8,356

7,543

6,437

Temporary employment contracts

510

988

932

539

Personnel services

311

297

233

179

Personnel training

43

43

30

37

6,651

5,715

4,201

2,321

6,141

1,944

OTHER AND NON-RECURRING ITEMS

Non-recurring expense

Added value distribution statement A

HUMAN RESOURCES Employment costs Direct remuneration Pension funds and health insurance

B

SOCIAL SYSTEM (direct and indirect taxes)

C

ENTERPRISE SYSTEM (changes in reserves and distribution of dividends)

10,107

6,566

OVERALL NET ADDED VALUE

48,047

42,712

37,844 27,387

49


Pavan Group - Annual Report 2012

Human resources

Pavan is committed to meeting the expectations of the people who animate the company, by creating a work environment able to attract, keep and exploit talent. Several years ago Pavan started a policy of systematically listening to its employees via the constant exchange of information and suggestions. This is the way to achieve shared objectives. The value of Pavan is the value of its people, and the company is well-aware of this: the tools provided by the Personnel Recruitment and Training function results in the placement of qualified resources in each role, the spreading of a performance culture, the careful management of remuneration policies, and the ongoing development of leadership skills. The process of change that has marked the recent history of Pavan is attributable, in part, to the coordination and effective contribution made by the Personnel Recruitment and Training function, which implements and maintains systems and procedures (selection and placement, assessment, growth, training, salary review and 50

succession planning) in line with company expectations to support the professional growth of all personnel. The creation of a friendly, stimulating and challenging work environment is among the company’s primary objectives: each individual is at the centre of every Pavan Group resource management policy.

609 EMPLOYEES

TRAINING

HOURS OF TRAINING PROVIDED

3,168

Sales and administration

227

Safety

1,558

Technical area

1,383

Number of persons attending training

267


Pavan Group - Annual Report 2012

CONTRACT TYPE

DISTRIBUTION BY GENDER

2

1

1.

Open-end

94.2%

1.

Women

14.8%

2.

Fixed time

5.8%

2.

Men

85.2%

2

1

DISTRIBUTION BY AGE

4

3

41.2

16.4

Average age

Average seniority

59

74

Employees with over thirty years of company seniority

Increases in level and recognitions

1

1.

< 35

14.2%

2.

35 < 45

29.7%

3.

45 < 55

40%

4.

> 55

16.1%

2

Development Project The Development Project outlines the activities that the company has identified in order to improve procedures for selection and placement of Human Resources with high potential, destined to become the future management team. Cyclically, the selection process will consider new graduates and young people with diplomas from technical and engineering studies (mechanical,

electro-technical/electronics, chemistry, agricultural, etc.), who have obtained their educational qualifications with marks of at least 95/110 or 80/100. In addition to their specific skills, a careful assessment will be made of the growth potential expressed by them and any aspects of their personality that may affect their expected professional growth. In addition to the already proven selection activities, a psychological type assessment will also be carried

out by qualified experts linked to the company and appropriately documented. Once the selection and recruitment stages are completed, new employees will begin a targeted professional career path that will follow some newly set out fundamental criteria. At the end of a period of 4 or 5 years, the Resources that have attained an adequate level of professional competence and managerial skill, will be given responsibility for a function. 51


Pavan Group - Annual Report 2012

Corporate social responsibility For the Pavan Group, sustainability means offering innovative products and plants with maximum attention to all the effects of its activities on the surrounding environment, and on all stakeholders who gravitate around the Group, with the aim of consolidating a business model that creates value for all. We are aware that every activity carried out and every decision taken involves economic, but also social, consequences. No matter where in the world, we ensure transparent and fair behaviour towards our colleagues, customers and suppliers. For us, respect for people, shared social values and the commitments made, is a rule of conduct essential to developing sincere, lasting and profitable relationships. Chernobyl Project 2012

PAVAN’S SOCIAL COMMITMENT

In addition to projects aimed at fighting malnutrition and starting sustainable growth models, Pavan firmly believes in the potential of voluntary work and associations. The sponsorship programme includes several social projects. ”Chernobyl Project” On the initiative of families and local associations, a number of children from Belarus who are affected by the radiation effects of the toxic cloud from Chernobyl are hosted every year during the summer period. Their stay in Italy allows them to receive health care and, at the same time, to enjoy happier environments and 52

situations. Pavan supports the initiative by contributing to the airfares of these children. ”Casa della Sussidiarietà” A three-year project providing for the construction of a centre for terminally ill young people at the “Opera Immacolata Concezione” of Padua has been financed. ”I Ragazzi del Sole” A project aimed at the integration, independence and socialisation of children with disabilities. “Comunità di San Patrignano” The objective of this community is to take care of and cure marginalised people and drug addicts, without

any social, political or religious discrimination. “Run For Children” A 12-hour run for the Guinness World Record. This event financed “Fondazione Istituto di Ricerca Pediatrica Città della Speranza”, a leading foundation in the research and treatment of infant leukaemia. Pavan was an active sponsor of the event and encouraged the participation of its employees by organising a company team. “Seniores Italia” Non-profit association that promotes the cooperation between professionals and organizations involved in the development of local production system in the emerging market countries.


Pavan Group - Annual Report 2012

RESPONSIBILITY TOWARDS CIVIL SOCIETY

RESPONSIBILITY TOWARDS HUMAN RESOURCES

Creating a network of knowledge, for the mutual growth of all parties involved. Pavan aims to include in the network the most authoritative active parties, providing them with culture and tools in order to contribute towards the sustainable development of local farm to food supply chains. With this objective, the company has established collaborations with non-profit humanitarian organisations, institutions and associations. Among the many projects already implemented,

Pavan makes an equipped gym available for all employees wishing to improve their physical and mental well-being, flanked by a dedicated personal trainer.

Run For Children 2012

particularly noteworthy is the long cooperation (over 25 years) with some of the most authoritative accredited international organisations: FAO (Food and Agriculture Organisation), UNDP (United Nation Development Programme), UNIDO (United Nations Industrial Development Organisation) and WFP (World Food Programme). The commitment alongside them is aimed specifically at starting projects and feasibility studies to increase the level of nutrition and improve the quality of life in developing countries.

In the last sports season, pre-skiing, pilates, functional training, tonic energy and M.E.T. (metabolic exercise training) courses were organised with the participation of over one hundred employees. Activities also included cycling competitions such as the �San Luca Trophy�.

San Luca Trophy 2012

53


Pavan Group - Annual Report 2012

Study, sport, culture PROMOTING KNOWLEDGE

PROMOTING SPORT

PROMOTING CULTURE

For the children of its employees, every year Pavan offers Study Scholarships for upper secondary school students and university students who stand out for excellence in technical and scientific subjects.

Team spirit is one of the values characterising the organisational structure of Pavan. Sport as a metaphor for cooperation and the importance of the role of each individual, leads Pavan to support regional initiatives of international importance. Pavan is a sponsor of the Petrarca Rugby team. The company’s sole objective, for non-profit purposes, is to promote sport, training and the preparation of athletes, not least from a civil and moral standpoint, as well as the management of rugby teams.

This commitment to the cultural field is based on the conviction that experience in this area encourages qualities and characteristics that are all-important in the field of work: creativity, intellectual interest, openness to new experiences and the ability to interact with the others.

In 2012, two scholarships were granted for university students and three for high school students.

54

In this perspective, the Pavan Group sponsors the concert activities of ”I Solisti Veneti” in the context of the ”Veneto Festival”.


Pavan Group - Annual Report 2012

55


Pavan Group - Annual Report 2012

Sustainability In 2012, despite a very careful policy in terms of resources utilization, the production increase caused a rise in the consumption of energy and methane gas. On the other side, water and paper consumption have been significantly reduced. With the recent investment in the photovoltaic system installed at Golfetto Sangati, the target for coming years is a substantial decrease of CO2 emissions, sided by a growing utilization of clean sources.

limit the paper usage, especially by digitalizing archives and optimizing the utilization of each sheet. Furthermore, since 2008 all brochures and leaflets have been printed on certified FSC paper, a mark that identifies the products containing wood coming from forests managed in a correct and responsible way according to rigorous environmental friendly, social and economic standards.

Pavan shares a strong commitment to protect the environment and scarce resources, now and for future generations, improving efficiency in operations and involving all suppliers to continuously optimize the environmental performance of Pavan equipment along the entire value chain. This effort is oriented also towards internal processes: in 2012 an internal campaign has been activated to

WATER CONSUMPTION (in thousands of m3)

0

1

2

3

4

5

6

7

8

2012

8,450

2011

8,742

2010

8,767

2009

7,959

20

40

TURNOVER (in millions of â‚Ź)

56

9

60

80

100

120

140

160


Pavan Group - Annual Report 2012

ENERGY CONSUMPTION (in millions of kWh)

0

1

2

3

4

3.3

2012 2011

2.94 2.76

2010 2009

2.82

20

40

60

80

100

120

140

TURNOVER (in millions of €)

METHANE GAS CONSUMPTION (in thousands of m3) 0

100

200

300

400

500

600

700

684

2012 600

2011 450

2010 2009

380

20

40

60

80

100

120

140

TURNOVER (in millions of €)

57


Pavan Group - Annual Report 2012

PAPER CONSUMPTION (in tons) 0

2

4

6

8

2012

10

12

8.6

2011

8.8

2010

11.7

2009

12.2

40

80

100

120

140

TURNOVER (in millions of â‚Ź)

WASTE DISPOSAL (in kg)

Disposal of chips, dust, ferrous and non-ferrous material particulate Disposal of aluminum Disposal of copper, bronze, brass Disposal of wood and metal packing The data covers the factories at Galliera Veneta, Quinto di Treviso and Manfredonia. The 2009-2011 data has been updated using this criterion

58

2012

2011

2010

2009

199,625

185,435

120,580

130,306

1,620

1,385

1,885

1,034

460

0

0

137

46,706

22,037

17,268

13,770


Pavan Group - Annual Report 2012

The target is a substantial decrease of CO2 emissions, sided by a growing utilization of clean sources.

59


Pavan Group - Annual Report 2012

Energy that powers the future

In line with the Pavan Group’s philosophy, Golfetto Sangati invests in clean energy today, confirming the attention given to the equilibrium of our planet as a necessary step to supporting sustainable growth. The photovoltaic system installed on the roof of the production unit in Quinto di Treviso (Italy) was recently inaugurated. With an average energy production of 926,000 kWh/year obtained by means of 3,442 modules spread over an area of approximately 6,000 sqm, the investment ensures a significant reduction in the environmental impact of the Pavan Group.

60

During the sunniest months production activities can be sustained entirely by solar energy, without resorting to any polluting energy sources, while also feeding part of the energy generated into the grid. This means zero pollutant emissions for the production of electricity, avoiding the emission of nearly 400 tons of CO2 and 160 TOE (tons of oil equivalent) per year. The focus on environmental balance is applied to all activities carried out by Group companies, both in the development of technology and machinery able to optimise energy resources, and in the adoption of an environmentally sustainable organisational and production model.

As well as the use of clean energy sources and limiting the consumption of water and natural gas, the Group implements complete control over production processes in order to encourage the use of environmentally-friendly and recyclable construction and packing materials.


Pavan Group - Annual Report 2012

NEW PHOTOVOLTAIC SYSTEM

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DIRECTORS AND AUDITORS

PAVAN s.r.l.

PIZETA s.r.l.

BOARD OF DIRECTORS

BOARD OF DIRECTORS

Chairman: Angelo Ferro

Chairman: Andrea Cavagnis

CEO: Andrea Cavagnis

CEO: Pietro Zanetti

Director: Giulio Castelli

Director: Claudio Zavatta

Director: Fabio Santicioli Director: Mauro Zanguio

TECNEL s.r.l.

BOARD OF AUDITORS

BOARD OF DIRECTORS

Chairman: Roland Rabanser

Chairman: Andrea Cavagnis

Auditor: Maurizio Corvaja

Managing Director: Nicola Tiatto

Auditor: Maurizio Salom

Director: Pasqualino Cauzzo

GOLFETTO SANGATI s.r.l.

VALIN s.r.l.

BOARD OF DIRECTORS

BOARD OF DIRECTORS

Chairman: Andrea Cavagnis

Chairman: Andrea Cavagnis

CEO: Claudio Zavatta

CEO: Mauro Costa

Director: Pasqualino Cauzzo

Director: Mauro Criscuolo

AUDITORS

Director: Pasqualino Cauzzo

Deloitte & Touche

AUDITORS Deloitte & Touche

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For all information and data requests please contact the Pavan Group Corporate Marketing Department: marketing@pavan.com


Pavan Group Headquarters Via Monte Grappa, 8 Galliera Veneta - PD Italy info@pavan.com www.pavangroup.com


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