2015 Sustainability Report

SUSTAINABILITY REPORT 2015 SAMBONET PADERNO INDUSTRIE S.P.A.

INDEX Letter to the Stakeholders

4

introduction 6 > 10 principles, 10 commitments

6

> Notes

7

Sambonet Paderno Industrie

8

> Paderno

8

> Sambonet

8

> Vision

10

> Mission

10

> Values

10

> Strategic aims

10

> Company

11

> Activity

12

SUSTAINABILITY REPORT 2015 SAMBONET PADERNO INDUSTRIE

environmental performance

14

1st Principle - environmental sustainability 14 2nd Principle - Adoption of a preventive approach 17

> Indicator

17

> Paper

17

> Methane

19

> Electrical energy

20

> Water

20

> Waste

24

> Packaging

27

> Waste finished product

27

3rd Principle - Efficient use of natural resources 28

> Materials

28

> Water resources

29

> Energetic resources

29

4th Principle - Monitoring and reduction of environmental impacts 30

> Wastewater

31

> Production

31

> Turnover index

31

5th Principle - Focus on innovative technologies 32 6th Principle - Product stewardship 33 7 th Principle - production chain stewardship 33 8th Principle - Awareness raising and training 35 9th Principle - Transparency with stakeholders 36 10th Principle - Consistency with International policies 36

> Transparency and ethics

37

> Organisational model

37

> Sustainable development

37

> Human rights

37

social Performance 40 > External stakeholders

40

> Internal stakeholders

40

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LETTER TO THE STAKEHOLDERS 2010 – 2015. Five years have passed since Sambonet Paderno Industrie first Sustainability Report publication and the enthusiasm and dedication are still the same. The Company always sets for itself the aim of guaranteeing the highest quality of all products, considering demand increase, and above all, following innovative standards that meet customer needs. Commitment to quality has always played a fundamental role, and in recent years, issues related to environmental and social awareness have also come to the forefront.

With this perspective, Sambonet Paderno Industrie has created and carried out projects to improve its Corporate Responsibility policy by tightening controls, planning appropriate formation and structuring responsible management of resources.

Through a gradual cultural change with constant focus on its environmental approach, clear goals and fine-tuning of processes, today it is possible to understand the importance and practicality of what has taken place over the past years. The result of this process are benefits that helped the Company grow industrially and in reputation, improved the role and work life of those involved and made a positive impact on the local community and land.

As evidence of the efforts being made towards responsible consumption and natural conservation of energy and water, 2015 has been the year in which a very important project dealing with the saving and optimization of consumption was completed. The Group therefore received energy certification UNI EN ISO 50001:2011. This most recent certification is now added to the other

voluntary ones regarding food safety and quality (UNI EN ISO 9001:2008 e ISO 22000:2005), environmental safety (UNI EN ISO 14001:2004) and workers health and safety (OHSAS18001: 2007), achieved and maintained with a constant attention to product quality and improvement of the work environment. To ensure a further check on item safety, the Company internally carries out a specific migration analyses through the ASEC Lab, its own internal laboratory, which has obtained the UNI CEI EN ISO/IEC 17025:2005 certification, concerning the general requirements for the competence of testing and calibration laboratories.

Looking towards the next five years, the Group will undertake a new project dealing with Corporate Social Responsibility based on IQNET SR 10 guidelines, as well as foster its continued desire to give particular attention to the voice, values, needs and expectations of all those who interact with the Company (employees, the financial community, shareholders, the local community, suppliers, customers, local associations and the media). A modus operandi aimed at sharing the concrete impact of the Company’s decisions, publicly sharing all information tied to its activities in a clear and transparent way and communicating objectives with absolute integrity and clarity.

Within this report, it’s possible to retracing the data and success that demonstrate the Group’s sustainability, transparency and stakeholder interaction. These key factors distinguish the work and future development strategy of the Company.

SUSTAINABILITY REPORT 2015 SAMBONET PADERNO INDUSTRIE

franco coppo ceo of Sambonet Paderno Industrie

headquarters of Sambonet Paderno Industries in Orfengo (no)

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INTRODUCTION The statement on the social and environmental impact of the Company’s activities, the commitment to its employees and the relationship with suppliers and customers make up the “social or sustainability report”.

This tool is evidence of the business’ human and ethical profile as well as the code of conduct that constitutes its missions: to protect the environment and improve the quality of people lives. This is why its mandatory implementation could contribute to sustainable economic growth.

In contrast to the financial statements, it is a spontaneous report that is not subjected to checks or certifications. Preparing and spreading preparing and spreading it is a free choice, motivated by a genuine desire for transparency.

With this fifth issue of the Sustainability Report, prepared according to the guidelines set out by Confcommercio, the Company wants to provide an outline of its corporate activities and its operational methods, highlighting the actions undertaken to pursue ethical and sustainable development and explaining the results achieved.

10 PRINCIPLES, 10 COMMITMENTS The mission of Sambonet Paderno Industrie S.p.A. is to manage and develop brands that represent the consumers first choice of consumers.

The Company’s approach to sustainability, in addition to be a responsible attitude, has a positive impact on the business in terms of profit and economic growth. For this reason it has become an integral part of the company philosophy and it guides all activities: from the choice of raw materials to the final product.

The company focuses on ten key principles that result in as many commitments: 1 - ENVIRONMENTAL SUSTAINABILITY It becomes part of the corporate culture and it plays an important role in the mission. As a matter of fact, the Company has realized that only environmental sustainability will lead to responsible and long-lasting development. Long-term vision thus prevails over short-term vision.

2 - ADOPTION OF A PREVENTIVE APPROACH The Company acknowledges the importance of the prevention activity and allocates resources for this purpose. This approach is constructive also because it makes all the people responsible for management analyse and face current and potential problems and strive to prevent them. One of the areas in which prevention is crucial is environmental protection. As a matter of fact, any other approach in this area may cause irreparable damage and seriously affect the whole community.

3 - EFFICIENT USE OF NATURAL RESOURCES The Company is aware of the limited amount of available natural resources and commits to manage them responsibly at all organisational levels. Special attention is paid to the use of raw materials, water and energy.

4 - MONITORING AND REDUCTION OF ENVIRONMENTAL IMPACTS Monitoring is crucial to understand the current situation in terms of environmental impact, to plan improvement actions and to check the results of their implementation.

5 - FOCUS ON INNOVATIVE TECHNOLOGIES Technology is a useful instrument to implement some of the objectives of environmental protection (for instance in water saving: some special washing processes, which are described further on, ensure satisfactory results).

SUSTAINABILITY REPORT 2015 SAMBONET PADERNO INDUSTRIE

6 - PRODUCT STEWARDSHIP The Company pays much attention to the whole product life cycle, focusing on environmental protection at every stage.

7 - PRODUCTION CHAIN STEWARDSHIP The whole production chain is assessed in terms of sustainability and environmental protection in order to fully implement the project.

8 - AWARENESS RAISING AND TRAINING The Company believes that the involvement of human resources plays a key role, with a view to forge a corporate culture based on environmental protection. All the staff are directly required to contribute to the success of the project in different ways depending on their activity. The staff are also constantly monitored and encouraged also by means of specific pay bonuses.

9 - TRANSPARENCY WITH STAKEHOLDERS Transparency consists in disclosing the content and the results of the project by involving the whole chain in its actual implementation.

10 - CONSISTENCY WITH INTERNATIONAL POLICIES The themes of sustainability and environmental protection are monitored and they also play a key role in international business relationships.

NOTES

METHODOLOGICAL NOTE The Sustainability Report of Sambonet Paderno Industrie S.p.A. (hereafter also referred as the “Company� or Sambonet Paderno Industrie) has been prepared according to the Charter of Environmental Sustainability Principles by Confindustria, a point of reference for shared principles for sustainable development.

The process of preparing the Sustainability Report has involved all types of company functions, coordinated in research and reporting of activities, proving the successful collaboration of all interested parties.

PROCESS AND INFORMATION QUALITY The document shows the main economic, environmental and social impacts of the Company in order to provide a broader framework for the activities, the most significant aspects in the sector and the reference local dimension.

The details provided for every reporting area depend on their importance in the objectives and strategies of Sambonet Paderno Industrie.

The document has been drawn up using a simple and clear language, while data are presented by means of images, diagrams and tables so that they can be easily understood and interpreted.

To provide a more comprehensive picture in this Report indicators and statistical data have been used.

All the data has been processed and verified by the appropriate department managers, referring to 2015 (from the 1st of January to the 31st of December) and always presenting the most updated information available.

The Sustainability Report is produced annually and the Company is going to use its standard official media to disclose it.

CONTENTS The structure of the document reports sustainability performances based on 10 principles for 10 commitments, each for a specific action area. A summary of the topics that will be covered in this document is given below, from the beginning of the Group to the history of each brand.

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SAMBONET PADERNO INDUSTRIE Sambonet Paderno Industrie, based in Orfengo, between Novara and Vercelli, is a leading Italian manufacturer of top quality designer items for the tabletop and kitchen, both for the home as well as for the catering sector.

Sambonet Paderno Industrie was established in 1997 following the purchase of Sambonet by Paderno, a renowned international manufacturer of professional cookware and kitchen items. In 2009 the Company purchased Rosenthal AG, a prestigious German producer of items in porcelain and designer accessories for the table. Arthur Krupp, Hutschenreuther, Thomas, Rosenthal meets Versace, Arzberg and, since October 2015, the French Ercuis e Raynaud extend and enrich the portfolio of the Group.

Today the Piedmontese Group plays an important role at Italian and international level in tabletop and in the supply of the best hotels around the world.

PADERNO Over 10,000 items make up Paderno’s offering destined to chefs and gourmands. From cookware to kitchen utensils, knives, baking articles and preparation instruments, Paderno presents a complete selection for the top kitchens. The brand finds its origins in 1925 in Paderno Dugnano, right outside Milan. It started off with “Alluminio Paderno” and specialized in the home cooking sector. Eventually, it crossed over into the professional sector. After acquiring Sambonet, the Company expanded its silver and stainless steel flatware and dishware.

With over 90 years of history and a strong worldwide presence, Paderno is a reference point for professionals and lovers of good cooking, offering a wide range of cookware and utensils guaranteed to suit every need. The items manufactured are accompanied by a wide range of complimentary products.

SAMBONET Sambonet represents the Italian excellence in production of design objects for table and kitchen. Founded in 1856 by the goldsmith master Giuseppe Sambonet, the brand – already from the first 1900s – was chosen by the noble families of that age for their services, beginning that path of growth, evolution and innovation that marked its history. A history characterized by technological primacy, the achievement of numerous entrepreneurial goals and the identification of a unique and timeless style. Starting from the Sixties, Sambonet began a series of collaborations that would have lead to the winning of prestigious international awards such as Compasso D’Oro ADI, Red Dot and Good Design Award. Perfectly combining tradition and innovation, safeguarding quality and care for details, the brand ranges from the most classic styles to design experiments, offering a wide range of flatware, holloware, coffee lines, accessories and decorative objects, all marked by the style and the know-how typical of the Company and of its history.

SUSTAINABILITY REPORT 2015 SAMBONET PADERNO INDUSTRIE

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10

BILANCIO DI SOSTENIBILITĂ€ 2015 SAMBONET PADERNO INDUSTRIE

VISION Managing and improving its business by enhancing its own values of history, quality, stability, innovation and safety assuring social and environmental responsibility.

The foundation of the corporate identity can be seen in the way the Company operates, from the technical and production point of view to the development of the attitude to identify, encourage and meet the needs of the consumer.

The Company tries to achieve its goals through: > support and good standing of all the brands; > trust in people and teamwork; > responsibility towards the stakeholders and the business.

MISSION Through a clear common strategy, the mission aims to improve and increase international business, according to the distinctive features and placement of each brand.

The Company would like to support and promote the excellence, design, style and typically Italian values that have been the keys of its leadership in the business.

The experience and know-how of the Group, focused on competitiveness and innovation, give a contribution to the success in both the Ho.re.Ca business and the retail business of tableware, kitchenware and household items.

VALUES The Company’s values and beliefs which guide its actions are: > people are the best and most permanent investment; > responsibility is clear and personal; > the teamwork makes possible the achievement of objectives; > the goal is to understand, respect and satisfy the customers; > the reputation is the most important thing.

STRATEGIC AIMS The global strategy of the Company is based on the following priorities: > increasing a solid and suitable product portfolio for each segment of the market; > constantly improving the commercial performance in all markets; > developing through the global dimension of the Company and the differentiation of its production.

The Company works promoting its own growth in the target market, improving its international outlook in order to distribute its products in the foreign markets where it is present. Coherently with the global strategy, Sambonet Paderno Industrie has set some ambitious objectives to pursue through a constant effort that goes in the direction of a sustainable and responsible development. In particular, it aims to consolidate its position in the market through the leadership of the brands Sambonet, Paderno and Arthur Krupp and to strengthen the portfolio and the business strategy, focusing on the people development, a key asset for the Company.

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SUSTAINABILITY REPORT 2015 SAMBONET PADERNO INDUSTRIE

COMPANY company name Sambonet Paderno Industrie S.p.A.

d

1856

ISTAT code

business field ENGINEERING

2851

Total number of employees 265 working days per week 5

office workers 135

factory workers 130

working months PER year 12

2013

full time 261

typical working time 8 AM - 4.45 PM

part time 4 closing period NONE

2014

ation

u fo n

province NOVARA postcode 28060

year

address S.R. 11, KM 84 town ORFENGO (NO)

total area (m2) 150,000

2015

FEMALE employees

75 29%

87 32%

111 42%

182 71%

183 68%

154 58%

MALE employees

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SUSTAINABILITY REPORT 2015 SAMBONET PADERNO INDUSTRIE

ACTIVITY Sambonet Paderno Industrie is an engineering company, specialized in the production of cookware, holloware and flatware in stainless steel, nickel silver and aluminum.

The production site is equipped with a latest technology automated galvanic system.

In respect to its traditions, it maintains a manual silver plating department.

Production departments are: > Centro Stile > Tooling Department > Material preparation > Flatware > Cookware and holloware > Welding > Electroplating

> Special finishes > Polishing > Assembling > Testing > Laser and pantograph > Warehouse > ASEC Lab analysis laboratory

ction cha u d o in pr RAW MATERIAL ARRIVAL RAW MATERIAL STOCKING MATERIAL SETTING FLATWARE

HOLLOWARE / COOKWARE

• Bloom’s shearing • Millwork • Pro les cutting • Stamping • Washing • Printing • Polishing • Final washing

• Dishing / Printing / Trimming • Washing • Braze welding • Cleaning • Assembly / Handles riveting • Picking • Final cleaning • Final washing

SILVERING ASSEMBLING TESTING / PACKAGING FINISHED PRODUCTS STOCKING SHIPMENT

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SUSTAINABILITY REPORT 2015 SAMBONET PADERNO INDUSTRIE

RAW MATERIALS USED IN 2015 0.05%

silver

520 kg

Granules

0.05%

nickel

490 kg

Nickel crown

copper

0.19%

TYPE KG Annealed copper bar 1,823 Border 53

1.876 kg

blued steel

2.67% 25.820 kg

Nickel silver

1.21% 11.720 kg Sheet

stainless steel aluminum

28.23% 272.788 kg TYPE KG 1050 soft alloy disc 120.665 3103 alloy disc 111.762 1050 hard alloy disc 30.236 Strip 5.827 3103 alloy square 4.298

67.58% 653.018 kg TYPE KG Disc 328.154 Strip 99.418 Tube 86.638 Square 63.163 430 strip 39.736 Sheet 29.802 Drawn 6.107 304 2B twin lead 2.664

ENVIRONMENTAL PERFORMANCE 1 ENVIRONMENTAL SUSTAINABILITY

FIRST PRINCIPLE

Sambonet Paderno Industrie believes that acting in a responsible manner has a positive influence on its growth, demonstrating company stability. From an environmental point of view, it is committed to the safety and conservation of natural resources, realizing the importance of their preservation.

Sambonet Paderno Industrie was certified in 2005 according to the UNI EN ISO 14001:2004 environmental certification, which in 2016 will be updated according to the new UNI EN ISO 14001:2015 guideline. In April, the Company obtained the energy certification UNI ISO 50001:2010, and in September, underwent the first stage for the Corporate Social Responsibility certification, according to the IQNet SR10 guidelines.

This process will be completed in the beginning of 2016 with the attainment of a competence certification.

Corresponding to the size and activities of the organization and focused on the continual improvement of environmental performance and pollution prevention, this policy has been integrated following new standards of quality, safety and product safety as well as the new energy certification.

The Quality, Environment and Safety policy has been signed by the high management of the Company and in order to share these values with all the employees, it has been posted in the Company’s notice boards and published on the employee’s digital time clocks and on the Company website.

The integrated Policy of systems of Sambonet Paderno Industrie aims at reaching the following shared objectives: > care towards the customer: quality of the product, price competitiveness, respect of delivery time; > reduction or elimination of high polluting products; > limitation of the production processes which cause relevant environmental impact or that may cause potential risks for the health and the safety of the workers; > reduction in the production of special wastes and/or solid wastes; > awareness that the responsibility of the health and the safety management of the workers concerns the entire Company, from the Management to each employee, each one according to his competences; > constant aptitude to propose situations able to develop improvement and, if already existing, create a monitoring plan; > efficiency of the safety and health management; > awareness raising of the employees concerning the importance of respecting rules of health and safety at work.

For a correct evaluation of the Company’s interactions and environmental and energy impacts, please find below an analysis of the different steps of the supply chain, focusing on the qualitative and quantitative aspects of the input and the output which are more relevant on the environmental impact.

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SUSTAINABILITY REPORT 2015 SAMBONET PADERNO INDUSTRIE

Some of the topics taken into consideration were: > use of raw materials; > energy; > soil; > emissions into the atmosphere; > wastewater; > waste; > released energy; > other.

For the evaluation of environmental aspects, Sambonet Paderno Industrie has decided to use checklists taken from: Guidelines for the Integration of Environmental Management Systems as well as Safety and Workplace Health (S&SL) for small and medium enterprises.

These new instruments identify the following information for each stage of the manufacturing process: > input and output; > phases of the process or activity; > other optional data (documents, responsibilities, etc.).

Standard conditions and any abnormal or emergency conditions are included and described as well, along with their frequency/probability of occurrence.

In order to define significant environmental aspects, the following significance criteria are used: 1. aspect regulated by laws, authorisations, agreements; 2. situations subject to recent sanctions imposed by the competent authority; 3. quantitative significance of the aspect under consideration; 4. toxicity, level of hazard relating to the aspect under consideration; 5. importance for stakeholders and other impacts on the community; complaints or claims received.

The significance of each environmental aspect is established by using the spreadsheet containing the combination of the parameters required to determine the value of each environmental impact.

ASSESSMENT OF ENVIRONMENTAL IMPACTS NON SIGNIFICANT

SIGNIFICANT

VERY SIGNIFICANT

0รท2

3รท5

6รท9

Area where the environmental aspects are not significant in terms of both frequency and probability of occurrence.

However, these aspects need constant monitoring to make sure potential hazards are under control.

Actions may be either preventive or corrective.

Area where significant environmental aspects have been identified. This requires identifying and scheduling actions intended to manage their significance. Corrective actions are required.

Area where very significant environmental aspects have been identified. This requires an immediate corrective action.

Action can be taken if deemed necessary

Scheduled Action

Immediate Action

*To be scheduled within 6 months

*Action to be taken within 3 months

*Action to be taken within the minimum technical time required

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SUSTAINABILITY REPORT 2015 SAMBONET PADERNO INDUSTRIE

The analysis has identified the following significant environmental aspects: Process PURIFICATION

COOKWARE

GALVANIC

HOLLOWARE

Significant aspect Atmosphere emissions

Emissions into the atmosphere deemed significant are those of the point of emission relating to point 32.

Wastewater

The discharge of wastewater is authorised by the Province of Novara. The parameters deemed dangerous are constantly monitored by carrying out weekly analyses on metal parameters based on the use of ASEC Lab’s ICP.

Use of raw materials

All the chemical reagents used for purification are classified as irritating or hazardous chemicals. All the workers in the galvanic area, where the purification plant is located, are trained about and well aware of the reagents employed.

Waste

Hazardous waste result from purification and from the subsequent sludge thickening process. Hazardous waste includes sludge and exhausted sand and carbon. Company authorised for disposal are involved and chemical analyses on waste are performed to determine hazardous substances and their association with the proper EWC code.

Soil

This aspect was considered very critical. As a matter of fact, the batch tank for cyanide treatment is made of moplen and is located next to storage tanks precisely to prevent any spill. In addition, the whole area is equipped with screens, storage tanks and booster pumps that recirculate all the solutions for purification purposes.

Other

The aspect deemed significant is noise. As regards this aspect, the Risk Assessment document states that, based on the level of noise measured, workers’ turnovers on machines are required in the light of processing cycles. As far as the environmental aspect is concerned strictly speaking, it is deemed that noise cannot be reduced since the layout has already been optimised and machines have already been soundproofed where possible. In addition, external noise measurements have showed that the noise level is within the limits.

Energy consumption

All the equipment used requires much energy, especially the equipment for braze welding, turning and spot welding of handles.

Atmosphere emissions

Emissions into the atmosphere deemed significant are those of the points of emission relating to points 31, 32 and 33. The points are monitored on a three-year basis as per the authorisation issued and routine maintenance is performed on scrubbers.

Use of raw materials

Also the raw materials used within the cycle are deemed significant. All the workers in the galvanic area are trained about, well aware of and officially qualified for the use of toxic gases.

Other

During manual polishing of items, the surfaces that come into contact with abrasive or polishing wheels heat up and release heat at a local point.

Other

The aspect deemed significant is noise. As regards this aspect, the Risk Assessment document states that based on the level of noise measured workers’ turnovers on machines are required in the light of processing cycles. As far as the environmental aspect is concerned strictly speaking, it is deemed that noise cannot be reduced since the layout has already been optimised and machines have already been soundproofed where possible. In addition, external noise measurements have showed that the noise level is within the limits.

The new checklists have also been used to assess the environmental impact of the following departments: > factory outlet > gym > dining hall > laboratory None of these have proved to have a significant environmental impact.

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SUSTAINABILITY REPORT 2015 SAMBONET PADERNO INDUSTRIE

2 ADOPTION OF A PREVENTIVE APPROACH

SECOND PRINCIPLE

In order to reach the improvement aims, the following elements have been indentified: > resources needed; > timelines and means, determined by an accurate planning; > local critical issues, if any; > activation of communication channels with the stakeholders.

Regular activity reviews and internal audits have been envisaged with a view to update goals in order to assess the effectiveness of the measures taken.

INDICATOR To better highlight what has been done and below explained, a trend assessment was made over the past years regarding all relevant environmental aspects. Indicators to see resource consumption, analysed by the number of kilograms shipped (parameter indicating company performance) were used in order to homogenize obtained results. Indicators are the monitoring tool of environmental performance of the production process. They verify effectiveness of actions taken to achieve sustainability goals.

SENT KILOGRAMS

3.521.000 kg

2012

2.964.000 kg

2013

3.354.000 kg

2014

3.181.000 kg

2015

PAPER A new method of management and electronic storage of the documents (“k-files�) has been created and implemented. The correspondence with the customers and the suppliers is managed by certified electronic mail. The production work is managed through touch screen terminals and the prints have been reduced to the minimum thanks to appropriate controls.

To respect this objective, all the documents concerning the management system and the production have been created in a digital format, available through the corporate website and to be print only if really necessary.

All the staff have been encouraged to use paper with the utmost responsibility also by means of a specific pay bonus established in 2012. The parameter is calculated as the ratio of the number of paper reams purchased to processed orders (work orders, purchase orders, sales orders). The results obtained are summarized in the charts on the next page.

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PAPER CONSUMPTION

CONSUMPTION (REAMS/ORDERS)

SUSTAINABILITY REPORT 2015 SAMBONET PADERNO INDUSTRIE

15

14

13

12

11

10

2012

2013

2014

2015

14.47

14.55

11.93

11.24

REAMS/ORDERS

REAMS/ORDERS

REAMS/ORDERS

REAMS/ORDERS

2012

2013

2014

2015

The average paper consumption (no. of reams/no. of orders) in 2015 was equal to 11.24 – less than the previous year and even less than 2013 and 2012 – thanks to the implementation of a documental archiving management system which significantly reduces paper consumption. This performance is the result of greater attention to paper consumption by employees. To motivate employees, the Company has added an assessment index in the Performance Bonus, which has expired. On occasion of the renewal in the beginning of 2016, paper consumption will be one of the main value indicators for greater employee responsibility. The Company’s goal is to cut at least 10% of all consumption.

Since October 2013, the Company has opted for the purchase of FSC paper only, testifying once again to its commitment to the environment. The FSC logo mark certifies that products are made of raw materials from forests that are responsibly managed in accordance with forest management and chain of custody principles.

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SUSTAINABILITY REPORT 2015 SAMBONET PADERNO INDUSTRIE

METHANE As previously planned, in 2012 the whole monitoring programme intended to increase efficiency in air conditioning and heating systems was replaced and enhanced by means of consumption mapping. In the new monitoring system, the thermostat is set up by a remote computer and the temperature is kept constant thanks to suitable sensors. All the offices and the areas not used are not conditioned.

While designing the new plants, the Company chose to apply measures of energetic saving such as: insulation, the use of frames with low transmittancy elements and the use of thermal system at low consumption.

METHANE CONSUMPTION

319.000 m

322.000 m

268.000 m

285.000 m

PER YEAR

PER YEAR

PER YEAR

PER YEAR

3

INDICATOR

0.09

2012

2014

3

INDICATOR

0.11

3

INDICATOR

2013

Average outside temperature (°C)

0.08

3

INDICATOR

2014

Consumption of methane for heating (1.000 m3)

0.09

2015

2015

The indicator is calculated as the ratio between the annual consumption of methane and kilograms of goods shipped during the year

by Sambonet Paderno Industrie.

Higher gas consumption in 2012 and 2013 is justified by the expansion of the offices, creating a greater area to be heated. However, in 2014, consumption significantly decreased.

In 2015, it went up again slightly as there were lower overall temperatures countrywide, as shown in the table above.

Average outside temperature (°C)

Consumption of methane for heating (1.000 m3)

January

4.3

59

January

4.0

53

February

6.5

44

February

5.3

55

March

12.2

27

March

10.5

40

April

15.4

14

April

15.9

11

October

15.6

5

October

13.6

11

November

10.0

20

November

9.0

21

December

5.1

40

December

4.2

Source: www.ilmeteo.it

54 Source: www.ilmeteo.it

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SUSTAINABILITY REPORT 2015 SAMBONET PADERNO INDUSTRIE

ELECTRICAL ENERGY The use of the artificial lighting system is subject to the measurement of internal brightness levels through crepuscular sensors. The system is computer-based.

Since 2015 it has been carried out a energetic consumption evaluation for the production area through a careful diagnosis. For this purpose, some meters were installed in the energy lines of maximum consumption and small but significant changes were made, such as switching off the machines during the lunch break and switching on the light only when strictly necessary.

The energy consumption in 2015 is therefore reduced compared to previous years.

ELECTRICAL ENERGY CONSUMPTION

3.004.000 kW 3.153.000 kW 3.237.000 kW 3.138.000 kW PER YEAR INDICATOR

PER YEAR 0.853

2012

INDICATOR

PER YEAR 1.064

2013

INDICATOR

PER YEAR 0.965

2014

INDICATOR

0.986

2015

The indicator is calculated as the ratio between the annual consumption of electrical energy and kilograms of goods shipped during the year

by Sambonet Paderno Industrie.

WATER In the last years, the awareness of people on the importance of water as a limited resource has grown up, as they noted the increase of pollution due to the discharge of not biodegradable substances and to high temperature water coming from cooling systems.

Aware of the value of this resource, Sambonet Paderno Industrie has operated in the better rational and ecologic way as possible.

The Company keeps on monitoring water consumption, trying to reduce the waste and the water discharge. In order to reach these aims, the Company has realized its own depuration system able to recycle the water: washing waters are recycled in closed systems, as explained in the following pages, while discharged waters are checked twice a week concerning the values of zinc, nickel, iron and cyanide through specific analysis with ICP and colorimetric analysis for the definition of the cyanides.

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SUSTAINABILITY REPORT 2015 SAMBONET PADERNO INDUSTRIE

WATER IS USED FOR TWO DIFFERENT PURPOSES: > civil use (services, dining hall, changing room) > industrial use (for production, for cooling) DISCHARGED WATERS CAN BE DIVIDED INTO: > black waters (from civil use) > meteoric waters > industrial waters (for production, for cooling) IN THE PRODUCTION PROCESS WATER IS USED FOR THE FOLLOWING PURPOSES: > automatic system of galvanic silver plating > manual system of galvanic silver plating > digging and pickling process > degreasing tunnel washing system with water solution.

The silver plating system requires three washings after nickel and silver plating treatment; the first one is provided of a throwaway tank and waters will be treated in a chemical-physical system and discharged, the other two tanks are in counter-current, so that the third tank feeds the second one and this last one feeds the first; the waters of the second and the third tanks are carried in a recycle system on ionic exchange.

WATER FLOW IN THE SILVERING TANKS tan k 1

tank 2

tank 3

The hollowing system is made of treatment tanks with nitric acid and of a series of washing tanks. The pickling system is made of a series of treatment tanks with sulfuric and nitric acids and of a series of washing tanks. The tunnel washing system requires a treatment tank in a water solution of alkaline detergent and three washing tanks: a carpet runs along the tanks. Even in this case the first washings are throwaway washings (some of the washing water is used to reintegrate the treatment tanks). The water used by Sambonet Paderno Industrie comes from the draw-well and from the aqueduct.

It is preferably used the water from the draw-well, while the water of the aqueduct is used in by pass to provide water when the draw-well water is not enough. The refluent water is carried in a superficial water natural canal body, the irrigation ditch called Busca, located on the left side of Sesia river.

The maximum flow rate during summer is 22mc/sec, while the minimum flow rate in winter is 0.5 mc/sec.

22

SUSTAINABILITY REPORT 2015 SAMBONET PADERNO INDUSTRIE

WATER WITHDRAWAL WATER DRAWN FROM THE WELL

WATER DRAWN FROM THE AQUEDUCT

annual consumption

annual consumption

85.843 m 73.657 m 65.211 m 83.990 m

4.445 m 4.956 m 4.999 m 5.466 m

PER YEAR

PER YEAR

3

INDICATOR

3

3

PER YEAR 0.024

INDICATOR

3

PER YEAR 0.025

INDICATOR

PER YEAR 0.019

INDICATOR

0.026

3

INDICATOR

3

PER YEAR 0.0013

INDICATOR

2012

2012

2013

2014

3

PER YEAR 0.0017

INDICATOR

2013

3

PER YEAR 0.0015

INDICATOR

2014

0.0017

2015

2015

The indicator is calculated as the ratio between the annual consumption of well water and kilograms of goods shipped during the year by Sambonet Paderno Industrie.

The indicator is calculated as the ratio between the annual consumption of aqueduct water and kilograms of goods shipped during the year by Sambonet Paderno Industrie.

weekly average

weekly average

2012

2013

2014

2015

2012

2013

2014

2015

1.533 m

1.416 m

1.296 m

1.470 m

82 m3

95 m3

98 m3

105 m3

PER WEEK

PER WEEK

PER WEEK

PER WEEK

PER WEEK

PER WEEK

PER WEEK

PER WEEK

3

3

3

3

annual trend

annual trend

20,000

800

700 15,000 600

500

10,000

400 5,000 300

200 m3

0 m3 JAN.

FEB.

MAR.

2012

APR.

MAY

JUN.

2013

JUL.

AUG.

SEP.

2014

OCT. NOV. DEC.

2015

JAN.

FEB.

MAR.

2012

APR.

MAY

JUN.

2013

JUL.

AUG.

SEP.

2014

OCT. NOV. DEC.

2015

23

BILANCIO DI SOSTENIBILITÀ 2015 SAMBONET PADERNO INDUSTRIE

WATER DISCHARGE WATER DISCHARGED BY THE PURIFIER

COOLING WATER DISCHARGED

annual consumption

annual consumption

13.416 m 12.245 m 12.164 m 12.365 m

71.376 m 54.904 m 48.097 m 63.750 m

PER YEAR

PER YEAR

3

INDICATOR

3

PER YEAR 0.0038

INDICATOR

2012

3

PER YEAR 0.0041

INDICATOR

2013

3

PER YEAR 0.0038

INDICATOR

2014

0.0039

2015

3

INDICATOR

3

PER YEAR 0.020

INDICATOR

2012

3

PER YEAR 0.019

INDICATOR

2013

3

PER YEAR 0.015

INDICATOR

2014

0.020

2015

The indicator is calculated as the ratio between the annual quantity of water discharged by the purifier and kilograms of goods shipped during the year by Sambonet Paderno Industrie.

The indicator is calculated as the ratio between the annual quantity of discharged cooling water and kilograms of goods shipped during the year by Sambonet Paderno Industrie.

weekly average

weekly average

2012

2013

2014

2015

2012

2013

2014

2015

257 m3 237 m3 254 m3 250 m3

1.267 m3 1,056 m3 866 m3 978 m3

PER WEEK

PER WEEK

PER WEEK

PER WEEK

PER WEEK

PER WEEK

annual trend

PER WEEK

annual trend

2,000

20,000

1,500

15,000

1,000

10,000

500

5,000

0 m3 JAN.

PER WEEK

0 m3 FEB.

MAR.

2012

APR.

MAY

JUN.

2013

JUL.

AUG.

SEP.

2014

OCT. NOV. DEC.

2015

JAN.

FEB.

MAR.

2012

APR.

MAY

JUN.

2013

JUL.

AUG.

SEP.

2014

OCT. NOV. DEC.

2015

24

SUSTAINABILITY REPORT 2015 SAMBONET PADERNO INDUSTRIE

WASTE The Company is responsible when it comes to recycling. A major part of products are recyclable (scrap, wood, cardboard...).

In 2015, total waste disposal decreased from the previous year by 22.39%.

When examined in detail, it’s possible to notice that non-hazardous waste disposal has increased (+7.04%), while hazardous waste has been cut in half. This result is because of the implementation of Regulation 1357/14 and the EU 2014/955 decision, which has caused a reclassification of waste, giving a EWC code to each category and consequently causing some changes. For example, activated carbon and various other washing solutions, previously considered hazardous, are now considered non-hazardous waste.

There remain, however, dangerous oils, muds and oily emulsions; the latter showing a significant decrease from 2014.

Regarding non-hazardous waste, the pie charts show a decrease in paper and cardboard container disposal. This is a positive sign, considering the relationship between the tons of products in 2015 and those disposed of in the same year, equal to about 44%. In the previous year, there was a strong increase in paper and cardboard disposal thanks to the reorganization of the warehouse, leading to a series of extraordinary disposal.

There was also a decrease in tons of disposed plastic packaging, paint sludge, abrasive dust and brushes.

Looking at the charts, you can see an increase in disposal of plastic shavings and turnings, going from 8.96% in 2014 to 9.56% this past year and regarding scraps of steel, aluminum and nickel silver, arriving at 43.79% caused by recovered production, but which can then be resold.

Below is the list of hazardous and non-hazardous disposed of waste from 2012-2014.

DISPOSED WASTE

NON-HAZARDOUS

77%

77% NON-HAZARDOUS

83% NON-HAZARDOUS

90% NON-HAZARDOUS

23%

23%

17%

10%

HAZARDOUS

HAZARDOUS

HAZARDOUS

HAZARDOUS

348 t

315 t

485 t

377 t

2012

2013

2014

2015

SUSTAINABILITY REPORT 2015 SAMBONET PADERNO INDUSTRIE

NON-HAZARDOUS WASTE 2015 53%

METALS

4 3.79% SCRAPS OF STEEL, ALUMINUM, BRASS AND NICKEL SILVER 9.56% FERROUS METAL FILINGS AND TURNINGS

45%

PACKAGING

4 4.66% PAPER AND CARDBOARD PACKAGING 0.04% PLASTIC AND METAL PACKAGING

OTHER

1.54% 0.16% 0.13% 0.11%

51%

PACKAGING

5 0.72% PAPER AND CARDBOARD PACKAGING 0.32% PLASTIC AND METAL PACKAGING 0.14% MIXED MATERIAL PACKAGING

43%

METALS

3 4.05% SCRAPS OF STEEL, ALUMINUM, BRASS AND NICKEL SILVER 8.48% FERROUS METAL FILINGS AND TURNINGS

6%

OTHER

5.43% 0.56% 0.21% 0.06% 0.03%

51%

METALS

44.41% SCRAPS OF STEEL, ALUMINUM, BRASS AND NICKEL SILVER 6.83% FERROUS METAL FILINGS AND TURNINGS

35%

PACKAGING

3 3.92% PAPER AND CARDBOARD PACKAGING 0.53% PLASTIC AND METAL PACKAGING 0.27% MIXED MATERIAL PACKAGING

14%

OTHER

11.98% 1.34% 0.41% 0.24% 0.05% 0.01%

61%

METALS

44.21% SCRAPS OF STEEL, ALUMINUM, BRASS AND NICKEL SILVER 16.91% FERROUS METAL FILINGS AND TURNINGS

23%

PACKAGING

2 0.77% PAPER AND CARDBOARD PACKAGING 2.95% MIXED MATERIAL PACKAGING 0.14% PLASTIC AND METAL PACKAGING

OTHER

1 2.67% 0.96% 0.89% 0.47% 0.03%

2%

2014

2013

2012

15%

WASTE AQUEOUS SOLUTIONS DISCARDED EQUIPMENT PAINT SLUDGE, ABRASIVE POWDER AND BRUSHES COMPONENTS REMOVED FROM DISCARDED EQUIPMENT

WASTE AQUEOUS SOLUTIONS DISCARDED EQUIPMENT PAINT SLUDGE, ABRASIVE POWDER AND BRUSHES SATURATED OR EXHAUSTED ION-EXCHANGE RESINS COMPONENTS REMOVED FROM DISCARDED EQUIPMENT

WASTE AQUEOUS SOLUTIONS SATURATED OR EXHAUSTED ION-EXCHANGE RESINS PAINT SLUDGE, ABRASIVE POWDER AND BRUSHES DISCARDED EQUIPMENT COMPONENTS REMOVED FROM DISCARDED EQUIPMENT ALKALINE BATTERIES

WASTE AQUEOUS SOLUTIONS SATURATED OR EXHAUSTED ION-EXCHANGE RESINS PAINT SLUDGE, ABRASIVE POWDER AND BRUSHES DISCARDED EQUIPMENT COMPONENTS REMOVED FROM DISCARDED EQUIPMENT

25

26

SUSTAINABILITY REPORT 2015 SAMBONET PADERNO INDUSTRIE

HAZARDOUS WASTE 2015 86%

SLUDGES

14%

OTHER

81%

SLUDGES

8 5.96% SLUDGES FROM ON-SITE EFFLUENT TREATMENT 9.76% 2.59% 0.76% 0.72% 0.21%

WASTE MACHINING OILS FREE OF HALOGENS (NOT EMULSIFIED) SPENT ACTIVATED CARBON LEAD-ACID BATTERIES DISCARDED EQUIPMENT CONTAINING HAZARDOUS COMPONENTS WASTE PAINT AND VARNISH, PROTOTYPING MACHINE LIQUID, SAWDUST IMPREGNATED WITH OIL, ABSORBENT MATERIALS (FILTERS), FLUORESCENT TUBES AND OTHERS WITH MERCURY

2014 19%

2013

2012

78%

OTHER

SLUDGES

22%

OTHER

76%

SLUDGES

24%

OTHER

81.20% SLUDGES FROM ON-SITE EFFLUENT TREATMENT 8.71% 7.72% 2.01% 0.26% 0.11%

EXHAUSTED OIL EMULSION SPENT ACTIVATED CARBON WASTE MACHINING OILS FREE OF HALOGENS (NOT EMULSIFIED) DISCARDED EQUIPMENT CONTAINING HAZARDOUS COMPONENTS WASTE PAINT AND VARNISH, PROTOTYPING MACHINE LIQUID, SAWDUST IMPREGNATED WITH OIL, ABSORBENT MATERIALS (FILTERS), FLUORESCENT TUBES AND OTHERS WITH MERCURY

7 7.95% SLUDGES FROM ON-SITE EFFLUENT TREATMENT 11.43% 7.33% 1.46% 1.22% 0.48% 0.13%

SPENT ACTIVATED CARBON EXHAUSTED OIL EMULSION ORGANIC WASTE CONTAINING HAZARDOUS SUBSTANCES WASTE MACHINING OILS FREE OF HALOGENS (NOT EMULSIFIED) LEAD-ACID BATTERIES WASTE PAINT AND VARNISH, PROTOTYPING MACHINE LIQUID, SAWDUST IMPREGNATED WITH OIL, ABSORBENT MATERIALS (FILTERS), FLUORESCENT TUBES AND OTHERS WITH MERCURY

7 5.61% SLUDGES FROM ON-SITE EFFLUENT TREATMENT 15.09% 4.72% 2.25% 1.37% 0.37%

0.35% 0.22%

EXHAUSTED OIL EMULSION ORGANIC WASTE CONTAINING HAZARDOUS SUBSTANCES WASTE MACHINING OILS FREE OF HALOGENS (NOT EMULSIFIED) SPENT ACTIVATED CARBON ANTIFREEZE LIQUIDS CONTAINING HAZARDOUS SUBSTANCES AND BITUMINOUS MIXTURES CONTAINING COAL TAR DISCARDED EQUIPMENT CONTAINING HAZARDOUS COMPONENTS WASTE PAINT AND VARNISH, PROTOTYPING MACHINE LIQUID, SAWDUST IMPREGNATED WITH OIL, ABSORBENT MATERIALS (FILTERS), FLUORESCENT TUBES AND OTHERS WITH MERCURY

The Company carries out the separate collection with sense of responsibility and, in addition, most of the waste is recyclable (scrap, wood, cardboard). Sambonet paderno industrie promotes every year investments aimed to reduce the production of waste, such as replacing wooden pallets with plastic ones, which are stronger and more easily reusable, or purchasing cardboard shredder machines, to reuse the material as packaging.

SUSTAINABILITY REPORT 2015 SAMBONET PADERNO INDUSTRIE

PACKAGING The parcel, that is the primary packaging containing the finished product, is made of cardboard punched boxes, put on a plastic or wooden pallet (europallet), in order to facilitate moving. The parcels, properly piled up, are tied to the pallet through plastic strap string then wrapped in extensible film.

The materials chosen for the product packaging are completely recoverable. They are not contaminated by substances which require draining before use and they can support different compaction which optimize picking up and transport. Consequently the environmental impact is not significant and this aspect is not considerable.

For Sambonet Paderno Industrie the packaging represents one of the main and most efficient channel of communication between the Company and the customers, besides performing the important function of protect the products. The packaging provides all the essential information concerning the raw material used for the manufacturing of the items, their use and maintenance, and has a basic role in design and in the appeal able to attract the customers.

The pallets used by the Company are made both of wood and of plastic, although the wooden ones will be replaced by the pallets made of plastic. These new pallets are more light, more resistant and can be used different times, so they are more lasting and they have less impact on the production of waste.

43,548 Euros were spent in 2012 to buy 4,500 plastic pallets.

the factory warehouse in orfengo WASTE FINISHED PRODUCT The finished products don’t have any features able to represent any sanitary or environmental risk, as they are made of inert material. The use of these products does not involve any problems for the safety of the users and the product disposal carried out by scrapping does not involve any problems about the separation as these items are inert material too. So there are not considerable elements concerning the use and the disposal of finished products.

Concerning the electrical equipment, the Company has carried out a subscription to APIRAEE, in compliance with the WEEE legislation (D. Lgs 25/07/2005 n151), with subscription number: IT09070000006180 of 24/07/2009.

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SUSTAINABILITY REPORT 2015 SAMBONET PADERNO INDUSTRIE

3 EFFICIENT USE OF NATURAL RESOURCES

THIRD PRINCIPLE

Sambonet Paderno Industrie continuously strives to reduce its energy consumption and takes measures mainly intended to optimise its business processes. For this reason, the Company undertook a path which led to the obtainment of the new UNI ISO 50001:2011 energy certificate. The Company has adopted a comprehensive approach in every manufacturing department to identify solutions allowing the reuse of resources.

The following table shows changes in thermal and electrical energy consumption for production purposes in 2012, 2013, 2014 and 2015.

ENERGY CONSUMPTION 2012

2013

2014

2015

ELECTRICAL ENERGY

0%

-8%

+1%

-3%

THERMAL ENERGY

- 4%

+16%

-16%

+3%

The Company always aims to avoid waste in all areas of the plant and its attention is focused on their continuing minimization. Quarterly reviews are organized to define improvements. In the plant there is an Energy Supervisor who weekly verifies any possible overconsumption and shares optimization plans with the staff.

MATERIALS The Company resources have been focused on the minimization of the amount of raw materials used in the industrial process. Sambonet Paderno Industrie uses, as main raw materials, materials with low contents of energy and with reduced presence of dangerous substances, as stainless steel, nickel silver and aluminum, and pays always more attention to the materials of the products sold. Furthermore, designing a new item, the Company evaluates the aspects of shape and thickness of the components which are intended to be utilized in the production in order to reduce the volume of the materials used. In the choice of the raw materials, the Company considers the use of recycling materials as a surplus value.

Sambonet Paderno Industrie promotes the Product Lifecycle Management (PLM), a strategic approach to the management of information, processes and resource management, from the first design phase to the moment of its launch into the market or of a possible withdrawal.

To give an example, aluminum wastes are re-sold to the supplier of the raw material, who manages to reintroduce it in the working process and in the market.

SUSTAINABILITY REPORT 2015 SAMBONET PADERNO INDUSTRIE

WATER RESOURCES The water consumption is checked by monitoring and rationalizing the water used for the supply chain, concerning washings in particular. In the departments there are five washing tunnels properly conceived to save water: “new” water is required only for the final step of the washing. The discharge of this water containing traces of cleaning agent feeds the previous step, which discharge, that contains more detergent of the first one, at its turn feeds the previous step and so on, recycling the water till the last step, in which the discharge is channeled to the purification plant.

The purication plant provides two types of treatment, one for the water recycle and the other one for water disposal.

Recycling waters will be sent to a system with a flow of 20 m3/h (2,000 L) where they suffer a treatment on resin at ionic exchange (cationic resin, anionic thin resin, anionic strong resin). The plant has been organized in double line to guarantee the continuity of the process, and it receives and re-supplies washing waters of silvering system (automatic and manual ones), of tunnel washing system (of HollowareCookware, Flatware, Checking Department) and of the hollowing and pickling process.

The waters to be discharged are conveyed towards a system with lower flow (5 m3/h) and they are submitted to a chemical-physical depuration treatment that requires the following steps: > oxidation of cyanides with sodium hypochlorite; > post-Oxidation of cyanides with oxygenized water; > oxidation of Fenton with iron 2 salts and oxygenized water for the dust lying of organic substances; > coagulation with iron salts 2 to facilitate the formation of precipitate; > neutralization with hydroxide of calcium to dust lying metals through hydroxides precipitation; > flocculation with polyelectrolyte; > decantation of sediments; > final filtration on sand-quartzite and activated charcoal.

The plant works on the refluent of the silvering (both automatic and manual), the washing tunnel and the hollowing and the pickling processes.

ENERGETIC RESOURCES The Company believes in clean energy and it has demonstrated this with the choice of its electrical energy suppliers. Indeed Sambonet Paderno Industrie has a single electric energy supplier that has been awarded the CO-FER certification, testifying to the use of renewable energy sources for ICO-FER electricity production plants.

The CO-FER title is a certification, issued by the GSE (Energy Services Manager), certifying renewable origin of sources by the qualified plant ICO-RES for electricity production.

Following approval by MiSE for the “Procedure for the identification of plants powered by renewable sources and the issuing and managing of the Garancy of Origin (Technical Procedure)”, drawn up by the GSE as stated in article 31, paragraph 1, of the ministerial decree of July 6, 2012, from 2013, GSE issues the Guarantee of Origin (GO) instead of the CO-FER title to certify the quota of electrical energy produced by renewable sources, in accordance with article 15 of the directive 2009/28/CE. The electrical energy supplier is CVA Trading. From January 1, 2014, following a merger with the Vallenergie company, which was already a part of the CVA Group, CVA Trading became the service operator of the territorially competent Maggior Tutela. Its energy comes 100% from renewable sources.

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30

SUSTAINABILITY REPORT 2015 SAMBONET PADERNO INDUSTRIE

To increase the efficiency and reduce waste of the cooling and heating systems, the Company has installed a system of fan coil unit. The fan coil unit draws the air of the environment (to be cooled or heated), the air is filtered and then pushed towards the battery of thermal exchange. In the offices built in 2012, heat collectors have been added to try to maintain temperature of the air before putting it outside in order to use the heat to pre-heating the air ow in entrance. This air flow exchanges the heat accumulated with the water through a forced convection: in case of heating, the heat will be drawn, while in case of cooling it will be given. When cooling air, this air will be also dehumidified, creating a condensation which will be collected in the small basin put on the bottom.

Both electric and heating systems are completely managed by a monitoring system. Thanks to this system, the unused offices will not be lighted and heated. Furthermore both lighting and heating systems are turned off during the Company closing. Each workplace is provided with a thermostat controlled by the supervising: a sensor registers the environmental temperature and manages to maintain the correct temperature.

The lighting system also includes high-efficiency elements: the whole corporate plant is equipped with twilight sensors that automatically switch lights on and off based on natural light.

The oldest buildings were realized just in 2001 and have been equipped with heat insulation walls.

4 MONITORING AND REDUCTION

FOURTH PRINCIPLE

OF ENVIRONMENTAL IMPACTS

Sambonet Paderno Industrie constantly invests in monitoring and reducing environmental impacts.

The Company did not have to implement a biodiversity mapping system at the operating sites through specific measures (eg. protection of endangered species habitats, protection of water resources and forests, etc.) since it is situated directly on the regional road (N.11), Padana Superiore, which connects Novara to Vercelli. Just a couple hundred meters away is the entrance for the A26 Voltri-Gravellona Toce highway. It is situated 30 meters off of the regional road. In the open space between the road and the plant there is a 5,850 mq recreational area used for sports fields and public parking.

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SUSTAINABILITY REPORT 2015 SAMBONET PADERNO INDUSTRIE

WASTEWATER Discharged waters coming from the purification plant are subjected to a constant monitoring: the PH and the temperature parameters are checked and corrected, if necessary. The presence of metals in the discharged waters is monitored by means of weekly internal analyses and quarterly analyses performed by external laboratories. In 2011 the Company invested in the set up of a new internal laboratory, buying last generation instruments in order to make different kind of tests. In particular, the Company bought an ICP for the analysis of the metals, which allows to quickly test the discharged water. Twice a week the technician of the laboratory collects the samples of the waters from different points of the purification plant and from the final discharge and he carries out the tests, entering the results.

The Company is proud to communicate that in November 2013 the internal laboratory ASEC Lab obtained the accreditation by Accredia, the Italian Accreditation Body. Accredited testing methods also include the analysis of wastewater, providing an additional guarantee in wastewater control.

PRODUCTION Sambonet Paderno is a metalworking company that also performs welding operations. An example of investment within this strategy is the purchase of a zero impact welding machine, which is supplied by a water electrolysis system. Water is decomposed into oxygen and hydrogen, i.e. a gas mixture obviating the need for tanks of pure elements. The mixture of oxhydrogen burns at high temperatures and generates water vapour, thus marking the end of a cycle with no environmental impact.

TURNOVER INDEX The inventory turnover is the number of times inventory is used in a time period (usually a year), allowing the Company to recover the financial resources invested in inventory. It is calculated as the ratio of the value of goods sold to the average inventory value. Inventory turnover is useful not only to monitor orders for low-turnover inventory, but also to prevent wasting manufacturing resources. A careful stocks managing allows to plan production in a responsible way. In order to raise the level attention on this issue, monitoring inventory turnover of finished goods was included in the 2012 performance related pay, the target being 1.85. In 2012 its value increased from 1.62 to 1.75, testifying to the effort made to schedule manufacturing and purchases wisely. As shown in the table below there is an ongoing positive performance in relation to this aspect.

Year

Turnover index

2012

1.79

2013

1.84

2014

1.85

2015

1.85

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SUSTAINABILITY REPORT 2015 SAMBONET PADERNO INDUSTRIE

5 FOCUS ON INNOVATIVE TECHNOLOGIES

FIFTH PRINCIPLE

Even designing the new buildings in 2001, Sambonet Paderno Industrie made a choice oriented towards innovation, both in the use of renewable energy, and in the use of investments aimed to obtain a greater energetic efficiency, through the technologies above mentioned (inverter system and timers for automatic switching off, system of intelligent lighting and insulation for heat dispersions).

The Company has decided to invest in the production of items embodying innovation and highlighting the energy and environmental features of the raw materials used.

In 2012 the Company presented its first eco design collection which uses a composition of bamboo fibre, an innovative material, eco-friendly and biodegradable and, in 2013, introduced a cookware series entirely in terracotta. The ecological and health-conscious soul, the basis of this collection, is developed in all its forms, from the product to the packaging.

Terra.cotto cookware (on top) and Linea q bamboo tray (bottom).

SUSTAINABILITY REPORT 2015 SAMBONET PADERNO INDUSTRIE

6 PRODUCT STEWARDSHIP

SIXTH PRINCIPLE

As pointed out in the introduction, Sambonet Paderno Industrie effected an analysis of environmental aspects relating to the different product life cycle phases through the use of renewable and recyclable materials, the attention to the requirements of durability, easy maintenance, interchangeability and standardization in design. Each product is equipped with information material on proper use and proper disposal.

7 PRODUCTION CHAIN STEWARDSHIP

SEVENTH PRINCIPLE

According to the aim to develop a responsible business model concerning the production process and the subjects involved, Sambonet Paderno Industrie applies precise methods of products and services supplying. Every Company partner is considered according to the Company own Environmental Management and will be invited to share the Paper of Principles.

In 2001 the Company also set out a code of conduct for suppliers and sub-suppliers (Code of conduct for external manufactures and workshops) in order to convey its values throughout the supply chain. The Code was based on some criteria requiring suppliers to run their business from an ethical, responsible and environmental-friendly perspective and to treat all the workers involved in the supply chain properly.

The purchasing procedures favour sustainable products as well (Green Procurement).

The Company has further implemented the use of telecommunications for remote activities, thus reducing the need for travels. As a result, there has been a growing use of: > video conferences; > distance training; > telework systems; > certified email.

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SUSTAINABILITY REPORT 2015 SAMBONET PADERNO INDUSTRIE

Furthermore there have been bought new servers for the Company in order to implement a new system of data storage. The Company has been using three NetApp machineries. Able to generate a consumption that is independent from the quantity of servers used, that is an innovative solution compared to the previous ones. In fact all the data are managed in a virtual environment where it is possible to create, manage and cancel any server in a simple way, if necessary.

Technical sheets of the storage show are complete concerning consumptions, giving a precise indication of the consumption in Watt (W) of both the models of NetApp, two FAS3140 and one FAS2040.

Model FAS 3140 FAS 2040

Single power supply

Double power supply

Maximum

Power, W

291

581

712

British Thermal Unit, BTU/hr

991

1.981

2.427

Power, W British Thermal Unit, BTU/hr

447 1.524

464 1.582

Even taking into examination the worst scenery with the maximum consumption for all three storage, there will be a total consumption of 1.888 W, always under the threshold of 2 kW. All consumptions have been taken into consideration with feed 200-240 VAC. Both the models of NetApp used comply with different standard of security and emissions, here below listed:

FAS 3140

Safety: EN 60950, CE, CSA 60950, UL 60950, CB IEC60950-1 (all national deviations), EN60825-1, GOST-R Emissions / Immunity: FCC Part 15 Class A, ICES-03, CE, BCC, VCCI, AS/NZS CISPR 22, EN55022, EN55024, EN61000-3-2, EN61000-3-3 Safety: EN 60950, CE, CSA 60950, UL 60950, CB IEC60950-1 (all national deviations), EN60825-1, GOST-R, BSMI CNS14336, CCC GB 4943-2001, SABS, S Resolution 92-98

FAS 2040

Emissions / Immunity: FCC Part 15 Class A, ICES-003, CE, MIC, VCCI, AS/NZS CISPR 22, EN55022, EN55024, EC61000-3-2, IEC61000-3-3, CoC (South Africa), BSMI, KN22 EN61000-4-2, EN61000-4-3, EN61000-4-4, EN61000-4-5, EN61000-4-6, EN61000-4-11, KN24, CISPR 24

Before adopting this NetApp system, there was a “Blade server” of HP type “HP BladeSystem C7000 Enclosure” which produced a very high level of consumption compared to this new one: the consumption in domain of three-phase power was 2.250W-2.400W for each phase, with a total of 6.750 -7.200W. It was about three times superior towards actual consumption.

Currently there are 35 virtual servers active on the NetApp systems. Assuming they were 35 physical PC with 500 W power supplies (although in reality a server consumes more than a normal PC), the total consumption would be 17.500 W, equal to almost nine times the current consumption.

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SUSTAINABILITY REPORT 2015 SAMBONET PADERNO INDUSTRIE

8 AWARENESS RAISING AND TRAINING

EIGHTH PRINCIPLE

The Company believes in the involvement of human resources on environmental sustainability objectives.

The instruments adopted to achieve this aim are awareness raising and training, through frequent meetings throughout the year; delivery of the business system policy in the payroll of December 2014 and posting this policy in all corporate pin boards.

During the year, following a schedule agreed with the managers of the various areas, introduction of legislative changes, employee awareness raising, integration of new employees and/or changes in duties are accompanied by appropriate corporate training. This effort results in constantly monitoring and recording every stage of the process and the efficacy of training on every employee.

TRAINING EMPLOYEES

TOTAL TRAINING HOURS

TRAINING HOURS PER EMPLOYEE

2012

263

1.800 h

6.8 h/

2013

257

2.900 h

11.3 h/

2014

270

3.334 h

12.3 h/

2015

265

6.189 h

23.4 h/

person

person

person

person

Human resources are monitored during the course of their activities and encouraged through specific lines of the pay bonus. The Company’s main goal is to create a corporate culture that actually takes into account sustainability and environmental protection.

In the face of a slight decrease in staff during 2015, there has been a 46.13% significant increase of hours devoted to training. This amounts to specifically 2.855 total additional hours that equal to an average of 11 additional hours of training per person in comparison to the previous year. In particular, the training that took place during 2015 dealt with company certifications (environmental, energy), health and safety of workers and employees.

The positive trend of training hours underlies the attention that the Company places on this issue.

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SUSTAINABILITY REPORT 2015 SAMBONET PADERNO INDUSTRIE

9 TRANSPARENCY WITH STAKEHOLDERS

NINTH PRINCIPLE

The promotion of its own environmental eco-sustainable policy is managed by drafting reports and environmental declarations and by drawing up the Sustainability Report.

A positive role in the community: the Company’s commitment to environmental values and local communities is put into practice with job creations, benefits for local suppliers, distributors and points of sales and the re-use and re cycling of packaging materials.

The Company’s interests are tightly related to the ones of the communities where it works and it is involved in, in quality of employer, customer, supplier and contributor at the same time. The Company considers the sustainable development as the main pillar to build a continuous process of improvement able to guarantee the increase in the Company economic performance. A growing up and well managed activity has a positive impact on the general economic development as it creates new workplaces, gives an economic contribution and assures greater investments in the communities and in the local economies.

Concentrating on its business and the local community, Sambonet Paderno Industrie has decided to focus its efforts on responsible consumption, local community investments and environmental safety. When it comes to supporting the local community, Sambonet Paderno Industrie fully embodies the vision that relates to its philosophy of Italian industry springing from a supportive spirit. Making a positive contribution is the goal in order to improve the quality of life in the surrounding communities. The Company makes the minimization of environmental impact during production a daily commitment.

10 CONSISTENCY WITH INTERNATIONAL POLICIES

TENTH PRINCIPLE

Sambonet Paderno Industrie acknowledges the value of constructive collaborations with its suppliers in order to secure high-quality raw materials.

Once the suppliers are selected, they are involved in collaborative programs and, if necessary, support programs, through the transfer of technology and know-how in the environmental field. This is realized through the participation in updating events on process and product innovation and in development projects about environmental issues.

SUSTAINABILITY REPORT 2015 SAMBONET PADERNO INDUSTRIE

TRANSPARENCY AND ETHICS By establishing transparent and ethic relationships with its suppliers and stakeholders as far as business is concerned, Sambonet Paderno Industrie implemented its Code of Ethics back in 2011. The adoption of clear guidelines has contributed to define and promote the values and the behavioural rules the Company deems fundamental for its conduct.

ORGANISATIONAL MODEL Sambonet Paderno Industrie has decided to comply with the dispositions of D.Lgs 231/01 which regulates the “Administrative Responsibility of the Company” to enforce the system of internal control, and in the meantime increase the resources awareness about the above mentioned topics in order to prevent crimes.

Sambonet Paderno Industrie has adopted a specific “Model of Organizing, Management and Control ex D. Lgs 231/2001” as a complete set of rules aimed to regulate the internal working of the Company, the internal control and the ways the Company reports with external. One of the most significant part of this Model is the Ethical Model, that identifies the values pursued by the Company and points out the whole set of rights and duties of the people working in the Company or with the Company. Furthermore the Code promotes an elevated standard of internal professionalism and interdicts any behaviour which is in contrast with the rules and the values of the Company. Each employee, from the administrators to the staff management, the office workers, the sales representatives, the consultants, the suppliers and the commercial partners, and all the people working in collaboration with the Company have been asked to respect the Code and its contents.

SUSTAINABLE DEVELOPMENT The Company has adopted an approach of sustainable development based on strategic priorities.

Sambonet Paderno Industrie thinks that the most important contribution towards the society is the production of high quality items, which the consumers are able to identify and appreciate.

Besides that, the Company pursues many other aims: creating new workplaces, contributing to the general taxation, increasing human capital showing how the growth in business and the sustainable development could feed and enforce themselves each other.

The Company approach to sustainability represents a responsible attitude and produces positive effects in business in terms of profit and economic growth. That’s why it is considered as a significant pillar of the Company’s philosophy and guides all its activities: from the choice of raw materials to the finished product.

HUMAN RIGHTS A culture of openness has been promoted within the Company with a view to prevent any form of discrimination in respect of employment and occupation and to ensure that all employees are valued and treated with dignity. The Company has also committed to create a safe working environment for the people.

In 2006 Sambonet Paderno Industrie has obtained the certification according to the standard OHSAS 18001: this certification gives an evidence of the commitment in respecting the requirements of health and safety at work, even more strict compared to the requirement provided for by Italian law. Sambonet Paderno Industrie constantly aims to increase the level of health and safety on the workplace through the definition of targets that can be reached.

Embracing this ethic, the Company achieved the injury rates presented at the following page.

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SUSTAINABILITY REPORT 2015 SAMBONET PADERNO INDUSTRIE

INJURIES Total number of injuries Total days of injury Average injury duration (days) Average age of injured Frequency index (I.F.) Severity index (I.G.) Incidence index (I.I.)

2012

2013

2014

2015

N° 0

3 158 52.70 38.30 0.66 0.34 0.01

1 8 8.00 38.00 0.21 0.02 0.00

4 77 19.30 49.50 0.88 0.17 1.51

I.F. = (total number of injuries * 100,000) / hours worked I.G. = ((total days of injuries + (sum of annuity rates * 75)) * 1,000) / worked hours I.I. = total number of injuries / number of employees

1

0.5

0 2012

2013

I.F. FREQUENCY INDEX

2014

2015

I.G. SEVERITY INDEX

Overall, the indicators show an improvement trend, considering increase in personnel. In 2015, there were four accidents, one being a commuting accident, over the span of 60 days. It should be noted that by deducting that commuting accident, the Frequency Index decreases to 0.66, the Severity Index to 0.037 and the Incidence Index to 1.13.

This result should be compared to the sectoral Incidence Index provided by the INAIL database. As shown in the table below, the figure was 1.35% in 2013 and 2.19% in 2014; in 2015, the Company obtained a 1.53% Incidence Index, or 1.13% if excluding the commuting accident.

Year

N. of injuries

N. of employees

Incidence index

2013

8

593

1.35

2014

13

593

2.19

Table with data provided by the INAIL database, referred to the entire national territory and for the specific business sector (Ateco category C 25710).

SUSTAINABILITY REPORT 2015 SAMBONET PADERNO INDUSTRIE

CONCERNING HEALTH AND SAFETY AT WORK, SAMBONET PADERNO INDUSTRIE COMMITS ITSELF TO: > working in compliance with the laws, the rules and the applicable national and Community directives, as well as with all the requirements and the obligations undersigned by the Company to the stakeholders; > sharing the policy about safety with all the employees and the stakeholders; > introducing and keeping updated the procedures of management and security in order to monitor health and safety of the employees; > developing programs, objectives and targets and investing in human and economic resources in order to reach these goals; > increasing awareness and training involving all the workers, making them aware of their individual duties and of the importance of each action to reach the aims and of their responsibilities concerning safety and health in workplaces; > managing to define behaviours and working procedures in order to reduce accidents at work and occupational disease; > identifying and monitoring dangers related to the different activities located inside the plant and valuing the risks for the health and the safety of the workers; > evaluating pre-emptively the risks for the health and the safety at work related to organizational, technical and procedural changes; > making suppliers more aware and ask them to respect this policy, the laws and the procedures concerning the safety; > trying to promote continuous improvement concerning the management of safety and health at work; > increasing workers awareness and giving them a sense of responsibility at all levels, even through training and sharing information; > promoting a cross communication among all the different roles in the Company, in order to improve the performance of the management concerning safety and health at work; > promoting and stimulating the dialogue based on the collaboration with the civil society, the local offices, the trade associations, the competent authorities and the stakeholders and everyone interested, in order to let everyone know the way the Company operates concerning the safety and the health at work; > periodically re-examining the evaluation of the risk regardless of the occurred changes; > periodically making a re-examination of this policy and of the management of the health and the safety at work to verify and assure their congruence, propriety and being properly applicable the organization, as well as to verify the effectiveness of their performances and let the Company promote a re-formulation of the targets for improvement.

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SOCIAL PERFORMANCE Service efficiency has increased as well as customer involvement in the sharing of the social value of the service. With this awareness, the Group has carried out many sustainable projects and many more are being planned for the future.

EXTERNAL STAKEHOLDERS Sambonet Paderno Industrie’s significant commitment to the development of initiatives regarding stakeholder involvement is a structural element within the modus operandi.

Over the course of 2015, 147 clients visited the factory. They had the opportunity to see the production site. This activity was carried out with a spirit of collaboration by the managers in order to be able to provide customers with glimpse into the production process and creation and improvement of its products.

Over the years, several projects were carried out to involve the community, schools and support sociopedagogical institutions. For example, the “Progetto Scuole” worked with the ICIF-International School of Italian Cuisine. This resulted from a partnership between the Institute and the Company tied to Paderno kitchen supplies. Throughout the year, the school made seven visits – on a total of 120 students – during which the entire production cycle was explained and demonstrated while visiting all departments on site.

Another visit came from 75 students from Ballerini School of Hospitality.

During 2016, the Company will continue its collaboration with the Institute and, in order to accommodate the largest number of chefs and future chefs, the Company will enter into new partnerships.

In 2015, Sambonet Paderno Industrie joined the “Piedmont Social Food & Wine”, a regional project dedicated to the promotion of Piedmont, supported and funded by the Local Tourist Agency of Novara.

The Company was included in a day tour aimed at small groups of bloggers and influencers of tourism and gastronomy gathered by the Region and by ATL Novara.

The program of the last two days (December 10 and 15, 2015) included a visit to the city of Novara, a stop

by Camporelli to see where “Biscottini di Novara” are produced and a visit to Agricola Cascina Fornace in Vespolate (rice producer); the Palzola in Cavallirio (gorgonzola producer), the Le Piane di Boca winery (wine), a sausage factory and a cooking class at the Impero di Sizzano restaurant.

INTERNAL STAKEHOLDERS Sambonet Paderno Industrie directs its action towards principles of human resource management, recognizing the importance of the individual within the organizational system and considering personal involvement an essential resource to better facilitate integration between company goals and employee expectations.

Since the realization of the current production site, areas for workers have been projected, such as in internal gym with its personal trainer for workers training and a polyfunctional camp available on request for sport activities.

Internal communication and company IT applications are the basis of all projects that the Company has put in place in order to enhance internal information flow.

SUSTAINABILITY REPORT 2015 SAMBONET PADERNO INDUSTRIE

Among the projects introduced in recent years: > Intranet, an internal network for the Company, allowing files to be shared by different operators, facilitating internal communications. > News and Newsletters. Newsletters are published monthly on the website. They include news concerning the Company, fairs, products, design, catalogues and collaborations of the different brands belonging to the Group. > Greetings from Management. To celebrate the Christmas holidays, management organized a small meeting to raise a glass and share the results of the past year. The event “Greetings from Management” took place on Friday, December 18th and the Company threw a Christmas lunch party for all the staff. > Open day. On December 19th, the Company opened its doors to employees’ friends and relatives.

Over 350 people were present. Nine groups visited the internal production cycle by going through all departments on the site. > Tester Chef. Already in its third edition, this initiative allows interested employees to “test” certain products. Following its test, the product will be reviewed. This allows for a new point of view to be shared that offers new ideas and adds to the constant improvement of the Company’s production.

The focus on the local area and its community is demonstrated through financial contributions to schools, associations, local communities and parishes. Alongside national charity operations, in 2016, the Company will pay special attention to local initiatives.

Within the employee training program, the Group follows an annual formation program arranged by the various managers and based on employee need for formation and information.

For the energy certification course, held from November 24th to December 1st, 2015, an evaluation questionnaire was given at the end of the course. From this questionnaire, employee ideas and expectations to improve the business organization emerged.

The most interesting ideas: > updating and sharing of achieved goals with employees; > more collaboration between employees and the Company; > more frequent formation courses; > communication; > collaboration and union; > team spirit, feeling part of a group, common goals; > employee involvement and enhancement; > mutual trust.

For 2016, the Company has already started planning different initiatives and projects, among which: > “The idea is yours, security for everyone”. A box positioned in different points of the offices to collect ideas that would improve health conditions, safety and the work environment. > “Health project”. A project that was born from the collaboration with ASL of Novara to increase employee awareness about healthy eating habits. > “Brain storming”. Meeting with interested employees from time to time to discuss various issues. The first meeting involves social networking and online shopping enthusiasts in order to come up with new ideas concerning the strategy and operation of the company website.

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SAMBONET PADERNO INDUSTRIE S.P.A. S.R. 11, Km 84 - 28060 Orfengo (NO) - Italy T F

+39 0321 879 711 +39 0321 879 811

www.corporate.sambonet.it