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SUSTAINABILITY REPORT 2020

Formigine, March 2021 Dear All, We started the year 2020 full of expectations regarding the improvement of business processes, economic performance and turnover, and all of a sudden we found ourselves in an unexpected situation, fraught with danger that has radically transformed our lifestyles in both personal and work environments. We have all experienced the limitations to our freedom to socialise and, unfortunately for some, the health problems of our loved ones. In spite of this, the commitment of all of us, according to our abilities and skills, has made it possible to achieve the results that we are presenting in this Sustainability Report which, beyond the numbers, represents the continuity of the company and the future prospects for a new start that we hope will come soon and allow us to return to a normal life of sharing and social contact. I would like to thank all those who have never stopped working, who have tackled problems never faced before with a sense of responsibility and passion, who have found innovative solutions, who have managed anxieties, fears and uncertainties with lucidity, transmitting encouragement and confidence to those around them, to those who have worked in the company, in their car, from home looking after their children, in order to give continuity to their work and committing themselves to seize the opportunities for improvement that will arise in the recovery phase, both for the company and for the economy. For all this a heartfelt thank you and a thank you full of gratitude. Together, united, we will set off again to achieve the growth of Tellure Rôta, of our staff, families and community.

Emanuela Lancellotti

Index Highlights of 2020

Clients

Overview of 2020

Suppliers

Tellure Rôta and UN 2030 Agenda

1. Company profile

9 Our values 10 Milestones

11 Who we are 12 Certification

Code of Ethics

Sustainability Policy

Sustainability Report

Sustainability network

2. Economic Sustainability

Results for 2020

Turnover and sales volume

Production and distribution of value added Investment

Research and development

3. Environmental Sustainability

Consumption of raw materials

Management of energy

Production, management and re-use of waste Consumption of water and fuel for transportation Greenhouse gas emissions

Traning Safety Communications

27 28

4. Social Sustainability Employees

29 30 32 33 34

Community engagement

Our commitments

Methodological note to the 2020 Report

Highlights of 2020

26.604.822 € 4.820.863 79 4,7% 162 98% 829 -8.7%

Sales

Number of items

Countries where the company distributes

Turnover of Invested

Employees

Employees with permanent contracts

Hours of training

CO2 reduction

98%

Non-hazardous waste sent for recycling

54%

Suppliers within 100 km

Overview of 2020

Turnover Trend

pharmaceutical, biomedical and agri-food sectors).

Tellure Rôta recorded a turnover of EUR 26,604,822, down 16.76% on the previous year.

The company was completely closed during lockdown from 26/03 to 05/04 (6 working days), from 06/04 on it reopened gradually to allow service to be provided to the essential supply chain sectors, then all production activities were resumed from 04/05/2020. The offices have always operated via remote working until 04/06/2020, and then alternated between office-based and remote working.

In order to gain a better understanding of the year’s results, it is essential to remove the turnover from the Ecology sector, as the latter is subjected to dynamics outside the company. Turnover adjusted accordingly was -10.3% compared to the previous year. The drop in turnover is mainly due to the serious pandemic situation that has affected all economic and industrial sectors (with the exception of the

The quantification of the pandemic effect calculated on working days showed a decrease of 19% compared to budgeted days. The graph below shows how the pandemic significantly affected March, April, May until a full recovery in the last quarter of 2020.

Trend per month 4.000.000 3.000.000 2.000.000 1.000.000

Jan.

Feb.

Mar.

Apr.

May

Jun.

Turnover 2020

Jul.

Aug.

Sep.

Turnover 2019

Oct.

Nov.

Dec.

Turnover 2018

Financial results

unchanged.

In spite of the decrease in turnover, the change in the sales range (reduction in sales of wheels for waste bin containers), careful cost reduction management, the use of social shock absorbers and a reduction in raw material prices contributed to keeping both the operating margin and the pre-tax result substantially

From a financial point of view, in order to cope with an inevitable slowdown in cash inflows caused by the pandemic, the Company has applied to the banks for a moratorium on loans under Article 56, paragraph 2, of Italian Legislative Decree No. 18/2020 (“Cura Italia”), obtaining the suspension of loan instalments

until 31/01/2021, as provided for by the Italian Legislative Decree No. 104 of 14/08/2020. The correct balance between the working capital and the self-financing generated by operations allowed the net financial position to improve by 52.86%. Production and distribution of added value Added Value figures were also affected by the drop in sales revenues, but the containment of corporate costs resulted in a drop in added value of -11.55% compared to -16.76% in revenues. The breakdown of Added Value remains substantially unchanged compared to the previous year. The item that shows a lower increase compared to 2020 is the Remuneration of the Company System (-8.65%) while the item that shows a slight increase is the Remuneration of Risk Capital (+3.44%). Investments Despite the fact that it was such a difficult year, investments planned for development were not suspended. Two systems designed to improve productivity are now in place, integrated and fully operational. In 2020, the value of investments amounted to EUR 1,229,732 or 4.62% of turnover. The percentage of investments in relation to turnover in 2020 is at the highest level for the last three years and in line with the average for the last five years. Personnel The priority for 2020 was safety in the workplace to safeguard all Tellure Rôta employees and staff. Specific protocols have been drawn up together with the workers’ HSR and the Company Doctor to maintain the correct social distancing and sanitation of workstations. The measures taken include different

entry and exit routes, management of the changing rooms and canteen, a quarter-hour reduction in working time between shifts to avoid overlapping and congregations of staff and allow workstations to be sanitised at the same time, and the use of remote working wherever possible. Despite an uncertain and unstable environment, the staffing situation at 31/12/2020 compared to the same period in 2019 remained almost unchanged. The management of the social shock absorbers provided for the Covid-19 epidemic and the use of staff on short-term contracts enabled Tellure Rôta to record a decrease of just one unit as at 31 December 2020. In terms of contract type, the openended contract remains the reference type with the same percentage as in 2019 at 98% of workers. Absenteeism in 2020 was significantly affected by the 21,347 hours of the Covid-19 Wages Guarantee Fund. Without the Wages Guarantee Fund, the percentage of absenteeism would have reached 5.57%, a slight improvement on the average of the last two years. During 2020, compatibly with the rules for fighting and containing the Covid-19 epidemiological emergency, 829 hours of training were carried out, mostly focusing on safety issues and where possible using e-learning, such as the “Virtual interactions for the sales force” course. In June 2020, a company bonus of EUR 1,131.71 was paid to each employee for 2019, the first year of the four-year period of the new company contract signed at the end of 2018.

Tellure Rôta and UN 2030 Agenda The 2030 Agenda defines the international objectives for Sustainable Development by 2030, divided into 17 macro-objectives (the Sustainable Development Goals-SDGs) and 169 specific targets on various dimensions of Sustainability.

Tellure Rôta has taken these 10 SDGs as a reference and has identified the main actions carried out with consistency and the relative results for each of these international objectives, described in the table below.

SDGs

Action take

Results achieved

Corporate welfare services to increase the purchasing power of employees.

Purchasing discounts with 10% off the shopping bill

Investment in health and safety in the workplace.

Management system certified 45001:2018. Investment per 138.606 €, 856€ per employee.

Provision of training to employees.

829 hours of training delivered.

Collaboration projects with schools and Universities.

2 stage, 2 internships, 1 classroom lesson for schoolwork alternation with students from local schools, donation to the Mechatronics laboratory of the F. Corni technical institute in Modena.

Improvement in energy efficiency.

Constant verification of the energy consumption monitoring system introduced in previous years.

Investments in innovation, research and development.

3.6% in Investments in automatic systems and equipment 1.8% in Research and Development in the last 5 years.

Creation of jobs and steady increase in the number of employees.

162 permanent employees, more 19 persons compared with 2014.

Investment in the construction/renovation of buildings and plant.

Improvements to external accesses, to the firefighting system and to the changing rooms.

Corporate welfare benefits/services made available to all employees

Agreements with credit institutions, medical professions and insurance companies for discounts on products / services.

Investment in activities to develop the local community.

Conituation of collaboration with other companies and the Administration of the Municipality of Formigine for the “Hub-Cà Bella” project; support to events such us: “Meeting Simpatia”, “Ospedale di Sassuolo” and “Natura che cura e ricresce con te” on the occasion of the flood of Modena in November 2020.

Sustainable management of the supply chain.

About 44% of suppliers assessed on at least one environmental / social criterion and 54% located within 100 km.

Reduction of CO2 on Home-Work journeys.

Reduction in consumption of the total emissions generated by 8.7% compared to 2019.

Projects in partnership with local stakeholders.

8.898 € invested in projects and collaboration with local organisations, addressing the topics of local development, social solidarity and health.

1. Company profile

company profile

Our values Tellure Rôta is one of the principal European firms active in the design, production and distribution of industrial wheels and brackets, based in Formigine, a town in the Italian province of Modena. “Striving to improve, always.” These simple words, which have always characterised the company, embody the keywords of the business: improvement, innovation, sustainability. Words that have represented the philosophy of Tellure Rôta since 1953: • improvement and development of products, processes, services and solutions,

• innovation and orientation towards the future of solutions, materials and commercial services, • sustainability, evaluation, transparency and awareness, reported via our cornerstone values: • development of personnel • customer satisfaction • respect for the environment and the protection of health and safety in the workplace • the integrated management of company activities through an agile, homogeneous and coherent operation.

company profile

Milestones 1953 - 1970

From 2010 to date

Foundation of the artisan business in Modena

Qualification and accreditation of the Test & Research laboratory by the High Technology Network of the Emilia-Romagna Region

Trademark registration and transformation into a limited company Equipment of a chemistry-physics laboratory to formulate polyurethane coatings for wheels and to test products 1970 – 1990 Daily production of 2,000 wheels with 100 employees Relocation to the current headquarters in Formigine covering 10,000 sq.m. Internal CRM system with external link to agents and representatives 1990 - 2010 ISO 9001 quality certification Formation of Tellure Rôta do Brasil ISO 14001 environmental certification Expansion of production capacity with purchase of a 3,000 sq.m. factory close to the headquarters Launch of the lean production project OHSAS 18001 occupational safety certification

Expansion of thermoplastic moulding production in a third, 1,500 sq.m. factory located nearby Legality rating obtained Implementation of a new layout for the production of polyurethane wheels in accordance with the latest manufacturing logic, with introduction of the first plant created in accordance with INDUSTRY 4.0 principles Replacement of the information system

integrated

management

Update to ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018 certifications At the end of December 2019, the renewal of accreditation to the High Technology network of the TR Lab Test & Research laboratory was approved by the Emilia Romagna Region according to the new accreditation methods.

company profile

Who we are Tellure Rôta is a limited liability company (SpA) with a share capital of 3,640,000, fully paid, that is wholly owned by L.M. Spa, the investment and property holding company of the Lancellotti family. Led by Emanuela Lancellotti, Chairman, Elena Lancellotti, Managing Director, and Giorgio Mercalli, General Manager, the company has 162 employees, a broad network of Italian and foreign agents, and grassroots distribution covering in 79 countries. TR Lab is accredited with the high technology network organised by the Emilia Romagna Region. This internal laboratory is an integral part of the product innovation process and carries out testing activities, even for third parties, on the materials used and their physical, chemical and mechanical performance. TR Lab also offers specialist consultancy on such topics as ergonomics, smooth running, safety in the workplace, reduction of effort and consumption, the durability of products, and total operating costs. The range of Tellure Rôta wheels and brackets comprises more than 8,000 standard items, with a carrying capacity of up to 3,500 kg for many uses, as well as special products designed to satisfy specific customer needs. The product range is organised as follows: • wheels made from standard, elastic, pneumatic and thermoplastic rubber • monolithic wheels made from polyamide, phenolic resin and cast iron • wheels and castors coated in TR polyurethane, TR-

Roll polyurethane and Vulkollan® • wheels and castors in thermoplastic polyurethane • brackets made from steel sheet and stainless steel for medium loads • brackets made from electro-welded steel for heavy loads • wheels for the community • wheels for furniture Production takes place in 3 factories located in the same industrial zone, with a covered area of 15,000 sq.m. All processes are carried out internally, except for the production of rubberised gaskets, the casting of metal hubs (steel and cast iron), and the surface treatments of metals. Production activities include: • automated pressing of metal sheet and strip • automated injection moulding of plastics • production of elastomeric polyurethane wheels using automated and manual plant • assembly of wheels, brackets and wheels+brackets using automated and manual plant and the packaging of finished products. Activities are organised in accordance with “Lean Production” principles, in order to respond flexibly to customer requests while maintaining reliability and speed of delivery.

company profile

Certifications In part, the Sustainability policy of Tellure Rôta is demonstrated to stakeholders via the voluntary adoption of management systems for various business activities that are certified to international standards by independent third parties.

for waste collection bins.

The implementation and constant maintenance of an Integrated Quality-Environmental-Safety System highlights the attention dedicated to customer satisfaction, the environment and the local community, as well as to employees and everyone who collaborates with the company.

During 2020, both internal and periodic surveillance audits by TÜV Italia were carried out with the result of the confirmation of the Quality and Environment Certifications according to UNI EN ISO 9001:2015 and UNI EN ISO 14001:2015 and the system of Health and Safety at work according to the new standard UNI EN ISO 45001:2018.

During 2016 Tellure Rôta has also obtained NSF/ ANSI 2 international certification for wheels in the food sector and DIN EN840 certification for wheels

Certification

In September 2020, the Italian Competition and Market Authority renewed the Legality Rating with the score “ “, first issued in October 2014 and expiring in 2022.

The table below lists the certifications obtained and their expiry dates:

Issuing body

Beginning date

Expiry date

ICIM

25/03/1996

ISO 9001:1994

Quality management systems

ISO 9001:2000

Quality management systems

TUV

25/01/2002

ISO 14001:2004

Quality management systems

TÜV

14/05/2005

ISO 9001:2008

Quality management systems

TÜV

23/03/2009

Occupation Health and Safety Management System Occupation Health and Safety Management System Quality management systems

TÜV

31/03/2009

TÜV

18/01/2002

30/03/2021

TÜV

22/03/2016

18/01/2023

Quality management systems

TÜV

26/04/2016

17/02/2023

OHSAS 18001:2007 ISO 45001:2018 ISO 9001:2015 ISO 14001:2015

CERTIFICATO

ll Sirene dlMa

ALLEGATO 1 AL CERTIFICATO NR 50 100 14613 - Rev. 002 ANNEX 1 TO CERTIFICATE NO 50 100 14613 - Rev. 002 pagina 1 di 1 / page 1 of 1

Nr. 50 100 14613 - Rev. 002

IL CERTIFICATO NR 50 100 14613 (ultima revisione applicabile) COPRE ANCHE LE SEGUENTI SEDI OPERATIVE THE CERTIFICATE N 50 100 14613 (last version) COVERS ALSO THE FOLLOWING OFFICES:

Si attesta che / This is to certify that

Rif. RT234

Spett.le

TELLURE ROTA SPA

in persona del legale rappresentante p.t.

IL SISTEMA DI GESTIONE SICUREZZA E SALUTE DEI LAVORATORI DI THE OCCUPATIONAL HEALTH AND SAFETY MANAGEMENT SYSTEM OF

tellurerota@legalmail.it

TELLURE ROTA S.p.A.

TELLURE RÔTA S.p.A. SEDE LEGALE E OPERATIVA: / REGISTERED OFFICE AND OPERATIONAL SITE:

VIA QUATTRO PASSI 15 I-41043 FORMIGINE (MO) SEDI OPERATIVE: VEDI ALLEGATO 1 OPERATIONAL SITES: SEE ANNEX 1

È CONFORME AI REQUISITI DELLA NORMA HAS BEEN FOUND TO COMPLY WITH THE REQUIREMENTS OF

UNI ISO 45001:2018 QUESTO CERTIFICATO È VALIDO PER IL SEGUENTE CAMPO DI APPLICAZIONE THIS CERTIFICATE IS VALID FOR THE FOLLOWING SCOPE

Progettazione, fabbricazione di ruote e supporti per uso industriale, civile e domestico realizzati mediante stampaggio della lamiera, stampaggio dei materiali termoplastici, rivestimento in poliuretano, verniciatura ad acqua e montaggio dei componenti (IAF 14, 17) Design and manufacturing of wheels and castors for industrial, institutional, and home applications produced by means of sheet metal press working, injection moulding, polyurethane coating, waterproduct painting and assembling (IAF 14, 17)

VIA QUATTRO PASSI 15 I-41043 FORMIGINE (MO) Servizi ausiliari e generali (servizio tecnico, commerciale, amministrativo, sistemi informativi, gestione materiali, manutenzione) Lavorazioni meccaniche-verniciatura- assemblaggi General services (product management, sales, administration, IT, purchasing, maintenance), Mechanical processes - coating - assembling VIA A. MORO 29/31 I-41043 FORMIGINE (MO) Stampaggio termoplastici Injection moulding VIA A. MORO 21/25 I-41043 FORMIGINE (MO) Rivestimenti in poliuretano Polyurethane coatings VIA A. MORO 14 F/G/F I-41043 FORMIGINE (MO) Prove e collaudi Tests and trials Per l’Organismo di Certificazione For the Certification Body

Per l’Organismo di Certificazione For the Certification Body

TÜV Italia S.r.l.

Andrea Coscia

Direttore Divisione Business Assurance

Validità /Validity Dal / From:

2019-03-22

Al / To:

2021-03-30

Data emissione / Issuing Date 2019-03-22

“PRIMA CERTIFICAZIONE / FIRST CERTIFICATION: 2009-03-31 (EMESSO DA ALTRO ODC/ ISSUED BY OTHER CB )” “LA VALIDITÀ DEL PRESENTE CERTIFICATO È SUBORDINATA A SORVEGLIANZA PERIODICA A 12 MESI E AL RIESAME COMPLETO DEL SISTEMA DI GESTIONE AZIENDALE CON PERIODICITÀ TRIENNALE” “THE VALIDITY OF THE PRESENT CERTIFICATE DEPENDS ON THE ANNUAL SURVEILLANCE EVERY 12 MONTHS AND ON THE COMPLETE REVIEW OF COMPANY'S MANAGEMENT SYSTEM AFTER THREE-YEARS”

TÜV Italia S.r.l.

Andrea Coscia

Direttore Divisione Business Assurance

COMUNICAZIONE VIA PEC OGGETTO: richiesta di rinnovo del Rating di legalità, ai sensi dell’art. 6, comma 2, del Regolamento adottato dall’Autorità Garante della Concorrenza e del Mercato con delibera 27165 del 15 maggio 2018.

Si comunica che l’Autorità, nella sua adunanza del giorno 8 settembre 2020, ha rinnovo esaminato la domanda per Rating di legalità da Voi depositata in data 24 luglio 2020.

del

In base alle dichiarazioni rese, nonché all’esito delle valutazioni effettuate, |’ Autorità ha deliberato di rinnovare a TELLURE ROTA SPA (C.F. 00180900367) Rating di legalità

con il seguente punteggio:

AK.

La società è stata inserita nell’elenco delle imprese con Rating di legalità, così come previsto dall’art. 8 del Regolamento. Ai sensi dell’art. 6, comma 1, del Regolamento, Rating di legalità ha durata di due anni dal rilascio ed è rinnovabile richiesta.

all’

Validità /Validity Dal / From:

2019-03-22

Al / To:

2021-03-30

Data emissione / Issuing Date 2019-03-22

cui

Si rammenta, infine, che, ai sensi dell’art. 7, comma del Regolamento, l’impresa è stato attribuito il rating è tenuta a comunicare Autorità ogni variazione dei dati riportati nei propri certificati camerali e qualunque evento che incida sul possesso dei requisiti di cui nonché agli articoli 2, comma eventi di cui all’articolo 6, commi e 3, comma e 7, entro dieci giorni dal verificarsi degli stessi, pena la revoca cui all’articolo 6, comma del

Regolamento.

gli

Distinti saluti. IL SEG

RJO GENERALE Filippò

company profile

Code of Ethics The Code of Ethics defines the commitments and ethical-social responsibilities of each person involved in the business, with a view to consolidating the reputation of the company and maximising the confidence of all stakeholders. Just a few sound principles guide the actions of the directors, managers, employees and partners of Tellure Rôta. The concepts are summarised below: • compliance with the law and current regulations in each area; • honesty, transparency, impartiality;

• respect for and appreciation of diversity; • confidentiality of information; • protection of the corporate image; • respect for the environment. • protection of the health and safety at work of those who work in the company and on behalf of the company.

company profile

Sustainability Policy When planning strategies, Tellure Rôta considers the economic, social and environmental implications of its activities and complies with the principles of sustainability development and corporate social responsibility, which have been recognised internationally since 1987 with the report of the World Commission on Environment and Development (WCED) and the Europa 2020 strategy of the European Union.

• reduce waste and the production of scrap and

Given this premise, the Sustainability Policy has various objectives:

and systematic provision of information, education, training and awareness-building activities to all employees and collaborators and, where appropriate, to suppliers, contractors and visitors

• establish clear and measurable Sustainability objectives at the start of each year

• check the results achieved periodically and plan actions that guarantee continuous improvement

• identify and prevent risks associated with the economic, environmental and social impact of activities and take the opportunities arising from the context in which the business operates

rejects, consistent with the principles of the circular economy

• involve and consult employees in the implementation

of business activities, encouraging them to take every initiative designed to enhance quality, protect the environment and safeguard health and safety in the workplace

• ensure that the system is supported by the periodic

• share and communicate company policies at all

levels internally and to partners and suppliers, working to improve the satisfaction of end customers and to reduce the impact of the products and services supplied to them on the environment and on health and safety in the workplace

• promote research in order to increase know-how

• prevent environmental and health and safety

• comply with the regulations that govern health and

• choose recyclable materials wherever possible

and offer innovative products to customers that are both eco-compatible and increasingly effective

safety in the workplace, environmental protection and products

• act in a manner that prevents adverse impacts, in accordance with the principle of precaution

• take care of employees, doing everything possible to avoid injuries and professional diseases

• increase customer satisfaction by continuous improvement over time of the services provided

risks, guaranteeing a clean and efficient working environment for the manufacture of products, taking measures designed to save the consumption of resources.

company profile

Sustainability Report The topics covered in this Sustainability Report derive from an internal analysis of materiality that sought to determine which aspects are important and enable the company to continue the creation of value over the short, medium and long term. This analysis was carried out in prior years, but remains valid. Tellure Rôta confirms its commitment to involve all stakeholders in constant constructive dialogue and in a lasting and responsible partnership. The purpose of the Sustainability Report of Tellure Rôta is to communicate values, results achieved and future objectives, with a view to continuous discussion and improvement. As in the past, this document - which is also printed in Italian - is based on the GRI-G4 guidelines issued by the Global

Reporting Initiative. The report provides qualitative and quantitative information about the activities of the company in recent years, concentrating in particular on the results achieved in 2020. The data provided was collected, managed and processed internally. Tellure Rôta has prepared a CSR Report since 2002, so this is the 19th edition. The actions taken and results achieved in implementation of the 2030 Agenda SDGs are listed on page 8.

Sustainability networks Tellure Rôta has been a founding partner since 2009 of the Club of Modena Companies for CSR, which has become since 2014 the “Association of Modena companies for Corporate Social Responsibility”. The Association brings together 40 companies in the province, of different legal form, size and sector, who collaborate in the creation of thematic events andworkshops, with the aim of promoting the culture and practices of CSR (Corporate Social Responsibility).

2. Economic Sustainability

economic sustainability

Results for 2020 Financial Statements’ Data 2020 (euro)

2018

2019

2020

29.924.090

31.962.339

26.604.822

Gross operating profit (EBITDA)

2.612.873

2.497.449

2.393.796

Net operating profit (EBIT)

1.328.663

1.217.610

1.139.599

Net borrowing costs

101.257

56.977

20.403

Non-recurring items

1.227.406

1.160.633

1.119.196

892.666

859.926

889.521

Net financial position

-3.707.244

-3.101.660

-1.462.043

Shareholders’ equity

6.424.229

6.859.393

7.750.413

Net revenues from sales

Profit before taxation Net profit

Profit before taxation (thousands of euro) 1.400

1.200

1.227

1.200

1.161

1.119

963

1.000 873

800 600 400 200 0

2015

2016

2017

2018

2019

2020

Net financial position (thousands of euro) 5.000

4.121

4.886

4.279

4.000

3.707

3.102

3.000 2.000

1.462

1.000

2015

2016

2017

2018

2019

2020

economic sustainability

Turnover and sales volume Turnover (thousands of euro) 31.000 29.000 27.000

27.940

28.531

31.962 29.222

29.924 26.605

25.000 23.000 21.000 19.000 17.000 15.000 2015

2016

2017

2018

2019

2020

Number of items sold

6.000.000

5.907.938

5.818.467

5.728.851

5.985.797 5.682.657

5.500.000 4.820.463

5.000.000 4.500.000 4.000.000 2015

Turnover (euro)

2016

2017

2018

2019

2020

2018

2019

2020

Abroad

15.437.687

17.745.609

Italy

14.486.403

14.216.730

13.929.061 12.675.761

Total

29.924.090

31.962.339

26.604.822

economic sustainability

Production and distribution of value added

2018

2019

2020

29.924.090

31.962.339

26.604.822

Change in inventories of work in process, semi-finished and finished products

495.799

33.828

-119.642

Other revenues and income

218.946

153.692

192.708

Value added production and distribution (euro) Revenues from sales

78.374

41.903

12.663

Total value of production

30.717.209

32.191.762

26.690.551

Cost of raw, ancillary and consumable materials and goods

12.389.900

13.369.800

9.976.246

-104.767

161.439

405.132

6.236.402

6.297.628

5.293.896

Cost of leases and rentals

895.625

927.471

930.394

Other operating expenses

190.999

192.732

118.526

Net borrowing costs

101.257

56.977

20.403

Impairment

146.951

150.512

222.593

Sub-total of production costs

19.856.367

21.156.559

16.967.190

Gross value added by operations

10.860.842

11.035.203

9.723.361

10.860.842

11.035.203

9.723.361

Operating grants

Change in inventories of raw, ancillary and consumable materials and goods Cost of services

Non-recurring items Total gross value added

Value added (thousands of euro) 12.000 10.000

9.513

10.296

10.285

2016

2017

10.861

11.035 9.723

8.000 6.000 4.000

2015

2018

2019

2020

economic sustainability

Distribution of value added among the stakeholders (euro) a) Remuneration of work b) Remuneration of the P.A. c) Remuneration of the business system d) Remuneration of risk capital Total gross value added

2018

2019

2020

8.496.175

8.745.243

7.572.561

334.741

300.707

229.675

1.137.260

1.129.327

1.031.604

892.666

859.926

889.521

10.860.842

11.035.203

9.723.361

Remuneration of risk capital

11%

Remuneration of the business system

Remuneration of the P.A.

78%

Distribution of value added

Remuneration of work

economic sustainability

Investment

2018

2019

2020

Automated systems mechanical and non-automatic machines and systems

569.520

99.699

1.080.441

Moulds and tools for products

112.075

90.600

84.700

Elettronic office machines

14.155

25.029

12.898

Licences and software

17.485

27.068

1.500

Trademarks and patents

17.353

Others

97.305

50.192

713.235

357.054

1.229.732

Investment in R&D (euro)

2018

2019

2020

Raw materials for trials and prototypes

6.940

16.893

5.216

Analysis and trials

5.901

4.596

7.764

Investiment (euro)

Total

Research and development

Highly qualified employees dedicated to R&D

121.444

97.904

77.014

Technical employees dedicated to R&D

263.532

190.761

112.079

1.133

775

364

17.353

398.949

328.281

202.436

Depreciation of R&D equipment Patent costs incurred for R&D purposes Total

3. Environmental Sustainability

environmental sustainability

Consumption of raw materials

Raw materials used (kilograms) 6.000.000

5.822.613

5.669.927

5.575.022 4.852.997

5.000.000

4.559.934 3.835.118

4.000.000 3.000.000 2.000.000 1.000.000 0 2015

2016

2017

2018

2019

2020

Finished components used (number) 150.000.000

134.667.565

136.038.558

142.851.378 120.072.520

119.145.017

2017

2018

100.496.674

100.000.000 50.000 0 2015

2016

2019

2020

environmental sustainability

Management of energy

2015

2016

2017

2018

2019

2020

304.558

410.087

478.551

477.259

441.405

415.535

2.866.650

3.260.142

3.288.905

3.223.876

3.102.698

2.795.721

2015

2016

2017

2018

2019

2020

Natural gas

3.197.859

4.305.914

5.024.786

5.011.220

4.634.753

4.363.118

Electricity

2.866.650

3.260.142

3.288.905

3.223.876

3.102.698

2.795.721

Total consumption of energy

6.064.509

7.566.056

8.313.690

8.235.096

7.737.451

7.158.839

Consumption of energy Natural gas (cu.m) Electricity (kWh)

Energy mix used (kWh)

environmental sustainability

Production, management and re-use of waste

Production of waste by type and method of disposal / recovery (kg)

2015

2016

2017

2018

2019

2020

Paper, plastic, wood, metal packaging sent for recovery Aqueous waste sent for filtration

105.525

88.358

74.888

65.660

68.520

44.820

40.580

25.260

7.080

13.920

27.360

33.740

Metallic waste sent for recovery

1.816.115

1.709.714

1.549.147

1.511.051

1.794.340

1.272.150

119.580

119.735

131.725

132.869

145.606

128.925

8.158

1.172

1.296

3.447

9.809

1.266

Plastic waste sent for recovery Other

2.089.958

1.944.239

1.764.136

1.726.947

2.045.635

1.480.901

Aqueous waste sent for filtration

35.450

44.570

34.131

35.254

27.117

23.255

Non-aqueous waste sent for filtration

24.776

25.189

30.191

31.138

47.650

37.780

Total hazardous waste

60.226

69.759

64.322

66.392

74.767

61.035

2.150.184

2.013.998

1.828.458

1.793.339

2.120.402

1.541.936

Total non-hazardous waste

Total waste produced

Waste sent for recovery (ton) 2.500 2.000 1.500

2.150 2.041

2.014 1.918

1.828

1.793

2.120 2.008

1.756

1.710

1.542 1.446

1.000 500

2015

2016

2017

2018

2019

Waste sent for recovery

2020 Total waste

environmental sustainability

Waste sent for recovery (kg) Quantity of waste sent for recovery

2015

2016

2017

2018

2019

2020

2.041.220

1.917.807

1.755.760

1.709.580

2.008.466

1.445.895

Percentage of total non-hazardous waste recovered

97,7%

98,6%

99,5%

99,0%

98,2%

97,64%

Percentage of total hazardous waste recovered

94,9%

95,2%

96.0%

95,3%

94,7%

93,77%

Consumption of water and fuel for transportation Water consumption over time (cubic metres) 4.000 3.000

3.080 2.413

3.043

2.278

2.286

2.439

2.000 1.000 o

2015

2016

2017

2018

2019

2020

Fuel consumption by the vehicle fleet (litres) 19.000 18.000 17.000

17.862

18.140

17.028

18.561 17.499

16.000 15.000 14.000

12.046

13.000 12.000

2015

2016

2017

2018

2019

2020

environmental sustainability

Greenhouse gas emissions Climate-altering emissions (tonnes of CO2 eq.) 2.000 1.500

1.119

1.130

1.107 1.069

951

988

1000

934

800

932

594

500

862

811

0 2015

2016

2017

2018

2019

Direct emissions

2020 Indirect emissions

4. Social Sustainability

social sostainabilty

Employees

Number of employees (31/12/2020) 200 175

165

169

163

162

2019

2020

150 125 100 2015

2016

Employees by level Executives

2017

2018

Number

Percentage

White collar

23%

Blue collar

119

73%

Total

162

100%

Number

Percentage

159

98%

Apprenticeships

Fixed-term

Managers

Employees by type of contract Permanent

social sostainabilty

39%

Under 30

34% Woman

Over 50

Employees by age

21%

between 30 and 40

Absences Reason Illness

Employees by gender

33%

between 41 and 50

66% Men

2018

2019

2020

80,5%

75,2%

35,4%

Compulsory/optional maternity

4,6%

7,1%

4,8%

Injuries

4,8%

8,5%

0,6%

Strikes

4,5%

1,7%

0,7%

Marriage leave

0,7%

0,2%

Blood donation

0,3%

0,1%

Leave, Law 104/92 (family reasons)

3,7%

5,8%

4,6%

Special leave

1,0%

0,6%

0,3%

Covid layoffs

0,0%

53,3%

100%

6,6%

6,5%

11,9%

Total hours Percentage of hours worked in the year

social sostainabilty

Training

2018

2019

2020

Blue collar

Training hours per person by category and gender By category White collar

Managers

Executives

Men

Women

7 1

2018

2019

2020

By gender

Total training hours by subject area IT Financial economics

Technical / operational (specific)

420

552

134

Managerial

297

Foreign languages

216

Commercial

Quality / Environment

555

471

122

Total excluding Safety

1615

1054

391

616

510

438

2231

1564

829

Safety Grand total

social sostainabilty

Safety

2018

2019

2020

Injuries at work

Injuries while travelling to work

Total injuries during the year

133

231

0,31%

0,55%

0,07%

Employee injuries

Working days lost Lost Day Rate

social sostainabilty

Comunication Trade fairs 2020 R2B ON AIR (TR Lab) (11 June) CEMAT ASIA (Shanghai –3/6 November) MECSPE CONNECT (2/3 December)

social sostainabilty

Customers Delivery reliability (%) 100 90 81,0

73,4

71,6

2016

2017

80,9

79,4

2018

2019

79,6

70 60 50

2015

2020

Number of complaints per month 25 20 15 10

8,0

10,5

9,6 6,6

7,9

6,0

5 0

2015

2016

2017

2018

2019

2020

Value credited by customers (%) 1,00

0,89 0,74

0,75

0,45

0,50

0,47

0,32

0,25

0,27

2015

2016

2017

2018

2019

2020

social sostainabilty

Suppliers

Sustainability of the supply chain

2015

2016

2017

2018

2019

2020

No. of suppliers

310

294

267

269

322

325

Suppliers assessed on at least one environmental/social sustainability criterion

23%

24%

25%

27%

44%

155

148

134

131

172

177

No. of suppliers located within 100 Km

social sostainabilty

Community engagement Activities

• School-Work Exchange Project • Orientation Project • Internships • Agreements with Research Centres

• Collaboration with non-profit bodies • Collaboration with public bodies • 2030 Agenda and Welfare • Sustainable mobility

social sostainabilty

Investment in community projects (euro)

2018

2019

2020

Economic development

11.000

4.000

4.400

500

Education and research

1.144

3.094

1.400

Art and culture

1.000

703

500

321

427

258

1.500

6.000

1.840

14.966

14.224

8.898

Civil emergencies

Health Social solidarity Total

Commitments to sustainability

Commitments to economic improvement

Our commitments Our commitments in 2020

2020 Actuals

2021 Objectives

Grow revenues by consolidating market share.

Objective not achieved

Grow revenues by consolidating market share.

Increase operating profit before taxes.

The operating result remained unchanged

Increase operating profit before taxes.

Gradually improve the net financial position.

Objective largely achieved (+53%)

Gradually improve the net financial position.

Improve product quality (target: < 5 complaints/month).

Objective achieved (6 complaints/ month).

Improve product quality (target: < 5 complaints/month).

Increase in business productivity.

Objective not achieved

Increase productivity.

Reduce credits on sales (target: < 0.50%).

Objective not achieved (0.78%)

Reduce credits on sales (target: < 0.20%)

Improve lead time reliability (target: punctuality >85%).

Objective not achieved (79.6%)

Improve lead time reliability (target: punctuality >85%).

Develop and implement new corporate communication tools.

New 2020 edition of the Catalogue (Italian, German), development of Linkedin page, new series presentation videos and participation in 3 trade fairs, 2 of which are online

Develop and implement new corporate communication tools.

Continuation of local CSR activities.

Founding member of the Club of Modena Firms for CSR, taking part in all activities. Contribution to “Natura e cura riesce con te” and “Ospedale di Sassuolo”

Continuation of collaboration with the Municipality on comunity support projects.

Founding member of the 4HUB association for the development of Ca ‘Bella activities. Support for the ITI Corni Mechatronics laboratory in Modena.

Continuation of collaboration with the Municipality on community support projects

Improve environmental performance and safety at work.

Investment in safety of 138.606 euro, 856 Euros for each employee

Improve environmental performance and safety at work

Continuation of local CSR activities

Methodological note to the 2020 Report The purpose of this Sustainability Report from Tellure Rôta is to describe 2020 performance in economic, environmental and social terms and to inform key stakeholders about the impact generated by the company, with a view to transparency, awareness and dialogue. This document is the 19th edition of a process of inter-sector reporting that began in 2002, with the preparation of the 1st Social Report, and continued from 2009 with publication of the 1st Sustainability Report. As part of improvements consistent with current international Sustainability Accountability practices, the format of the Sustainability Report has been updated in line with the “Sustainability Reporting Guidelines G4” promoted by the Global Reporting Initiative (GRI). Accordingly, the Report adopts the In accordance - Core approach to the GRI. G4 standard. In particular, the Report covers all the “General Standards” and the “Specific Standards” that are

most significant (material) for Tellure With regard to the latter, the Report makes the required Disclosure on Management Approach – DMA and presents at least one related indicator. The “Materiality Analysis” has not been updated, as there have not been any changes in the prerequisites for identifying perceptions, cross-functional impacts and improvements to be made (the methodology and results of the Materiality Analysis were published in the 2016 and 2017 Sustainability Reports). The scope of reporting coincides with that adopted for the preparation of the financial statements. Links between the actions taken by Tellure Rôta and the various UN SDGs are summarised at page 8 of the Report. Together with the annual financial statements, the Sustainability Report has been examined and approved by the Board of Directors of Tellure Rôta.

Tellure Rôta

TR Lab

Via Quattro Passi 15 • 41043 Formigine (MO) Tel. 0039 059 410231-253 • Fax 0039 059 572859 comm.estero@tellurerota.com • www.tellurerota.com

Via Aldo Moro, 14/G-H • 41043 Formigine (MO) Tel. 0039 059 410271 • Fax 0039 059 573167 info@trlab.it • www.trlab.it

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