Pavan Group Annual Report 2011 by Pavan Group

Technology to feed a growing world 2011 ANNUAL REPORT

Pavan Group - Annual Report 2011

Introduction

The 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 in the integrated type of management system adopted: quality, safety, environment and social responsibility. This fifth edition contains data and information relating to the entire Pavan Group* and is updated in the information as at December 2011. *Pavan s.r.l., Golfetto Sangati s.r.l., V.AL.IN. s.r.l., Pizeta s.r.l., Tecnel s.r.l.

INDEX

Key figures

Golfetto Sangati

Human capital

CEO’s message

Technical innovation

Corporate social responsibility

Corporate profile

Technological innovation

Study, sport, culture

Our values

Group organization chart

Sustainability

Economic scenario

Financial results

Sharing knowledge

The packaging division

Added value

Offices and control bodies

Pavan Group - Annual Report 2011

Key figures mioâ&#x201A;Ź

Turnover EBITDA Assets Cash flow Export quota Training hours

2009

83 11

BUSINESS UNITS

2010

107 17

% increase

+ 15 + 15

2011

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

+ 11

95%

95% 850

Unloading systems, handling and cereal milling plants

123

1.831

Grain processing

SALES BY CONTINENT

4 5

95% 1

5.315

2 Employees

563

597

603 2

Food processing

55% 25%

1. 2.

America Europe

30% 30%

Grain processing

Packaging systems

15%

Asia

15%

Storage systems

4. 5.

Oceania Africa

5% 20%

-R US

N -C HI TT O LF E

O FI CI

TH ATLANTIC OCEA N

NOR

GOLFETTO SANGATI MANFREDONIA

PA VA N

4286 MILES/600 MIN.

PACKAGING DIVISION HEADQUARTERS

D IN

CEAN IAN O

N TI

N A

PA VA N

IC O

SA N GA TI

PA VA N

GOLFETTO SANGATI HEADQUARTERS

US A

GR OU P

PAVAN GROUP HEADQUARTERS

SOUTH

PAC

PA VA N

The Pavan Group

IFI

C O CE AN

ATLANTIC OCEAN H T U

Branch Offices Production Plants

2011 WORLD OVERVIEW

World population

7.050.000.000

Food production

1.3 billion tons

Fresh water consumption

64 billion cubic meters

Energy consumption

13.000 Mtoe

Pavan Group - Annual Report 2011

Technology to feed a growing world

“

The strength of a fully integrated Group. A milestone for the future.

”

In 2011 we were able to reap the first rewards of a real Group policy, appreciating the synergic potential of a joint work oriented towards the same objectives. Pavan is now a Group of companies fully integrated in order to cover the entire supply chain: from unloading of the grain to the packaged product ready for sale on the shelf. And it is in this light that we are continuing to pursue a strategy aimed at being a technological partner able to actively contribute towards global growth through increasingly efficient and rational solutions, allowing the consumption of food products to be extended by our Customers.

At the end of 2011, the world’s population exceeded 7 billion, growing by over 150 million people a year. With these numbers in mind, and a clear corporate mission, we wanted to introduce the new payoff ”Technology to feed a growing world”.

Dr. Andrea Cavagnis Chief Executive Officer Pavan Group

Pavan Group - Annual Report 2011

Corporate profile

Pavan Group is among the worldwide leaders, in the design and engineering of technologies and integrated product lines for cereal based food. It is a strong and solid organization, operating in the food industry as global suppliers of industrial solutions, from the handling of raw materials to the final packaging. We operate in the business through our 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, thanks to a farsighted growth and development strategy,

aiming towards a broader service offer and product portfolio. Today, these companies can operate on individual basis or jointly under an interlacing strategy covering all the production process. The Group provides a full service strategy that goes from the research and development of new products, to the project and design of manufacturing plants, to the final after-sales training and client services. In the years, Pavan Group has strengthened its positioning and brand image thanks to its top quality standards and product performances.

Pavan - Dry Pasta division. Production plant, Galliera Veneta (Italy).

Pavan Group - Annual Report 2011

“

Our values

The customer is always at the centre of our thinking.

Our clients before everything

Innovation

Sustainability

Our clients are our point of reference. The alpha and the omega of all our activities. 30% of our proceeds are generated by clients that didn’t even exist 10 years ago, or were serviced by our competitors. Satisfying their requests with state of the art technologies, providing only top quality service, is not our only objective. In fact, we believe in helping our clients’ business, by sharing with them our technological and scientific innovation, which is our most important corporate asset.

Innovation is the propelling engine of all our industrial activities: 25% of our present revenues come from technologies that didn’t exist 10 years ago. Pavan Group develops, integrates and provides complete, full service manufacturing solutions, constantly upgrading their engineering and manufacturing processes, to increase customer satisfaction, so that technology can become the key element for new business opportunities, guaranteeing final consumers only top quality food.

Pavan Group operates complying only with ecofriendly standards, identifying any critical aspect and monitoring those that might have any environmental impact. For instance, all our newest plants utilize 25% less energy than those built 10 years ago. The sustainability of all our industrial processes are always guaranteed by strict operative protocols, and by the constant involvement of our staff, each for its own competences, at all levels.

”

Pavan Group - Annual Report 2011

â&#x20AC;&#x153;

A commitment towards everyone, starting with ourselves.

â&#x20AC;?

Giving value to our people

Research

Ethics and social responsibility

Our human capital is our real corporate asset. The company organizes every year many activities, to develop and improve our employeesâ&#x20AC;&#x2122; potentials, creating a fertile, stimulating and creative professional environment, offering good professional opportunities for those who deserve them.

The company invests 5% of its revenues in human resources, plants, machineries and research projects for the implementation of new technologies, or the development of already existing ones. Our R&D team, the Pavan School for Food Technologies and its projects in cooperation with important Universities and National Research Institutes, are a real strategic resource and an important support for our clients, in the development of new food products and new manufacturing processes.

We are aware that all our activities and all our decisions have economic but also social implications. Throughout the world, we adopt a transparent and correct conduct towards all our colleagues, clients and suppliers, respecting people, sharing their social values and fulfilling all our commitments. This is our behavioural code that allows us to establish sincere, long-lasting and profitable relationships.

Pavan Group - Annual Report 2011

“

Creating significant economies of scale, without forgoing flexibility.

”

Pavan Group - Annual Report 2011

Economic scenario 2011 saw the fruition of several characteristic aspects of the Group’s business strategy, with the first integrated contracts for the supply of mill and pasta factory. We followed a plan aimed at proposing medium to large size complete lines, with capacity up to 7,000kg/h. We deliberately did not push the technology beyond this limit, as the mature markets have shown signs of optimisation of production capacities within this dimension: plants of this size enable our customers to achieve significant economies of scale, without any sacrifice in terms of flexibility. On the basis of recent signs and feedback, the market is confirming this choice, appreciating the plants proposed by Pavan, also for the balance between capacity and flexibility. In 2011 we achieved good success in the installations, respecting the

times agreed with customers and generating production capacities at times even higher than those required in the design stage. In Europe and North America, like in all mature markets, we have pursued a strategy aimed at enabling our customers to diversify the offer, in particular by promoting innovative lines for the production of fresh pasta and ready meals, with high convenience. These are food products with a high profit margin, allowing our customers more profit in markets able to assimilate the worth of a ”premium” category food, allowing time saving and, above all, maintaining a consumption experience comparable to that of the most refined culinary tradition

by proposing a technology that allows our customers to obtain an optimised production of large quantities of finished products, has enabled us to achieve excellent business results, with significant installations in the area of pasta and for the snack division. In 2011, therefore, we can say that we have successfully consolidated the leadership position already acquired. India and China are experiencing a moment of exponential growth also in the food sector. The Group’s increased attention to these areas has enabled us to consolidate longstanding relationships and create new business opportunities.

For Pavan, Africa and Latin America continue to be market areas with significant growth rates. Following the physiological trend of these areas,

Maurizio Ricchiuto Sales Director Pavan Group

Pavan Group - Annual Report 2011

Detail of the turning of an extrusion screw. Pavan production plant, Galliera Veneta (Italy)

Pavan Group - Annual Report 2011

Packaging division: two integrated, independent and synergic brands The Pavan packaging brands are increasingly synergic and focused on their specific markets. In recent years the market for pasta packaging plants has been enjoying a period of considerable dynamism, both in relation to recently started production facilities, and for investments in the renewal and modernisation of existing plants. The Pavan Group packaging division is benefiting from important investments made in recent years and regarding the application of particularly efficient technological innovations, which now make it a reference manufacturer, especially in packaging for long pasta. In general the market is rewarding innovation, protected by registered patents and confirmed by the levels of performance shown in the field, the reliability and the economic competitiveness of these machines. Although 2011 saw important

contracts signed worldwide, the markets that have given us the greatest satisfaction were Turkey, Nigeria and Central and South America. North Africa, Europe and the Middle East are areas in which we found excellent opportunities, that will materialise during the course of 2012. In 2011 we laid the foundations for a further step in the planned rationalisation and optimisation of Group synergies. Operational integration of the Stiavelli and Dizma brands began, which provides for unification of the production units in Uzzano (Pistoia) aimed at concentrating the expertise relevant to packaging machines, without affecting application contexts of the two brandsâ&#x20AC;&#x2122; products, which will retain their specific characterisation. In particular, while Stiavelli will focus its attention and resources on increasingly specialised development in the field of food packaging, Dizma

will focus on flow packs for non-food products; a sector in which, for years, it has been an interesting example of excellence in terms of flexibility and possibilities of customisation of the solutions offered. With this renewed organisation, the Packaging Division has greater energies and resources to address the challenges of a constantly changing market in an increasingly specific and precise way.

â&#x20AC;&#x153;

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

â&#x20AC;?

Luciano Morellato Packaging Division Director Pavan Group

Pavan Group - Annual Report 2011

â&#x20AC;&#x153;

Enhanced by integration in the Pavan Group, we can operate with a product at the highest levels.

â&#x20AC;?

Claudio Zavatta Chief Executive Officer Golfetto Sangati

Golfetto Sangati: one year in the Pavan Group Golfetto Sangati joining the Pavan Group was an opportunity to integrate well-known supplies relevant to the Pasta sector with milling plants. 2011 saw the materialisation of important negotiations for combined pasta/mill plants, especially in the Central and South American markets. These industrial realities are now marked by a considerable growth rate in order to meet the growing demand from new markets or those that are rebuilding. Hence contracts with customers in Haiti, Peru and Mexico; but all Central and South America is one of the main markets of Golfetto Sangati, with a demand for medium-size milling plants (300-500 t./day) and where also negotiations for grain handling and storage plants and ship loading/ unloading towers are in the advanced stage. The North American market, which has always been one of the pillars for our company, is currently picking up. If sales in 2010 were mainly concentrated on spare parts, this year we have installed individual machines to complement existing systems, and started negotiating complete projects

that will materialise in 2012. Europe and especially Italy are markets where we are recording a less lively situation; however, supplies generally intended for the expansion of existing plants with individual machines are not lacking. The African continent is a very dynamic market, both at a state and private level, which has allowed us to undertake important projects and contracts. Also, after major political and social changes, opportunities that had remained frozen for a long time have returned. Hence there are some interesting opportunities, as confirmed by the significant negotiations in progress. Regarding these markets, however, there still remains the critical condition linked to low margins resulting from the strong competition in prices: the commercial aggressiveness of competitors from India and China is a factor to consider, even when the level of technology offered by these manufacturers means very modest performance. Among the Asian markets, China is the absolute protagonist: the high growth rates of the milling

industry and local processing confirm the validity of the Golfetto Sangati strategy of maintaining and strengthening the production unit in China. We are among the very few European companies to have a local plant, thereby ensuring the possibility of offering effective and timely aftersales services. Another market that Golfetto Sangati is focusing on is Russia. Also in this case, joining the Pavan Group has allowed us to enjoy the support of the consolidated commercial subsidiary in Moscow, one of the most recognised by industrial market of CIS countries. In 2011 we sold and installed single machines and complete mills, and started a number of significant commercial negotiations for complete plants. Our company is experiencing a period of strong growth, with encouraging prospects and opportunities that are clearly proving to be market rooms that we can address with a cutting-edge product and a renewed economic and financial solidity, backed by integration in the Pavan Group.

Pavan Group - Annual Report 2011

“

Going ahead in the technical area means reducing design and installation times and costs.

”

Pavan Group - Annual Report 2011

Increasing quality and reducing production costs through automation and electronics Going ahead in the technical area means reducing design and installation times and costs, in order to add more value to our product. During the course of 2011 we finished the ambitious project of including 3D design, completing the technical training for personnel and installation of the necessary software technology. The use of 3D design has resulted in improvements in several directions: greater design detail, flexibility and efficiency in the use of models and features, and completeness in the information for installation and commissioning of the plant. Designing with more detailed and clearer assemblies can show in advance exactly what the real plant will look like. This means a significant increase in terms of functionality, ergonomics and safety of the plant.

Sandro Rasera Technical Director Pavan Group

The use of a direct approach to design enables faster design cycles and increases flexibility in the event of unforeseen and even radical changes. It is necessary to be able to make design changes in a quick and easy way in an advanced stage, without sacrificing the existing design aims,

and quickly identify features and series in imported models, facilitating the changes, as well as being ready and quick in the design: making direct changes, maintaining the intelligent data of existing models and applying intelligence to ”dumb” models. Downstream this ensures more accurate and complete information for those who have to install the plant, thereby increasing the quality of the service for the customer. A further step ahead in terms of rationality and efficiency has been guaranteed by the innovations regarding information technology applied to production. The adoption of new monitoring and management systems by means of software ensures that, without requiring manual intervention, the line personnel of our customers can have all the information necessary for their activities and export data in Office environment, thus making it easy to use, even at management level. In particular, for industrial concerns characterised by many different products and frequent size changes it is necessary to be able to use the same machines, monitoring

production and intervening on the lines in real-time, preventing any reduction in efficiency and anticipating sudden stops. Also, in the configuration of each new production batch, the operator is guided in defining the operating parameters, and receives a signal from the system itself in case of choices different from those that are standardised. In fact, the platform used can memorise all the alarms gathered over time and, correlating them with the events recorded, allows the identification of optimum parameterisation. The constant integrated analysis of all significant values allows energy consumption to be minimised. In the production of pasta, for example, the drying cycle involves considerable absorption of electrical energy. Optimisation of the ventilation cycle, made possible by careful designing of the air flows and by integration of the control in the actual supervision system, enables the elimination of any waste and ensures the best quality level of the finished product.

Pavan Group - Annual Report 2011

PAVAN GROUP HEADQUARTERS

PAVAN GROUP ORGANIZATION CHART

COMPANY SECRETARY’S OFFICE

ADMINISTRATION

CORPORATE MARKETING

PURCHASING

MANAGEMENT CONTROL

FINANCE

QUALITY

PAVAN

TORESANI

MAPIMPIANTI

V.AL.IN.

PIZETA

Extruded products

Flour milling & grain handling

Dry pasta

Fresh pasta

Innovative food products

Food industry equipment

Sales area

Technical area

Purchasing

Quality

Purchasing

GOLFETTO SANGATI

Administration

MONTONI

DIZMA & STIAVELLI

TECNEL

Die cutting systems

Packaging division

Systems for automation

Sales area

Technical area

Finance

Purchasing 26

Pavan Group - Annual Report 2011

Financial results

2011 k€

2010 k€

2009 k€

122.756

107.114

83.438

EBITDA (operating result before interest, taxes, depreciation and amortization)

19.464

17.238

10.636

Operating income

12.659

11.593

3.743

EBT (operating result before taxes)

12.282

10.342

4.265

Net profit

6.548

6.038

1.933

Cash flow

15.908

14.906

9.502

Net financial liquidity

2.680

20.221

17.252

Shareholders’ equity

40.250

35.992

30.343

TOTAL SALES REVENUE

“

Total sales up 15%: solidity and prospects.

” 29

Pavan Group - Annual Report 2011

The creation of added value

2011 k€

2010 k€

2009 k€

Balance of accessory revenues and costs

(30)

(134)

(108)

Accessory revenues

637

273

355

(667)

(407)

(463)

Balance of extraordinary revenues and costs

249

181

Extraordinary revenues

341

182

292

Extraordinary costs

(92)

(1)

(277)

OVERALL GROSS ADDED VALUE

49.923

43.886

33.365

Depreciation of operations for homogeneous groups of assets

(7.211)

(6.042)

(5.978)

OVERALL NET ADDED VALUE

42.712

37.844

27.387

2011 k€

2010 k€

2009 k€

30.431

27.502

23.122

20.747

18.765

15.929

8.356

7.543

6.437

ACCESSORY AND EXTRAORDINARY COMPONENTS

Accessory costs

The global added value is a clear expression of the results generated by Pavan Group and it enables appreciation of the resources distributed to all the stakeholders. The distribution prospect of the added value here represented,

is therefore a detailed description of how this wealth has been distributed between the subjects who have actively contributed to generate it.

Added value determination statement A

2011 k€

2010 k€

2009 k€

TOTAL OPERATING INCOME

125.618

112.467

84.822

Sales revenue

122.756

107.114

83.438

1.463

1.953

(271)

2.074

747

1.350

1.326

908

(75.914)

(68.628)

(51.364)

1.560

657

(261)

Costs for raw materials, supplies, consumables and goods

(61.857)

(51.781)

(36.795)

Pension funds and health insurance

Cost for services

(14.937)

(16.058)

(13.689)

Temporary employment contracts

988

932

539

Cost related to third party assets

(82)

(98)

(57)

Services to personnel

297

233

179

Provisions for risks

(84)

(164)

Training to personnel

Write-downs and depreciation

(191)

(901)

(269)

SOCIAL SYSTEM (direct and indirect taxes)

5.715

4.201

2.321

Other operating costs

(323)

(283)

(293)

ENTERPRISE SYSTEM (variations of reserve funds and distibution of dividends)

6.566

6.141

1.944

GROSS ADDED VALUE

49.704

43.839

33.458

42.712

37.844

27.387

Change in inventories of finished goods Work performed and capitalised costs Other revenues and income B

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

Added value distribution statement A

HUMAN RESOURCES Recruited staff Direct remuneration

OVERALL NET ADDED VALUE

“

Our people’s value is our best resource.

”

Pavan Group - Annual Report 2011

Human capital

CONTRACT TYPE

DISTRIBUTION BY GENDER

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 systematic listening to its employees, thanks to a constant exchange of information and suggestions, able to maintain a shared course for the achievement of 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 is resulting 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 story of Pavan is promoted also thanks to the coordination and effective contribution to the Personnel Recruitment and Training function, which implements and maintains systems and procedures (selection and placement, assessment,

Open-end

91.9%

Women

14.2%

Fixed time

8.1%

Men

85.8%

growth, training, salary review and succession planning) in line with company expectations to support the professional growth of people.

The creation of a friendly, stimulating and also challenging work environment is among the companyâ&#x20AC;&#x2122;s primary objectives: each individual person is the centre of every Pavan Group resource management policy.

DISTRIBUTION BY AGE

EMPLOYEES

< 35

18.3%

35 < 45

28.4%

45 < 55

37.7%

> 55

15.6%

TRAINING Growth Project HOURS OF TRAINING PROVIDED

5.315

Sales and administration

Safety

1.045

Technical area

4.230

Number of persons attending training

449

16.5

Average age

Average seniority

Employees with over thirty years of company seniority

Increases in level and recognitions

603 3

44.7

The Growth Project outlines the activities that the company has identified in order to improve the procedure for selection and placement of Human Resources with high potential, destined to be its future management structure. Cyclically the selection process will consider young new graduates or young people with diplomas, coming from technical and engineering studies (mechanical,

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

type assessment made 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 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 the responsibility of a function.

Pavan Group - Annual Report 2011

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 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,

RESPONSIBILITY TOWARDS CIVIL SOCIETY

we ensure transparent and fair behaviour towards our colleagues, customers and suppliers. For us, respect for people, shared social values and the commitments that we take on, is a rule of conduct essential to developing sincere, lasting and profitable relationships.

PAVAN’S SOCIAL COMMITMENT

In addition to projects aimed at fighting malnutrition and for the starting of sustainable growth models, Pavan firmly believes in the potential of voluntary work and associations.

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.

RESPONSIBILITY TOWARDS HUMAN RESOURCES

The sponsorship programme includes several social projects.

radiation effects of the toxic cloud of Chernobyl are hosted every year during the summer period. Their stay in Italy allows them to receive health care and, at the same time, be able to enjoy happier environments and situations. Pavan supports the initiative by funding the plane trip of these children.

”Chernobyl Project”

”Casa della Sussidiarietà”

On the initiative of families and local associations a number of children from Belarus who are affected by the

A three-year project providing for the construction of the centre for terminally ill young people at the

Creating a network of knowledge, for the mutual growth of all parties involved. Pavan aims to put on 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 it has established collaborations with non-profit humanitarian organisations, institutions and associations. Among the many projects already implemented,

“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” Its purpose is to take care of and cure marginalised people and drug addicts, without any social, political or religious discrimination.

Pavan makes available an equipped gym for all employees wishing to improve their physical and mental well-being, flanked by a dedicated personal trainer. In the last sports season, pre-skiing, pilates, functional training, tonic energy and M.E.T. (metabolic exercize training) courses were organised with the participation of over one hundred employees. The activities also included cycling competitions such as the ”Pavan Trophy” and the ”4 passi dolomitici”.

Pavan Group - Annual Report 2011

Study, sport, culture PROMOTING KNOWLEDGE

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.

Pavan Group - Annual Report 2011

PROMOTING SPORT

PROMOTING CULTURE

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, 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, also from a civil and moral standpoint, as well as the management of rugby teams.

The idea behind the commitment in the cultural field is based on the conviction that an experience in this area encourages quality 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 this perspective, the Pavan Group sponsors the concert activities of ”I Solisti Veneti” in the context of the ”Veneto Festival”.

In 2011, two scholarships were granted for university students and three for high school students.

Pavan Group - Annual Report 2011

METHANE GAS CONSUMPTION (in thousand of m3) 0

Sustainability

100

200

300

500

2010

375

2009

317

2008

500

2011

WATER CONSUMPTION (in thousands of m3)

400

342

8 20

2011

7.285

TURNOVER (in million of €)

2010

7.306

PAPER CONSUMPTION (in tons)

2009

100

120

6.633

0 2008

8.396 2011

100

120

2010

TURNOVER (in millions of €)

2009

ENERGY CONSUMPTION (in millions of kWh)

2008

0.5

1.5

8.8

10.2 10.6 8.2

2.5

100

120

TURNOVER (in million of €) 2011

2.45

2010

WASTE DISPOSAL (in kg)

2.3

2009

2.35 Disposal of chips, dust, ferrous and non-ferrous material particulate

2008

2010

2009

185.435

120.580

130.306

1.385

1.885

1.034

137

22.037

17.268

13.770

2.4 Disposal of aluminum

TURNOVER (in millions of €)

2011

100

120

Disposal of copper, bronze, brass Disposal of wood and metal packing

Pavan Group - Annual Report 2011

Sharing knowledge FOOD TECH MASTER The 13th edition of the Pavan School, the Food Tech Master, took place from the 14th to the 18th of November 2011. An intense week of lectures devoted to the dry pasta, during which students explored every aspect of the subject, aided by speakers and experts from the academic world, and by Pavan Group process managers, who were able to involve participants in a complete training course, from the basics of rheology to production technologies, with a close look at packaging, energy efficiency, automation and food safety. The 2011 Food Tech Master had about thirty participants, including technologists, production and quality control

managers, and professionals from fifteen pasta factories in South America, Poland, Russia and India. The Pavan School has always sought to spread knowledge and learning, offering its participants a unique training experience made of theory and practical lessons that closely examine the subjects addressed. The theory training includes moments of hands-on experience, with pasta extrusion and drying at low and high temperature. The samples obtained are appraised by tasting tests and sensory panels. An important integration enabling students to physically touch the product and

apply the theoretical knowledge learned during the lectures. The ability to involve students is one of the strong points of the Food Tech Master, which seeks to be a hub enabling the establishment of relationships and the creation of a network of contacts that goes beyond the experience of the School and is useful in the future careers of each. With this objective, the website (created in 2011) dedicated to the Food Tech Master (www.foodtechmaster.com) provides information on future courses and allows the exchange of ideas and experiences within the community of students of the course.

ACADEMIC WORLD

The constant research of 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)

• 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 the ”European Standards” for the Safety of the production systems of fresh pasta.

COMPANY OFFICES AND CONTROL BODIES

PAVAN s.r.l.

PIZETA s.r.l.

BOARD OF DIRECTORS

Chairman: Angelo Ferro

Chairman: Andrea Cavagnis

CEO: Andrea Cavagnis

CEO: Pietro Zanetti

Adviser: Giulio Castelli

Adviser: Claudio Zavatta

Adviser: Fabio Santicioli Adviser: 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

Adviser: Pasqualino Cauzzo

GOLFETTO SANGATI s.r.l.

VALIN s.r.l.

BOARD OF DIRECTORS

Chairman: Andrea Cavagnis

CEO: Claudio Zavatta

CEO: Mauro Costa

Adviser: Pasqualino Cauzzo

Adviser: Mauro Criscuolo

BOARD OF AUDITORS

Adviser: Pasqualino Cauzzo

Chairman: Zagarese Umberto Auditor: Carlo Mesirca Auditor: Flavio Zelco

BOARD OF AUDITORS Chairman: Carlo Mesirca Auditor: Flavio Zelco Auditor: Alessandra Cassol

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For information and data request 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.pavan.com